one point summary of the entire course (pricing) :

99% of businesses are not charging / segmenting / price discriminating enough, are leaving money on the table, and need to raise their prices.*

The professor made sure that every lecture, case, discussion we had basically led to this conclusion–that if your customers aren’t sufficiently price insensitive, then you’re doing it wrong, and need to re-evaluate your value proposition.  Sure, in an ideal world, but it is a rather snooty universal position to take…there are plenty of industries out there that depend on razor-thin margins to survive. I wonder if the message in the course is somehow catered to the white collar industries that most Sloanies are drawn to. Or catered to the types of leaders that Sloan is trying to develop.

* selected rationale { Profit margin is more important than volume (companies are generally too optimistic about sales projections)…Customers use price to gauge value, so it is to your advantage to price high…Unprofitable firms need to raise prices strategically to become profitable….Profitable firms have a loyal customer base that they can segment and then raise prices to extract more value…Never use network effects as an excuse to price low, because they might not exist…Don’t assume you have lower prices to fill capacity – it can be better to price higher and have extra capacity…Don’t engage in price wars – differentiate yourself instead!. }

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