Stampedes and shootings: Just another Black Friday

It’s hard to imagine why big national retailers continue to play the fools game, thinking that by discounting their prices 40-50% or more they’ll increase their profit. Perhaps they think they’ll make it up on volume. When you cut prices, the first thing that you give up is a piece (or all) of your profit. […]

Comcast: Choosing the wrong way

Comcast appears to feel that it’s a problem that their customers actually use their service. OK, that’s a little vague. More accurately, they have a problem with that small percentage who use their service *a lot* despite doing so within their (current) terms. Their new solution to this “problem” is to cut off that customer […]

Quitting for the wrong reasons

Sometimes, it’s necessary to make the decision to close a business. It isn’t easy and it isn’t something that is done without pain and suffering in some form. Yesterday in Small Business CEO, I read a story about a small business that was calling it quits due to “high oil prices and the economy” (my […]

Why do prices end in .99?

Today’s guest post from the UK offers more insight on why prices with .99 work in the US and UK and why .88 works in Asia. There are long-standing rules of thumb that advise how to set prices, but the wise business owner knows to test everything, including pricing. The only results that count are […]

Chipping away at your clients – Bad idea

During our stay in Missoula for the granddaughter’s arrival, we had the pleasure of spending the night at the Missoula Comfort Inn. When I arrived at the front desk to get a receipt for the visit, the bill came with the now-obligatory $1.75 charge for using the safe in the room. The buck seventy five […]

Would you buy $34MM for $5MM?

One of the industry-specific discussion groups that I belong to was recently discussing a $5 million fee (for three years of effort) paid in exchange for bringing $34 million worth of value to an organization. Just so there’s no mistaking the result: we’re talking about the receipt of $34 million dollars in funds. Oddly enough, […]

Southwest: Something simple in the air

Yes, it’s a play on the now-untenable “Something special in the air” that American Airlines used to use – back when they really were special. Southwest Airlines announced changes in their business model that are easy for any air traveler to understand. Click the image below to see the entire graphic from Southwest.com: Now I […]

Transparent economics. Are yours?

Last Friday, we talked about the surging rate of fuel surcharges for ocean-going containerized freight and how it will soon affect the price of imported goods. As you might expect, fuel surcharges aren’t just going up for seagoing freight customers. It’s hitting air travel customers as well. This Times UK article talks about the recent, […]