Most companies spend hundreds of thousands of dollars and invest countless hours in research and development, distribution, and marketing strategies to bring a product to market. But when it comes to setting a price for their product, many companies drop the ball. Most managers aren’t comfortable setting prices, and a lot of times critical pricing decisions are made by using the method of “this is the way we’ve always done it” or it’s “just like the competition’s” (Mohammed 23). Rafi Mohammed, author of The 1% windfall, feels that this strategy causes companies to shortchange themselves everyday.

Illustrating the power of pricing, a study of the Global 1,200 found that if companies raised pricing by just 1% their average operating profits would increase by 11%. By following several guidelines, companies can create a comprehensive pricing strategy for any product or service. Better pricing is more than simply raising prices. Instead, Mohammed contends the key is to offer customers a variety of pricing options. This in turn is a win-win strategy providing profits to companies and choices for consumers. …Read more

Posted in: Insight   |   Tags: Advertising, Agency, The 1% Windfall

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Whether you’ve accepted it or not, we now live in an extremely digital world.  Six Pixels of Separation by Mitch Joel touches on why it’s important to understand the many new online channels and describes different ways that businesses can take advantage of them.

You’ve most likely heard about the concept of Six Degrees of Separation, the idea that we are all connected through fewer than six degrees.  While the theory has been around for ages, it is no longer relevant in today’s world.  The degrees have since been removed as a result of the Internet, the many online social networks, and new media tools.  Everyone is now connected.  It’s no longer about who you know, because we all now live in a world where we can choose to know everyone, and everyone can choose to know us.  “We are all a click (or a pixel) away from one another” (Joel 4). …Read more

Posted in: Insight   |   Tags: Advertising, Agency, Six Pixels of Seperation

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Situation
Planet Fitness owns and operates 18 gym locations in Central Florida. Their unique business model, which features a no-frills gym membership for $49 down, $10 per month and no commitment, had seen moderate success.

While Planet Fitness historically sees the largest increase in membership during the month of January, there was concern that the economic downturn could have a negative effect on 2009 sales. The agency was charged with developing a promotion to boost sales at the beginning of January to offset a likely slow year. …Read more

Posted in: Insight, Work   |   Tags: Advertising, Agency, Planet Fitness

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