The Questionable Economics of a “Good” Groupon
This article in the New York Times, plus my interview in Fast Company, got me thinking again about Groupon economics. To be clear, I’m talking here about the Daily Deal type offers, not more sophisticated customer-targeted, location-based, fill-up-empty-seats-right-now types of offers. Here’s the crux, a restaurateur describing a successful Groupon in which a consumer receives a [...]
Read moreGetting Pricing Right Doesn’t Fit Into Soundbites
Operators understand very acutely the effectiveness of price changes – after all, nothing else in the business can impact the bottom-line so directly. Despite this appreciation for the importance of pricing, the sophistication by which most companies manage prices is woefully inadequate. Industry pricing “leaders” comment on the problem frequently, revealing “we should remind our [...]
Read more