Unconditional price discounting permanently resets customer baseline pricing within six months
Madhavan Ramanujam · The art and science of pricing | Madhavan Ramanujam (Monetizing Innovation, Simon-Kucher) · Dec 8, 2022 · at 1:29:30
Madhavan Ramanujam, pricing strategist and partner at Simon-Kucher, explains why companies should offer de-featured product tiers during downturns rather than direct price cuts.
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“If you just discounted price guess what's going to happen? Six months later, that's going to be your new price. So before you price discount, Think about what value can you exchange to actually justify that price discount. So you're taking value away in a de-featured product and hence you can discount.”
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