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People in tech tend to look down on MBAs, but these are the kind of pricing decisions you learn how to make. It depends on your brand strategy, the strategies o
by philipodonnell 9y ago
People in tech tend to look down on MBAs, but these are the kind of pricing decisions you learn how to make. It depends on your brand strategy, the strategies of competing brands, the anticipated lift, your margins, your assumptions about the margins of your competitors, the advertising channels available, your ability to enforce pricing discrimination (the innocous version), the macroeconomic environment... And on and on.
There's never a right answer to "am I charging the best price", it's always a guess.
- manmal 9y agoSure, but are the MBAs really good at this, or are they not also just winging it, finding the right strategies via hit and miss? I don’t look down on them, but find them full of strange ideas and dogma that falls apart when tested in real world situations. (Just my n=1 observation, and I probably have it all wrong)
- philipodonnell 9y agoIn any discrete instance it may seem like that, but what you interpret as "strange ideas and dogma that falls apart when tested in real world situations" to a practitioner is a history of different approaches to a problem that have been tried in the past, a few standard ones that are sort of your go-to, and a huge amount of case studies and research about why different approaches worked or not and what might make it work or not again in the future. The problem always is that it very difficult for an observer to tell the difference between an educated guess and just a, like, regular guess. So I don't fault anyone for interpreting it like that.