A “New” Price-Setting Tool
Auctions, which go back in time to the
first bazaars, have gained new popularity in this e-commerce
age. But they may have an even more basic function than simply
selling goods and services to the highest bidder.
Consider this: Setting a price for a product is as much an
art as a financial exercise. Price it too high and customers
balk; set it too low and customers suspect the product is
inferior. Hundreds of years ago when people bid on most items
in an open market, the pricing mechanism was dynamic. But as
the modern marketplace developed, bidding became limited to a
handful of products.
The Internet is changing all
that. Web sites such as eBay and the growing number of
business-to-business online marketing sites have become the
modern-day open market. As such, they are resurrecting dynamic
pricing. Increasingly, companies are using them to gather
intelligence and pricing trends—a powerful marketing tool
that’s not to be ignored.
Extend a Cartridge’s Life
a laser printer appears to run out of toner—that is, the print
gets lighter or even starts to skip—don’t feel you have to
replace the cartridge immediately. Instead, remove the
cartridge and give it a good shake. That will give you quite a
few more print jobs.
|“If everything you try works, you’re
not trying hard enough.” |
Moore, founder of Intel.
How to Pick a Pricing Plan
faced with paying a higher up-front cost and lower per-use
rate vs. a lower fixed cost and a higher per-use rate—such as
with a cell phone pricing scheme—it’s usually best to go for
the higher fixed-rate plan. So says Dr. Eugenio J. Miravete,
an economics professor at the University of Pennsylvania. His
research indicates most buyers tend to underestimate how much
they will use a service, so it’s more economical to pay more
up front and pay less per use.
If you’re more
comfortable with computers and technology in general than your
coworkers, certainly share what you know with them and offer
to be helpful, but don’t be too aggressive about it. Some
computer techies tend to be somewhat less than tactful when
dealing with people who are more paper oriented.
nontechies have to deal with a condescending or know-it-all
colleague, they find it more difficult to get up to speed.
Yes, Please Interrupt Me
When making a
presentation, invite questions from the audience during
your talk. Don’t make listeners wait until afterwards.
Reason: While questions during your presentation do
break your flow, they are an excellent gauge for measuring
whether you’re addressing the audience’s concerns. If you’re
off the mark, the questions will help you get on track.
Bonus: Some questions may even open doors to other areas of
interest that you may want to pursue.
|An Invitation |
JofA publishes a monthly collection of
Golden Business Ideas and invites readers to
contribute their favorites (for attribution, if you
Send your ideas to Senior Editor Stanley
Zarowin via either e-mail ( firstname.lastname@example.org
) or regular mail at the Journal of
Accountancy , Harborside Financial Center,
201 Plaza Three, Jersey City, NJ 07311-3881.