Daily Archives: April 2, 2014

Adam Jones

Free business school case study in every box (Dreamstime)

Altering prices is a delicate art. When Pixar was a hardware maker in the 1980s, for instance, it realised it was charging too much for its computers. Yet a price cut failed to dispel its reputation for hawking excessively pricey kit. “The first impression stuck,” recalls Pixar co-founder Ed Catmull in his informative new book, Creativity, Inc.

But this does not mean that it is impossible to raise or lower prices successfully. The decision by Amazon to increase the price of its Prime delivery service in the US last month could be a case in point.

Pricing strategy consultant Rafi Mohammed has praised the way Amazon went about increasing the annual Prime charge from $79 to $99. Read more