JMI, how do pricing strategies unlock competitive advantage?
Well, they unlock it in two ways. One, pricing is really a
good way to enhance your revenues and for most companies
we work with, you can drive 3 to 6% of your revenues down to the
bottom line. We have a good pricing strategy. Now how do you
do that is usually by thinking strategically and not by just
moving your prices around. Moving your prices around can
change your revenues by 1 or 2%. If you really change
the way your pricing model works, for instance by
unbundling the way airlines did a few years ago, you could
really get to the three to 6% that I just was mentioning
earlier.
Thank you so much.