Pricing - McGraw-Hill Introduction to Business

Food Delivery Services Anger Unsuspecting Restaurants

January 30, 2020

Last weekend during a busy dinner service, San Francisco restaurant owner Pim Techamuanvivit received a strange phone call. The caller wanted to know when the delivery he ordered through Seamless would turn up since he had already waited 45 minutes for it. “I think you must be confused, because I don’t do delivery,” replied Techamuanvivit. The frustrated person on the other line then asked why her business was listed on Seamless. Upon further investigation, Techamuanvivit discovered that both Seamless and Continue reading →

Operations Management, Legal, Ethics, Product Distribution, Entrepreneurship, California, Food & Drink, Grubhub, Seamless, Pricing

Chapter 1: Taking Risks and Making Profits, Chapter 4: Ethics and Social Responsibility, Chapter 6: Entrepreneurship, Chapter 9: Production and Operations Management, Chapter 14: Product and Price, Bonus Chapter A: Business Law, Bonus Chapter B: Technology and New Media

ClassPass Grows into $1 Billion Company

January 28, 2020

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In 2013 the fitness startup ClassPass launched as a way to help gyms and workout studios fill open spaces in exercise classes. Through the ClassPass app, users can browse a list of available classes in their area and book times that fit within their schedule. They also don’t need to sign up for a variety of different gym memberships since ClassPass now partners with more than 30,000 fitness centers in 28 countries. The company’s growing global reach has attracted interest Continue reading →

Pricing, Marketing, Venture Capital, Global, Startups, Entrepreneurship, Unicorn, Fitness, ClassPass

Chapter 1: Taking Risks and Making Profits, Chapter 3: Globalization, Chapter 6: Entrepreneurship, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 18: Financial Management, Bonus Chapter B: Technology and New Media

Major Milk Processors File for Bankruptcy

January 14, 2020

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Although milk was a staple of the American diet throughout the 20th century, today’s consumers don’t drink nearly as much of it as they did in the past. In 2018 Americans each drank an average of 146 pounds of fluid milk, a category that includes everything from skim milk to heavy cream. While that’s still quite a lot of dairy, it also represents a 26 percent decrease in consumption since 2000. Along with this declining demand, milk companies have also Continue reading →

Manufacturing, Bankruptcy, Commodities, Food & Drink, Vertical integration, Dairy, Pricing, Regulation, Marketing, Product Distribution

Chapter 1: Taking Risks and Making Profits, Chapter 5: Forms of Business Ownership, Chapter 9: Production and Operations Management, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Bonus Chapter A: Business Law

Toilet Paper Startups Challenge Established Brands

November 12, 2019

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Major conglomerates like Procter & Gamble, Kimberly Clark and Georgia-Pacific earn more than $31 billion annually from toilet paper sales. But while this industry is certainly lucrative, it’s not exactly innovative. After all, one of the few significant developments these companies have made in recent decades is to sell larger rolls. Brands such as Charmin and Quilted Northern treat their products like commodities, meaning that they compete primarily based on price. By concentrating on value, the biggest names in toilet Continue reading →

Marketing, Product Development, Entrepreneurship, Branding, Manufacturing, Pricing, China, Sustainability

Chapter 1: Taking Risks and Making Profits, Chapter 3: Globalization, Chapter 4: Ethics and Social Responsibility, Chapter 6: Entrepreneurship, Chapter 9: Production and Operations Management, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution

Deepening Discounts Cut into Retailers’ Profits

October 22, 2019

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The last couple of years have not been kind to brick-and-mortar retailers: since 2017 more than 50 companies have gone bankrupt and 21,000 locations have closed across the country. Instead of heading out to stores, many modern consumers now depend on Amazon for their shopping needs. Along with providing convenience, the e-commerce giant also offers everyday low prices as well as major sales events like Prime Day. In response, many traditional retailers have started offering deep discounts in an effort Continue reading →

Amazon, Marketing, Product Distribution, E-commerce, Markdowns, Promotions, Retail, Pricing

Chapter 1: Taking Risks and Making Profits, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 16: Place and Promotion, Bonus Chapter B: Technology and New Media

New Nerf Toy Doesn’t Fire Knockoff Darts

October 15, 2019

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Each year, the toy brand Nerf earns more than $400 million in revenue by selling bright neon “blasters” that shoot rubber-tipped darts. But while the Hasbro-owned company moves plenty of blasters, it has a little more trouble with the darts. Since Nerf’s foam ammo can be easily copied, consumers often opt for cheaper alternatives rather than pay a premium for Nerf-branded darts. “We’ve had the same dart or similar dart for so many years that it’s become uniformed across our Continue reading →

Nerf, Product Development, Entertainment, Pricing, Toys, Ethics, Intellectual Property

Chapter 1: Taking Risks and Making Profits, Chapter 3: Globalization, Chapter 4: Ethics and Social Responsibility, Chapter 13: Marketing, Chapter 14: Product and Price, Bonus Chapter B: Technology and New Media

Sneaker Site StockX Grows into $1 Billion Operation

August 27, 2019

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Today’s top sneaker brands like Nike and Adidas are constantly releasing new designs in limited supplies. As a result, many “sneakerheads” often miss out on the latest styles while they’re available at retailers. That’s where resale sites like StockX come in. Unlike eBay, StockX doesn’t rely on straightforward auctions to move its merchandise. Instead, the company treats sneakers like tradable commodities that can quickly gain and lose value. For example, a pair of Nike’s Jordans could debut on StockX at Continue reading →

Clothing, Pricing, Marketing, Resale, Product Distribution, E-commerce, Footwear, Supply & Demand, Stock Market, Ebay

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 6: Entrepreneurship, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 19: Securities Markets, Bonus Chapter B: Technology and New Media

Photographers Take Advantage of Prime Day Pricing Error

July 19, 2019

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According to a press release from Amazon, this year’s Prime Day was the “largest shopping event in Amazon history.” Although the company didn’t release sales figures for the two-day bonanza, it claims to have sold more than 175 million items across 18 countries. Along with selling more Amazon devices than ever before, the e-commerce giant said this year’s Prime Day earned more than the past Black Friday and Cyber Monday combined.

During the course of all this widespread discounting, Continue reading →

Prime Day, Shopping Events, Retail, Pricing, Amazon, Black Friday, E-commerce

Chapter 1: Taking Risks and Making Profits, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 16: Place and Promotion, Bonus Chapter B: Technology and New Media

Netflix Loses Subscribers after Increasing Prices

July 18, 2019

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Earlier this year, Netflix raised its monthly rates by 13 to 18 percent across its various subscription plans. According to experts, the streaming video platform increased prices in order to ease investors’ fears that it was taking on too much debt. Unfortunately for Netflix’s stakeholders, however, the company recently announced that this decision contributed to a drop in U.S. subscribers for the first time since its launch 12 years ago.

During the second quarter of 2019, Netflix lost 126,000 customers. Continue reading →

Television, Global, Entertainment, Pricing, Netflix, Streaming

Chapter 1: Taking Risks and Making Profits, Chapter 3: Globalization, Chapter 13: Marketing, Bonus Chapter B: Technology and New Media

[VIDEO] How Subscription Services Became So Common

May 30, 2019

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From music and movies to everyday items like clothes and toilet paper, today’s consumers can order all sorts of products through monthly subscription services. But as more companies adopt this sales strategy, it’s possible that consumers could get tired of subscriptions once all the monthly fees start stacking up. This video looks at why these services have become so widespread and offers advice for consumers who feel they’ve taken on too many subscriptions.

Questions:

Why are more companies starting to Continue reading →

Subscriptions, Marketing, Pricing, Innovation, Product Distribution

Chapter 1: Taking Risks and Making Profits, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Bonus Chapter B: Technology and New Media, Videos