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News & Press: Events 2012

Pricing for Profit by Marco Bertini

12 November 2012   (0 Comments)
Posted by: Reka Lenart
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Please watch the event clip here.




Stephan, Agustin and SimonMayumi and RieAndrew and Marco
 

ALTO chose to invite a pricing expert to present at its last event of the year and Marco Bertini impressed all with his succinct yet broad-ranging analysis of the politics of price.

Using many real-life examples of pricing genius and catastrophe drawn from various countries around the world, Bertini compelled delegates to consider the folly of basing marketing around price and only price.

In a saturated marketplace such as language travel, brands need to take care not to use price as a positioning statement, he counseled. "If the industry gets too commoditised, it doesn’t help anyone.”

Bertini also provided fascinating examples of how in some industries, a radical rethink of what you are charging customers for has happened. In the dynamite industry, faced with a cheaper Bolivian competitor, a leading dynamite brand started charging based on the size of fragments created rather than per dynamite stick – emphasizing its greater effectiveness in explosions.

What should language schools charge for – the week’s tuition? Or the outcome or experience, he challenged?

When it comes to managing price competition, Bertini was clear that a price war rewards no-one, and that a customer will always expect the same "one-time” discount that they have received previously from a company trying to match the competition on price. "It takes five minutes to reduce your price and five years to raise it,” he said.

Instead, Bertini gave other examples of how some supermarkets manage the discount game – creating their own "low-budget” range. And he provided insight into shopping habits too… customers may be happy to "trade up” when they can, happily spending on a deluxe handbag and economizing in other areas to offset the cost, for example. So the ideal was to offer two products covering both low and high cost bases.

And the way price is presented has to be considered: Overall, price had to be presented to be an incentive, convey information about the product at the same time, and to stir emotion. A great promotional example was a successful "super summer” campaign for discounted holidays that encouraged early booking, was only applicable to parents and made them feel rewarded (the ad played on a superhero theme) for saving the family summer holiday.

Delegates responded warmly to the session, resulting one of the highest scores amongst ALTO guest speakers with 92% of the audience rating Marco excellent or very good. Please log in to the members’ area on the webpage where you can download Marco’s slides and watch the whole seminar under Document Store menu item. As a taster, please watch our short interview with Marco here.

We look forward to seeing you at our 2013 events, more details on speakers will be announced soon. 

 




Declan and AdrienneMarco BertiniLinda and Paul