Someone Will Have to Cure the Hangover

Came across this article – “Shoppers Say Let’s Make a Deal” – in the April 2nd edition of the Boston Globe.  It made me think a bit about the origins of the modern pricing profession.

While it is always dangerous to point to one time as having a huge influence on the actions of very smart and creative people, indulge me for a moment.  During the brutal recession of the early 1980’s companies were scrambling for business as they are now.  Influenced by the bleak economic conditions and the mantra that came out of TQM that we must always delight the customer, companies started discounting the heck out their products.

Over time some firms realized the utter foolishness of this statement – particularly when it comes to prices.  Egged on by pioneers in the pricing field such as Dan Nimer, Mike Marn, Reed Holden, and Tom Nagle a few visionary firms started efforts to recover from the discounting binge that they had been on.  Thus was born the modern profession of pricing and along with it many of the pricing practices at influential consulting firms.

If you are a pricing professional and are concerned about your future, know hope.  In the not too distant future, the demand for your skills will skyrocket.  Somebody has to cure the discounting hangover that desperate executives are now creating.