Rob Doctors was interviewed in the Business901 podcast, The Irrelevancy of List Price. this is a transcription of the podcast. Rob is a co-author of Contextual Pricing: The Death of List Price and the New Market Reality. Rob believes that pricing decisions need to be driven by customer context rather than simple list prices. Pricing is more than just an issue of margin and production costs, but rather a complex set of contextually factors best defined as an outcome.
An excerpt from the transcription:
Rob: Apple, of course, released the iPhone, and they didn’t get 20 years of non?competition. There was already competition two years, two and a half years later. For some of their other products, the interval has been even shorter. Now, those have been very profitable brief periods of time, but considering that that’s one of the most innovative new products that we’ve seen in a while, it’s amazing how little price insulation there is.
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