Author Archives: Patrick Lefler
Manifestations of innovation come in various sizes and shapes and many are the result of attempts to exploit changes in the environment. In the area of track and field, the 1960s were a period of unusually rapid change due to the introduction of high-tech, lightweight materials. And as the environment changed, innovation followed with the introduction of lightweight shoes and other equipment. But perhaps the most significant innovation during this period had nothing to do with these more obvious high-tech changes; rather, it was the result of a simple (low-tech) change in the composition of the landing pit that high jumpers used to cushion their falls after jumping. Continue reading
Verizon’s botched $2 “convenience fee” price hike for customers who pay cellphone bills over the phone or on the Internet should serve as the poster child for bad execution of a price hike strategy. Continue reading
Peter Drucker said something very similar. “Don’t confuse novelty with innovation.” And what he meant was that innovation is much more than just change. It’s all about new products or new markets for existing products, or even new ways to sell existing products in existing markets. Continue reading
This past weekend, a New York Times story written by Patrick Healy described how Broadway is adopting the newest trend in pricing models – dynamic pricing. The article – Broadway Hits Make Most of Premium Pricing – highlighted the recent success of performances like “Hugh Jackman; Back on Broadway” in leveraging dynamic pricing. Continue reading
Consumer behavior to “pay what you feel like” pricing differs greatly depending on perceptions of where the money ends up. If it covers operating costs for non-profits, we all seem to be generous in opening our wallets (with the exception, of course, for local New Yorkers who frequent the museums). On the other hand, if it covers that vacation house in the Hamptons for the owner, our wallets don’t seem to open as wide. Continue reading
The US Postal Service is back in the news. Estimated to lose billions of dollars this fiscal year, the folks in Washington are trying to find a way to keep the Post Office from going bankrupt. Both the President and Congress have decided to focus their efforts on improving the service’s cost model–allocating x for letters, y for magazines and z for junk mail. Continue reading
