GM reported a record $7.6 billion profit for 2011.  Politician’s hailed this is as proof positive that the bailout worked.  Is it truly a cause celebre? Read the rest of this entry »

In her Entrepreneur.com article “Seven Ways to Avoid Competing on Price,” Carol Tice cites a WSL/Strategic Retail study that shows that “86% of customers no longer believe that Walmart has the lowest prices.”  What implications does that have for Walmart’s future?  How can you use this information to your advantage? Read the rest of this entry »

In the early years of my consulting work I picked up a client that had been losing money for two consecutive years and was experiencing severe cash flow problems.  They were using cost plus pricing.  What went wrong? Read the rest of this entry »

CEO Ron Johnson rolled out a new plan for JCP that includes:

• Updating its stores
• Focusing on brands that ‘can’t be found elsewhere’
• Reducing it’s prices by 40% or more on all merchandise

These are bold moves, will they succeed? Read the rest of this entry »

A recent Washington Post/Bloomberg Business article stated that Hormel Foods fourth quarter 2011 profit slipped 3%.  Price increases were blamed for lower sales volumes.  Tyson Foods experienced a similar fate with its fourth quarter results.

Does this news fly in the face of my September 19, 2011 post Higher Prices = Lost Customers? in which I cited business owners whose price increases resulted in growth in their customer bases? Read the rest of this entry »