richard[WINTERS]md

Dang. What is that in farenheit? RT @gruntdoc: Okay, who left the oven on? http://yfrog.com/kev01fnj

How I missed a large tumor and how you will too: http://bit.ly/nEwrJP

This drug will cure anything: http://bit.ly/pm8a2X

I like his play on the word retrospectroscope at the end. @gruntdoc: To Admit or Not to Admit? http://bit.ly/nUyKfW

The key to fighting the price-oriented private labels is not making a knee jerk reaction to compete on price, but instead exploring other options.

• Increase the perceived value of the product
• develop new market segments that are less price-sensitive
• build stronger relationships with the distribution channels
• get rid of product lines of sizes or flavors that are not generating profits for the retailer
• invest in better customer databases and retention programs (IT)

Drucker:

Customers do not see it as their job to ensure manufacturers a profit.

Using cost increase to justify raising price generates little sympathy from customers, particularly industrial customers, because the price increase has just raised their costs, which they may not be able to pass along to customers.

There is an alternative to cutting price: you can attempt to increase the perceived value of the product. Value enhancing activities are not free, but they are usually fixed costs that can be spread over a large volume, as opposed to per unit reductions in margins.

Market Share = ƒ (Perceived Value / Price)

If there is no legal way to keep competitors out of the market, these costs must be viewed as sunk costs that do not affect decision making after the product is introduced into the market.

When costs are used as the basis for setting price, you should ask, “Which costs?” Are they costs related to marketing the product or product line, or are they costs over which you have no control? Using price as a cost-recovery mechanism can lead to a mismatch between price and customers’ perceptions of value for your product or service.

Close eyes & shoot sheep RT @davidrwinters I have to be at the range at 430am tomorrow to shoot the pistol and I can’t get to sleep.

This is what a concussion looks like. So glad to hear that Chris Horner (@hornerakg) is doing well today. http://bit.ly/pnygcb

RT @TheOnion: Paul McCartney’s Mix-CD For New Girlfriend A Little Self-Indulgent #OnionMusic http://onion.com/aXIWit

Is today Tuesday? http://bit.ly/oEYyNy

RT @TheOnion: Cyclist Friend Explains Necessity Of $35 Socks http://onion.com/cduYjO #InFocus