Sell My Wine ’s Post

Dynamic pricing may include logic to adjust price in response to imbalances between supply and demand which could result in “Surge pricing”, but to call it surge pricing is to focus on the most negative aspect to the consumer. It also depends on how prominently changes in demand influence the change in price compared to other price drivers and whether there are robust caps in place to prevent usury level pricing.

🧠 Understanding Asymmetric Cross-Price Elasticity: The Nuances of Pricing Strategy 💸 In the world of dynamic pricing, we often focus on price elasticity—how the demand for a product responds to changes in its price. But there's a hidden layer that many overlook: asymmetric cross-price elasticity. 🔍 What’s Asymmetric Cross-Price Elasticity? It’s the nuanced way demand for Product B (say, pastries) can respond differently to price changes in Product A (coffee), depending on: - The relationship between the products (substitute vs. compliment) - The direction of the price change (increase or decrease) 📊 Here’s how it plays out: Price Increase of Product A - If substitutes: Demand for Product B increases as customers switch (positive cross-price elasticity). - If complements: Demand for Product B decreases with fewer paired purchases (negative cross-price elasticity). Price Decrease of Product A - If substitutes: Demand for Product B decreases as Product A becomes the preferred option. - If complements: Demand for Product B rises as more bundles are bought. 💡 This phenomenon is crucial because demand responses aren’t always symmetrical! Consumers may react strongly to price decreases but less so to increases—or vice versa—depending on factors like budget constraints or perceived value. 🔗 Why It Matters Asymmetric cross-price elasticity can reveal valuable insights for fine-tuning dynamic pricing strategies. Whether boosting profits or optimizing inventory, understanding these shifts helps brands adapt to real-time market behaviours and predict more accurately. So, consider cross-product relationships and price directionality next time you build a pricing model. This deeper insight can make all the difference in delivering the right pricing strategy. https://lnkd.in/ggZ4pFvt

Many private collectors and enthusiasts wish to receive our exclusive ''trade priced'' offers, which are typically 10%-30% below our retail website prices. As a trading business and stockholders, handling millions of pounds worth of fine wine stocks annually, we like to turn around stocks quickly, and make cases appealing to the trade and savvy private collectors looking for exceptional deals, well under cheapest Wine Searcher prices. Payment needs to be prompt (within 14 days), and we don't accept credit cards at trade prices (bank transfer only). In order to offer at these pricing levels, we strip out as many trading costs as possible (like credit card fees), making us truly ''no frills'', undercutting larger competitors with much bigger overhead. We then pass these savings on to our customers accordingly. Contact us at [email protected] for any buy/sell enquiries, or visit https://lnkd.in/dzNXVEK for current stock offers. Remember – Our direct email trade offers are significantly lower priced than our visible web prices! Like the sound of heavily discounted fine wine prices? Sign up to receive them direct to your inbox here! https://lnkd.in/f3g5tPw

On Sinterklaas 🎁 , as is our way, We share our update in rhyme today. The dairy market’s twists and turns, Provide the fuel for what one learns. In the dairy market, a tale to unfold, Prices are shifting, but not as foretold. Liquid trades dipping, though not as we'd thought, Cream holds its ground where lower was sought. Raw milk has tumbled, below fifty cents, SMC's steady, though trades on the €2100,- fence. Cream slips below ten thousand, an important price mark, Yet the plunge isn’t hitting the market as stark. Butter quotations, a fiery debate, Dutch and French prices are in quite a stalemate. Eleven hundred apart, a notable gap, One too high, one low? A market mishap? Dutch claims reflect what brokers now see, Butter trading ‘tween 68 and 73. But German and French marks can't be ignored, Fresh butter is pricey, while frozen’s floored. So we agreed, as brokers might dare, To honour perspectives, both from the bull and the bear. In dairy, a dance of truths will reside, As markets adjust and partners cant hide. In the cheese market, a somber tone we hear, Sellers scarce, as weaker trends appear. Stocks are building, demand remains low, Mozzarella bids and offers are both under four euro. Buyers play a waiting game, unseen, Partners predict their return next year, serene. Until then, prices may decline, As the market seeks a steady line. SMP prices dropping, a concerning sign. Offers below twenty-five hundred stand, Yet bids are scarce across the land. With markets inactive and SMC cheap, Stockpiles grow, expectations steep. The outlook for SMP remains grim, Although further decreases seem to dim.  But a rebound soon appears unlikely, As buyers wait, observing quietly. The market's weight feels heavier still, Navigating through this downturn's chill. For those in need of guidance true, Get Fair Dairy stands here just for you. With healthy insights, pricing fair, And partners trusted, beyond compare. We bridge the gap, we build the way, To brighter markets every day. In dairy's world, you’re not alone, With Get Fair Dairy, you're helps strong as stone!  

Skinny Profit! A potential client's took over a unit that is doing very well; service experience is on point, taste profiles is decent (room to grow here), cover count is very good, stuff productivity levels are good (labor cost is below 20%, yes we're talking percentages here just to land a benchmark Jim Taylor), yet profit margins at the end of the month is lower than expected. What Gives? I asked to look at the menu. I asked to look at invoices of frequently purchased products. Since taking over form previous owners, product inventory, costing and pricing was not reviewed. Using grams/mililiters + wastage percentages as base costing is leaving potential profitability on the table(s). Comparison shop vendors without sacrificing quality is key here, combined with proper and strategic pricing. Clients' first reaction is to raise prices. I said no....certain numbers on a menu can be psychologically damaging to loyal guests and customers. Solution: Sourcing review. Increase average check by adding an item on the menu that is easily sellable with high margin. Artisanship; potentially producing popular items in house, such as, bread products. Explore data and don't leave money on the table whenever possible. #fbdata #restaurantdata #datasaves #workdifferently #theoldwayisbroken

Five questions to determine if discounts are real… 1) How long was the product on sale at the higher price compared to the period for which the price comparison is made? 2) How many, where and what type of outlets will the price comparison be used in compared to those at which the product was on sale at the higher price? 3) How recently was the higher price offered compared to when the price comparison is being made? 4) Where products are only in demand for short periods each year, are you making price comparisons with out-of-season reference prices? 5) Were significant sales made at the higher price prior to the price comparison being made or was there any reasonable expectation that consumers would purchase the product at the higher price? https://lnkd.in/gZYEEN9t

How a Major Coffee Chain is Adapting to Changing Consumer Behavior I was discussing with my colleague, Gilroy Britto, about a major coffee company selling coffee with a food item for $5 (commonly known as bundling) for the first time in May’24 after the poor Q2 performance. I asked him why they were doing this, and he explained that the customers were unable to identify value in their products. In response, the company is introducing these pocket-friendly combos to address this issue. As a finance professional, I delved into the investor relations section of the company's website and found that Q2'2024 sales were down by 2%, and global comparable store sales had declined by 4%, driven by a 6% decrease in transactions, partially offset by a 2% increase in average ticket size. The introduction of these combos, a form of "bundling," is a surprising move for coffee house. Historically, the coffee chain has focused its marketing on the quality and variety of its products rather than pricing. This move makes me reflect on how consumers are adjusting their spending due to inflation, economic uncertainty, and lower income levels. What are your thoughts? #Finance #Marketing #ConsumerBehavior #EconomicTrends #BusinessStrategy #Restaurants #CoffeeIndustry

You may not remember the days of nickel candy bars. I do. Just a couple of days ago my wife asked for a Hershey’s Chocolate bar, with almonds. They were sold two for $5.50 at the local Wawa convenience store. In this case the bars were probably a little larger than what would be considered the standard size so perhaps not a good example of “shrinkflation” but a single bar today is 55 times more expensive today than it was when I was a kid. According the to the Hershey Archives the company “began marketing its standard size chocolate bars for a nickel ($.05) in 1900, setting a standard for the United States confectionery industry that continued until 1969.” I found it interesting that in 1969, the challenge facing candy manufacturers was that vending machines were calibrated to accept nickels and raising the price to a dime required a creative solution to adapt to available technology. The costs of raw material have risen along with labor and fuel. All are contributing factors that influence the need to reduce quantity without raising price. In the current environment freight, packaging, insurance, factory consumables also factor into your pricing decisions. Has your business been faced with a challenge that includes any of these increases? How have the increases impacted your working capital? Is it worth a conversation to find out if there is some relief available? Call me - 610.952.9304 #cpg #manufacturing #inflation #packaging #strategicplanning

🍷💼 Transform inventory planning into savings by optimizing stock levels. We understand that the beverage alcohol industry often grapples with the high costs of holding too much of the wrong product. Our advanced tools and precise forecasting capabilities help ensure you maintain optimal inventory levels, reducing costs by up to 10%. Learn how to cut costs and enhance efficiency with us. Visit https://claret.la/4bSCj5f #InventoryManagement #BevAlc #SupplyChainEfficiency #ClaretSolutions #AIinSupplyChain

Pre-weekend challenge: a 0.5L bottle of Lech beer costs $4.39, but a smaller 0.3L bottle is priced at $4.85. 🤯 What’s going on here? 🤔 After some thought, it’s clear we’re looking at a classic pricing mix-up: ➡️0.5L Bottle: This is likely their "image product" — priced aggressively to match competitors and draw customers in. It's all about that shelf appeal. 📊 ➡️0.3L Bottle: This seems to be a "long tail" item. They’re banking on higher margins here, possibly assuming it’s less price-sensitive and more of a specialty buy. 📈 So, what can we learn from this⁉️ 🔢Align Your Pricing: Make sure different sizes or variations of your product don't leave customers scratching their heads. Consistency is key to maintaining trust. 🔢Understand Value Perception: Why would someone pay more for less? Always weigh the perceived value customers get from each product size. Does the smaller size offer something extra to justify its higher price? 🔢Keep Tabs on Competitors: Regularly check and align your pricing strategies against the market. Staying competitive is crucial, but don’t let it erode your margins unnecessarily. Have you encountered similar pricing dilemmas? How do you approach resolving such conflicts in your pricing strategy? I invite you to share your insights and experiences in the comments below⬇️ Maciek Winnicki thanks for your photo! Have a great weekend! 🍻🍺 ----- 📢 Curious about navigating the dynamic world of pricing and staying ahead of the curve? Hit the 🔔 icon and follow me to receive timely updates on pricing strategies, industry trends, and more!