![]() ![]() While the other five major publishers (which account for nearly all of Random House’s competition) have already signed on with Apple and their iBookstore, this new pricing scheme is very different from standard publishing policies. And while the company believes they will make gains this year, they are not sure that allowing Apple to control the pricing policy of their e-books is the way to go about it.Īpple’s current e-book policy is that publishers will set the price for their own books, with Apple receiving 30 cents off every dollar. ![]() Random House is a division of Bertelsmann, whose profits declined over the past year, thanks in large part to the recession. The publisher was still in discussions with their agents and authors over the decision. In the Financial Times article ‘ Random House fears iPad price war’, Random House chief executive Markus Dohle said that Random House was still reviewing their options, as they fear that Apple’s pricing policy is of an interest to their stakeholders. The iPad, Apple’s newest technological wonder, will be released on April 3 rd, just a few short weeks from now, but one thing probably missing from its advertised digital bookstore, iBookstore, will be the books from the world’s sales leader in publishing, Random House. Tags: Aggressive Competitor, Customers, Pricing, Pricing Policy, Reevaluation Put of all your skills to use by making sure that your company is running as well as it can by keeping informed and by using this constant stream of information to make important decisions on your basic pricing policies, every day. This is the central crux of this idea: stay on top by staying informed. Sure, have then inform you of the problem and the solution immediately, as it happens, but in this day of instant communication with anyone, they shouldn’t have to wait every time something changes – because something will change every day. ![]() If your employee realizes that your two major competitors have suddenly dropped their prices for a similar product to yours and that you’re going to lose any chance at a profit this quarter because of it, then enable your employees to fix that problem for you. The second part of this process is also fairly simple: empower your employees to use these information databases to implement informed decisions. If your competitor suddenly changes prices, you simply can’t wait three months to realize it – and another three months to change your pricing policies to try to take back some of your customers. While this may seem overly simplistic, information like this won’t make any difference if your company miss this because the information isn’t always available and isn’t accessible every day. Having this information is vital, as it will tell you whether your prices are working or failing you at any given point.Ī case in point here is simple: if last year’s data tells you that more people will need swimming suits in the summer and spring, push the price up in those seasons. Your computers can be set up, with even the most basic software, to run databases that can process large amount of information, from your current prices, to your prices in certain months, to your competitors’ prices. The second step is to trust that each can do their job. The first step in the reevaluation process to realize that you, as the executive or manager, have two valuable resources at your disposal: your employees and your computers. It is not enough to simply know this information once a month or even once a week in this technologically-reinforced fast -paced world, it is imperative that executives reevaluate their decisions constantly. With aggressive competitors ready to move in on your customers, a successful company needs to be constantly aware of what is going on in their markets, what they customers want, and where their prices should be. In a market where timing is everything and prices are constantly shifting, one of the main (and obvious) priorities that executives and managers tend to miss is constant reevaluation. ![]()
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