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It used to be accepted wisdom that you don't mess with your pricing too much. You don't tweak the tiers. In a 2015 HBR piece called "The Risk of Changing Your Prices Too Often," Rice University Professor Utpal M. Dholakia noted that "customer reactions to cavalier pricing actions may make quick fluctuations unproductive at best, and inflict lasting damage to a company's bottom-line at worst." Fair enough. But since that article was published, Netflix has gone from $8 to $25, and they don't seem to be suffering any lasting damage to their bottom line! In fact, these days most big companies seem to be updating their pricing at least once a year. So what should you do? | | |
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