Focus on: The Right Price

What is the right price for your product or service? From pricing a product to acquiring a firm, setting the price too high — or low — can lead to problems such as underpricing or overpaying. In this issue, the co-academic director of Wharton's Pricing Strategies program examines a few common mistakes and their antidotes. Then, a leading M&A expert from Wharton's Mergers and Acquisitions program explores why acquirers often overpay in the heat of the moment.

We also have a link to a new Podcast of an interview with Houston NFL linebacker Kailee Wong, discussing the challenge of becoming an instant millionaire, and we offer a free chapter of a new book on "moral intelligence" from Wharton School Publishing.

Finally, we take a look at the "priceless" insights from our upcoming executive education programs.

Sincerely,

Michael McTigue
Director, Marketing Communications

© The New Yorker Collection 2001 Peter Steiner from cartoonbank.com. All Rights Reserved.

Thought Leaders
Pricing Mistakes and Their Antidotes

Z. John Zhang, academic co-director of Wharton's Pricing Strategies program, examines several common mistakes in pricing products and services and offers antidotes. More

In The Classroom
The Heat of the Moment: Why Do Acquirers Overpay?

The recent bidding war in medical devices between Boston Scientific and Johnson & Johnson for Guidant Corp. — which ended with Boston's $27 billion offer — once again raises questions about the dynamics of high-profile negotiations. Why do acquiring firms often pay too much? In Wharton's Mergers and Acquisitions executive education program, Professor Harbir Singh discussed some the reasons why some deals seem to reach irrational prices and ways to avoid overpaying. More

Podcast: Knowledge@Wharton
The Instant Millionaire — What Should an NFL Player Do?

Professional athletes face unusual challenges related to financial management, especially since their peak earning period lasts a relatively short time, often just a few years. In a new Knowledge@Wharton Podcast, Kailee Wong, linebacker for the Houston Texans, discussed this challenge with Ken Shropshire, professor of legal studies and business ethics and director of the Wharton Sports Business Initiative. Wong attended an executive education program at Wharton co-sponsored by the NFL and NFLPA. Download

Wharton School Publishing
Moral Intelligence

There is a powerful correlation between strong moral principles and business success. In this new book published by Wharton School Publishing, two globally respected leadership experts illuminate that connection, define the specific competencies that comprise "moral intelligence," and show exactly how to promote it throughout your organization. Drawing on extensive original research, Douglas Lennick and Fred Kiel demonstrate how the best performing companies have leaders with a strong moral compass and the ability to follow it — even in a world that may reward bad behavior in the short run. Please click here to read Chapter One of this latest book by Wharton School Publishing.

Education à la Carte
The Price of Ignorance

Lack of knowledge can be costly, in underpricing products, overpaying for acquisitions, or leaving money at the negotiating table. Upcoming Wharton programs can help increase your knowledge to help you name your price:

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Upcoming Programs:

Pricing Strategies: Measuring, Capturing, and Retaining Value
April 23–28, 2006

The CFO: Becoming a Strategic Partner
April 30–May 5, 2006

Leading the Effective Sales Force
May 1–5, 2006

Of Special Interest  

Related Stories in Knowledge@Wharton

What Consumers — and Retailers — Should Know About Dynamic Pricing

Choosing the Wrong Pricing Strategy Can Be a Costly Mistake

The Art of Walking Away From the Deal

Why Do So Many Mergers Fail?

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