Marketing
fromEntrepreneur
1 day agoHow to Price Your Product Like the Last Unit Sets the Market
The highest-cost marginal customer determines market price, not averages; focus on scarcity and the last unit for effective pricing.
Kantar's codebase was legacy old. The kind of technical debt that isn't a line item on a sprint board but a structural reality that shapes every decision the company makes. Rebuilding the architecture to support what I'd designed would have cost more than the organization was willing to invest, regardless of the Barilla deal sitting on the table.
Heat looks like validation, and validation looks like safety. It is hard to ignore a sector when customers start leaning forward at the same time investors do. Still, the more cycles I have lived through in competitive technology businesses, the more I see heat as an optical illusion. It sharpens whatever is easiest to notice and blurs the underlying mechanics that determine who or what holds control.
"Instead of starting with a product that we didn't feel like existed in the marketplace, we started with a mission that we felt like didn't exist, particularly in the beauty space," Cohen said. "We love that young people are turning to brands for not just products, but for the issues that they care about-and also that's what holds us accountable."
We're still increasing pricing based on the most up-to-date tariff announcements from India and the U.S., because it's not going back down to zero. It's still elevated. The cost of our goods has also shot up, because gold has almost doubled since last year.
Markup is how much you add to your cost to get your selling price. If something costs $10 and you sell it for $15 , you added $5. That's a 50 percent markup on your cost. Where people get confused is that markup isn't the same as margin, even though the terms get used interchangeably all the time. Margin measures profit as a percentage of the selling price, and markup measures it based on your costs. Same dollar, different percentages.
Performance has always been the foundation of commerce media because it tied spend to measurable behavior. From sponsored search to sponsored products, the category scaled by delivering outcomes that could be directly attributed to transactions. Automation, AI-driven optimization and closed-loop measurement accelerated that model and made outcomes-based buying the norm. Outcomes still matter. But as AI reduces friction and increases competition, outcomes alone no longer create separation.
Discounting has been part of retail's toolkit for decades, and it can be effective, especially during high-stakes shopping seasons. But as promotions become more frequent across the industry, companies are taking a closer look at the downside: Short-term sales gains don't always come with long-term loyalty or durable margins, and customers remember how a brand made them feel far more than what they saved at checkout.
Intent arbitrage means capturing a buyer's interest before they even start evaluating competitors - and thanks to AI, this capability is available to every business. AI detects emerging intent by processing millions of data points and continuously monitoring intent signals, letting companies respond faster than traditional, reactive demand-generation methods. Turning early intent signals into a competitive advantage requires leadership buy-in and coordination between marketing, sales and product teams.
Any thin hope marketers had that 2026 might calm the turbulence of last year didn't survive January, as political shocks, platform upheaval and fresh economic jitters piled new uncertainty onto an already fragile market. Nobody expected serenity to be clear. The hope was for a more predictable kind of chaos: slower regulatory fights, fewer sudden platform pivots, and an economy drifting rather than lurching.
If you're trading XYZ company stock, you don't get "good" or "bad" shares, they're all the same (unless they are clearly marked as different e.g. preferred versus ordinary shares, etc). We know from the viewability discussions alone, that this is far from the case in media. There are many, many formats, every page is different, every ad unit behaves differently.
Marketers spend billions trying to persuade consumers that a product is right for them. But our research shows that sometimes the most effective way to market something is to say that it isn't for them. In other words, effective marketing can mean discouraging the wrong customers rather than convincing everyone to buy. We call this "dissuasive framing." Instead of saying a product is perfect for everyone, a company is up front about who it might not be for.
Key stat: 54% of US marketers plan to fully implement their generative engine optimization (GEO) strategy within three to six months, according to September 2025 data from Scribewise. Beyond the chart: Use this chart: Drop this into your next digital strategy review to show stakeholders the GEO timeline pressure. Use it to benchmark your team's implementation plans against the majority.
As prices climb, shoppers aren't just spending less-they're spending differently. Nearly half are buying smaller quantities or trading down to lower-cost options, such as canned fruit instead of fresh, according to Capgemini's report, "What matters to today's consumers 2026." It's not about cutting things out entirely-it's about making budgets stretch. Low- and middle-income households are especially deal-focused right now: more coupons, more frequent but smaller trips, and fewer meals out.