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What your business can learn from Chilean wine

This is the next contribution to this blog by Associate Phil Newman, a London-based marketing and commercialization strategist for technology companies. Phil’s post is part of our continuing series about the ecosystem necessary to bring technology to market. We welcome your comments.

By Phil Newman

Yield management involves the strategic control of inventory to sell it to the right customer at the right time for the right price. Book your flight to New York two days before you’re due to fly and you’ll get the idea of purchasing at the top end. Rather than considering late booking as a negative, why not apply airline pricing to your business to create demand among early buyers, or early adopters?

Airline pricing is an art that has helped airlines grow revenues and price their services to align with seasonal shifts, Icelandic volcanoes and the vagaries of economic downturns. Robert Crandall, former chairman and CEO of American Airlines, gave yield management its name and defined it as “the single most important technical development in transportation management since we entered deregulation.”

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