Pricing Strategy

Salesforce CEO Marc Benioff expressed admiration for Palantir’s growth and high revenue multiple, acknowledging its premium pricing strategy. He hinted at a possible re-evaluation of Salesforce’s pricing models. Competition between the two companies extends to government contracts. Palantir focuses on value creation, justifying its higher price points with customized data solutions, while Salesforce emphasizes competitive pricing. Palantir’s market capitalization is now at $406 billion, surpassing Salesforce’s $231 billion, despite Salesforce reporting significantly higher revenue. Salesforce shares are down 27% this year.

Apple has strategically adjusted iPhone pricing, increasing the iPhone 17 Pro’s starting price to $1,099 and introducing the iPhone 17 Air at $999. These changes address escalating input costs and tariff challenges, despite supply chain diversification. To offset the price increase, base iPhone 17 models now offer 256GB of storage. While the standard iPhone 17 and Pro Max prices remain stable, storage upgrades still boost revenue. Apple maintains consistent pricing for AirPods and Apple Watch, reinforcing brand value.

Chinese fruit retailer Pagoda (Baiguoyuan) is facing online criticism after its Chairman defended the company’s higher prices, stating they aim to “educate” consumers rather than “cater” to them. This sparked debate on Weibo, with many users questioning the pricing strategy and suggesting alternative options readily available in the market. Some consumers believe similar or better products can be found at a lower price. Pagoda maintains its commitment to quality despite the backlash.

The 2025 summer ice cream market shows mid-range options ($3-$5) dominating, capturing nearly half the sales, while premium ice cream (over $10) faces challenges. Zhong Xue Gao filed for bankruptcy, and Häagen-Dazs experienced declines in China. Value-conscious spending drives this shift, making pricing aligned with consumer power crucial for sustainability, as the ultra-premium and budget segments shrink. The mid-to-premium range emerges as the strongest force.