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Pricer’s Points | December 2014

The “Pricer’s Points” blog series provides a forum for pricing professionals to share their insights and experience. Our guest bloggers share their knowledge about specific product or industry challenges, geographic complexities, strategies, tactics, and technologies.


This Edition is Sponsored by:

Asia Pricing Professionals

Asia Pricing Professionals (APP) is a not-for-profit community of pricing management practitioners. Our key objective is to raise the profile of pricing management in Asia through:

  • Organizing formal and informal meetings where we discuss the latest trends and challenges in Pricing
  • Sharing industry specific knowledge related to pricing management with interested parties
  • Building a network of industry pricing experts who are easily accessible

Click a link below to learn more…



Pricer’s Points: Your sales force is the most important part of your pricing strategy | Jesper Hansson – CPP

Pricer’s Points: Your sales force is the most important part of your pricing strategy | Jesper Hansson – CPP

The world is full of amazing people with amazing abilities to develop incredible products and still you will often see that some of these products are not really successful when they are launched in the market.

One example I saw about 20 years ago, was a building services product, which was developed to save energy. The company developing it had chosen to focus on sustainability and electricity savings and the product they developed was unique in that sense. It was top quality and had an expected life time of 15 years. Although it was launched at a price point 50% above a conventional comparable product, it would pay itself back in less than 5 years in electricity savings. It had all kinds of ‘bells and whistles’ on it but surprisingly it was never really the sales success it deserved to be. Some said it was because the market place was not ready for the technology yet but I don’t really buy into that. The product was amazing, so it was not because of the product. Was it because it was launched at a price, which was too high or was is the brand? No, I don’t think that was reasons either. So, where did it all go wrong and how could the company have done it differently?

I’ll try to illustrate it by using Porter’s value chain as starting point.


Pricer’s Points: Rules When Online Shopping Fails | Rocky D’Adamo

Pricer’s Points: Rules When Online Shopping Fails | Rocky D’Adamo

For the last 8 years my Christmas shopping has been a breeze. I always received great deals and was pretty much finished in 1 day. This is shocking and envious for some. My parents always had a bad habit of waiting until the week before Christmas to out to Woodfield Mall and fight a crowd of 8,000 frantic parents playing tug of war for the tickle me Elmo until Elmo’s poor arms ripped off. I sat in my comfy office chair and laughed thinking I found the secret; I found the Holy Grail for all my Christmas Shopping. I can use one word to describe my genius: Ecommerce. I sat on my high horse and judged anyone too foolish to use the internet for their Christmas shopping. I took Black Friday by the horns, wrestled it to the ground, and told the world I am a better shopper than Kim Kardashian’s stylist…Then it happened. After 8 years of flawless online Christmas shopping I received that crazy email you only hear about on the likes of Fox News or even Good Morning America. My entire Christmas Order was CANCELLED! The reason? Well after calling the customer service number listed online and talking to two different folks over the phone, the best they could come up w/ was “Well, UPS didn’t pick up your order from our warehouse. We accidentally took the items out of the box and re-stocked everything. Now we are out of stock on all but 5 of the items on your original order.” Over the last two days I learned a few valuable lessons in Online shopping and when it goes wrong that I would love to share:

Pricer’s Points: Boost your Profits with a Submarine Warrior’s Lesson | David Mok

Pricer’s Points: Boost your Profits with a Submarine Warrior’s Lesson | David Mok

The U.S. Navy’s nuclear submarine is one of the most modern, efficient and effective weapons in the military arsenal. Submarines are the cornerstone of the Navy’s conflict avoidance and resolution. Attack submarines or hunter-killers, which I served on, are specifically designed for the purpose of attacking and sinking other submarines, surface combatants and merchant vessels. Furthermore, they conduct surveillance & intelligence, land attacks (with cruise missiles), and special operations missions. It is powered by harnessing the thermal energy released by splitting the nucleus of atoms. Naturally, the officers who man these ships are held to the highest standards and have extraordinary roles and responsibilities, leading crew members on some of the most technologically advanced equipment in the world.

Early in my naval career as a junior officer aboard a Los Angeles class attack submarine, I stood 6-hour engine room watches every 3rd or 4th shift as Engineering Officer of the Watch (EOOW). This involved supervising an entire engineering watch team ensuring the safe operation of propulsion, electrical, and nuclear reactor systems. A normal routine during the watch is touring the engineering spaces looking at watch standers’ logs for abnormal machinery trends as well as anything that might be out of the ordinary. You see, addressing a small problem early in the making is far better than unintentionally . . .

Pricer’s Points: The 5 biggest challenges in pricing in Asia | Jesper Hansson – CPP

Pricer’s Points: The 5 biggest challenges in pricing in Asia | Jesper Hansson – CPP

I was part of a discussion recently about where I see the biggest current challenges in pricing in Asia and it inspired me to share my views with you in this blog.

When it comes to developing powerful pricing strategies and well-oiled pricing departments, Asia is still behind both North America and Europe. There is no doubt in my mind that North America is the leading example for everyone when it comes to understanding the value of a solid pricing setup. Europe started playing catch up to that years ago and things are developing fast here in Asia now – but Asia is behind both North America and Europe. We all know however that once something gains a foothold in Asia, the Asian Tiger mentality takes over and things starting moving fast and when it comes to pricing it is no different.

Where I still see lots of organizations struggle in Asia and it might not only be in Asia, but I will leave you to comment on that after reading this blog, is:

1. Pricing is still widely based on cost or competitor pricing and not on value

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