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Pricing News Daily > 7/11/14

Pricing News Daily is a digest of top pricing strategy in the news, strategy expert and technology leader’s thought leadership, industry news and events, and resources for pricing professionals.

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Today’s Headlines

The Worst Kind of Customer… | The Sales Hunter

They bought on price, not on the solution you’re providing them. This low-price customer is now going to badger you and your customer service team and everyone else for days, weeks and months over what they bought.  In the mind of this low-price customer is the belief they can push anyone enough to get what […]

Pricing Strategy for Business Success | Lead Investor

Potential customers trade off perceived attributes with price. Because the features of the alternatives are often similar, small differences in price can swing a purchase decision. In the world of pricing, this is where the leverage is. Not only is the “Which one?” decision most commonly the last decision the customer makes; it is also […]

Compilation – Consumer Inferences and Processing of Price Information | American Marketing Association

Selections from Journal of Marketing​ June 2014 | Pricing The importance of price with regard to consumer store and brand choice decisions cannot be overstated. However, a widely known truth among marketing practitioners and academics alike is that consumers do not respond to price per se; rather, they respond to their mental representations of price. Thus, […]

Five ways to improve customer engagement | Institute of Grocery Distribution

It comes as no surprise to see that the number one retailer priority in this year’s IGD trading relationship survey was price and promotion. The difference this year was that 84% of retailers rated it as their number one priority, the highest we’ve seen. In a number of markets, especially in western Europe, this result […]

Discussion: Uber agrees to new national policy that will limit surge pricing during emergencies

The Verge Article The taxi app falls in line with numerous laws that consider dynamic pricing during storms to be illegal price gouging Uber is well known for using a dynamic model it calls surge pricing that adjusts the cost of a fare based on supply and demand. The company’s CEO, Travis Kalanick, has defended this practice, […]

Webcast: Learn How Strategic Pricing Tools Can Help You Increase Prices and Margins Without Losing Sales | SPA

Tuesday, July 15, 2014 2:00 PM Eastern Register to attend our webcast that starts at 2:00 PM EST where an SPA Client will share their journey to pricing excellence and how they are leveraging science-based strategic pricing tools to increase prices and margins without losing sales. To help maximize profits, they turned to SPA to […]

Pricer’s Points: Why the Amazon Fire Phone price isn’t cheap. | Matt Burnett

It’s been about three-weeks since Amazon unveiled its first smartphone to the world: the Fire Phone. Now the dust has settled it’s possible to try and understand exactly what Amazon is trying to achieve with the Fire Phone pricing. Some commentators have criticised the company for not doing what it’s done in the past with the […]

Ajit Gupta – How to Compete on Price Without Sacrificing Profitability | WSJ

The enterprise cloud market is locked in an old-fashioned price war. Until recently, Amazon has owned the market, but Google, never one to take a backseat, is attempting to snatch away Amazon market share by lowering prices. Amazon has responded by slashing its prices by as much as 40%. Large companies like Amazon, Google, and Microsoft have the […]

Samsung’s Race To The Bottom | TechCrunch

It’s happened before and it’s happened again – a popular commodity appears and is remade in so many permutations and from so many manufacturers that the differentiation ultimately focuses on price. When this happens, the small players sneak in with cheap hardware, the big players stumble and try to buoy sales with higher-end models (an […]

Price war expands – analytics undergo new pricing strategies | FierceBigData

Under the new packaging structure, MicroStrategy says its full feature set, previously split into 21 discrete offerings, has been reduced to four simple packages for developers, analysts, power users, and consumers so they can “take advantage of the comprehensive MicroStrategy platform with simplified value-based pricing.” The company is also offering free upgrades to premium capabilities […]

Best Buy’s Transformation, Part Two – Ignite the Possible | Retail News

Best Buy has not only increased pricing competitiveness, but also implemented a low price guarantee that has allowed it to turn the issue of showrooming on its head. With traffic generating and customer experience initiatives that drove a 20% online sales increase the retailer proved its commitment to serve customers how, when and where they […]

Combatting Virtual Showrooming | Retail TouchPoints

Showrooming has been around for decades. With the rise in the internet and technology, we’ve watched showrooming evolve and branch out, now manifesting itself in many ways. Showrooming (old):  Shoppers try on shoes at your local store only to buy from your local competitor. First, it started with consumers rolling into a brick-and-mortar shoe store, […]

Cartoons

One should always take a little time out to enjoy the lighter side of their profession. Enjoy the following sample from our collection of our favorite pricing related cartoons.

Price Transparency

Dilbert on Price Transparency

Scientific Selling – Turn Your Sales Force Into ‘A’ Players | PROS

Every year companies pour hundreds of millions of dollars into sales force training and development. Leaders expect that by continuously training their sales reps on negotiation, sales excellence, presentation skills and selling psychology they will dramatically improve their sales force effectiveness. To a certain extent they are right. But developing a sales force without proper […]

How Discounting Products Can Hurt Your Business | Agricultural Entrepreneurship

Grocery stores used to offer day old bread at a discounted price but they stopped this practice when they realized that they were losing money from their fresh bread sales. Their customers would continually purchase the day old bread at the discounted price instead of spending more for fresh bread. These stores eventually stopped selling […]

Beyond Discounts and Deals – Achieving a Balanced Pricing and Promotion Strategy | The Robin Report

Increasingly, omnichannel retailing provides further opportunities to adapt offers to the varying preferences of individual customers. For example, the online and mobile channels make it possible to customize promotional offers down to each individual consumer. We may still be a few years away from individualized pricing becoming a widespread reality, but retailers are already using […]

This Week in Pricing > 7/5/14

TWIP is a recap of the week’s top pricing strategy in the news and resources for pricing professionals. We also publish a daily digest of top pricing news, strategy expert and technology leader’s thought leadership and industry news and events. The Past Week’s Top Pricing Related Headlines The Second Law of Marketing: All Prices are […]