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This Week in Pricing > 10/11/14

TWIP is a recap of the week’s best pricing focused news, strategy expert and technology leader’s thought leadership, industry news and events, and resources for pricing professionals.

EditionSponsor-StrategicPricingAssociates

This Edition is Sponsored by:

Strategic Pricing Associates

SPA is the leading provider of pricing analytics to 100′s of complex companies of all types: manufacturing, distribution, equipment, services, and software/technology products. The benefits are staggering; and they are typically accomplished in less than 90 days. Our typical client improves profitability by two to four percent of sales. SPA Clients include over 200 manufacturing companies including Parker HannifinRockwell,GEExxon MobilCaterpillar as well as over 400 distributors including Harry Cooper Supply CompanyIndustrial Distribution GroupAH Harris, and ThermoFisher Scientific.

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The Week’s Top Headlines

Why Delaying a Price Increase is the WRONG Strategy | The Sales Hunter

You know you need to take a price increase. Costs are up and your profit margins are getting squeezed way too much. Taking a price increase is the right approach, but you’re still hesitant in taking one for fear of losing business. You are concerned that a price increase will cause good customers to go […]

The 11 Rules of Highly Profitable Companies | Entrepreneur

2. Pricing before Product – Plan Distribution First  Is your pricing scalable? Many companies will sell direct-to-consumer by necessity in early stages, often through a simple website. Only later do they realize that their margins can’t accommodate resellers and distributors when they come knocking. This is true whether your “distributor” is iTunes, a worldwide widget […]

Surge pricing is not price gouging – Why Uber and Sprig’s policies aren’t insidious. | Slate

A San Francisco-based food-delivery startup called Sprig has begun charging “dynamic delivery fees” that rise and fall depending on the time of day and the distance of the delivery. So if you place an order from down the street on a Wednesday mid-afternoon, you’ll pay less for the delivery than if you ordered from across […]

Mass. Becomes First State To Require Price Tags For Health Care | CommonHealth

Right this minute, if you have private health insurance, you can go to your health insurer’s website and find the price of everything from an office visit to an MRI to a Cesarean section. For the first time, health care prices are public. It’s a seismic event. Ten years ago, I filed Freedom of Information […]

Shoppers have ‘lost trust’ in supermarket pricing says new Morrisons chairman | Telegraph

Tesco sales are falling at the fastest rate for 40 years and Britain’s biggest retailer is reeling from the discovery of a £250m black hole in its accounts. Meanwhile, Sainsbury’s sales are falling for the first time in a decade and Morrisons has warned profits will fall by half this year as it lowers prices. […]

How to Determine What You Should Charge Customers | Entrepreneur

4. How do you compare to others in your field? You shouldn’t let your credentials control your pricing, but it’s worth keeping in mind. If you’re just starting out and have far less experience than others in your field, you may want to charge at the lower end of the spectrum, so you have a […]

The Discount Deception – Why Dropping Your Price Hurts You! | Victor Antonio

The results would be as one might expect. Those who paid full price showed up more often than those who received discount passes. Now on first glance you might attribute this attendance effect to sunk cost; those who paid full price wanted to recoup their investment (i.e., get the most out of their passes by […]

Pricing Strategy for Creatives | An A List Apart

Strategic pricing helps your brand and helps you to make more money. Issuing a price is like handing out a business card—it’s a great branding tool, but be careful about what it says to your market. Beginning relationships with customers at a high price makes the statement: “we’re good at what we do and we […]

A Guide to the ABCs of Pricing | Inc.com

“To start out with the customers’ utility, with what the customer buys, with what the realities of the customer are and what the customer’s values are—this is what marketing is all about.” – Peter Drucker Pricing strategies and methodologies are a good bit of science coupled with an equal amount art. To make sure your […]

Ticketing Analytics – Presented by StubHub (Video) | MIT Sloan Sports Analytics Conference

Ticketing is the cornerstone of the sports business. Whether it is defining pricing, packages or ways to improve the customer’s experience, ticketing is experiencing significant technological and analytical growth. Our expert panelists will discuss the future of ticketing (e.g. paperless and dynamic pricing), new technologies, the challenges and opportunities of the secondary market and how […]

Apple – Luxury Brand or Mass Marketer? | Harvard Business Review

In fact, going back as far as 2009, watchers have documented how Apple has struggled to reach mass markets, like India’s. Then, iPhones were “priced far beyond the reach of even many middle-class Indian consumers.” That struggle hadn’t improved much as recently as last year, when Apple still hadn’t cracked the top 5 smartphone vendors in the country. In China, the […]

Can price-matching take price off the table? | RetailWire

In a market facing record-low growth of 0.3 percent, according to data from Kantar Worldpanel, UK grocers are in an all-out price war. Now Morrisons, one of the UK’s “big four” grocers, will match not only traditional competitors on price, but also prices of Aldi and Lidl, the fast-growing discounters rapidly gaining share. Called “Match […]

Open pricing and the future of revenue management | Tnooz

Dynamic pricing, the core strategy used by most hotels today, is at the root of the problem. With it, a hotel can theoretically price its inventory based on supply and demand to capture the most revenue. In reality, it has become dynamically pricing one or two rates that become benchmarks for all other rates. It’s […]

Pricing, Ethics And The Reputation Of Your Tire Business | Tire Review Magazine

At Elite, we know that once someone comes into your shop, you’ll do everything you can to generate a happy customer, and make a fair profit. Unfortunately, some customers will put you to the test when it comes to the prices you charge. They’ll tell you they can’t afford the recommended services, they’ll tell you […]

Lidl Fights Back Against Morrisons’ New Pricing Campaign | European Supermarket Magazine

German discount supermarket Lidl has launched a new campaign as it fights back against Morrisons’ promise to match its prices. Last week, Morrisons become the first of Britain’s four biggest grocers to match its prices to those of the German discounters Aldi and Lidl. Read complete article here: Lidl Fights Back Against Morrisons’ New Pricing […]

Dynamic ticket pricing gains traction in college football | CBSSports.com

Pricing dynamically means schools adjust single-game prices upward or downward based on real-time market conditions, such as fan demand and ticket scarcity. The idea is for schools to move the ticket closer to its true market value after years of losing that money to brokers on the secondary market. Although dynamic pricing is used in […]

Liftopia Launches Tiered Pricing for Ski Tickets | Fodor’s Travel

With the start of ski season on the horizon, Liftopia is now offering consumers greater flexibility when booking their lift tickets. Following in the footsteps of the hotel and airline industries, the site has launched tiered dynamic pricing, a first for the ski industry. Until now, Liftopia, the largest online marketplace for advance-purchase lift tickets, […]

Rail users criticise dynamic pricing scheme | The Hindu

The Railways have made half of the Tatkal tickets on 80 most popular trains costlier with effect from October 1. This triggered a backlash from users who have complained that efforts should instead have been made to curb touts who manage to corner most of these tickets. Officials admitted that with the onset of the […]

Pricing Technology – Myths vs. Reality | PricingBrew

Seven Myths and Outdated Beliefs That Are Causing Companies to Fall Further and Further Behind Pricing Effectively in B2B Is Becoming More Challenging Pricing effectively in B2B has never  been easy. But today, increases in pricing transparency, information access, and global competition are conspiring to make a difficult task even more challenging. For many companies, […]

KLM fined for deceptive pricing | NL Times

The Authority Consumer & Market (ACM) announced on Wednesday that airline KLM must pay a 200 thousand euro fine for advertising the wrong ticket prices on their website. On KLM’s website the 10 euro booking fees are not included in the offers. According to the supervisor these should have been included because they are unavoidable […]

Poundworld banned from using “everything £1″ slogan by ASA | Retail News

The Advertising Standards Agency (ASA) has rapped Poundworld’s “everything £1” slogan for being “misleading” after a customer reported items on sale for as much as £8.99. Poundworld is now banned from using the “everything £1” claim until it can ensure that all items on sale are priced at £1. “Occasionally we see a one-off product […]

Apple Asks Music Labels For Cheaper Pricing for Streaming Service | Re/code

There are lots of music subscription services that let people listen to all the songs they want for $10 a month. Apple thinks that price is too high. Sources say Apple is talking to the big music labels about a new set of rights and features it would like to include in a revamped version […]

Is Your Airbnb Rent Too Damn High? | Tech Cocktail

It’s all about supply and demand: when there is an event in a city, prices for hotel accommodations increase drastically. And if it’s up to San Francisco-based startup Beyond Pricing, that should also be true for Airbnb hosts. Beyond Price helps Airbnb hosts & owners maximize the performance of their rental properties by using a pricing model similar […]

Petrol retailers reject price fixing | The Australian

PETROL retailers have rejected any suggestion a third-party website listing petrol pump prices every 15 minutes enabled them to engage in price-fixing. THE competition watchdog claims five retailers – BP, Caltex and the fuel-selling arms of Coles, Woolworths and 7-Eleven – used their membership of the Informed Sources website to watch their competitors’ prices. The […]

 

Events & Resources

 

Events

Webcast: Learn How IPS Corporation Uses Strategic Pricing Tools to Track Sales Force Accountability | SPA

Tuesday, October 14, 2014 2:00 PM Eastern Register to attend our webcast that starts at 2:00 PM EST where Nick Cassella, President of IPS Corporation’s Plumbing Group will share their journey to pricing excellence and how they are leveraging strategic pricing tools to track sales force accountability. To implement a solution that enhanced profitability, developed […]

Seminar: Strategic Pricing Seminar | SPA

When: November 7, 2014 Where: Chicago, IL at the Hyatt Regency O’Hare Learn how leading manufacturing and distribution executives have unlocked the keys to faster growth, stronger customer relationships, and market-leading profitability with SPA’s proven strategic pricing processes and technology. Event Overview Equal parts strategy and practical tactics, this complimentary Strategic Pricing Executive Overview event at the Hyatt […]

Conference: Strategic Pricing Conference | SPA

When: November 13-14, 2014 Where: Las Vegas, NV at the Vdara Hotel & Spa at Aria Learn how leading manufacturing and distribution executives have unlocked the keys to faster growth, stronger customer relationships, and market-leading profitability with SPA’s proven strategic pricing processes and technology. Event Overview Equal parts strategy and practical tactics, this complimentary Strategic Pricing Executive Overview event […]

Seminar: The Value-based Pricing of Innovation | Stage-Gate International

When: April 14-15, 2015 Where: Washington DC Early Bird Price: $1495 US Are you capturing the value of your innovation? Firms are pouring billions in innovation investments every year with the goal of creating differentiation and competitive products and services. Many, however, forget two critical elements in the innovation management process: the clear definition and measurement of […]

 

Pricer’s Points Blogs

Using decoy pricing to maximise profits. | Matt Burnett

Use decoy pricing to encourage your customers to trade up. The main objective of any pricing manager is maximising revenue and profitability. It’s not easy and is in fact an endless task. One way we can try to achieve this is through trade up. If we can encourage our customers to buy our most highly […]

Not identifying the obvious | Ben Blaney

I have gout. It’s familial gout, so it’s not caused by an extravagance of port and stilton (though I am partial to both). When I go to the doctor for a prescription, it’s usually a ludicrous charade, where I say “I have gout, my dad has gout, my brothers have gout, my grandfather had gout, […]

When pricing is annoying | Jesper Hansson – CPP

It is funny how, when you work as a pricing practitioner, you seem to catch almost all details of pricing. When you get an offer, you study the pricing very carefully and you take your time to try to understand what the thought process behind it has been. On a weekly basis, I see loads […]

 

Top Discussions

Discussion: Pricing discipline in a complex decentralized organization is a headache

Pricing Strategy & Optimization LinkedIn Group Discussion Local managers may disregard central pricing recommendations. Moreover they may give a lot of latitude to their salesforce. The end result is chaos and far from optimal. All comments welcome! inspire me… Top Comments Wendy Wise High Tech Marketing and Sales Strategist I hear you. Have been there […]

Discussion: Uber CEO says new feature will tell customers when surge pricing ends

The Verge Article Surge pricing, which raises fares steeply during periods of high demand, has been in place since the service launched but gained renewed attention in late 2013, when prices rose to $35 a mile. Regardless of whether the move was economically sound, it wasn’t popular, and Uber was accused of price gouging. Not long […]

Discussion: Bed, Bath & Beyond Trumps Amazon! The Revenge of Old School Retail

Yahoo! Finance Article What’s exciting about Bed, Bath & Beyond is less about the company itself and more about what it says about the retail industry as a whole. They have taken the price wars a step further by compressing margins enough to beat Amazon without gimmicks. The company is seeing margins shrink as it […]

 

Books

Pricing Strategies For Small Business

Summary: Pricing a product or service can make or break a small business. It’s essential to use a good pricing strategy to ensure the products or services are appealing to customers and to ensure that the company is profitable. It’s not always as simple as the lowest price wins. Pricing Strategies for Small Business covers […]

Pricing Strategies – A Marketing Approach

Summary: Written by a leading pricing researcher, Pricing Strategies makes this essential aspect of business accessible through a simple unified system for the setting and management of prices. Robert M. Schindler demystifies the math necessary for making effective pricing decisions. His intuitive approach to understanding basic pricing concepts presents mathematical techniques as simply more detailed […]

Pricing Strategy – An Interdisiplinary Approach

Summary: This book is about business success. It doesn’t matter what you consider a success for your business — profit, sales growth, return on investment — this book considers its implications, relationship to other measures and how to get desired results. The common theme that holds everything together is the pricing decision. That is because […]

 

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 Wars

Dilbert on Price Wars

 

Quotes

 

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 quotes.

“There is scarcely anything in the world that some man cannot make a little worse, and sell a little more cheaply. The person who buys on price alone is this man’s lawful prey.”

     – John Ruskin

“Pricing is the only element in the marketing mix that produces revenue; the other elements produce costs.

     – Phillip Kotler

 

Other Resources

Pricing Resources

The source for valuable pricing resources including: academic programs, articles, blogs, books, cartoons, certifications, papers, quotes, reports, training, and videos.

Pricing Books and E-books

As a service to pricing professionals, we have compiled a collection of over 75 of the best pricing focused hard-copy books and e-books available. The entries for each book are tagged by subject matter, include the author(s), publisher, date of publication, a picture of the front cover, and a brief summary.

Pricing Certifications

The source for top formal pricing certification programs.

Pricing Training

The source for top formal pricing training programs and service providers.

Pricing Videos

Enjoy our collection of our favorite pricing related videos and share your favorites with us and we will add them to the collection.

Pricing Tech

The source for pricing technology vendor related information and resources.

Pricing Experts

The source for pricing strategy expert vendor related information and resources.

Pricing News LinkedIn Group

Join 1,000’s of your peers in the our LinkedIn discussion group. The group offers a place to share the latest pricing strategy and technology, news, events, resources, thought leadership, and discuss the latest pricing related successes and failures in the news.

The PricingBrew Journal

Whether you’re in sales, marketing, product management or a pricing professional, it’s important to stay up-to-date on the latest practices and research in B2B pricing—and get fresh perspectives and ideas that can help make your business (and career) more profitable.

The PricingBrew Journal is the only publication of its kind, providing a regular dose of real-world experience and insight from the PricingBrew research team and a global network of seasoned B2B pricing professionals and consultants. Every two weeks, subscribers get access to in-depth articles, training, research, best practices, case studies, expert interviews and educational webinars.

use coupon code “PricingNews” to get one month free on any subscription package >

 

About Pricing News

Pricing News is a sponsor supported organization dedicated to providing free high-value resources to pricing professionals. It is the source for daily and weekly digests of pricing strategy and industry newsevents, thought leadership articlesblogsreportsacademic research, and other resources and special offers. We also share highlights from top pricing discussions and publish articles from pricing practitioners in our Pricer’s Points blog series.

Join the Pricing News LinkedIn group and learn from your pricing peers and industry thought leaders or get your Pricing News on Twitter or Google+.

Until next week,

Matt Balfour

Founder & Managing Director of Pricing News

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