This Week in Pricing > 10/14/17

pricingnews-WeeklyThis Week in Pricing 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.

This Edition is brought to you by:value innoruption final 0612 rev

 

 

Value Innoruption Advisors

Founded by Dr. Stephan Liozu, Value Innoruption Advisors provides training and consulting resources for organizations interested in embedding value-based methodologies in their go-to-market strategies related to innovation, marketing, pricing, and sales. Value Innoruption Advisors offers two popular value and pricing management certification programs – Customer Value Modelers™ (CVM™) and Change Agent in Pricing™ (CAP™).

Click a link below to learn more…

 


 

Top Headlines

Apple’s iPhone X Marketing Strategy | ValueWalk

Apple’s iPhone X Marketing Strategy | ValueWalk

Just a few weeks ago, the iPhone 8 and 8S went on sale. There were no long lines outside stores, and there was a sufficient supply of phones to meet demand. Most customers preferred waiting for the much more innovative iPhone X. It has now become quite apparent that this phone will not only be […]

 

Hulu Drops Price of Entry-Level Plan to $5.99 Monthly for Limited Time | Variety

Hulu Drops Price of Entry-Level Plan to $5.99 Monthly for Limited Time | Variety

Hulu is now offering its cheapest streaming plan, which includes commercials, for $5.99 per month for the first year — a short-term promotion aimed at luring new subs with the kickoff of the fall television and Hulu’s expanded TV library lineup. The move comes, coincidentally, as Netflix last week raised prices on its standard plan (to […]

 

This Chart Shows Why Netflix (NASDAQ: NFLX) Pricing Strategy Is Working | Benzinga

This Chart Shows Why Netflix (NASDAQ: NFLX) Pricing Strategy Is Working | Benzinga

Netflix, Inc.’s stock continued Monday to hit new all-time highs after the company confirmed a price increase for its two highest membership tiers. The price increase does mark the third of its kind since the video streaming option was launched in 2011, Statista highlighted. Granted, subscribers don’t like a price increase in any service they […]

 

Price discrimination online | Livemint

Price discrimination online | Livemint

Today’s online marketplaces focus on demand, and when demand peaks, use a mechanism called ‘surge pricing’ to price-discriminate among potential customers. The new algorithm I spoke of last week would also consider the supply-side of the equation, as well as how perishable the traded items are, and allow suppliers to bid against each other when […]

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Amazon Pressure With Whole Foods’ Competitive Pricing | eSellercafe

Amazon Pressure With Whole Foods’ Competitive Pricing | eSellercafe

The Amazon effect on Whole Foods Another effect on this is that customers from its competitors have shifted over to Whole Foods. Around 24 percent of new customers come from Walmart, while from Kroger it got 16 percent. This means that customers are preferring the lower prices that Whole Foods is offering as opposed to […]

 

When is Pricing Predatory? | Lexology

When is Pricing Predatory? | Lexology

Are well-funded, industry-disrupting market entrants in the sharing economy engaging in unlawful predatory pricing? Some have raised concerns that popular ride sharing services and other similar startups have created a dangerous probability of a monopoly by implementing business models that are designed to gain market-share by initially operating at a loss. These companies have raised […]

 

Focus on the Segments Before Lowering Prices | Strategic Pricing Solutions

Focus on the Segments Before Lowering Prices | Strategic Pricing Solutions

Last week there was an article in the Wall Street Journal, So Long, Hamburger Helper: America’s Venerable Food Brands Are Struggling which discussed the declining market shares of some of the largest packaged food companies.  It is not a surprise; the large CPG companies have been losing customers for the past few years on multiple […]

 

Netflix subscribers, get ready for a rise in prices | Mashable

Get ready to pay just a bit more for your Netflix subscription. The streaming video service will be raising prices on its middle and top tier plans in the U.S. starting in November. Subscribers who currently pay for the standard $9.99 service will be charged $10.99. The price of the premium tier will rise from […]

 

Oil’s not well: petrol and diesel prices scale a new high

Oil’s not well: petrol and diesel prices scale a new high

In Mumbai, a litre of petrol now costs Rs 79.99 per litre, while tanking up on diesel costs Rs 62.82 per litre. This is the highest yet since dynamic or daily pricing came into effect on June 16 this year. Dynamic pricing or daily fuel revision, which kicked in on June 16, 2017, continues to […]

 

Uber imposes waiting charge on tardy riders in Singapore | Channel NewsAsia

Uber imposes waiting charge on tardy riders in Singapore | Channel NewsAsia

SINGAPORE: Uber passengers – show up on time or pay a penalty. Ride-hailing service Uber said on Monday (Oct 2) it has begun charging passengers a late fee of S$0.20 per minute, if their drivers are kept waiting for more than three minutes. The timer begins when the driver arrives at the pickup location and […]

 

Rethinking price wars: Disruptive forces are reshaping how they start, get fought, and get resolved | Simon Kucher & Partners

Rethinking price wars: Disruptive forces are reshaping how they start, get fought, and get resolved | Simon Kucher & Partners

Introduction Roughly half of all companies around the world think they are involved in a price war. In almost 90 percent of those cases, they think someone else started it. At the same time, losing lots of money no longer necessarily means you have lost a price war. It can mean that you have won […]

 

 

 

More Headlines

OPINION: The ups and downs of pricing in SA | IOL Business Report

OPINION: The ups and downs of pricing in SA | IOL Business Report

This is one statistics over which I have never won despite all the evidence in the numbers including the personal inflation calculator.  So the belief that prices are sticky upwards is central to the discourse.  The article tries to disabuse us of this notion using facts. But perceptions and opinions often times remain too true […]

 

Don’t wait to book your holiday travel: Get those airline and hotel reservations now | Orange County Register

Don’t wait to book your holiday travel: Get those airline and hotel reservations now | Orange County Register

Ho ho ho. Gobble gobble. I know it’s barely October, but you’re not going to save money by waiting to book your holiday flights and hotels – in fact it’s going to cost you money. Airlines are flying packed, and hotels now use so-called dynamic pricing, which means that as supply of available rooms goes […]

 

Celltrion to adopt aggressive pricing for Avastin biosimilar | The Korea Herald

Celltrion to adopt aggressive pricing for Avastin biosimilar | The Korea Herald

[THE INVESTOR] Korea’s biopharmaceutical firm Celltrion seeks to launch its version of Roche’s blockbuster cancer therapy Avastin at a highly competitive price to compete with other biosimilar makers making much faster progress. Celltrion, which was the first to enter European markets with its biosimilars of Remicade and Rituxan, plans to implement a deep-discount pricing strategy […]

 

Agco’s Lely takeover will mean ‘aggressive’ pricing for the hay gear | The Weekly Times

Agco’s Lely takeover will mean ‘aggressive’ pricing for the hay gear | The Weekly Times

Mr McCormick said his company’s buying power allowed it to review pricing on the Lely products they will sell. “There is some scope to do something on pricing with the Lely Welger product, particularly in New Zealand,” he said. “The way that Lely do their costing and price structure globally is quite different to the […]

 

“Pay For Use” Best Way To Combat Urban Congestion & Pollution, Researchers Say | CleanTechnica

“Pay For Use” Best Way To Combat Urban Congestion & Pollution, Researchers Say | CleanTechnica

There are many ideas on how to fight urban congestion and pollution. Researchers at the University of British Columbia have investigated more than 60 of them and come up with one recommendation — “pay for use” pricing of roads. Yup, the unseen hand of market economics is indeed best for the efficient allocation of scarce […]

 

The Guidelines Around Pricing Your Home | WBT – Charlotte

The Guidelines Around Pricing Your Home | WBT – Charlotte

About pricing your home. And I really wanna talk to you about. The guidelines. Around it and I think it’s important right now in this season. When your getting ready to Lister home which you should because you don’t have a lot of competition right now and remember every showing that you have during this […]

 

Road pricing best way to reduce vehicle emissions, concludes UBC study | CBC News

Road pricing best way to reduce vehicle emissions, concludes UBC study | CBC News

Road pricing strategies have taken off in several European countries but haven’t yet been embraced in North America, Bigazzi said, but he thinks it’s just a matter of time. “We are very used to what seems to be free transportation systems for driving but that is increasingly changing,” he said. Although the extra cost for […]

 

Petrol pumps to go on strike on Friday | Times of India

Petrol pumps to go on strike on Friday | Times of India

The pump owners will stop purchase of fuel from companies for one day and if the demands are not met they will go on indefinite strike after Diwali. The United Petroleum Front, the apex body of the petrol pump owners, announced the decision to go on strike on Saturday. The daily dynamic pricing has been […]

 

Free beer and meat draws: Vancouver Canucks trying everything to get fans to come | CBC News

Free beer and meat draws: Vancouver Canucks trying everything to get fans to come | CBC News

Cheap tickets? Bailey said ticket prices for Canucks games skyrocketed after seasons of regular playoff appearances. “Had they treated their fans properly in the first place, they wouldn’t be in this [scrambling] position,” the seller said. The easiest way to get more fans to games could be to bring ticket prices back down, and the team is doing that […]

 

Can Peter Thiel pull a rabbit from his hat with Palantir? | PE Hub

Can Peter Thiel pull a rabbit from his hat with Palantir? | PE Hub

What could go wrong for Palantir? There are downside risks to monitor. Although there are several great things going on for Palantir, we would caution investors on the following potential downside risks for the company: Unclear long-term profitability potential: We are encouraged by recent media reports that Palantir remains on track to become profitable by […]

 

How to avoid overpaying for optical transceivers | NetworkWorld

How to avoid overpaying for optical transceivers | NetworkWorld

Old habits die hard, especially when it comes to buying network gear and accessories based on long-standing procurement practices. While it may seem easier to sustain the status quo, doing so can expose you to undue costs created by manufacturer price-gouging practices. Case in point: Optical transceivers, which Gartner says accounts for 10 to 15 […]

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Plan to freeze water rates in Manx Utilities’ debt review | BBC News

Plan to freeze water rates in Manx Utilities’ debt review | BBC News

Home and business owners in the Isle of Man could see water and sewerage rates frozen for 2018-2019 following a review of Manx Utilities £538m debt. National Economic Research Associates (NERA) recommended the debt be restructured to “reduce the potential burden of charges on customers”. It said the historic debt should be reduced in exchange […]

 

Three grocery stores. Three strategies. Who wins on price? | The Buffalo News

Three grocery stores. Three strategies. Who wins on price? | The Buffalo News

Before Whole Foods arrived in Amherst last month, most Western New Yorkers knew one big thing about the supermarket: Its nickname is “Whole Paycheck.” So we wanted to find out, are Whole Foods’ prices really that high? And how do they compare to our two biggest local grocery chains, Tops and Wegmans? Comparing prices is […]

 

Intas Pharma: Intas launches biosimilar Bevacizumab with aggressive pricing | ET HealthWorld

Intas Pharma: Intas launches biosimilar Bevacizumab with aggressive pricing | ET HealthWorld

For Roche Avastin is one of its blockbuster drug raking in sales worth $7 billion annually, the drug maker has been making several attempts to stall biosimilar drug launches of its cancer drugs in a bid to ward off competition. Intas spokesperson said that the company has followed all due process in getting the approval […]

 

Willy Wonka Strategy: World’s Top Cocoa Producers Strategize to Influence World Prices | Frontera

Willy Wonka Strategy: World’s Top Cocoa Producers Strategize to Influence World Prices | Frontera

According to the International Cocoa Organization (ICCO), the industry has a global surplus of 371,000 tons of the agricultural commodity (DBA) this season. Ivory Coast alone is on track to produce a record 2 million tons of cocoa this year. According to Dr. Owusu Afriyie Akoto, Minister of Food and Agriculture, the decline in the price […]

 

Intel Coffee Lake Is Impressive, Not a Knockout Blow | GuruFocus.com

Intel Coffee Lake Is Impressive, Not a Knockout Blow | GuruFocus.com

You can see that 1700x is more efficient in terms of performance per dollar. But i7 comes really close. Nonetheless, Advanced Micro Devices can alter its pricing strategy to take the multithreading market. In the midrange, Core i5 8400 lags behind Ryzen 5 1600 in terms of absolute rendering performance. It performs better in Blender […]

 

Uber suspends dynamic pricing amid NSL disruption | Channel NewsAsia

Uber suspends dynamic pricing amid NSL disruption | Channel NewsAsia

SINGAPORE: Ride-hailing service Uber said it will temporarily suspend dynamic pricing amid the massive disruption to train service along the North-South Line (NSL) on Saturday (Oct 7). According to an Uber Singapore spokesperson, the company is working with the Land Transport Authority “to assist with the MRT service disruption between Ang Mo Kio and Marina […]

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Municipality to sell off Northside Business Park land at a reduced price | Cape Breton Post

Municipality to sell off Northside Business Park land at a reduced price | Cape Breton Post

SYDNEY, N.S. — The Cape Breton Regional Municipality has scrapped a longstanding policy that may have hindered the development of the Northside Business Park. During a general committee meeting this week, councillors were told that a pricing strategy pre-dating a 2007 amendment set a ‘sale price’ of $20,000 per acre for municipally-owned land in the […]

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Only time will tell if an Omnichannel strategy will emerge for Taneira or not: Titan Business Head | Indiaretailing.com

Only time will tell if an Omnichannel strategy will emerge for Taneira or not: Titan Business Head | Indiaretailing.com

What is your brand’s pricing strategy? Our pricing strategy is comparable with pricing in the market for similar products – handwoven and pure fabrics. We have a large range of products in all price bands, starting at Rs 1500 for formal/daily wear, while a large part of our range is from Rs 4000-8000 for festive […]

 

Treasury moves to reduce MU debt | Manx Radio

Treasury moves to reduce MU debt | Manx Radio

The Isle of Man Government is to shave £95 million from the Manx Utilities debt in exchange for a freeze in water and sewerage rates for the next year. The MUA currently has a loan of £278 million from Treasury and has a further £260 million debt in bonds. The Authority will also be asked to establish […]

 

Railways looking at airline pricing model: Lohani | Business Standard News

Railways looking at airline pricing model: Lohani | Business Standard News

The much-hyped dynamic pricing system that invited a lot of criticism for the Indian Railways may soon be converted into an airline-like model. This could mean that railway fares would go down during lean seasons. Ashwani Lohani, the newly-appointed railway board chairman, said the railways were relooking at the new pricing system. Though a railway […]

 

E&P Need Higher NatGas, Oil Prices Despite Efficiencies, Lower Costs, Says Moody’s | Natural Gas Intelligence

E&P Need Higher NatGas, Oil Prices Despite Efficiencies, Lower Costs, Says Moody’s | Natural Gas Intelligence

North American explorers need natural gas prices of “at least” $3.00/Mcf and a crude oil price above $50/bbl to achieve a meaningful return on capital, based on a review of more than three dozen operators by Moody’s Investors Service. Exploration and production (E&P) companies have improved cost structures substantially since the commodity price collapse in […]

 

Predicting Home Price Appreciation | DSNews

Predicting Home Price Appreciation | DSNews

In a Wednesday projection, Veros Real Estate Solutions, an enterprise risk management, collateral valuation services, and predictive analytics provider, said residential market values are going to continue their upward trend for the next 12 months in every market—even if it’s just slightly. The VeroFORECAST, a quarterly national real estate market forecast released by the company, […]

 

LTFRB justifies approval of recent taxi-fare increase | BusinessMirror

LTFRB justifies approval of recent taxi-fare increase | BusinessMirror

The current fare matrix is as follows: a P40 provisional flag down rate, P3.50 per succeeding 300 meters and a P3.5 charge for waiting time. The board decided to rule in favor of several consolidated petitions Prices of gasoline have increased over the course of the seven-year hiatus on permanent taxi-fare adjustments. “What convinced the […]

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Asset prices are high across the board. Is it time to worry? | The Economist

Asset prices are high across the board. Is it time to worry? | The Economist

IN HIS classic, “The Intelligent Investor”, first published in 1949, Benjamin Graham, a Wall Street sage, distilled what he called his secret of sound investment into three words: “margin of safety”. The price paid for a stock or a bond should allow for human error, bad luck or, indeed, many things going wrong at once. […]

 

The one value-based pricing strategy you probably never use | Association for Manufacturing Excellence

The one value-based pricing strategy you probably never use | Association for Manufacturing Excellence

It doubled the company’s profits (including case study and profit calculator) If you’re in a tough, competitive market where price matters, one of the most overlooked strategies for understanding how to price for value is the Lost Business Review. We either skip doing them altogether because none of us like asking the awkward questions or […]

 

Novartis pushes for new pricing strategy in Japan | Dominion Funds

Novartis pushes for new pricing strategy in Japan | Dominion Funds

Swiss pharmaceutical giant Novartis is urging Japan to consider a new pricing model for medicines that link payment to patient outcomes. This is not new ground for Novartis: the company has experimented with similar pricing strategies elsewhere, and has been amongst the most innovative players in the sector when it comes to thinking about how […]

 

What Can Happen When You Get The Price Wrong On Your Luxury Home | cincinkyrealestate.com

What Can Happen When You Get The Price Wrong On Your Luxury Home | cincinkyrealestate.com

Setting the right price for a luxury home is one of the most critical aspects of selling a home.  Setting a price too low and the homeowner is walking away from money they could have otherwise added to their own pocket.  Setting a price too high and no amount of marketing will help get that […]

 

Here’s The Problem With Those ‘No Haggle’ Dealerships | Jalopnik

Here’s The Problem With Those ‘No Haggle’ Dealerships | Jalopnik

One of the most frustrating aspects of buying a car from a dealer is the back and forth about the price. Some dealers have responded to this by offering upfront, “no haggle” prices. And while this seemingly streamlines the process and makes (some) buyers happy, in practice, it’s a little bit more complicated. We all […]

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Featured Content and Events

Book: Dollarizing Differentiation Value – A Practical Guide for the Quantification and the Capture of Customer Value

Book: Dollarizing Differentiation Value – A Practical Guide for the Quantification and the Capture of Customer Value

Summary: Now is the time to answer that “value” question so well and so completely that your organization thrives. The biggest winners in the 21st century will have value-based strategies, value-based innovation, value-based marketing, and value-based pricing. There has never been a more exciting and lucrative time to pay attention to value and turn a […]

 

Conference: 28th Annual Fall Pricing Workshops & Conference | PPS

Conference: 28th Annual Fall Pricing Workshops & Conference | PPS

Date: October 24-27, 2017

Location: Hilton San Diego Bayfront in San Diego, California

Hear from our President, Kevin Mitchell, give insight on the conferences we offer.  Please make plans to join us and well over 500 of your peers for the best event anywhere as we discuss Data, Change Management and the Profit Landscape. Don’t miss out on the Early Bird Discount (Buy 2 Get 1 Free). It expires September 15th!

CONFERENCE HIGHLIGHTS

  • 12 Certified Pricing Professional Workshops
  • 4 Breakout Tracks
  • Over 40 Speakers
  • 2 Full Conference Days
  • Over 100 Hours of Networking

 

DigitalPricingSummit_300x250

Conference: Digital Pricing Summit | IQPC

Pricing transformation through digital disruption.

DIGITAL TRANSFORMATION AND E-COMMERCE | DIGITAL PRICING STRATEGIES FOR B2C | E-COMMERCE PRICING IN THE B2B CONTEXT | VALUE CREATION AND CHANNEL MANAGEMENT | DIGITAL SUBSCRIPTIONS AND PAYMENTS | REVENUE MANAGEMENT & COMMERCIAL EXCELLENCE

  • Understand how digitalisation and online services are changing the future of commerce
  • Develop superior pricing strategies in the highly competitive B2C space
  • Explore how digital transformation and ecommerce are interdependent in the B2B context
  • Value creation, communication, managing partners and channel conflict
  • Leverage margin enhancement in digital subscriptions and leveraging digital payment platforms
  • Identify revenue management and commercial strategies for pricing excellence
  • Learn about setting up ecommerce platforms, subscriptions, data analytics and applications for pricing excellence.



The following is a daily-dose of pricing cartoons and quotes, enjoy…

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“We knew how much these people were paying for cocaine—and the more coke cost, the more people wanted it. We applied the same marketing plan to our budding catering operation, along with a similar pricing structure, and business was suddenly very, very good.”

– Anthony Bourdain

 



 

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