This Week in Pricing > 10/21/17

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: PPS Logo

 

 

 

Professional Pricing Society

Currently, PPS produces three major annual pricing conferences in Europe and North America. Each conference also houses a technology hall where sponsors display the latest in Pricing Solutions software. PPS also offers more than two dozen, full-day training workshops every year, taught by leaders in the pricing community. These workshops serve as the foundation for PPS’s Certified Pricing Professional (CPP) designation, our state of the art pricing certification program. Candidates may be certified after mastering a multi-stage curriculum followed by rigorous testing. Successful CPPs have acquired the core knowledge which not only places them in the top rungs of the pricing field, but also gives them the tools to enhance substantially their own careers.

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Top Headlines

Uber Pushed the Limits of the Law. Now Comes the Reckoning | Bloomberg

Uber Pushed the Limits of the Law. Now Comes the Reckoning | Bloomberg

Shortly after taking over Uber Technologies Inc. in September, Dara Khosrowshahi told employees to brace for a painful six months. U.S. officials are looking into possible bribes, illicit software, questionable pricing schemes and theft of a competitor’s intellectual property. The very attributes that, for years, set the company on a rocket-ship trajectory—a tendency to ignore […]

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United Wants to Sell Your Seat to Someone Else for More Money | Bloomberg

United Wants to Sell Your Seat to Someone Else for More Money | Bloomberg

This week, United Airlines Inc. is quietly unveiling a new technology platform that it will use to manage the problem of oversold flights—and, in the same breath, turn them into a profit opportunity. With the help of its new Flex-Schedule Program, the airline is piloting a way to buck the trend of involuntary bumping—the term for […]

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Webcast: Boost Profitability with Better Contract Management | SPA

Webcast: Boost Profitability with Better Contract Management | SPA

Contracts often play a vital role in a company’s profitability by representing millions in gross revenue. However, contracts can be challenging to manage and fully understand across the business. Do you find yourself asking questions like: – Am I spending too much time and resources managing contracts? – Am I losing margins due to expired […]

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Postal Service Files For Rate Increase | The NonProfit Times

Postal Service Files For Rate Increase | The NonProfit Times

The United States Postal Service (USPS) filed notice with the Postal Regulatory Commission (PRC) for a rate increase that, if approved, would increase postage rates anywhere from 2 to 4 percent, depending the class and category of mailings. The new rates would take effect on Jan. 21, 2018 after review by the PRC. The proposal […]

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A Different Take On Springsteen On Broadway | New Jersey Stage

A Different Take On Springsteen On Broadway | New Jersey Stage

As a music fan, Lynch never imagined he would write a song about him that could be considered anything less than reverential, but then Bruce announced an 80-show run of dates on Broadway in New York City. As he noticed the amount of negative feedback on Springsteen-related websites and forums, he realized that he was […]

 

Can’t Afford to See Bruce Springsteen on Broadway? Here’s The Boss’ Setlist | People

Can’t Afford to See Bruce Springsteen on Broadway? Here’s The Boss’ Setlist | People

Springsteen on Broadway, Bruce Springsteen‘s new intimate one-man show of singing and storytelling, is the hottest ticket in New York City right now, with a single seat in the 939-capacity Walter Kerr Theater going for a starting ticket price of $850 (more than three times what it takes to see Broadway’ other smash musical, Hamilton). The show […]

 

Mark Shenton: Broadway’s premium ticket prices are punishing loyal theatre fans | The Stage

Mark Shenton: Broadway’s premium ticket prices are punishing loyal theatre fans | The Stage

It’s a fact of life, like death and taxes, that theatre ticket prices are rising inexorably. And now they’ve breached the $1,000 mark on Broadway – no, not through touts or the resale market, but from the official box office. Tickets for front-row seats at many performances between late November and mid-January for Hello, Dolly! […]

Why Surge Prices Make Us So Mad: What Springsteen, Home Depot and a Nobel Winner Know | The New York Times

Why Surge Prices Make Us So Mad: What Springsteen, Home Depot and a Nobel Winner Know | The New York Times

When Bruce Springsteen decided to do a run of shows at a Broadway theater with fewer than a thousand seats, he appeared to reject the laws of economics — or at least what would seem to be in his financial best interest. He limited ticket prices to between $75 and $850 and has been allocating […]

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StubHub, Ticketmaster Under Investigation for Misleading UK Consumers | TicketNews

StubHub, Ticketmaster Under Investigation for Misleading UK Consumers | TicketNews

Findings show that 26% of tickets for comedian Jack Whitehall’s Eventim Apollo show ended up on these four secondary sites, as did 17% of tickets for Lady Gaga at the O2 Arena in London and 15% of tickets for the first night of the BBC Proms at the Royal Albert Hall. Upon the publication of […]

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Segmentation Is a Critical Part of Channel Management | Strategic Pricing Solutions

Segmentation Is a Critical Part of Channel Management | Strategic Pricing Solutions

The challenge that Under Armour is facing is the exact reason most luxury brands limit their channels to high-end stores where shoppers are not price-sensitive.  If the luxury brands want to target more price-sensitive customers, they develop new products or brands that do not have the same cachet or premium pricing.  By doing so, they […]

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The Psychology of Competitive Pricing for Ecommerce | Business2Community

The Psychology of Competitive Pricing for Ecommerce | Business2Community

Pricing for ecommerce is a tricky beast. You need to account for competition with other sellers, but you don’t want to de-value your products in a race-to-the-bottom. Purely competitive pricing can lead to disappointing results: you might not sell enough to compensate for offering the lowest prices. A profitable pricing strategy involves considering not only […]

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More Headlines

Stalin urges Tamil Nadu govt to reduce taxes on petroleum products | The Indian Express

Stalin urges Tamil Nadu govt to reduce taxes on petroleum products | The Indian Express

Stalin recalled that the M Karunanidhi-led DMK government had in the past reduced taxes on petrol and diesel in the state during certain rate revisions of the products. “People are struggling hard due to the oppressive taxation on petrol and diesel which has led to prices of petrol to hover around Rs 70.96 and diesel […]

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Kroger Co. (KR) shifts strategy, looks to sell convenience store business | WCPO

Kroger Co. (KR) shifts strategy, looks to sell convenience store business | WCPO

CINCINNATI — The Kroger Co. is contemplating the sale of its 784-store chain of convenience stores and pursuing a broader initiative to boost annual profits by $400 million in the next three years. The Restock Kroger initiative, debuted at an investor conference Wednesday, is an attempt to “redefine the food and grocery customer experience” using […]

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For McDonald’s, tax-inclusive prices have worked well: Seema Arora Nambiar | DNA India

For McDonald’s, tax-inclusive prices have worked well: Seema Arora Nambiar | DNA India

How is the tax-inclusive pricing strategy post the implementation of goods and services tax (GST) working for your restaurants? Consumers’ response has been very encouraging and they are liking the fact that they are paying the same price that is showing on the menu. It was a brave move and we were debating whether to […]

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Morning gridlock leaves Port Mann commuters fuming | CBC News

Morning gridlock leaves Port Mann commuters fuming | CBC News

More cars, more problems Traffic spiked by more than 25 percent on the Port Mann Bridge and there was also a substantial increase on the Golden Ears Bridge after tolls were removed on both crossings. Transportation blogger and Langley city councillor Nathan Pachal says it stands to reason that when there are more cars on […]

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Amazon’s 3 Underappreciated Growth Trends | GuruFocus.com

Amazon’s 3 Underappreciated Growth Trends | GuruFocus.com

Perception of being cheap but not actually the cheapest A common narrative would be that Whole Foods is a lot cheaper now that Amazon has taken over after its $13.7 billion takeover. If you take a closer look at Amazon’s pricing strategy with the precision of a pricing strategist, you will realize that perception can […]

 

Pioneer CEO: Current oil price is what ‘we have to live within’ | Midland Reporter-Telegram

Pioneer CEO: Current oil price is what ‘we have to live within’ | Midland Reporter-Telegram

For those oil and gas operators awaiting higher oil prices, Tim Dove has a message: Stop waiting. “There is no more bust — this is the oil price,” said Dove, president and chief executive officer of Pioneer Natural Resources. He spoke as he awaited a reception honoring Pioneer hosted by the Midland Wildcat Committee Wednesday […]

 

Facebook (FB) Unveils $199 Oculus Go, Slashes Rift Price | Nasdaq.com

Facebook (FB) Unveils $199 Oculus Go, Slashes Rift Price | Nasdaq.com

In a bid to popularize its virtual reality offerings among the masses, Facebook Inc FB has unveiled a new cheaper VR headset – Oculus GO.  It carries a price tag of $199, much lower than Oculus Rift, which, at the time of its launch, carried a price tag of $599. It is to be noted […]

 

MARKET BUZZ: Dali Foods At Record Highs; Daiwa Initiates At Buy | Nikkei Asian Review

MARKET BUZZ: Dali Foods At Record Highs; Daiwa Initiates At Buy | Nikkei Asian Review

Daiwa Capital Market says company’s business model stands out with focus on developing fast growing snacks and beverage segment in China. Starts coverage with Buy rating and target price of HK$7.10. House notes Dali’s pricing strategy of more wholesale discounts and lower retail prices attractive to consumers and distributors, helping it capture market share “We […]

 

Reliance Jio offers 100 per cent cashback on Rs 399 recharge this Diwali; new telecom tariff war begins | The Economic Times

Reliance Jio offers 100 per cent cashback on Rs 399 recharge this Diwali; new telecom tariff war begins | The Economic Times

Weeks after Trai effected a drastic cut in interconnect usage charge (IUC), the Reliance Jio offer is likely to set off a new tariff war in the Indian telecom sector. Yesterday, India’s No 1 telecom player AirtelBSE 2.86 % has partnered with Karbonn Mobiles to sell 4G smartphone at an effective price of Rs 1,399, […]

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Oil Imports: India Gears Up To Play Hardball With Suppliers Over Pricing | Swarajya

Oil Imports: India Gears Up To Play Hardball With Suppliers Over Pricing | Swarajya

After telling Organization of the Petroleum Exporting Countries (OPEC) members on Sunday that India has other options to buy oil at competitive prices, New Delhi is set to play hardball with its traditional suppliers from the Middle East on pricing. India is reworking its import strategy by stepping up the share of short-term contracts to […]

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Fujifilms hopes to click by focussing on instant, professional cameras | Business Line

Fujifilms hopes to click by focussing on instant, professional cameras | Business Line

With mobile phones taking over the compact digital camera category, Fujifilms is now focussing on two segments – professional and instant cameras, to get its growth in India. “India is a tough market and it is difficult to make money here since it is not a homogeneous market. Besides, there constraints like logistics, warehousing and […]

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SBP advocate rise in water tariff to help build reservoirs, avoid water shortages | Dunya News

SBP advocate rise in water tariff to help build reservoirs, avoid water shortages | Dunya News

KARACHI (Dunya News) – The State Bank of Pakistan strongly criticized the water pricing system in the country and asked for due attention as lower tariff rates has been one of the biggest which dampened the government exchequer of not collecting the enough funds for construction of any reservoirs. The State Bank of Pakistan released […]

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Downtown Boise parking is heading toward steep price increases | KTVB.COM

Downtown Boise parking is heading toward steep price increases | KTVB.COM

The largest proposed monthly increases are from $135 to $175 in the Capitol & Main (former Capitol Terrace) and Ninth & Main (former Eastman) garages. Reserved parking in Capital & Main could go from $170 to $220, according to Max Clark, CCDC’s parking and facilities director. The first hour parking would remain free but the […]

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Governments are cracking down on Uber because they don’t understand it | Rare

Governments are cracking down on Uber because they don’t understand it | Rare

So how does this two-sided market work? First, drivers choose which app to use based on the cost of the using the platform and the number of riders. Uber knows this, so it tries to attract as many riders to use the app as possible by offering them the service for free, and giving them […]

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Amazon bookstores offer peek into Whole Foods’ future | Fox Business

Amazon bookstores offer peek into Whole Foods’ future | Fox Business

The Seattle-based company launched its Amazon Books experiment about two years ago and has since used the locations to experiment with in-store pricing and selection. At its dozen stores in cities such as New York, Chicago and San Jose, Calif., prices aren’t marked. Instead, employees instruct shoppers to use their phones to scan a product […]

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Why a Turnaround at Toys R Us Will Tank | Entrepreneur

Its strategy is still misaligned. Back in early 2014, Toys R Us announced its “TRU Transformation” strategy to address shopper experience challenges and position the company for growth. The broad strategy included inventory management improvements, decluttering of stores, a clearer pricing strategy and simpler promotional offers for shoppers. The company also promised to integrate its in-store […]

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For companies, outrage over surge pricing might not be worth it | Las Vegas Sun Newspaper

For companies, outrage over surge pricing might not be worth it | Las Vegas Sun Newspaper

When Bruce Springsteen decided to do a run of shows at a Broadway theater with fewer than a thousand seats, he appeared to reject the laws of economics — or at least what would seem to be in his financial best interest. He limited ticket prices to $75 to $850 and has been allocating them […]

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Cinema ticket: Cinema ticket pricing will vary according to movies, says Assn | ET Retail

Cinema ticket: Cinema ticket pricing will vary according to movies, says Assn | ET Retail

Cinema ticket pricing will be dynamic and it could be decreased or increased not exceeding the maximum threshold fixed by the Tamil Nadu Government,a top functionary of State film exhibtors association said today. Tamil Nadu Film Exhibitors Association president Abirami Ramanathan said, “we will not kill ourselves by immediately fixing the ticket rate uniformly at […]

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Would congestion pricing help solve LA’s traffic problem? | Curbed LA

Los Angeles has the notable distinction of having the some of the world’s worst traffic, but seemingly endless road congestion is hardly unique to the Southland. To address their own traffic problems, many cities around the world use “congestion pricing” to dissuade people from driving into crowded areas at peak times. By charging a toll […]

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FTSE 100 movers: Miners rally as copper prices surge; Convatec crumbles on warning | Digitallook.com

FTSE 100 movers: Miners rally as copper prices surge; Convatec crumbles on warning | Digitallook.com

Heavily-weighted mining stocks racked up the strongest gains as copper prices hit a fresh three-year high after China’s consumer price index jumped 1.6% in September from the year before, in line with expectations. Meanwhile, the producer price index was up 6.9% last month from a year ago, beating expectations Broadcaster ITV was on the front […]

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Grainger Sheds 40 Canada Branches While Mid-Size Customers Drive Modest Q3 Sales Growth | Industrial Distribution

Grainger Sheds 40 Canada Branches While Mid-Size Customers Drive Modest Q3 Sales Growth | Industrial Distribution

Grainger — No. 2 on Industrial Distribution’s Big 50 List — reported its 2017 third quarter financials on Tuesday, led by a modest year-over-year (YoY) sales increase and a continued profit increase as the company provided an update on the results of its recent strategic pricing initiatives, which it initially announced in November of 2016 and then accelerated after […]

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Apple (AAPL) iPhone X Profit Margins Can Make Up for Soft iPhone 8 Sales Analyst Says | TheStreet

Apple (AAPL) iPhone X Profit Margins Can Make Up for Soft iPhone 8 Sales Analyst Says | TheStreet

Shares of Apple gained 1.15% to $158.80 on Monday, after Hargreaves upgraded the stock from sector weight to overweight and set a target price of $187 per share. Apple shares are up almost 38% so far this year. Apple’s aggressive pricing strategy, an improved outlook for iPhone X margins and the App Store’s growth bode well […]

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Using oil revenues to diversify the economy | The Worldfolio

Using oil revenues to diversify the economy | The Worldfolio

An interview with Yang Berhormat Pehin Datu Singamanteri Colonel (Retired) Dato Seri Setia (Dr.) Awang Haji Mohammad Yasmin bin Haji Umar, Minister of Energy and Industry at the Prime Minister’s Office in Brunei You recently signed a nine-month extension to the voluntary oil production adjustment with OPEC and non-OPEC members in a bid to stabilize […]

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Amazon dropped prices as soon as Noon launched, says Alabbar | ZAWYA MENA Edition

Amazon dropped prices as soon as Noon launched, says Alabbar | ZAWYA MENA Edition

American e-commerce giant Amazon, which expanded its presence in the Middle East market with the purchase in March of Dubai-based Souq.com, responded to the launch of local rival Noon.com by immediately cutting its prices, according to the latter’s founder and major investor Mohamed Alabbar. Speaking at a Leadership Dialogue panel held at the first day […]

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Why furniture retailer Freedom Australia is cutting prices on 5,000 items and ditching flash sales | SmartCompany

Why furniture retailer Freedom Australia is cutting prices on 5,000 items and ditching flash sales | SmartCompany

Furniture retailer Freedom Australia says it is moving away from “potentially confusing” rolling sales in favour of an everyday low prices strategy, but one expert says completely removing the rush that sales events prompt could present challenges for the business. The 36-year-old furniture and homewares business told Inside Retail this week that its new strategy will […]

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Dynamic pricing – an unrealised threat for food brands and e-retailers | Food Navigator

Dynamic pricing – an unrealised threat for food brands and e-retailers | Food Navigator

Fixed pricing has ruled the high street since 1861 when John Wanamaker opened a department store in a Quaker district of Philadelphia. He introduced price tags for his goods, along with the lofty slogan: “If everyone was equal before God, then everyone would be equal before price.”​ Ever since then, consumers have expected the prices […]

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Vanguard changes pricing structure on mutual funds | Fund Strategy

Vanguard changes pricing structure on mutual funds | Fund Strategy

Vanguard has changed the pricing structure across its mutual funds to align it with the way costs are calculated among its peers. Funds across Vanguard’s UK and Ireland domiciled fund ranges now use swing pricing rather than single pricing, meaning that if the fund’s investors make large purchases or redemptions the price will be adjusted […]

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What’s new in the ski mountains of Tahoe? | Slope Dope

What’s new in the ski mountains of Tahoe? | Slope Dope

Oh, there’s big news here. At last, the longed-for, dreamed-of, lusted-after new chairlift is going up. It’s a highspeed sixpack lift that will whisk grateful riders from the mid-mountain lodge to the peak nearly three times faster than before. The almost 10-minute ride now takes just over three minutes. And because the new off-ramp is […]

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Featured Content and Events

Certification: Certified Pricing Professional (CPP)

Certification: Certified Pricing Professional (CPP)

The Certified Pricing Professional (CPP) designation is the standard for advanced knowledge and expertise in the field of Pricing. Since 2003, over 900 individuals have taken courses in pricing through Professional Pricing Society and pass their exam to earn the CPP designation. The CPP indicates knowledge and skill in pricing across industries. We also offer the industry standard professional pricing certification via and live Workshops hosted during our conferences around the world. We can help you develop a personal pricing education roadmap to give you the exact tools your need based on your industry and professional background.

 

Webcast: Boost Profitability with Better Contract Management 1-Nov | SPA

Webcast: Boost Profitability with Better Contract Management 1-Nov | SPA

During the webinar, SPA – a leading provider of analytics and training to distribution and manufacturing companies – will review challenges associated with contract management and introduce the SPA Contract Management Solution (CMS) which is designed to help companies overcome these challenges so that they can regain control and profitability in the toughest part of their business. CMS is a cloud-based, ERP-agnostic workflow tool that provides flexible, easy-to-use options for searching, summarizing, and modifying what is often a hornet’s nest of data.

This webinar will be hosted on two different occasions for your convenience:

– Click here to attend on Wednesday, November 1st from 2:00 PM – 2:45 PM EDT

– Click here to attend on Thursday, November 2nd from 11:00 AM – 11:45 AM EDT

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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“Product Pricing is aligned to the way customers want to acquire their solutions and are delivered via different delivery models including appliances, the cloud, or as on-premise software solutions.

     – N. Robert Hammer

 


 

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