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This Week in Pricing > 10/25/14

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.


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Top Headlines

Compromise between Amazon and Simon & Schuster | CNNMoney

The tug of war between Amazon and one major book publisher just ended — and both sides are declaring victory. The publisher is Simon & Schuster, a unit of CBS Corporation, which had been locked in negotiations with Amazon for upwards of three months. In signing the deal, Amazon has rid itself of one thorny […]

Surge pricing and the just economy | Reuters

The author is a Reuters Breakingviews columnist. The opinions expressed are his own. Surge pricing is what car service Uber calls its reliance on the market mechanism. The use of price to balance supply and demand is a perfect example of standard economic theory in action. It is also a good example of why market […]

Your Price Reflects Your Confidence | The Sales Hunter

Cheap price = Cheap salesperson. Confident salesperson = Higher margins. When you play the game of closing deals with the lowest price, you’re saying to yourself and to your customers that you don’t have a point of difference. What you’re saying is there is no difference in what you’re offering than what your competitors are […]

Battle of the Prices – Is It Ever Fair to Charge One Sex More? | The Atlantic

On the common practice of charging women more for haircuts and men more for admission to certain nightclubs … New York City’s Department of Consumer Affairs (DCA) has stricter ordinances. Inherently biased gender terms, such as shirts and blouses, are not enough—prices can differentiate for shirts with and without ruffles, but not between shirts and […]

Netflix earnings – The company says price hikes crushed its subscriber growth. | Slate

Rough day for Netflix. The company’s stock is down 25 percent after hours following a lackluster earnings report that revealed the streaming service added fewer subscribers last quarter than it had expected. This comes just after rival HBO announced it would finally release a standalone, Web-only version of HBO Go that could potentially compete directly […]

Amazon Kindle Voyage ignites blast of rave reviews, pricing gets boos | Tech Times

Amazon has released its newest e-reader, the Kindle Voyage, and more than a few reviewers are describing it as the best e-reader to ever hit the market. There is, however, one pitfall to the device — the price. The Kindle Voyage may be the best e-reader on the market, but it’s also the priciest. “But […]

You Never Should Automatically Give a Price | Selling Fearlessly

After the purpose of the call was taken care of, we continued to talk about selling. At one point Dan brought up the subject of prospects who simply want to be given a price, nothing else, no other interaction whatsoever, and who send their request in an email. I’m sure his overall frustrating experience in […]

CBS announces new streaming services – The a la carte TV era begins. | Slate

TV à la carte is having its big bang moment this week. Yesterday, HBO said that it would finally offer a standalone online streaming service that wouldn’t require fans to pay for a TV subscription. Today, after long hinting at the move, CBS announced that it would launch its own $5.99-a-month digital subscription service, called […]

Prices Add Up With a la Carte TV | WSJ

With HBO and CBS planning stand-alone streaming services, the oft-maligned pay-TV bundle has begun to loosen. But it’s not clear the brave new streaming world that replaces it will actually be cheaper for consumers. By offering their networks directly to consumers via the Internet, HBO and CBS are cutting out the middleman—cable and satellite companies—and […]

10 findings about effective pricing strategies | Inside Retail

While heuristics can usefully guide our behaviour and allow humans to function in the world, they are not perfect calculations and are subject to occasional and sometimes costly mistakes. Importantly, heuristics leave people exposed to external influences, including pricing cues. The literature on pricing practices suggests that pricing cues provided by retailers can affect consumer behaviour […]

Value Pricing and Regulation of Lawyers | Allocatur Consulting

However, if a practitioner agrees a fixed fee with a client, there is no provision that requires that a record of time spent is to be kept. What is required is that the practitioner be able to prove that the agreed fee is fair and reasonable, and therefore it is important to be able to […]

Listening to Clients | 3 Geeks and a Law Blog

Lastly – law firms need to grow a pair. They employ very talented people. Instead of always bending over, they should have some confidence in defending their prices. Failing to do so means they will undersell the value of their services. Read complete article here: 3 Geeks and a Law Blog: Listening to Clients.

The Fallacy Of Predatory Pricing | Ashwin Somakumar

The problem is that this scenario never really can play out the way companies expect it to. In a free market economy, as soon as the predatory firm raises its prices to take advantage of its dominant position, it creates an incentive for new rivals to enter the market. The higher the profits, the more […]

Dim Weight Pricing and How it Could Affect Your Shipping Charges | Retail Online Integration

The way in which ground shipping charges are derived is about to change in 2015. Are you prepared? Both FedEx and UPS announced plans to apply dimensional weight pricing on all packages. The two companies already use this pricing on many of their other services, but have now opted to expand this practice further. Both […]

The List Price Question – Is it possible to charge more than list price? | Strategic Pricing Associates

“salespeople believe list price is that artificially high number which is used as a marker for future discounts” Many salespeople believe list price is that artificially high number which is used as a marker for future discounts. In their minds, it is an unnatural sin to sell anything to anybody for “list”. Part of this […]

Focus More on Value Capture | Harvard Business Review

Another interesting example of auctioning that is on the government side is license plates. So we have seen in several countries like Saudi Arabia or Switzerland or Russia that the government sells out very unique license plates. Like the number one or specific numbers. Maybe 88 in China. And then whoever bids the highest amount […]

Discussion: Publishers and Developers are shooting themselves in the foot with their release and pricing strategy – Games

Sorry, but I have to vent about this. Buying games on release is getting more and more stupid. I bought XCOM : EU when it came out and I like it, although I am bad at it. With the sale this weekend, I just got angry. The add-on is 8,24€, while the complete Edition is […]

Effective Fast Food Pricing Strategies Borrow From Big Data | QSR magazine

Recently, I went on a road trip across the Midwest, and on that trip I consumed more than my fair share of fast food. As I darted between Burger Kings and Taco Bells, I began to notice some of the menus’ nuances: the way LTO items were prominently displayed, design elements like typeface or color, […]

Paulo Coelho encourages lower e-book prices | Yahoo News

“The system believes that all pirates are not honest,” he explained. “They are not dishonest,” was Coelho’s proposal, “they have a problem of accessing culture.” “I’m not here to defend piracy, but if you change the system of pricing books, that is one of the solutions.” Further commentary referred to Coelho’s own experience when, in […]

Price is All About You (It’s Not About Your Product) | The Sales Hunter

The only reason you’re going to be able to command a higher price is because of YOU!  It’s what you bring to the customer.  The only sustainable competitive advantage is YOU!  It’s not what you sell! It’s why you sell that makes the difference. The “why” is the value and insights you bring to the […]

7 Reasons to Think Twice (Or More) About Your Pricing Strategy | Business 2 Community

Pricing a product or service “right” is among the most difficult decisions that any company makes. Pricing is a choice, and one that carries enormous ramifications. The “right” price is highly subjective but essential to achieve your business goals. Here’s why: Your pricing strategy should support your overall business objectives.  What’s your business strategy? Price […]

British Supermarket Woes Worsen As Price War Takes Its Toll | ESM Magazine

Palmer went on to say, “Spoilt for choice within the traditional supermarket model and against a backdrop of falling living standards and stagnating real-wage inflation, UK consumers are more aware than ever of the low prices available at Aldi and Lidl. The German discounters’ focus on simpler product ranges and successful own-label products means that, […]

Has Sprint Corporation’s Pricing Strategy Attracted Customers? | Bidness Etc

Since the arrival of its new CEO Marcelo Claure in August, Sprint has not only slashed prices, but has also revamped its data plans to offer more data allocation than the competition. Furthermore, it tried to leverage the launch of Apple Inc.‘s (AAPL) iPhone 6 by introducing new financing and data plans targeted at iPhone […]

Pricing and Human Behavior Modification | Business 2 Community

That brings us to our first question, is pricing an effective tool for modifying human behavior?  The short answer is ‘Yes.’  As prices go up, people evaluate the value they’re getting against the value of alternatives available to them. Similarly, studies done by social psychologists show that positioning your highest priced offering  first yields higher […]

Overhaul Your Distribution Pricing Strategy and Increase Profit | Distribution 2020

How do you set your distribution product prices?  And, who controls those pricing levels? Does your business simply look at your product cost basis and then add your percent margin goal to your costs to determine the prices you quote to your customers? If so, you may be missing some key area’s where you can […]


Events & Resources



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 […]

Webcast: Learn How Crawford Supply Uses Strategic Pricing Tools to Identify and Capture Available Margin Premiums | SPA

Tuesday, November 18, 2014 2:00 PM Eastern Register to attend our webcast that starts at 2:00 PM EST where Jeff Heksh, Sales Director of Crawford Supply will share their journey to pricing excellence and how they are leveraging science-based strategic pricing tools to identify and capture available margin premiums. To implement a solution that enhanced […]

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

The “68% off” story: Part II | Susan Lee

A few days ago I posted a real-life story about buying my favorite ground coffee at 68% off regular retail from a local supermarket. For those of you who are new to this story, you can check it out here. This topic seems to have struck a chord because many of you have emailed me after the […]

Pricer’s Points: Microsoft’s tablet pricing strategy. | Matt Burnett

This is a counter argument to an article written by Tony Rizzo of techzone360.com. You can read it here. Tony Rizzo of techzone360.com has written a piece concerning Microsoft’s failed attempt at making a dent in the tablet market. Rizzo argues that a core problem with Microsoft’s strategy was pricing. In particular the fact that Microsoft didn’t […]

Pricer’s Points: Product bundling: when is a good time to use it? | Matt Burnett

When is a good time to bundle different products/ services together? Product bundling is what it sounds like: bundling multiple products into one package with a single price. It’s nothing new and is common in certain product categories: software (e.g.Microsoft Office), games consoles, airlines and even restaurants (the three course meal). So why bundle? Product bundling […]


Top Discussions

Discussion: Most Pricing Problems Aren’t Pricing Problems

Pricing News LinkedIn Group Discussion You see, most supposed “pricing problems” are usually just symptoms of problems in other areas. Pricing is the point of the spear, where the decisions, actions, and inactions of a bunch of different groups all come together and are made manifest as a price in the market. So, while pricing […]

Discussion: It’s Time to Embrace Congestion Pricing

Gizmodo Article An ambitious new transportation plan for DC announced last week includes a massive public transit expansion, additional subway line, and beefed up network of bike lanes. But the proposal that’s getting the most attention is the introduction of congestion pricing. Yes, DC wants to charge cars to enter its downtown. And more cities […]

Discussion: Making “Freemium” Work

Harvard Business Review Article Over the past decade “freemium”—a combination of “free” and “premium”—has become the dominant business model among internet start-ups and smartphone app developers. Users get basic features at no cost and can access richer functionality for a subscription fee. If you’ve networked on LinkedIn, shared files through Dropbox, watched TV shows through Hulu, […]



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 – The Third Business Skill

Summary: Pricing: The Third Business Skill shows you in a clear and concise manner how to set optimum selling prices for your company and setup a high quality pricing function, using accessible models and examples. Discover how Google, LinkedIn, Apple, BMW, Gillette and other successful companies achieve high profits by deploying optimized pricing strategies. Read […]

Principles of Pricing – An Analytical Approach

Summary: Pricing drives three of the most important elements of firm success: revenue and profits, customer behavior, and firm image. This book provides an introduction to the basic principles for thinking clearly about pricing. Unlike other marketing books on pricing, the authors use a more analytic approach and relate ideas to the basic principles of […]

Resisting Pricing Pressure in Recession & Recovery

Summary: The fastest way to drop profits is to drop prices. So how to resist pricing pressure? This book shows 7 ways: applying key pricing concepts, optimizing your positioning, using game-changing pricing, even raising prices, managing price reductions, marginal pricing, and aggressive lowest cost base pricing. Rupert Hart MBA has been an operating manager and […]



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



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.

“Price is what you pay. Value is what you get.”

     – Warren Buffett

“Perhaps the reason price is all your customers care about is because you haven’t given them anything else to care about”

     – Seth Godin


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 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.

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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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