This Week in Pricing > 10/28/17

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.

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Strategic Pricing Solutions

Strategic Pricing Solutions, LLC (SPS) is a management consulting firm helping clients with pricing strategies, data analytics, and pricing processes. SPS was formed by Scott Francis in 2005 with a vision of enabling B2B clients to build sustainable strategic pricing capability to significantly improve their profitability. By providing flexibility in how we serve our customers, SPS consulting enables clients to build sustainable strategic pricing capability and continuous improvement in profitability through better pricing decisions.

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Top Headlines

Regal Cinemas Plan May Let You Pay Less for Flops, More for Hits | Bloomberg

Regal Cinemas Plan May Let You Pay Less for Flops, More for Hits | Bloomberg

Regal Entertainment Group is testing demand-based pricing for films, potentially leading to higher prices for top hits and low prices for flops, a big change for an industry that typically uses a one-size-fits-all approach. Working with app maker Atom Tickets LLC, which has lobbied theaters to try dynamic pricing, Regal plans to test the concept […]

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Facebook already owns social. Now it’s going after shopping | WIRED UK

Facebook already owns social. Now it’s going after shopping | WIRED UK

At the core of Radinsky’s research is causality – understanding how events tie together to make something happen. Before she joined eBay, she created a system that brought together disparate data sources to try and discover the cause behind Ebola outbreaks in West Africa. She traced the line of causality back to gold mines, that […]

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Grab testing out a flat membership fee that will give riders ‘surge-free’ rates | TODAYonline

Grab testing out a flat membership fee that will give riders ‘surge-free’ rates | TODAYonline

While the promotions it regularly gives out help woo casual users, its latest idea could snare a lucrative segment of the market. For those who take taxis or private-hire vehicles to and from work, for instance, the S$50 price for the pass works out to under S$2 a day, based on a 30-day period. Whether […]

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How Retailers Use Personalized Prices to Test What You’re Willing to Pay | Harvard Business Review

How Retailers Use Personalized Prices to Test What You’re Willing to Pay | Harvard Business Review

Have you ever looked up flights or hotels on an app on your phone, only to open your laptop and see different prices? That’s exactly what happened to me recently. I was using Orbitz’s iPhone app to research a vacation package to New York City. Settling on a hotel, I accessed Orbitz’s website on my laptop to book […]

 

Playoff tickets at ‘face value’? The Cubs have learned from ‘Hamilton’ | Chicago Tribune

Playoff tickets at ‘face value’? The Cubs have learned from ‘Hamilton’ | Chicago Tribune

But this is old-school thinking about ticketing. The Chicago Cubs have learned a thing or two from “Hamilton.” Any ticket going for more than “face value” actually means that the Chicago Cubs left money on the table. Which, as anyone who patronizes their historic establishment will confirm, they do not like doing. What other reason […]

Legal services: It’s time to be transparent about pricing | City A.M.

Legal services: It’s time to be transparent about pricing | City A.M.

Clients’ dissatisfaction around pricing is reaching a crisis point. Increasingly, law firms are responding by going back to the drawing board and reworking their pricing models. Firms with their eye on the future are dispensing with timesheets – too long the bane of our industry. Without timesheets, law firms should adopt an approach to pricing […]

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Is This American’s Most Offensive Award Pricing Ever? | One Mile at a Time

Is This American’s Most Offensive Award Pricing Ever? | One Mile at a Time

While that’s about as many miles as American will charge for a one-way business class award, it’s not the most offensive award cost, in my opinion. Reader Jeff emailed me to share the absurd award prices that American is trying to charge between San Francisco and Los Angeles on the Sunday after Thanksgiving. Paid tickets […]

 

Independent retailers remain confident after Amazon-Whole Foods Market | Supermarket News

Independent retailers remain confident after Amazon-Whole Foods Market | Supermarket News

Brett said he and his team are also trying to figure out how to reduce margins in order to lower prices. “The Whole Foods deal isn’t the shock it might have been if we weren’t already having to be very mindful of our pricing strategy,” he said, explaining they’ve been doing a strategic pricing review […]

Aldi spurs 3% price drop in SoCal grocery market | Food Dive

Aldi spurs 3% price drop in SoCal grocery market | Food Dive

Dive Brief: Aldi’s entry into the Southern California market has contributed to a 3% average price reduction on basic grocery items throughout the region, according to the Orange County Register, citing data from Strategic Resources Group. Price deflation has also contributed to the price decline. Since entering the Southern California market last March, Aldi has […]

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More Headlines

Pfizer, Amazon, President Trump, football, social injustice, global warming, American Airlines, racism | Dallas News

Pfizer, Amazon, President Trump, football, social injustice, global warming, American Airlines, racism | Dallas News

The shady nature of drug pricing was well illustrated in the news about the outcome of the Pfizer lawsuit against the Texas Health and Human Services Commission. Pfizer had filed a lawsuit for disclosing drug pricing and rebate information to two Texas legislators who were outside the inner circle of “need to know” individuals. Unsurprisingly, […]

 

Disney’s Streaming Dreams: How Disruptive Is Its New Netflix-Style Strategy, Really? | Variety

Disney’s Streaming Dreams: How Disruptive Is Its New Netflix-Style Strategy, Really? | Variety

The Mouse House is moving to cut the cord: Disney plans to launch at least two direct-to-consumer streaming subscription services, for ESPN and Disney movies and TV shows, in the next two years. But right now, it’s not clear how dramatic the change will be for Disney as a whole. More than anything, it looks […]

 

Petrol pricing absurdity in bush must be given short shrift | The Border Mail

Petrol pricing absurdity in bush must be given short shrift | The Border Mail

The simple fact of the matter is that doesn’t seem to matter how much noise is about it – what you fork out in the bush is unjust compared with the situation in the big cities. And arguments put forward about the extra cost of transporting fuel to regional areas carries limited weight. It might explain […]

 

Another Sprint MVNO? Founded by millionaire millennials, Wing launching in November | FierceWireless

Another Sprint MVNO? Founded by millionaire millennials, Wing launching in November | FierceWireless

The result is Wing, an MVNO that runs on Sprint’s network that is scheduled to exit its beta testing phase in November. (Wing notched over 3,000 registrants for its beta test in its first three days of availability, but Arabov declined to provide any further metrics on the business.) Wing offers wireless service through a […]

 

Williamsburg set to change parking plan to make it easier to find a spot | Williamsburg Yorktown Daily

Williamsburg set to change parking plan to make it easier to find a spot | Williamsburg Yorktown Daily

The sensors and increased enforcement are expected to be rolled out by the end of June 2018, according to Assistant City Manager Andrew Trivette. The second step would flip the current parking plan from charging money for inconvenient spots to charging money for convenient spots, while making less convenient spots free, the release said. The […]

 

Congestion plan unveiled by Mayor de Blasio | am New York

Congestion plan unveiled by Mayor de Blasio | am New York

Mayor Bill de Blasio on Sunday unveiled a five-point plan to cut congestion in Manhattan and speed the flow of traffic as the city’s economy booms and its population grows. The plan focuses on freeing curb space, intersections and new travel lanes primarily with increased police enforcement of congestion-causing violations, like blocking the box or […]

 

Google Expands Per Second Billing Option for Cloud Customers

Google Expands Per Second Billing Option for Cloud Customers

Google Group Product Manager Paul Nash paradoxically informed Google cloud customers not to get too excited by it, as enterprises already signed up for Google’s existing per-minute billing option will see very little savings by moving to a per-second model—as small as a fraction of 1 percent. The real savings will come from moving from […]

 

Campaigners welcome NHS England call for ‘more regulation’ of drug pricing | Global Justice Now

Campaigners welcome NHS England call for ‘more regulation’ of drug pricing | Global Justice Now

Diarmaid McDonald of patient campaign Just Treatment said: “We’re currently campaigning to get Pfizer to charge a price for breast cancer drug, palbociclib, that the NHS can afford. If they don’t drop the price then the government should use its power – known as a crown use licence – to secure a fairly priced generic […]

 

Welsh government plans minimum pricing for alcohol sales | The Guardian

Welsh government plans minimum pricing for alcohol sales | The Guardian

A new law that will introduce a minimum price for the sale of alcohol in Wales has been unveiled by the Welsh government. The public health (minimum price for alcohol) (Wales) bill is expected to be introduced before the Welsh assembly on Monday by the public health minister, Rebecca Evans. It will address longstanding health […]

 

11 steps for a successful new product or service launch | The Business Journals

11 steps for a successful new product or service launch | The Business Journals

5. Develop a price based on your strategy, brand and allocated costs. Much can be written about pricing strategy. Generally, if your strategy is to open doors for other products/services, then you have significant pricing flexibility. If your product needs to make a profit, then you need to understand your cost of goods sold, and […]

 

Oculus Store to Include Flexible Bundle Pricing So You Get a Discount If You Already Own a Game | Road to VR

Oculus Store to Include Flexible Bundle Pricing So You Get a Discount If You Already Own a Game | Road to VR

One of the big barriers to buying flash sale bundles is the selection of games available. What if you already own one in that almost perfect bundle that has you salivating at the nearly perfect price? Oculus plans to address this with a dynamic pricing scheme that gives you a discount if you already own […]

 

Three easy steps to drive your pharmaceutical pricing strategy | GfK

Three easy steps to drive your pharmaceutical pricing strategy | GfK

Pricing for pharmaceuticals continues to grow in complexity for the industry due to a variety of factors.  A few of the prominent challenges our clients face include: Just one chance to get it right. Once a price strategy is in place, course corrections are difficult and sometimes even impossible; for example, price increases in ex-US […]

 

Customer Value: The Price of Paradise | Strategic Pricing Solutions

Customer Value: The Price of Paradise | Strategic Pricing Solutions

Earlier this year, my wife and I moved to Florida.  With year-round nice weather, palm trees and white sandy beaches, it seems like Paradise.  Last week Hurricane Irma came through and reminded us of the true price of paradise.  It also reminded me that buyers make trade-offs in every purchase decision, and your pricing strategies […]

Taxify steps up battle for drivers with surge price | Business Daily

Online taxi hailing company Taxify has introduced demand-based charges, also known as ‘surge’ pricing, as it seeks to attract more drivers to its platform. The company introduced the pricing two weeks ago “to motivate drivers to go online during periods of high demand”. This pricing mechanism allows the cab-hailing firm to temporarily raise prices on […]

 

Locals confused by 99 dollar lap-seat ticket price at the Ralph | WDAZ

Locals confused by 99 dollar lap-seat ticket price at the Ralph | WDAZ

I spoke with the General Manager of the Ralph today, he would not get into the specific phone call – but explained that their lap-seat tickets are always sold for the same price as general admission youth tickets. “With our dynamic pricing strategy and with our dynamic ticket policy, tickets this year for youth range […]

 

Is Tesla, Inc. About to Build a Factory in China? | The Motley Fool

Is Tesla, Inc. About to Build a Factory in China? | The Motley Fool

In addition, Tesla’s strong appetite for market share — even if it means forgoing profits today — has led the company to adopt an unconventional pricing strategy in China. Unlike some other U.S. automakers that hike the price of their vehicles beyond incremental shipping expenses, taxes, and customs duties for their sales in the market, Tesla […]

 

Maharashtra panel on taxi fare recommends cap on surge pricing | Livemint

Maharashtra panel on taxi fare recommends cap on surge pricing | Livemint

“At this time it would be premature to comment on the merit of the recommendations but the government is keen to accept all such recommendations which offer multiple choices to the commuters and also help create a level-playing field among old operators like autorickshaws and kaali-peeli taxis and new entrants like Ola and Uber, especially […]

 

City offers three-tiered response to parking study proposals | The Virginia Gazette

City offers three-tiered response to parking study proposals | The Virginia Gazette

If the city chooses to expand paid parking, paid lots would be $1 per hour, and on-street parking would be $1.50 for the first two hours and $3 per hour after that. Parking studies performed in 2016 and 1995 both have the same premise: people should pay for parking near the destinations and not for […]

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Tire Dealer Processing Expands Nationwide | Modern Tire Dealer

Tire Dealer Processing Expands Nationwide | Modern Tire Dealer

The company says it brings a “complete refresh” to the way that credit card processing is historically done. Typically, the credit card processing company adds a per transaction fee plus a percentage onto every transaction. This means that the processing company is getting a slice of the store’s bottom line profits. The bigger the sale, […]

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Forest fee increases proposed | Bitterroot Star

Forest fee increases proposed | Bitterroot Star

According to Strayer the proposal went through local, regional and national review and analysis in its development. She said the fee increases are different for different sites because part of the aim was to make the fees charged consistent across the Forest based on the services provided. For instance, campgrounds featuring services such as water, […]

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Poor shoppers ‘paying highest prices’ | BBC News

Poor shoppers ‘paying highest prices’ | BBC News

A study of grocery prices in the south of Scotland has found poorer, rural communities are often charged the highest prices by retailers. Citizens Advice compared the cost of 11 essentials, including bread, milk and cheese and found prices could triple depending on the purchase area. The study also found that nappies and tampons had […]

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Nordstrom Doubles Down on Discount Format as Retail Woes Deepen | Bloomberg

Nordstrom Doubles Down on Discount Format as Retail Woes Deepen | Bloomberg

Off-Price Popularity In the past 20 years, off-price shopping has grown significantly. T.J. Maxx entered the market in 1976 and is now seen as the dominant player, competing with apparel retailers of every kind. For Nordstrom, the format has drawn in new customers as well as boosting sales — McKibbin said Rack has generated about […]

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Black Friday 2017: Nordstrom, these 60 others to close on Thanksgiving | USA Today

Black Friday 2017: Nordstrom, these 60 others to close on Thanksgiving | USA Today

Sears Hometown, Shoe Carnival and Stein Mart — all stores that opened on Thanksgiving last year — will go dark along with 60-plus other stores for the holiday this year. That’s according to BestBlackFriday.com, whose 2017 Thanksgiving Closures List details retailer’s turkey day plans. Also new to the list is Nordstrom and its sister store, Nordstrom Rack, along with […]

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‘Stranger Things’: Netflix’s expansion plans are embodied by this sweater | Brisbane Times

‘Stranger Things’: Netflix’s expansion plans are embodied by this sweater | Brisbane Times

Netflix’s decision to boost its content budget means it could spend $US8 billion on original series and movies next year. The spending boost was designed to “pull the quality of its library even further away from its competitors”, Credit Suisse analysts wrote. But, of course, this increased spending on content has to be paid for, […]

 

Gilead says drug profits must stay high to pay for ‘innovation,’ but 100% of its profits went to shareholders | LA Times

Gilead says drug profits must stay high to pay for ‘innovation,’ but 100% of its profits went to shareholders | LA Times

With high drug prices still in the political crosshairs on Capitol Hill, pharmaceutical industry bosses are at pains to explain why a cure for hepatitis-C has to cost a budget-busting $1,000 per pill, or a promising cancer treatment should carry a list price of $373,000. That duty most recently fell to John C. Martin, the […]

 

Petro-yuan: China wants to dethrone dollar, RMB-denominated oil contracts | CNBC

Petro-yuan: China wants to dethrone dollar, RMB-denominated oil contracts | CNBC

China is looking to make a major move against the dollar’s global dominance, and it may come as early as this year. The new strategy is to enlist the energy markets’ help: Beijing may introduce a new way to price oil in coming months — but unlike the contracts based on the U.S. dollar that […]

 

Hopper expands its price prediction technology to hotels, initially in NYC | TechCrunch

Hopper expands its price prediction technology to hotels, initially in NYC | TechCrunch

As it does with flights, the new version of Hopper will predict future hotel pricing and tell you when to buy or wait to get the best deal on a room rate. Hopper says its technology is 95 percent accurate up to six months in advance, so it can be used for planning trips far […]

 

Apple Inc.’s Brilliant Apple Watch Series 3 Pricing Strategy | The Motley Fool

Apple Inc.’s Brilliant Apple Watch Series 3 Pricing Strategy | The Motley Fool

However, I suspect that many, if not most, Apple Watch buyers will opt for the lower-cost versions with aluminum casings, especially since the functionality is identical between the ones with the aluminum casings and those housed in fancier materials. What’s interesting about the aluminum versions of the Apple Watch Series 3 is the relatively small […]

 

Should Dynamic Pricing Come To The Megaplex? Regal Plans 2018 Tests | Deadline

Should Dynamic Pricing Come To The Megaplex? Regal Plans 2018 Tests | Deadline

With dynamic pricing unlocking new revenue for some ticket sellers in the theatre and music industries — not to mention travel, hospitality and other economic sectors — Regal Entertainment Group plans to test the concept in movie theatres. The major exhibitor says it will team with ticketing startup Atom Tickets for trials in several markets. “This […]

 

Opinion: Petrol retailers price cycles and price gouging must end | The Courier-Mail

Opinion: Petrol retailers price cycles and price gouging must end | The Courier-Mail

SCREWED again, dammit! Last month I wrote about how we’re all being royally gouged by petrol retailers, seemingly uniformly across groupings of suburbs, engaging in 30¢-plus price cycles lasting up to six weeks. And so it was that petrol stations in my neck of the western suburbs woods, which locals refer bitterly to as the […]

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National Express strategy gets passengers all aboard | London Evening Standard

National Express strategy gets passengers all aboard | London Evening Standard

The UK’s largest coach operator shrugged off the impact of terrorism and used strategic pricing to boost numbers in September, after a weak first half. Low fare zones in the bus division, which operates services in Birmingham and the West Midlands, and interactive pricing on coaches protected revenue. Combining back office functions between the divisions […]

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Featured Content and Events

Book: 8 Keys to Price Optimization

Book: 8 Keys to Price Optimization

Summary: Price optimization enables companies to move beyond cost-plus pricing and determine the range of prices that could be charged for a variety of customers and products. Price optimization can increase current operating income by 1 to 4% of sales, which in many cases will translate into a 20 to 50% increase in operating income. The most sophisticated […]

 

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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“Consumers rarely respond to the lower prices enough to offset lower margins.”

     – KURT JETTA

 


 

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