This Week in Pricing > 10/7/17

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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SPOSEA B.V. drives increased profitability for SAP users by SIMPLIFYING SAP’s Price Data Optimization, Management and Execution. We provide the SAP ecosystem with enterprise-wide Price Management that increases margins through optimized prices. Our family of products includes BrightPrice Optimizer, BrightPrice Manager, BrightPrice DealManager, and BrightPrice MarketDynamics. We provide out of the box solutions for effectively managing Pricing in SAP. SPOSEA is headquartered in Eindhoven, the Netherlands, and has offices in San Francisco, California and Walldorf, Germany.

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Top Headlines

The World’s Worst Pricing Model | Forbes

The World’s Worst Pricing Model | Forbes

The world’s worst pricing model is also one of the world’s most popular. It is cost-plus. I’m talking about anything where the price is based on a mark-up applied to costs. Notice that this includes all professional service providers who charge hourly or daily rates! Cost-plus pricing has many apparent advantages. It is simple to use, […]

 

Dubai hotels should collaborate in establishing minimum price parametres | HotelierMiddleEast.com

Dubai hotels should collaborate in establishing minimum price parametres | HotelierMiddleEast.com

Hotels in Dubai should seriously collaborate in establishing minimum price parametres across the sector while adapting flexible pricing strategies to continue providing consumers with freedom of choice, a panel of hoteliers revealed during a discussion on “War Games – Fighting the Rate War” at the Hotelier Middle East Great GM Debate 2017. Moderating the panel […]

 

Apple’s strategic move on storage pricing: Much better for larger capacities | ZDNet

Apple’s strategic move on storage pricing: Much better for larger capacities | ZDNet

When I last mentioned Apple SSD prices, they maxed out at $2 per gigabyte. Apple’s prices (per gigabyte) also tended to rise as capacity rose.   For example, under the pricing announced on June 5, 2017 at Apple’s Worldwide Developers Conference, the first 192GB increment to the base configuration, costs $0.52 per gigabyte. The next […]

 

The New Frontier of Price Optimization | Tribune Content Agency

The New Frontier of Price Optimization | Tribune Content Agency

Price Optimization in Practice In reality, not every step is used in every situation. For example, Boston, Massachusetts-based Rue La La Inc. did not want us to change prices in the course of its 48-hour sales, so we skipped the learning step. And when we worked with Chicago, Illinois-based Groupon Inc., we realized that the […]

 

How Amazon can rip you off by changing prices 300 times | Daily Mail Online

How Amazon can rip you off by changing prices 300 times | Daily Mail Online

When Alexander Turney Stewart opened a brand new store in New York in the 1820s, he adopted a radical and original policy. All goods had a fixed price. No longer would salesmen size up the apparent wealth of a customer and see how much they could get away with charging. Rival retailers predicted the Irishman […]

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Apple’s Expensive Devices Bring Big Profits, But Come At A Price | Forbes

Apple’s Expensive Devices Bring Big Profits, But Come At A Price | Forbes

To understand Apple pricing is to grok the idea that most of its products sell to a specific price and margin target. It’s no coincidence that in most categories, Apple’s average revenue per unit sold is nearly a straight line when viewed on a graph tracking it over time. This fantastic analysis at Asymco illustrates the point […]

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J.C. Penney’s (JCP) Awful Year Comes at the Hands of Brutal Discounting | TheStreet

J.C. Penney’s (JCP) Awful Year Comes at the Hands of Brutal Discounting | TheStreet

Ellison, whose company’s stock is lower over 57% year-to-date, was confident in stating that this year’s holiday season is shaping up favorably for the retailer while noting beauty, home refresh, omnichannel, pricing strategy, and women’s apparel are instrumental in generating positive same-store-sales. Ellison also told the analysts that investors should primarily focus on the company’s […]

Netflix is raising its prices | CNNtech

Netflix is raising its prices | CNNtech

The company is raising the prices on its standard and premium streaming subscription services. The standard service, which allows customers to stream shows and movies in HD on up to two screens at once, is now priced at $10.99 monthly, up from $9.99. The premium service, which provides viewing on up to four screens (plus […]

 

Netflix’s shares surge after move to increase prices | Financial Times

Netflix’s shares surge after move to increase prices | Financial Times

“From time to time, Netflix plans and pricing are adjusted as we add more exclusive TV shows and movies, introduce new product features and improve the overall Netflix experience to help members find something great to watch even faster,” Netflix said. The world’s largest subscription video streaming service last announced a price increase in October […]

 

Wait, Who Is Beating Walmart (WMT) on Food Prices!? | TheStreet

Wait, Who Is Beating Walmart (WMT) on Food Prices!? | TheStreet

The ongoing battles in retail, especially as it pertains to pricing, may be taking a larger toll on Walmart’s (WMT – Get Report) model than previously thought. Analysts with Wolfe Research, who recently completed trips to Walmarts and Krogers (KR – Get Report) in Houston and Atlanta, discovered that Kroger’s prices were lower in both markets. […]

 

More Headlines

Nokia 8 India pricing a winner. 46% respondents will buy in a heartbeat, reveal poll results | Nokiapoweruser

Nokia 8 India pricing a winner. 46% respondents will buy in a heartbeat, reveal poll results | Nokiapoweruser

HMD launched the affordable flagship Nokia 8 in India priced very competitively at Rs 36,999. While this price directly puts it in competition against likes of OnePlus 5, Nokia 8 is a threat to many other flagships too in India with huge pricing advantage. We conducted a poll to understand what our readers think about […]

 

Predicting sales of online products from advertising language | Stanford News

Predicting sales of online products from advertising language | Stanford News

Challenges of language analysis Online vendors have long struggled to figure out why the exact same product offered on different websites has varying sales figures. Previous research focused on online consumers’ reactions to product reviews and word-of-mouth recommendations. But product descriptions haven’t received as much attention because studying the effects of language on consumer habits […]

 

Q&A: Troy Blackwell, AutoNation USA | Houston Chronicle

Q&A: Troy Blackwell, AutoNation USA | Houston Chronicle

Q: Why did you pick Houston as one of the first locations to launch AutoNation USA? A: Houston was a great market to come to, especially for used cars. The customers’ profile, typically on credit, (show) that they’re often looking to buy a 1-, 2- or 3-year-old car. The volume, the gas prices in this […]

 

Parking In Delhi Residential Areas Should Be Paid, Says Draft Law | Delhi NYOOOZ

Parking In Delhi Residential Areas Should Be Paid, Says Draft Law | Delhi NYOOOZ

“Dynamic pricing mechanisms such as peak and off-peak fees and exponential increase per hour of use would be used to moderate parking demand. “The civic agencies will consult RWAs (residents welfare associations) before deciding the parking charges and mode of management of parking in residential areas including outsourcing of the collection of parking fees,” it […]

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Brent crude: India to receive its first shipment of crude from US on Monday | The Economic Times

Brent crude: India to receive its first shipment of crude from US on Monday | The Economic Times

NEW DELHI: US officials expect their crude exports to keep global oil prices low and stable in the future and benefit consumers, including India, which is set to receive its first shipment from the US on Monday. “Over the long term, it’s hard to see crude prices going up significantly. There might be natural disasters, […]

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Local Gainesville dealership offers convenient online shopping | Markets Insider

Local Gainesville dealership offers convenient online shopping | Markets Insider

With Auto Gallery’s easy to navigate website, shoppers can browse their inventory by make, model, color, price and many other search options.  Whether searchers are looking for a 4×4 truck or a compact coupe, Auto Gallery Inc. has what they are looking for.  Once a shopper has narrowed down their decision, Auto Gallery Inc.’s handy […]

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Why Dynamic Pricing Is The Way To Go For Ride-Hailing Services | swarajyamag.com

Why Dynamic Pricing Is The Way To Go For Ride-Hailing Services | swarajyamag.com

Gone are the days when prices of most commodities were fixed by the government. The introduction of big data has clearly helped many of the conventional organisations to adopt dynamic pricing. As the famous French Physiocrats said long ago, “Market will work for societal good if let alone.” Dynamic pricing works on the basis of […]

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With lower tuition, Iowa residents flooding University of South Dakota | Sioux City Journal

With lower tuition, Iowa residents flooding University of South Dakota | Sioux City Journal

So a host of freshmen and sophomore students from Iowa are paying in-state tuition and fees this year, while some upperclassmen Iowans who started at USD before 2016 are paying the non-resident price of $12,019.There are some oddities for Iowa students on campus, since officials when beginning the lower tuition option in 2016 didn’t apply […]

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New PlayStation VR Headset Design Revealed | VRFocus

New PlayStation VR Headset Design Revealed | VRFocus

“The new version, model number CUH-ZVR2, features an updated design that enables the stereo headphone cables to be integrated with the VR headset and a slimmer, streamlined connection cable,” reads the official description on the PlayStation Blog. “There’s also an updated Processor Unit that supports HDR pass through, enabling users to enjoy HDR-compatible PS4 content […]

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HP clears out Omen gaming laptops with 25% off coupon | Destructoid

HP clears out Omen gaming laptops with 25% off coupon | Destructoid

The prices on all three models are significantly better than what they were just two months ago in our last roundup of Omen computer deals. For those who recall or are tracking gaming laptop prices, each of the deals above are at least $150 more in pricing. The top-end model with a discount comes in […]

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Pixel launch will test Google hardware strategy and Apple rivalry | MarketWatch

Pixel launch will test Google hardware strategy and Apple rivalry | MarketWatch

“The devil is in the details,” said Dawson over the phone. “The reality is they sold 2 million phones because of limited supply, limited distribution and that they were not differentiated in the market. Unless those things change, it’s not going to be that material to Google’s sales. Even if they move twice as many […]

 

Attendance rides higher at Tokyo Disney Resort in first half | Nikkei Asian Review

Attendance rides higher at Tokyo Disney Resort in first half | Nikkei Asian Review

Visitors to Universal Studios Japan in Osaka likely exceeded the prior year’s record of 7 million people for the half. Attendance was driven by Minion Park, a roughly 10 billion yen ($88.7 million) facility opened in April. The new area attracts a wide range of fans from young women to families. The main attraction drew […]

 

Pitch Perfect: 4 tips for winning new business | The Drum

Pitch Perfect: 4 tips for winning new business | The Drum

2. Weave price into your pitch narrative Once you’ve made it to the pitch, the inevitable question will be asked – how much? Paul Williamson, managing director at Sports Ink, suggested that at the moment, agencies see price as something to simply put in at the very end of a document rather than an “incredibly […]

 

HomeAdvisor CEO Chris Terrill says Angie’s List will be reignited | IndyStar

HomeAdvisor CEO Chris Terrill says Angie’s List will be reignited | IndyStar

Ken Copley, an analyst and portfolio manager with Iowa-based Capital Executive LLC, who has followed Angie’s List, said he’s not surprised to hear that Angie’s List’s staffing has leveled off, but added he’s skeptical that the combined company will expand its workforce in Indianapolis. “I don’t know about the growth. It might be marginal,” Copley said. […]

 

Smartphone average selling price sees 25% jump in Q2 | Business Line

Smartphone average selling price sees 25% jump in Q2 | Business Line

The average selling price of smartphones in India touched $157 in the second quarter of 2017. This is an increase of $30 or 25 per cent compared to the average selling price last year, according to data provided by International Data Corporation. Smartphone price on an average was up by just 3 per cent in […]

 

The Best Ways to Save Money When Shipping Packages for Your Small Business | Entrepreneur

To help ease the complexity that parcel management often presents to merchants, it’s important to recognize the various opportunities and demands that shipping introduces to commerce based businesses. Sim offers the following five points when aiming to streamline your shipping strategy. Identify serviceable markets: Commerce is global, with potential customers ordering from every corner of […]

 

Uber offers refund after fare hike following Croydon bomb scare | Eastlondonlines

Uber offers refund after fare hike following Croydon bomb scare | Eastlondonlines

Uber pledged today to refund commuters stranded at East Croydon Station after a bomb scare yesterday led to people paying almost triple their normal fare. The so-called “surge” price came after the station was forced to close after reports of a suspicious package. In a statement given to Eastlondonlines an Uber spokesperson explained how the app uses “dynamic pricing” to increase the fare in areas of […]

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Canisius College changes opaque pricing policy, slashes tuition to $27,000 | The Buffalo News

Canisius College changes opaque pricing policy, slashes tuition to $27,000 | The Buffalo News

Canisius joins more than 30 private colleges and universities across the country that have rolled back tuition rates over the past 20 years, and eight other colleges that last month announced they will do tuition resets next year, said Lucie Lapovsky, an economist who studies higher education finance. Canisius closely studied a tuition reset by […]

 

 

Lower Concession Prices May Backfire | Strategic Pricing Solutions

Lower Concession Prices May Backfire | Strategic Pricing Solutions

The Atlanta Falcons have established a new concessions pricing strategy for the coming season, and they will have the lowest prices in the NFL.  They are lowering most prices in an effort to be more fan friendly. I am not a scrooge, but I think it is a bad decision. At best, they will make […]

 

Commuters pick cheaper rides | The Star Online

Commuters pick cheaper rides | The Star Online

Asean master tourism trainer Y.S Chan, who conducts training for taxi drivers and also writes regularly on tourism, training, transportation and taxi issues, summed it up perfectly saying, “Every new taxi app rolled out has been touted as state of the art, and there is no doubt technology keeps getting better. “But the reality remains […]

 

Traditional gyms add membership options to compete with boutique fitness studios | MarketWatch

Traditional gyms add membership options to compete with boutique fitness studios | MarketWatch

With competition coming from a few angles, traditional gyms are facing challenges that can only be overcome through a change in approach. “Traditional gym operators are disadvantaged relative to some boutiques due to their high fixed investments in real estate and equipment,” Fitch Ratings analysts wrote in a Tuesday note. “Traditional facilities also face pressure […]

 

Is Hollywood’s Blockbuster Obsession Hurting Broadway? | Variety

Is Hollywood’s Blockbuster Obsession Hurting Broadway? | Variety

But talk to the industry about the challenges it sees ahead, and it’s clear that as popular and profitable as Broadway has become, its blockbuster mentality has also given rise to, or exacerbated, some of its biggest problems. The ongoing increase in ticket prices has long been a concern for Broadway, and while the advent […]

 

Mark Shenton: Why is my theatre ticket so expensive? It’s the economics, stupid | The Stage

Mark Shenton: Why is my theatre ticket so expensive? It’s the economics, stupid | The Stage

Of course, market forces dictate this. We see it most keenly on Broadway, where dynamic pricing is king and popular shows regularly earn more at the box office than their own potential grosses. This is because so many tickets are sold at premiums way above the ‘regular’ top prices. These have reached $748 for the […]

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Featured Content and Events

Bright Price Market Dynamics – Get a powerful solution to effectively optimize and analyze price data in SAP | SPOSEA

Bright Price Market Dynamics – Get a powerful solution to effectively optimize and analyze price data in SAP | SPOSEA

Dynamic pricing solution for Geo-Targeted Price Optimization The Right Price All Over the World DYNAMIC PRICING Our Dynamic pricing software combines real- time market analyses with intelligent price optimization techniques. The optimal pricing strategy will boost your traffic, sales and profits. EXIT INTENT TECHNOLOGY Our Exit Intent technology uses refined behavioral analysis techniques to trigger […]

 

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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“Accept certain inalienable truths: Prices will rise. Politicians will philander. You, too, will get old. And when you do, you’ll fantasize that when you were young, prices were reasonable, politicians were noble, and children respected their elders.”

     – Mary Schmich

 



 

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