This Week in Pricing > 11/10/18

pricingnews-WeeklyThis Week in Pricing is a collection of pricing focused news, thought leadership , events, jobs and professional education resources for pricers.

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

Is Everyone on the Same Page about Pricing? | Bain & Company

Is Everyone on the Same Page about Pricing? | Bain & Company

There are many ways to set prices in B2B markets, but none will lead to profitable growth without strong communication and coordination across a company’s sales, product, pricing, finance and other departments. Too often, B2B companies rely on internal cost data to set prices, without seeking external information on the features or services customers value, […]

 

Coke and McDonald’s Are Raising Prices. Should You Do the Same? | Inc.com

Coke and McDonald’s Are Raising Prices. Should You Do the Same? | Inc.com

According to the Wall Street Journal, companies that sell to consumers (like Clorox, McDonalds, and Coca-Cola) are raising prices to take advantage of increased consumer confidence and in anticipation of higher inflation rates. This news might lead companies that aren’t consumer giants (which covers most everyone reading this post, I suspect) to consider whether this is […]

 

Pricer’s Points: Getting Pricing Wrong | Colleen Francis

Pricer’s Points: Getting Pricing Wrong | Colleen Francis

Recently I was at a large gathering of CEOs: all sharp thinkers who want to see their companies grow. While I’d been invited to address their forum to talk about the sales process, what many of them really wanted to ask me about afterwards was where they fit in that process. Specifically: do CEOs need to […]

Disney World changes ticket prices and how to buy them | myAJC

Disney World changes ticket prices and how to buy them | myAJC

Walt Disney World is changing its ticket structure by moving to date-based pricing that reflects the expected demand on specific days. It’s also introducing a new platform on which to make those purchases. The changes and additions, including the price to enter the parks, kick in Oct. 16. At that time, a one-day, one-park ticket […]

 

Target released their 52-page Black Friday ad and put Instant Pots, Dysons, and more on sale right away | Mashable

Target released their 52-page Black Friday ad and put Instant Pots, Dysons, and more on sale right away | Mashable

If you’ve been at the internet at all today, you’ve probably seen the words “Black Friday” more times than you would have predicted for it being the day after Halloween. Nov. 1 kicks off deals season now according to Best Buy, Walmart, Amazon, and numerous other retailers duking it out with super early gift deals. […]

 

Government orders crackdown on online stores charging different prices to individual shoppers | The Sun

Government orders crackdown on online stores charging different prices to individual shoppers | The Sun

A CRACKDOWN is on the cards for online stores charging different prices to individual shoppers. Known as personalised or dynamic pricing, the practice sees prices linked to what the firms think customers will spend. The government will crackdown on online stores charging different prices to individual shoppers The decision is based on information including the […]

 

Flight Ticket Prices: CCI Probing Alleged Fixing Of Airfares Using Algorithm By Airlines | Bloomberg

Flight Ticket Prices: CCI Probing Alleged Fixing Of Airfares Using Algorithm By Airlines | Bloomberg

The Competition Commission of India is looking at algorithms used by airlines to determine fares, as part of a detailed probe into alleged fixing of air ticket prices, the regulatory body’s chief Sudhir Mital said. Currently, the fair trade regulator is investigating allegations of similar pricing as well as simultaneous increase in ticket prices by […]

 

Black Friday 2018 Ad Preview: Walmart’s Biggest Deals | Forbes

Black Friday 2018 Ad Preview: Walmart’s Biggest Deals | Forbes

Black Friday 2018 already seems to be breaking records and the most sought-after deals from Walmart WMT +1.55%’s big circular have yet to be revealed. But, now that we have seen the 13-page Dell Black Friday ad, the 77-page JCPenney Black Friday ad, the 20-page Sam’s Club One-Day Sale ad and the 47-page Target Black […]

 

Uber launches new subscription service across five US cities | City A.M.

Uber launches new subscription service across five US cities | City A.M.

Ride-hailing app Uber has rolled out a new subscription scheme across five US cities. Based on subscriptions, the new ride pass will allow members to avoid surge pricing, when fees peak at rush hour and at other times when demand is high. The lowest monthly subscription comes in at $14.99 (£11.55) in Austin, Denver, Miami […]

 

Can Cognitive Biases be Used to Fix Prices? | Entrepreneur

Can Cognitive Biases be Used to Fix Prices? | Entrepreneur

How should we price our product? Should we start low, deliver value and then demand a higher price? Or should we start high? Price-Quality Heuristic Most people are aware of price-quality heuristic, maybe not by that name. Heuristics, simply put, are the mental shortcuts that people employ to make quick judgements. Price-quality heuristic is the […]

 

UK government to probe how online retailers target shoppers with personalised pricing | The Drum

UK government to probe how online retailers target shoppers with personalised pricing | The Drum

The UK government is launching an inquiry into how online retailers use personal data to target consumers with individual prices for purchases like holidays, cars and household goods. The Competition and Market Authority (CMA) has commissioned research to explore just how widespread the practice of targeting consumers through personalised pricing and search results is. The […]

 

The CMA’s Paper on Pricing Algorithms, Collusion and Personalised Pricing | The National Law Review

The CMA’s Paper on Pricing Algorithms, Collusion and Personalised Pricing | The National Law Review

On 8 October 2018, the UK Competition and Markets Authority (“CMA”) published a Working Paper on the ‘use of pricing algorithms to facilitate collusion and personalized pricing’ (the “Paper”). It follows a number of other initiatives from competition authorities regarding algorithms, including the recent German Monopolies Commission’s proposals regarding pricing algorithms, which was the subject […]

 

 

Car insurance regulator launches pricing investigation | Motor1

Car insurance regulator launches pricing investigation | Motor1

Financial Conduct Authority says pricing practices could be causing “consumer harm”. The UK’s financial regulator has confirmed that it will investigate the way in which firms charge their customers for home and motor insurance. The Financial Conduct Authority (FCA), which regulates markets such as banking and insurance, confirmed that a piece of “supervisory work” on […]

 

Saudis Raise Asia Crude Pricing as U.S. Puts Curbs on Iran | Bloomberg

Saudis Raise Asia Crude Pricing as U.S. Puts Curbs on Iran | Bloomberg

Saudi Arabia raised pricing for the Medium and Heavy crudes it sells to Asia, a sign that OPEC’s biggest producer sees robust demand for the grades as it boosts output to offset the impact of energy sanctions on Iran. State-owned Saudi Aramco increased its official selling price for December sales of Medium crude to Asia […]

 

Merck CEO on US healthcare system and drug pricing [Video] | CNBC

Merck CEO on US healthcare system and drug pricing [Video] | CNBC

Merck CEO Ken Frazier discusses the U.S. healthcare system and President Donald Trump’s drug pricing plan. Read complete article here: Merck CEO on US healthcare system and drug pricing.

 

Events

14th Annual PPS European & Global Pricing Conference & Workshops | PPS

Date: November 28-30, 2018

Location: Mövenpick Hotel Amsterdam City Centre in Amsterdam, Netherlands

The Professional Pricing Society team and I are very proud to announce that we will be returning to Amsterdam for our next great event – The 14th Annual PPS European & Global Pricing Conference & Workshops held 28-30 November.

Conference keynotes, breakout sessions, and networking opportunities highlight the conference day on 30 November; While 28-29 November will be used for workshop days to help you enhance your pricing knowledge.

 

Workshop: Data Monetization: A Practical Roadmap for Framing, Pricing, and Selling Your B2B Digital Offers 26-Nov | Stephan Liozu, CPP

Date: November 29, 2018

Location: Mövenpick Hotel Amsterdam City Centre in Amsterdam, Netherlands

The digital revolution promises trillions of dollars in created value by 2030. Consultants and researchers are projecting massive disruption in industrial sectors. As a result, PwC states in their DigitalIQ report that 73% of executives are investing in internet of things (IoT) and 54% in artificial intelligence (AI). ABB predicts that 33 billion “things” will be connected to the internet by 2020. Yet, in 2017, Cisco reported that 60% of IoT initiatives stall in the proof-of-concept phase and that only 26% of companies have had an IoT initiative that they consider a success. Despite the high level of interest and investments, the reality is that most companies are just starting.

This workshop focuses on data monetization and the value-based pricing of data-based offers. We introduce a newly-developed practical data monetization roadmap that can be used by digital project teams, incubators, and digital factories to better frame their offers and apply the principles of value-based pricing. Participants receive a copy of the 2018 Monetizing Data book.

 

Jobs

Director Of Pricing

Description

Directs pricing organization responsible for setting sell-side price strategy to optimize margin opportunities and achieve business plan margin goals and objectives. Manages team to execute pricing strategy. Works in alignment with group leadership, category management and global account management to develop pricing strategies and establish sell-side pricing structures based on profitability, market awareness and customer commitments. Provides key leadership and responsible for executing strategic vision for customer pricing and margin strategies.

Requirements

  • Price strategy development and execution – 8 years required
  • Direct management of pricing team resources – 8 years required
  • Functional and business leadership collaboration – 8 years required
  • Bachelors’ Degree in Business or Finance or related required; Masters’ Degree in Business or Finance preferred

 

Senior Director of Pricing Analytics

Company Logo

Description

McDonald’s is proud to be one of the most recognized brands in the world, with restaurants in over 100 countries and billions of customers served each year. As the global leader in the food service industry, we have a legacy of innovation and hard work that continues to drive us to build an even better McDonald’s. Today, we are growing with velocity and are focused on modernizing experiences while delivering incredible value and quality in the food we serve.

Requirements

  • Extensive expertise at leveraging advanced statistical modeling methodologies in informing go to market strategy and decision making.
  • Extensive background in developing, maintaining and improving effectiveness of transactional and analytical decision processes.
  • Deep expertise in advanced analytics and methodologies applied to primary and secondary research.
  • Ability to influence and lead cross-functional teams in a matrix environment.
  • Requires Masters in Statistics, Econometrics, Computer Science or related fields
  • Minimum 10 years’ experience, including at least 5 years’ experience in quantitative analysis
  • Previous experience leading cross functional teams required
  • Previous leadership experiences influencing and guiding leadership across large organizations.
  • Ability to program and build scalable models using SAS, R, Python.

 

Mgr – Pricing Strategy & Optimization

Company Logo

Description

Responsible for the operational deployment, adoption and effectiveness of a price optimization program throughout the VWR North America organizations. This role will manage technical training and support of the price optimization tool to enable effective and efficient execution of pricing best practices, and will take the lead role in identifying, prioritizing, and implementing future enhancements to pricing strategies, policies, and processes that will drive revenue and profit expansion as well as more effective sales & pricing processes. In addition, this position will lead and manage several ongoing strategic pricing processes in cooperation with the Category Management team.

RESPONSIBILITIES (List in order of importance)

  • Works with various functions and levels within VWR to facilitate training, development, and adoption. The VWR field sales organization includes (but is not limited to): Segment Leaders, Sales Executives (Vice Presidents), Regional Sales Directors, Strategic Partners Organization, Sales Representatives, Specialist teams, Category Management, and Marketing.
  • Identify trends, system issues, and training or development opportunities to proactively enhance the user experience, and create improvements to VWR pricing processes.
  • Create reports/dashboards to establish, track, and report on key business metrics and to measure the effectiveness of the price optimization program.
  • Synthesizes and integrates business intelligence into price optimization system in support of field sales priorities.
  • Monitors and cleanses data, as needed, to ensure data remains consistent, valid and relevant to the price optimization process.
  • Conducts ad hoc data analysis, providing insights and recommending innovative and effective strategic improvements.
  • Management of technology update process and pricing strategies and exceptions that may be required to support business needs; coordinates activities with IS team, quotes team, and salesforce.com team to ensure system integration stability and security.
  • Foster close working relationships with internal stakeholders to obtain adherence to data standards, guidelines, and procedures related to the role.
  • Partner with Marketing, Sales Operations and Sales Leadership to translate business needs into system requirements and supports the management of price optimization tool enhancement projects from requirements documentation to execution.
  • Continuously analyze operational and commercial processes to find and implement new efficiencies.
  • Primary point of contact for software vendor; work with technology partners to understand system functionality and roadmaps.

 

Resources

Explore our collection of valuable pricing resources including: Books, CartoonsCertificationsPapersQuotesReportsTraining, and Videos.

 

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This blog series provides a forum for pricing professionals to share their insights and experience. Our guest bloggers share their knowledge about specific product or industry challenges, geographic complexities, strategies, tactics, and technologies.

 

The following is your weekly-dose of pricing cartoons and quotes – enjoy…

 

“The value of money comes from the private sector in the form of price for product, services rendered, what people are willing to pay for something they want or need. That’s where value happens.”

    – Rush Limbaugh