This Week in Pricing > 11/11/17

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: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™).

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Top Headlines

Jay-Z’s 4:44 concert ticket prices are a brilliant strategy | Quartz

Jay-Z’s 4:44 concert ticket prices are a brilliant strategy | Quartz

Jay-Z has been playing shows on his latest tour for less than a week, and it’s already the highest-grossing tour of his solo career. How so? The ticket prices, for one thing. Sales on the rapper’s tour for 4:44—a hotly anticipated album that dropped earlier this year with its own round of unusual business moves—are […]

 

Pricey New Space Age Perovskite Solar Cell Aims For Low-Cost Rooftop Solar Market | CleanTechnica

Pricey New Space Age Perovskite Solar Cell Aims For Low-Cost Rooftop Solar Market | CleanTechnica

Researchers at the National Renewable Energy Laboratory and the University of Washington, have come up with a strategy for driving down the cost of solar cells while ramping up efficiency: start at the top. The team has developed a high cost, high efficiency quantum dot solar cell for space applications, where price is no obstacle. […]

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China plans to destabilize the US Dollar by pricing oil in Yuan | The Camping Canuck

China plans to destabilize the US Dollar by pricing oil in Yuan | The Camping Canuck

The world’s biggest importer of crude oil and other energy related products, China has reportedly decided to undertake a major step to challenge the dominance of the dollar in the global market. The country, as per sources, will begin by introducing a new pricing strategy in the oil sector and hopes that the growing adoption […]

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The Fat Years For U.S. Airlines Are Coming to an End | Bloomberg

The Fat Years For U.S. Airlines Are Coming to an End | Bloomberg

America’s passenger carriers have discovered that it’s getting more expensive to run an airline these days. While summertime profits were fine, and travel demand remains robust, a number of airlines are facing higher bills from a variety of factors: labor contracts, significant airport renovation projects, technology spending and fleet upgrades. The increase in expenses is creeeping into 2018 […]

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Best Buy Stops Some Sales of New iPhones After Pricing Backlash | Bloomberg

Best Buy Stops Some Sales of New iPhones After Pricing Backlash | Bloomberg

Last week, when users went to Best Buy’s website to purchase an iPhone X at the full, upfront price, Best Buy charged $1,099 and $1,249 for the two configurations. Apple’s pricing is $999 and $1,149. “Although there was clearly demand for the un-activated iPhone X, selling it that way cost more money, causing some confusion […]

 

Comment: Price-fixing of bread would be hard to prove | Times Colonist

Comment: Price-fixing of bread would be hard to prove | Times Colonist

Demonstrating beyond a reasonable doubt that grocers are colluding to keep retail prices artificially high is almost impossible. Several attempts have been made in the past, with mixed results. Grocery stores carry on average more than 15,000 different products, and prices can be affected by an array of factors: commodity prices; energy and labour costs; […]

 

The NFL And Networks Just Got Terrible News From Advertisers | The Federalist Papers

The NFL And Networks Just Got Terrible News From Advertisers | The Federalist Papers

With ratings in the tank for NFL games, the next shoe is dropping as we speak. Ad prices for broadcasts of National Football League games are dropping like a stone, as well. After all, if nobody’s watching, then nobody’s going to pay a premium for an ad. Prices for advertising during televised broadcasts are down […]

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Grocers of the future: Room enough for both Amazon and Aldi | YouGov

Grocers of the future: Room enough for both Amazon and Aldi | YouGov

If the Price is Right Retail revenue, particularly for food, has increased by as much as 86% between 1992 ($337 billion) and 2016 ($627 billion). Data from YouGov Profiles reveals that retailers like Walmart, Kroger, Albertsons, Costco, and Sam’s Club make up 40% of the market share, but competition is tight between these giants. Consumers […]

 

Pricer’s Points: Resist Excessive Price Discounting in B2B SaaS – Standing on the Shoulders of Giants | Mrinal (MG) Gurbaxani

Pricer’s Points: Resist Excessive Price Discounting in B2B SaaS – Standing on the Shoulders of Giants | Mrinal (MG) Gurbaxani

As explored in the last post, SaaS companies should learn from their experienced B2B counterparts to strive for value-based pricing and avoid spiralling into a price war. So how exactly does a modern SaaS company stand on the shoulders of these B2B pricing giants? The short answer: Don’t tolerate being treated as a commodity – prove differentiated […]

 

Apple iPhone 9 to be less expensive than iPhone X: Rumor | gizmolead

Apple iPhone 9 to be less expensive than iPhone X: Rumor | gizmolead

If rumors are to believe, Apple iPhone 9 will be less expensive than iPhone X Apple introduced its iPhone X last month. The 10th-anniversary-iPhone is scheduled to arrive on 3rd November. The handset carries a hefty price-tag ($999 / £999 / AU$1,579) and some impeccable, high-end specs. For instance, it includes a dual rear camera setup. Another primary […]

 

More Headlines

Pricer’s Points: Navigating Big Data Analytics – “What if’s” in Dynamic Pricing | Tom Bacon

Pricer’s Points: Navigating Big Data Analytics – “What if’s” in Dynamic Pricing | Tom Bacon

Dynamic pricing is highly complex – and sometimes not intuitive.  A significant increase in observed demand for a period may not actually drive a significant increase in forecast demand.  And, many times even a large increase in forecast demand for a higher fare has little or no impact on the seats set aside for that […]

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JC Penney slashes profit outlook, sending shares to an all-time low | CNBC

JC Penney slashes profit outlook, sending shares to an all-time low | CNBC

“While we acknowledge the positive work JCP is doing to become less apparel reliant (with initiatives like the expansion of home, appliances, beauty, and salon) the sector faces intense secular headwinds as mall traffic wanes and the shift to e-comm should also continue to weigh on profitability,” Jefferies analyst Randal Konik wrote in a note […]

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HERO Sales Aggressively Smashed by Minimarket Operators | netral english

HERO Sales Aggressively Smashed by Minimarket Operators | netral english

“In the food business, competition is getting tighter as the minimarket operators continue to invest heavily in the development of their business networks,” Deutsch said, Saturday (10/28/2017), in a written statement. To anticipate this, he emphasized several initiatives to improve the company’s ongoing food business performance including reviewing the promotion and pricing strategy among the […]

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Behind Philip Morris International’s Smokeless Bet — WSJ | Fox Business

Behind Philip Morris International’s Smokeless Bet — WSJ | Fox Business

WSJ: At over $100 for the starter kit, IQOS isn’t cheap. Can you explain your pricing strategy? MR. CALANTZOPOULOS: Innovation, in the minds of people, cannot be something extremely cheap. If you are an average person and you hear that something that is much better than cigarettes comes to the market at the cheapest possible […]

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Increased power prices to lessen inefficient use of energy: KAPSARC | Saudi Gazette

Increased power prices to lessen inefficient use of energy: KAPSARC | Saudi Gazette

JEDDAH — The King Abdullah Petroleum Studies and Research Center (KAPSARC) has published a research paper titled “Reforming Industrial Fuel and Residential Electricity Prices” and found that the energy system could benefit by $12 billion per year, largely due to households using less electricity in response to increased prices – for example, from 144 TWh […]

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Tell us: Do movie ticket prices matter? | Bizwomen

Tell us: Do movie ticket prices matter? | Bizwomen

Regal Entertainment Group plans to test “dynamic pricing” for movie tickets next year. That means you could pay more to see a blockbuster on opening night, but possibly less for small, independent films. The announcement comes as the average movie ticket price has reached $8.91 so far this year — an industry high. Regal (NYSE: RGC) […]

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Alaska Air Group faces tough pricing and rising costs in the home stretch of merger integration | CAPA

Alaska Air Group faces tough pricing and rising costs in the home stretch of merger integration | CAPA

Most US airlines have cited some pricing pressure in domestic markets, and Alaska Air Group is no different. The company has endured significant pressure on close-in pricing on its US transcontinental routes and intra-California network in recent months – two strategically important regions for the company as its merger integration with Virgin America continues. The […]

 

Parents slam ‘rip off’ prices for soft play area at Bath Sports and Leisure Centre | Bath Chronicle

Parents slam ‘rip off’ prices for soft play area at Bath Sports and Leisure Centre | Bath Chronicle

During peak hours it will cost £4 for two to four-year-olds and £4.50 for children over five. Non-member adults can enter for £2.50 and get a free hot drink from the diner. These charges were initially understood to be hourly rates – but leisure centre operators have said visits will be time restricted only when […]

 

Industry group warns Ottawa that excessive cuts to drug prices could be harmful | Times Colonist

Industry group warns Ottawa that excessive cuts to drug prices could be harmful | Times Colonist

OTTAWA — Canada’s drug developers recognize that pharmaceutical prices need to come down but they fear the Trudeau government will push too hard in a regulatory review by Health Canada, the head of an industry association said Tuesday. Pamela Fralick, president of Innovative Medicines Canada, said she doesn’t know what changes Health Canada will propose […]

 

Ohio State football season tickets could be cheaper in 2018 | Columbus Business First

Ohio State football season tickets could be cheaper in 2018 | Columbus Business First

The Ohio State Buckeyes will have a few marquee matchups at the Horseshoe next season, and fans will continue to pay a premium for them compared to games against teams such as Tulane and Rutgers. Season ticket pricing, however, could go down if school trustees approve recommendations they’ll get a look at on Friday, Ohio […]

 

Google Shuts Off Airline Booking Tool in Search | Bloomberg

Google Shuts Off Airline Booking Tool in Search | Bloomberg

Alphabet Inc.’s Google is pulling a software tool that let small companies access search information on airfares, a potential blow to online travel newcomers. Google’s tool was opened in 2011 after its $700 million acquisition of ITA Software Inc., an online airfare broker. In approving the deal, a federal judge required that Google keep an […]

 

Experts Warn Amazon Will Stumble On Major Logistics and HR Issues In Oz | channelnews

Experts Warn Amazon Will Stumble On Major Logistics and HR Issues In Oz | channelnews

“When you start delivering beyond the metro centres into the regions, that is where the real challenge will be”. Dennis claims that eBay Australia will soon launch a guaranteed delivery service, plus a price matching program. The strategy is likely intended to increase eBay’s competitiveness amidst Amazon’s influence. Commentators speculate that Amazon’s prices will generally be […]

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Swaziland-based chilli business finds export success | How We Made it in Africa

Swaziland-based chilli business finds export success | How We Made it in Africa

“From the beginning, we knew that we wanted to work with small farmers who can help us produce organic ingredients for our products,” says Claudia. “So while Guba wanted to improve food security in Swaziland, Black Mamba came on board to fulfil its second objective – which is to create market access and income for […]

 

Falling prices, quota confusion keep herring market slow | Undercurrent News

Falling prices, quota confusion keep herring market slow | Undercurrent News

Buyers of Norwegian spring-spawning herring have continued to wait and see if prices will carry on falling in week 43 of 2017, with the Norwegian herring sales association — known as Sildelaget — noting urgent measures were needed to try and buoy the market. Catches in week 43 were 24,800 metric tons, down from 30,000t […]

 

Dorney Park parent company reports record third quarter revenues | WFMZ

Dorney Park parent company reports record third quarter revenues | WFMZ

The increase in revenues for the quarter was the result of a 2 percent increase in average per capita spending, offset slightly by a less than 1 percent decrease in attendance and a 4 percent decrease in out-of-park revenues, including resort accommodations, when compared with 2016’s third quarter. As a result of the gains, Cedar […]

 

Regal considering raising ticket prices for hit movies, lowering them for bombs | commercial appeal

Regal considering raising ticket prices for hit movies, lowering them for bombs | commercial appeal

Moviegoers could soon be paying more to see blockbuster movies and less for bombs. Regal Entertainment Group, the Knoxville-based chain of movie theaters, announced last week it would begin testing demand-based pricing for films, according to Bloomberg News, which cited CEO Amy Miles’ quarterly call with analysts. … “Changes to the historical pricing structure have […]

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Farmed salmon prices in Scotland dive, Norway’s stay at two-year lows | Undercurrent News

Farmed salmon prices in Scotland dive, Norway’s stay at two-year lows | Undercurrent News

Spot prices for Scottish farmed Atlantic salmon — and sales of Norwegian salmon into Scotland too — look set to take a tumble in week 44, one processing source told Undercurrent News. Prices on the latter have dropped to £4.60-£4.75 per kilogram, for fish sized between 3-5 kilograms — “the cheapest it’s been”, he said. […]

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Pass the Keys and make Airbnb rental hassle-free | Property118

Pass the Keys and make Airbnb rental hassle-free | Property118

Pass the Keys – UK’s leading Airbnb management service is based in Greater London and operating in London, Bath, Brighton, Bristol, Cambridge, Edinburgh, Manchester, Oxford and just expanded to York and Glasgow. Pass The Keys overs a hassle-free Host-Service around the globe using the concept of the sharing economy. Through an efficient use of vacant […]

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Avios to introduce “dynamic pricing” | Business Traveller

Avios to introduce “dynamic pricing” | Business Traveller

Frequent flyer programme Avios is to move towards a “dynamic pricing” concept from next year, its parent company International Airlines Group (IAG) has confirmed. IAG announced the plans during its annual Capital Markets Day presentation, in which it said that there would be a “Progressive introduction of Dynamic Pricing from 2018”. Full details have yet […]

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Amazon provided discounts for Christmas | HashtagME

Amazon provided discounts for Christmas | HashtagME

Amazon’s new strategy to provide discounts to its customers while paying sellers full price has been launched, as the Christmas season nears and the company aims to compete with ‘brick and mortar’ stores for customers. “When Amazon provides a discount, customers get the products they want at a price they’ll love, and small businesses receive […]

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WA drivers queue for cheap petrol as residents say it’s a dangerous recipe for disaster | The West Australian

WA drivers queue for cheap petrol as residents say it’s a dangerous recipe for disaster | The West Australian

For bargain hunters it’s a lure that’s nearly impossible to resist — the promise of petrol at the cheapest price for the week. But some Perth residents say the weekly Monday free-for-all for cut-price fuel is a recipe for disaster and potentially even fatal accident on our roads. Local resident Simone says price fluctuations of […]

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Amazon Offers New Discounts on Third-Party Sellers’ Goods | Fortune

Amazon Offers New Discounts on Third-Party Sellers’ Goods | Fortune

If you find more goods than usual on Amazon are discounted as the holiday season starts, that may not be because the sellers have chosen to cut their prices. Instead, as The Wall Street Journal reported Sunday, Amazon itself has started briefly discounting certain items sold by sellers, by as much as 9%. This only […]

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JAY-Z’s 4:44 Tour Will Be His Highest Grossing Solo Run Ever Despite StubHub | Billboard

JAY-Z’s 4:44 Tour Will Be His Highest Grossing Solo Run Ever Despite StubHub | Billboard

Sales for JAY-Z’s tour represent a paradigm shift in concert tickets: by more aggressively pricing front row seats, VIP experiences and platinum tickets, concert promoters are getting increasingly more skilled at commanding high prices and record grosses from their best seating inventory. That’s bad news for ticket resellers — by pricing tickets closer to actual […]

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Renault India launches new Captur crossover at Rs 999,000 | Autocar Professional

Renault India launches new Captur crossover at Rs 999,000 | Autocar Professional

Renault India, which is looking to rev up its performance in India and ride the ongoing SUV sales boom, officially launched the Captur crossover today with an aggressive pricing strategy. The model range starts at Rs 999,000 for the RXE petrol and goes up to Rs 13.88 lakh (ex-showroom all India) for the top-end Platine diesel […]

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British Airways Hints at Disrupting Its Loyalty Program in 2018 | Skift

British Airways Hints at Disrupting Its Loyalty Program in 2018 | Skift

The blog Ultima Llamada spotted the slide in the presentation that showed that IAG was working towards a “progressive introduction of dynamic pricing from 2018.” This means that instead of a standard award chart where travelers book a 25,000 mile domestic fare, for example, members of British Airways’ Executive Club would see award tickets priced as […]

 

Air France-KLM Move to a Spend-Based Loyalty Program In 2018 | Skift

Air France-KLM Move to a Spend-Based Loyalty Program In 2018 | Skift

In some ways, that Experience Points model is an improvement over a program in which a minimum spend is additionally required to earn status. Earning top-tier status at American Airlines, by contrast, could require 100 short hop round-trip flights — assuming 1,000 miles for each journey — but also would would need $12,000 in spend. […]

 

Conquering the Beast: Charging the Right Fees | AccountingWEB

Conquering the Beast: Charging the Right Fees | AccountingWEB

Almost every CPA I mentor tangles themselves in a web of confusion and wrestles with the same beast. The confusing nail biting beast that I am referring to is pricing. It really pains me to see fellow practitioners struggle with pricing and not setting, or getting, the fees that they deserve. And realistically, when approached […]

 

Even largest shippers struggle with real-time visibility | JOC.com

Even largest shippers struggle with real-time visibility | JOC.com

Other investors in the “Uber for Trucking” company include Amazon founder Jeff Bezos, and Marc Benioff, founder and CEO of Salesforce, as well as Greylock Partners. The Seattle-based company, founded by CEO Daniel Lewis and chief technology officer Grant Goodale, has raised more than $80 million to date in three rounds of investment. Convoy began […]

 

Kroger using Google and Microsoft clouds to avoid paying Amazon | CNBC

Kroger using Google and Microsoft clouds to avoid paying Amazon | CNBC

For Kroger, that fear has become more obvious by the day. In August, Amazon bought Whole Foods for $13.7 billion and instantly cut prices at the upscale grocer. CNBC has also been reporting on Amazon’s potential efforts to crack the pharmacy market, another reason for Kroger to be concerned. Kroger gets about 9 percent of […]

 

NFL Badly Needs A 21st Century Televising Strategy | Forbes

NFL Badly Needs A 21st Century Televising Strategy | Forbes

By a 1970s standard, the NFL is widely accessible given that local market NFL games are available over broadcast TV, subject to the NFL’s attendance blackout rules (which have been loosened in recent years). By a 21st century standard of accessibility, the league gets a C-minus. Out-of-market games can be accessed via satellite on DirecTV’s […]

 

SeaWorld attendance keeps dropping, with a sharp decline in the key summer months | LA Times

SeaWorld attendance keeps dropping, with a sharp decline in the key summer months | LA Times

Still, shares of Seaworld Entertainment rose 1.5% to $11.36 on Tuesday. They are down 40% this year so far. In what has become a familiar refrain, SeaWorld Chief Executive Joel Manby said he expects that new attractions and aggressive marketing will help drive a turnaround. “Attendance trends have improved since we launched our fall and […]

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Featured Content and Events

Book: Dollarizing Differentiation Value – A Practical Guide for the Quantification and the Capture of Customer Value

Book: Dollarizing Differentiation Value – A Practical Guide for the Quantification and the Capture of Customer Value

Summary: Now is the time to answer that “value” question so well and so completely that your organization thrives. The biggest winners in the 21st century will have value-based strategies, value-based innovation, value-based marketing, and value-based pricing. There has never been a more exciting and lucrative time to pay attention to value and turn a […]

 

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Conference: Digital Pricing Summit | IQPC

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  • Understand how digitalisation and online services are changing the future of commerce
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  • 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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“Pricing is actually pretty simple…Customers will not pay literally a penny more than the true value of the product.”

     – Ron Johnson

 


 

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