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This Week in Pricing > 11/1/14

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.

EditionSponsor-Wiser

This Edition is Sponsored by:

Wiser

Wiser provides a complete suite of solutions to give retailers, brands, and manufacturers the edge to stay both competitive and most importantly, profitable. Wiser’s flagship product is WisePricer, a full-featured dynamic pricing and merchandising engine that monitors, analyzes and reprices retail products in real-time. WisePricer enables retailers to boost profit margins and revenue, price with confidence, and improve merchandising through powering the development of a sound pricing strategy. Wiser also offers a MAP monitoring solution, WiseMapper, for brands and manufacturers to monitor and protect their pricing across the thousands of retailers selling their products.

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Top Headlines

How to Respond to “Can You Just Give Me a Price?” | The Sales Hunter

How many times have you received a phone call or an email from a prospect who says something like, “All I’m looking for is a price. How much?” Admit it! We’ve all had calls like this and wow are they tempting. We think the quick quote will result in the quick sale.  Quit kidding yourself! […]

How To Avoid A Freemium Flop | KillerStartups.com

The freemium business model has become the model of choice for a wide variety of startups. Like any good courtship, it gives two parties a chance to know one another better before signing on as lasting partners. And, as in any relationship, there are risks for things to go wrong. Here’s how to make the sparks fly […]

How Do You Manage A Salesperson Who Always Asks For Lower Pricing? | Sales Architects

Scott has been a member of your technology services sales team for about a year. When it comes to prospecting, there is no one better on your team than Scott. He gets prospects on the phone and locks-in meetings with the right people. However, every time he gets close to the finish line with an […]

Making More Money from Data | bcg.perspectives

The B2B information-services industry has struggled to rediscover modest, let alone rapid, growth since the onset of the global financial crisis, as banks and other major customers closely watch costs. Many providers have resorted to heavy discounting to maintain volume and cost cutting to preserve margins. There is a better approach. Pricing is a powerful […]

What is price discrimination and is it ethical? | Econsultancy

Ecommerce is growing and information technology is becoming more robust. As a result, some innovative pricing strategies have come into play. Dynamic pricing is one that has been applied more broadly across a variety of industries, and its usage is growing among retailers. Let’s take a closer look at price discrimination and how it has […]

Dynamic pricing on websites – illegal or unfair? | Éloïse Gratton

Is dynamic pricing illegal?  Many have raised their concerns with online businesses charging certain products differently depending on the profile of the online user. Adaptive pricing could be argued to raise data protection issues in the sense that personal information (profile information of a user) is used to take a decision that may have an impact […]

Are Online Vendors Giving You Their Best Price? Maybe Not, Research Says | WSJ Digits

A new study found that e-commerce sites vary online pricing depending on whether customers use mobile or desktop devices, iOS or Android, and other factors. Travel-booking sites Cheaptickets and Orbitz, for instance, charged some users searching hotel rates an average $12 more per night if they weren’t logged into the sites. Travelocity charged users of Apple’s […]

Adobe charges up to £100 extra for using ‘the wrong browser’ | Creative Bloq

Is this the most bizarre example of A/B testing yet? Read this very carefully, because it could end up saving you a lot of money. If you’re planning to sign up to Adobe’s Creative Cloud subscription plan, you run the danger of using the ‘wrong’ browser. Because we just checked on a Chrome browser on […]

Designers speak out on Adobe price controversy | Creative Bloq

What do CC users think about paying different rates depending on how they accessed Adobe’s site? Sorry guys! Usually on a Friday we tend to avoid the heavy stuff, and get you in the mood for the weekend with something like a fun quiz or a look at the latest Lego creation. But today there […]

69% of consumers expect consistent pricing from brands | Retail Dive

Dive Brief: Some 69% of consumers surveyed by customer experience management company SDL expect the same pricing and discounts whether they’re in store, online, or on their phones. Showrooming is still a major issue and is being abetted by smartphones, the survey also found, with 62% of respondents saying they use their phone in store […]

Price Testing – Order of prices increases revenue 51% per visitor for Portland Trail Blazers | MarketingExperiments Blog

Last month, I sat down with Dewayne Hankins, Vice President of Marketing and Digital for the Portland Trail Blazers NBA team, to talk about how they leveraged dynamic ticket pricing in the purchasing process for single-ticket buyers. We talked a lot about the effort as a whole, which involved launching a brand new site and […]

How Much Is That Ice Cream In The Window? Depends On The Season | Fast Company

WHY FLUCTUATING SUPERMARKET PRICES SHOULD BE COMING SOON. A few years ago, driving over the Sydney Harbour Bridge, I realized something had changed. In place of the decades-old, same-all-the-time fare, the toll had begun to fluctuate depending on the time of day and night. “That’s curious,” I thought. But my surprise was short-lived, as I […]

How to Make Your Product Less Enjoyable | Irrational Labs

Imagine if we were charged a very small amount for internet access every time we did a Google search. Would we do more or less searches? Likely less. Every time we went to do a search, we would weigh the cost and benefits of our search. Consider your last taxi ride. Watching the number increase […]

Insurers cap what they’ll pay for some procedures | The Washington Post

Aiming to contain health-care costs, a growing number of employers and insurers are limiting how much they’ll pay for such things as knee replacements, lab tests and complex imaging. A recent study found that the resulting savings may be modest, however, and some experts question whether reference pricing, as it’s called, is good for consumers. […]

High Drug Prices Could Increase Industry Innovation | Forbes

Dr. Peter B. Bach is a physician at Memorial Sloan Kettering Cancer Center and the Director of its Center for Health Policy and Outcomes. He is a passionate advocate for patients and often eloquently expresses concerns on the high prices of drugs, particularly new cancer therapies. When he speaks, many people including myself pay close […]

An Aggressive New Drug Pricing Trend – What It Means To India? | PILMAN

The new trend: In April 2014, Merck and Co. announced that its two HCV drug candidates had a 98 percent cure rate in a mid-stage trial. In addition, AbbVie is also expected to launch a high-end hepatitis C drug within the next year. The prices for these drugs are yet to be announced. However, a new […]

How Sympathetic Pricing Allows Brands to Aid Customers in Need | CommPRO.biz

Have you noticed that some brands are more apt to offer discounts when customers are in difficult situations? As a consumer does this create a positive or negative association with the company? Truth be told, when companies do this they are most likely using a technique called sympathetic pricing. According to a recent report by […]

5 Tips for a Successful Pricing Strategy | Shop2grab.com

Thinking of how to sell products on your e-commerce portal successfully? With the cut throat competition in online business growing tougher every day and more and more brands using smart techniques and campaigns to lure customers towards their own products, you may find it very challenging to sell your products without having the right strategy […]

The Cheap eBook – A Dagger at the Heart of Publishing | Bookmobile

What is the true cost of publishing an eBook? Among all the disputation about eBook selling prices, one major misconception persists: that because the reproduction cost of eBooks is very low, then the cost to the publisher is low, and therefore the selling price of an eBook ought to approach zero. Whether this misconception is […]

HBO and CBS Move Toward Selling Content Directly to Consumers | NYTimes.com

Executives at media and cable companies have been resisting the idea of selling TV channels à la carte for years, saying it was not financially feasible. But that resistance is starting to give way to a more pragmatic approach that should benefit consumers. Last week, officials at HBO said they would start selling an Internet-only […]

Worst things to buy at Walmart | Yahoo Finance

Walmart is known for saving shoppers money — often lots of money. It’s tough to beat the prices the world’s largest retailer charges on most things it sells, and it sells almost everything: food, clothing, electronics, housewares, furniture, auto supplies, prescription drugs, and so on. You name it, and Walmart probably stocks it. However, we […]

AT&T Risks Losing Prized Wireless Customers | WSJ

A surprising fact emerged from AT&T Inc.’s financial results this week: up to 10 million of the company’s most lucrative wireless customers may be free to walk out the door. The situation is a result of AT&T’s transition from plans that offer subsidized phones under two-year contracts to plans where customers buy their own phones […]

Target’s Bold Holiday Pricing Strategy May Make You Dump Amazon (TGT) | Motley Fool

How does this differ from Amazon? Amazon offers non-Prime members free shipping on orders over $35 sent to one address. Prime members pay $99 a year for free, two-day shipping on millions of items that Amazon stocks in its fulfillment centers. Target’s free shipping offer will likely be enticing to customers specifically because many gift […]

MBA Career Advancement – From Strategic Pricing to SunPower Promotion | Berkeley Haas School of Business

Using Classroom Learning at Work–Immediately She says her studies, and the network that came with the program, made her an even stronger candidate for this new role at SunPower. “The hiring manager was a Haas alum and he knew I’d be able to immediately deliver what I was learning in class at work–and that I […]

Monetize early or lose late! | Matt Johnson

The sad reality is that VCs love start-ups with great products and bad pricing. Poor pricing effectively maximizes the amount of equity they can get for their investment and ensures that the entrepreneur will be dependent on their money longer. This is the route (for them) to huge investment returns. Unfortunately for the entrepreneur, after […]

The Obscure Economic Idea Behind SaaS Pricing Challenges | Tomasz Tunguz

Startups struggle to set the right price for their products because pricing dynamics in the field don’t obey the laws taught in the classroom. The standard supply and demand curves, drawn above, imply that as price increases demand decreases; that buyers act rationally and that this law is immutable. But this simply isn’t the case. […]

 

Events & Resources

 

Events

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

Pricer’s Points: When pricing is annoying | Jesper Hansson – CPP

It is funny how, when you work as a pricing practitioner, you seem to catch almost all details of pricing. When you get an offer, you study the pricing very carefully and you take your time to try to understand what the thought process behind it has been. On a weekly basis, I see loads […]

Pricer’s Points: Not identifying the obvious | Ben Blaney

I have gout. It’s familial gout, so it’s not caused by an extravagance of port and stilton (though I am partial to both). When I go to the doctor for a prescription, it’s usually a ludicrous charade, where I say “I have gout, my dad has gout, my brothers have gout, my grandfather had gout, […]

Pricer’s Points: How to Transition Your Organization From “Gut” Pricing to Data-Driven Pricing | Marc Folch

As the competitive landscape evolves and the pace of pricing change accelerates, data-driven approaches are increasingly becoming a requirement to stay competitive. One of the most important things to remember is that data-driven pricing does not necessarily replace good gut instinct. When implemented properly, data supports, informs and improves those instincts by providing better information […]

 

Top Discussions

Discussion: The Price War Over The Cloud Has High Stakes For The Internet

NPR Article This week, our tech reporting team is exploring cloud computing — the big business of providing computing power and data storage that companies need, but which happens out of sight, as if it’s “in the cloud.” It’s a timely topic, since there’s a price war going on as tech titans aim to control the cloud market. Amazon […]

Discussion: A common denominator for pricing and negotiating Business Intelligence (BI) and Analytics software

Forrester Blog BI and analytics software packaging and pricing are a Wild West with few common practices among the vendors. Comparing and contrasting vendor prices and negotiating with vendors is challenging because Few vendors publish list prices, so when a vendor tells you you are getting a certain discount you can’t really verify whether the discount numbers are […]

Discussion: Moore’s law gives way to Bezos’s law

GIGAOM Article Cloud providers Google, AmazonWeb Services (AWS) and Microsoft are doing some spring-cleaning, and it’s out with the old, in with the new when it comes to pricing services. The latest cuts make it clear there’s a new business model driving cloud that is every bit as exponential in growth — with order of […]

 

Books

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.

Revenue Disruption – Game-Changing Sales & Marketing Strategies to Accelerate Growth

Summary: Strategies for any company to transform its sales and marketing efforts in a way that truly accelerates revenue growth Revenue Disruption delivers bold new strategies to transform corporate revenue performance and ignite outsized revenue growth. Today’s predominant sales and marketing model is at best obsolete and at worst totally dysfunctional. This book offers a […]

Revenue Management and Pricing: Case Studies & Applications

Summary: Companies that are better at fulfilling customer needs make better returns. In the current state of the world economy and cutthroat competition, the essence for survival is to create more customer value as percieved by your customers relative to your competitors. From the foreword by EJ Kreiken, KLM Royal Dutch Airlines Revenue Management & […]

ROI of Pricing

Summary: As with executives and managers in so many other business functions, pricing specialists are being challenged more and more to substantiate the added value of their activities. Pricing is a core function of every business, and needs not only to contribute positively to short- and long-term results, but also to document its impact to […]

 

Cartoons

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

Discounting

 

Quotes

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.

“There is scarcely anything in the world that some man cannot make a little worse, and sell a little more cheaply. The person who buys on price alone is this man’s lawful prey.”

     – John Ruskin

“Pricing is the only element in the marketing mix that produces revenue; the other elements produce costs.

     – Phillip Kotler

 

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.

use coupon code “PricingNews” to get one month free on any subscription package >

 

About Pricing News

Pricing News is a sponsor supported organization dedicated to providing free high-value resources to pricing professionals. We are 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 1,000’s of 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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