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This Week in Pricing > 1/11/15

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-StrategicPricingAssociates

This Edition is Sponsored by:

Strategic Pricing Associates

SPA is the leading provider of pricing analytics to 100′s of complex companies of all types: manufacturing, distribution, equipment, services, and software/technology products. The benefits are staggering; and they are typically accomplished in less than 90 days. Our typical client improves profitability by two to four percent of sales. SPA Clients include over 200 manufacturing companies including Parker HannifinRockwellGEExxon MobilCaterpillar as well as over 400 distributors including Harry Cooper Supply CompanyIndustrial Distribution GroupAH Harris, and ThermoFisher Scientific.

Click a link below to learn more…

 

Headlines

Stop Discounting with These 5 Tips | Salesforce Blog

What does your pricing say about you? Most sales people lack the confidence to charge full price. Regardless of the pricing model you have worked hard to develop, when push comes to shove—and often even before push comes to shove—sales people cave in and offer discounts. This reflects an underlying lack of confidence in the […]

The Psychology Of Pricing: Leverage Perceptions And Pennies To Execute Gentle Increases | Vending Times Inc.

In the October issue, I discussed pricing strategies and provided recommendations on how to price a product and why it’s so important. The formula is quite simple: price products competitively, maybe a little lower if possible and definitely a little higher if the product is proprietary. Selling a product at a higher price than your […]

The Psychology Of Pricing: The What, Why, When And How Of Making Changes | Vending Times – MicroMarkets

Our third and final article on product pricing continues to look at the psychology of product pricing. The what, when, why and how to change prices can be a daunting task and decision. Even though some foodservice and vending operators just randomly change prices, it is best to have a pricing strategy in place that […]

Price Discrimination: How Retailers Get You to Pay What They Want | GOBankingRates

Each and every day, seemingly small decisions about coupons, bundles, sales and retail pricing are made by retailers. The truth is almost all of these decisions are calculated with a purpose, based on consumer data and behavior. Here’s what you need to know about these retail pricing models, which some call price discrimination. What Is […]

Samsung Is Trying To Pull Off A Bang & Olufsen | TechCrunch

Samsung’s CES press conference was pretty dull. We mostly saw TVs, an SSD hard drive and of course washing machines and other home appliances. But the most interesting part of the conference was the focus on design for boring items, such as the Chef collection for the kitchen, a new lineup of 360° speakers and […]

A Flurry of Varying Cellphone Offers Sows Confusion Among Consumers | NYTimes

“I think we’re propagating some confusion in the marketplace — us as an industry,” Glenn Lurie, the new chief executive of AT&T Mobility, said in a recent interview. “There’s been so much noise that customers are getting confused.” It all started nearly two years ago, when T-Mobile USA killed the traditional two-year contract, a move […]

The brave new world of dynamic pricing | Marketplace.org

For many of us, the days of circling the mall parking lot for an hour during the holidays are over. Many of us do much or all of our holiday shopping on our computers. But just because you don’t have to leave your couch, doesn’t mean you don’t need to shop around. That’s because retailers are […]

New Year’s Eve Sydney: Uber under fire for inflated ‘dynamic pricing’ fares | Sydney Morning Herald

Thousands of Uber drivers will be offering rides at inflated prices on New Year’s Eve, despite government crackdowns on illegal ride-sharing and criticism from consumer groups. “We are anticipating high demand during peak periods on New Year’s Eve and … dynamic pricing [will be] in effect,” a spokeswoman for Uber said. Uber is an app-based […]

Flywheel lambasts Uber’s surge pricing strategy, offers $10 flat-rate rides on New Years Eve | GeekWire

If you dislike surge pricing and want to hail a ride from your smartphone on New Years Eve, Flywheel might be a decent option. The hailing app for taxi drivers announced today that it is offering $10 flat-rate rides on Wednesday evening in Seattle and San Francisco. It will offer the same deal in Sacramento and San Diego […]

Could approved ride-share regulations drive Lyft away from Orlando? | Orlando Business Journal

Michael Masserman, Lyft’s director of international government relations, told the council that under the current regulations, Lyft may not be able to operate in Orlando because of the company’s dynamic pricing system. But with hundreds of drivers in Orlando already, the San Francisco-based company may not be so quick to leave after all. Here, Lyft […]

Surge pricing, dynamic pricing, variable pricing, all types of pricing | Austin On Your Feet

Dynamic vs. Variable The first big difference between the two is that Uber updates their prices reactively, in more or less real time, as conditions in their market change.  That is, Uber waits until it sees more demand for rides than supply of drivers, then ups the price temporarily.  DCPark on the other hand, uses […]

How ‘charm pricing’ can yield thousands | IOL Lifestyle

Washington – We’ve all seen items advertised for just a tad less than the nearest round number — $9.99 instead of $10. Many of us would like to think we’re too savvy to let that one-cent difference influence our buying decision. But research shows, over and over, that it does. This “just below” strategy (also […]

Solving the Pricing Problem: The Smart Guide to Proper SaaS Pricing (Part 1 of the Pricing Series) | Abacus Metrics

Pricing… who cares about that really? I mean, unless you are a statistician or economist hired by a big company to project next year’s profit and sales, NOT YOU! Let’s face it, as a private business owner the only thing you care about is the money coming into your pocket so you can grow your […]

Transparent Pricing: What Your Money Goes Toward With Buffer | Buffer

What’s even more interesting is that some amazing companies have already started to do this even more pro-actively. One great example is Everlane, which shares very explicitly how their prices for their clothes come about. Check out their Slim Sweater Blazer for example (which I really like btw!). What’s interesting with both Semco and Everlane is […]

Is Amazon facing pricing issues? | RetailWire

According to The Answers Experience Index (AXI), Amazon suffered a sharp drop-off in customer satisfaction over the holiday season, partly attributed to customers’ assessments of the retailer’s price competitiveness. In the study, which gauged online performance over the recent holiday shopping season, Amazon scored a customer satisfaction score of 83, a significant drop from their […]

The Real Story Behind Jeff Bezos’s Fire Phone Debacle And What It Means For Amazon’s Future | Fast Company

Amazon’s victories had always come on the back of aggressive pricing: It was willing to sell products and offer services, such as Prime and its range of Kindle products, at cost—or even at a loss—to win customers and get them buying and consuming more Amazon goods and media. The strategy had enabled Amazon to swallow […]

UPDATE 1-Tesco banks on simpler prices to woo shoppers and suppliers | Reuters

“Customers told us they wanted prices which are simple, lower and more stable,” said Tesco Chief Customer Officer Jill Easterbrook. The change may also add transparency to complex relationships with manufacturers, which have come under scrutiny after an accounting scandal last year involving supplier payments. Smaller makers of undifferentiated goods struggle when retailers agree to […]

Sainsbury’s in renewed price push as it suffers worst Christmas performance in a decade | Marketing Week

Price investment To try and counter the rise of rivals Aldi and Lidl, Sainsbury’s pledged last year to invest £150m in pricing. It is now cutting the price of a further 700 of its most popular products and reducing promotions, ending deals such as offering three meat and fish products for £10 in favour of […]

Here’s the Pricing Mistake Almost Every Financial Planner Makes (and How To Fix It) | IRIS

Imagine that your prospects didn’t hesitate, not even for one second, to pay your price. That it would be – in fact – a no-brainer. Don’t believe that’s possible? Then stop here. However, if you don’t want to leave money on the table and if you don’t want to miss my free gift at the end of this article, you […]

Cloud price wars: How low can they go? | SiliconANGLE

Amazon Web Services (AWS), Google, and Microsoft have been waging a price war in cloud compute, network, and storage services that has taken on drumbeat predictability. You can safely bet that when one drops prices, the others will follow in lock step. The question for customers is how low can they go? The last major tussle […]

Why Saudis Decided Not to Prop Up Oil | WSJ

In early October, Saudi Arabia’s representative to OPEC surprised attendees at a New York seminar by revealing his government was content to let global energy prices slide. Nasser al-Dossary’s message broke from decades of Saudi orthodoxy that sought to keep prices high by limiting global oil production, said people familiar with the session. That set […]

Small U.S. firms may struggle with new UPS, FedEx dimensional prices | Yahoo Finance

CHICAGO, Dec 29 (Reuters) – United Parcel Service Inc and FedEx Corp are rolling out new pricing systems to curb online retailers’ large package sizes, but industry experts warn many small firms are unprepared and could pay up to 50 percent more for shipping. Starting Monday, UPS will no longer charge for U.S. ground packages […]

Domestic airlines to oppose price cap move, want cost relief first | Business Standard News

Domestic airline companies are gearing up to oppose the civil aviation ministry’s move to impose a cap of Rs 20,000 on economy class fares. According to them, the government should first lower taxes and ease airlines’ cost pressures. A ministry’s internal note proposes caps on minimum and maximum fares airlines can charge, keeping in mind […]

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Events

Conference: Strategic Pricing Conference | SPA

When: January 15-16, 2015

Where: Ft. Lauderdale, FL at the Ritz Carlton

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 Ritz […]

Webcast: Increasing Margins with Proven Pricing Tools | SPA

When: Tuesday, January 21, 2015 2:00 PM Eastern

Register to attend our webcast where Craig Swenson, COO of Palmer Johnson Power Systems, will share their journey to pricing excellence and how they are leveraging strategic pricing tools to track sales force accountability. To implement a solution that enhanced profitability, developed pricing discipline, and removed emotion from […]

Webcast: Learn How Iowa Fluid Power Improves Price Realization with SPA | SPA

When: Tuesday, February 18, 2015 2:00 PM

Eastern Register to attend our webcast where Jim Kaas, President of Iowa Fluid Power, will share their journey to pricing excellence and how they are leveraging science-based strategic pricing tools to improve price realization by identifying price-sensitive products and services. To implement a solution that enhanced profitability, developed pricing […]

Seminar: The Value-based Pricing of Innovation | Stage-Gate International

When: April 14-15, 2015

Where: Washington DC

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 […]

Conference: Manufacturing Pricing Excellence – Barcelona 2015

When: May 20-22, 2015

Where: Barcelona, Spain

Event Overview On behalf of Copperberg and the entire Pricing competence team I am delighted to announce our 3rd Annual Manufacturing Pricing Excellence conference scheduled for 20-22nd of May 2015 in Barcelona, Spain. Since our last edition in Amsterdam, together with our advisory board and delegate network we have been […]

Click here for more recent events.

 

Resources

Pricer’s Points Blogs

Pricer’s Points | December 2014

The “Pricer’s Points” 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. This Edition is Sponsored by: Asia Pricing Professionals Asia Pricing Professionals (APP) is a not-for-profit community of pricing management practitioners. Our key […]

Pricer’s Points: 3 Selling Secrets for Great Prices from Liam Neeson | David Mok

First, don’t lead with price. If you don’t know what the customer needs, don’t quote the deal – period! Like Neeson’s character, if you don’t know anything about the people you are dealing with and they’re shopping for price, then don’t do it. If you are leading with price, you are simply selling on price. […]

Pricer’s Points: Solving the Pricing Puzzle | P. Simon Mahler

Setting prices for products and services should be simple–cover costs, make a profit, and appeal to customers. But there are more variables to the pricing formula than many new small business owners may realize. “When you’re starting out, you may not have a good handle on all the costs you’ll incur,” observes Janet Attard, founder […]

Click here for more articles by pricing professionals who share their insights and experience.

 

Top Discussions

Discussion: Your sales force is the most important part of your pricing strategy

The world is full of amazing people with amazing abilities to develop incredible products and still you will often see that some of these products are not really successful when they are launched in the market. One example I saw about 20 years ago, was a building services product, which was developed to save energy. […]

Discussion: Where is Pricing headed?

Pricing as a vocation has been around for a number of years but really ‘heated up’ in the last 10 years or so as companies of all sizes realize they need to better manage this critical area. Jumping on this bandwagon of recognition for having a Pricing Strategy, companies developed Pricing teams of all different […]

Discussion: Most Pricing Problems Aren’t Pricing Problems

Pricing News LinkedIn Group Discussion You see, most supposed “pricing problems” are usually just symptoms of problems in other areas. Pricing is the point of the spear, where the decisions, actions, and inactions of a bunch of different groups all come together and are made manifest as a price in the market. So, while pricing […]

Click here for more top pricing discussions.

 

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.

Value Merchants

Summary: Do your salespeople feel under extreme pressure to retain accounts or gain new business at any cost? If so, you may be leaving big money on the table. Consider the integrated-circuit supplier representative who lost $500,000 of potential profit on a single transaction, just to “win” a deal that he would have closed anyway […]

Value-Based Fees: How to Charge – & Get – What You’re Worth A Guide to Serious Consultants

Summary: In this thoroughly revised edition of his classic book, Alan Weiss shows how consulting fees are dependent on only two things: value provided in the perception of the buyer and the intent of the buyer and the consultant to act ethically. Many consultants, however, fail to understand that perceived value is the basis of […]

Why the Bottom Line Isn’t: How to Build Value Through People and Organization

Summary: In Why the Bottom Line Isn’t! authors Dave Ulrich and Norm Smallwood argue that sustainable shareholder value comes increasingly from assets not accounted for on an organization’s balance sheet. These assets include a company’s reputation, its ability to attract talent, and its ability to react quickly to new opportunities in the marketplace. Why the […]

 

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.

“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.

 

About Pricing News

Pricing News is a sponsor supported organization dedicated to providing free high-value resources to pricing professionals. It is 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 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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