This Week in Pricing > 11/18/17

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: PPS Logo

 

 

 

Professional Pricing Society

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Top Headlines

Regal Cinemas will introduce surge pricing at some movie theaters next year — Quartz

Regal Cinemas will introduce surge pricing at some movie theaters next year — Quartz

Markets work best when highly valued goods and services are more expensive. And generally, people are fine with that. We understand that prime cuts of filet mignon cannot cost the same as McDonald’s burgers, and that there’s a reason first-class plane tickets cost more than coach. If these things were all the same price, it […]

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Having to pay for airline comfort, convenience | kelownadailycourier.ca

Having to pay for airline comfort, convenience | kelownadailycourier.ca

Economists have a high level of faith in pricing to convey information to the consumer and to influence consumer behaviour. Recently I traveled to eastern Canada and in so doing observed several cases in which pricing policy did its job – and cases where it conspicuously didn’t. For example, the Airbus 319 used on the […]

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Top judges to rule on minimum pricing plans for alcohol in Scotland | BelfastTelegraph.co.uk

Top judges to rule on minimum pricing plans for alcohol in Scotland | BelfastTelegraph.co.uk

Seven Supreme Court justices will announce their findings on Wednesday after hearing argument from the Scotch Whisky Association (SWA) that minimum unit pricing (MUP) is ”disproportionate” and illegal under European law. A lawyer representing the SWA argued at a hearing in London in July that there were better ways to achieve the Scottish Government’s aim. Aidan O’Neill QC told […]

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Walmart’s Next Pricing Strategy Is…Raising Select Prices Online? | Retail TouchPoints

Walmart’s Next Pricing Strategy Is…Raising Select Prices Online? | Retail TouchPoints

“Providing a cheaper price or a discount for picking up an online order in-store makes sense — after all, it is cheaper for Walmart to fulfill in this way and it gets the potential benefit of incremental sales when the customer collects,” said Neil Saunders, Managing Director at GlobalData Retail, in a RetailWire discussion. “However, […]

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Flying Cars Are No Joke For Uber | Forbes

Flying Cars Are No Joke For Uber | Forbes

Uber is working with NASA and several aerospace and property development partners to get the pilot project off the ground. The schedule is no less aggressive than the pricing strategy Holden announced for the air taxi service: Uber Elevate will be price competitive with Uber X when it launches. That’s right: if your pick the […]

 

iPhone X Costs $115 More Than iPhone 8, Thanks to Samsung’s Display and Variety of Other Materials | wccftech

iPhone X Costs $115 More Than iPhone 8, Thanks to Samsung’s Display and Variety of Other Materials | wccftech

The iPhone X in the U.S. is being sold for an outright $999 price tag, making it the most expensive iPhone Apple has ever released to date. The reason for such a high price tag is because the company has been forced to transition to newer technologies ranging from the OLED technology and others. According […]

Walmart Looks to Differentiate Through New Online Pricing Strategy | And Now U Know

Walmart Looks to Differentiate Through New Online Pricing Strategy | And Now U Know

BIRMINGHAM, AL – Can a new pricing strategy help Walmart differentiate itself from one of its biggest competitors? According to The Wall Street Journal, the retailer’s new move to raise online prices is effectively showing key differences between Walmart and e-commerce mega company Amazon. Avery Sheffield, Global Portfolio Manager, Brandywine Walmart’s new strategy entails a […]

 

Data reveals real-time electricity pricing would help nearly all ComEd customers save money | EDF

Data reveals real-time electricity pricing would help nearly all ComEd customers save money | EDF

In sum, the vast majority of ComEd customers would have financially benefitted in 2016 from participating in the Hourly Pricing program. Again, they would have saved while using electricity exactly as they have been. Programs like Hourly Pricing are designed to reward people who use energy when market prices are cheapest, typically when electricity demand […]

 

Disney (NYSE:DIS)’s Streaming App Will Cost ‘Significantly Less Than Netflix’ | Benzinga

Disney (NYSE:DIS)’s Streaming App Will Cost ‘Significantly Less Than Netflix’ | Benzinga

Disney’s streaming platform will cost “significantly less” than Netflix, but probably won’t be as low as the CBS Corporation All Access platform, Ryvicker said in a note. The initial pricing strategy is intended to convert Disney’s “gigantic customer base” into subscribers, the analyst said. Over time, the price will be moved higher as Disney adds […]

 

 

More Headlines

Nutella’s controversial recipe change sparks outrage | NEWDAILY

Nutella’s controversial recipe change sparks outrage | NEWDAILY

Turkey produces about 70 per cent of the world’s hazelnuts, with Ferrero Australasia importing about 2000 tonnes to meet local demand. However, Ferrero’s long-term reliance on production in Turkey – and their volatile pricing – has led it to search for new suppliers, including Australia, Canada and Chile, Fairfax reported. A Rural Industries Research and Development Corporation […]

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Discussion: (11) India – When Discounts and Loyalty Programs Turn Anticompetitive | Conventus Law

Discussion: (11) India – When Discounts and Loyalty Programs Turn Anticompetitive | Conventus Law

For example, if the quantum of discount offered by a dominant enterprise is so significant that the sale price goes below the average variable cost, and the discount is offered with the intention to drive competitors out of the market, the CCI could consider it as predatory and hence anti-competitive. Likewise, when a dominant enterprise […]

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India – Pricing | export.gov

India – Pricing | export.gov

When formulating key strategies and making decisions about product pricing for the Indian market, it is important to remember that simple conversion of U.S. dollar prices to Indian rupees will not work in most cases.  Also, the assumption that a latent niche market for premium products exists has often resulted in low sales volumes and […]

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Career Mistake 117: Pricing Yourself Out of the Market | HuffPost

Career Mistake 117: Pricing Yourself Out of the Market | HuffPost

Getting a job is similar to selling a house. Most sellers have an emotional attachment to their house and price it way about the COMPS (market rate). Candidates tend to do the same thing – ask for compensation that is far above the market rate and/or more than their education and experience justify. Same result: […]

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Fiesta CEO: Hurricanes to blame for Q3 declines | Fast Casual

Fiesta CEO: Hurricanes to blame for Q3 declines | Fast Casual

Managing capital and financial discipline Based on research and financial modeling, the company has introduced a tiered menu pricing strategy across both brands in October. According to the company, other accomplishments in this area are below: Nine Pollo Tropical Company-owned restaurants have been remodeled this year and one Taco Cabana restaurant will be remodeled by […]

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Power hike ‘will lead to job losses’ | Daily News

Electricity was a significant expense for many businesses, being second to labour cost, she said. “The additional cost has to be accommodated somewhere else and since it cannot be passed on to customers in pricing because that would just render us uncompetitive, it must be accommodated by shedding labour costs.” Eskom wants its clients to […]

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odd even in delhi: Odd-Even Season 3 | Times of India

odd even in delhi: Odd-Even Season 3 | Times of India

Gahlot said that while Delhi Transport Corporation would arrange 500 private buses apart from deploying its entire fleet during these five days, the Delhi Metro Rail Corporation has also been asked to arrange for 100 minibuses to be operated on 20 routes for last mile connectivity. Gahlot also said that surge pricing by app-based cab […]

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Robust Dynamic Pricing with Two Substitutable Products | Manufacturing & Service Operations Management

Robust Dynamic Pricing with Two Substitutable Products | Manufacturing & Service Operations Management

We consider a practical dynamic pricing problem with two substitutable products involving a number of business rules commonly seen in practice. Demand substitution exists between the two products (interproduct substitution) and may also exist across different time periods (intertemporal substitution). However, there is limited demand information such that the underlying probability distributions of the demand […]

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Winter Olympics 2018 Ticket Prices and Costs: What to Know | Money

Winter Olympics 2018 Ticket Prices and Costs: What to Know | Money

Tickets Scoring tickets to the actual events is still possible, but prices can vary widely depending on what you want to attend and which seating section you opt for. For example, tickets for the Opening Ceremony start at just over $400, but a front-row seat is currently selling on Stubhub for as high as $5,946. […]

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Russia to crack down on World Cup 2018 ticket touts | Sport

Russia to crack down on World Cup 2018 ticket touts | Sport

Russian Prime Minister Dmitry Medvedev vowed on Thursday to crack down harshly on people who intended to profit from reselling their tickets to the 2018 World Cup. The price of admission for the June 14-July 15 event ranges from 1,200 rubles ($22, 19 euros) for the nosebleed seats at the opening matches to 66,000 rubles […]

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Celebrity Cruises onboard with nonrefundable-deposit fares | Travel Weekly

Celebrity Cruises onboard with nonrefundable-deposit fares | Travel Weekly

“Some of our more loyal customers were not too in love with it in the beginning,” Bayley said of the nonrefundable idea. “But to be honest, in some cases the system was being gamed a lot by some of our customers who would take out multiple, multiple, multiple bookings, and then we would have a […]

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Exclusive: Pyeongchang 2018 has reacted positively to ticket sales criticism, claims IPC President Parsons | Inside the Gamez

Exclusive: Pyeongchang 2018 has reacted positively to ticket sales criticism, claims IPC President Parsons | Inside the Gamez

During the Olympics, organisers admitted only 12 per cent of an original target of 3.3 million tickets had been sold. A late push and a new pricing strategy eventually saw more than two million tickets sold. “We don’t only want full venues, we want the Games to be promoted to people – for example, people […]

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Unprecedented Pricing Pressure In Commercial Vehicles, Ashok Leyland Says | Bloomberg Quint

Unprecedented Pricing Pressure In Commercial Vehicles, Ashok Leyland Says | Bloomberg Quint

The pricing pressure in the commercial vehicle segment has reached ‘unprecedented’ levels, with all Indian automakers doling out discounts, Ashok Leyland Ltd. Chief Financial Officer Gopal Mahadevan told BloombergQuint in an interview. “The industry, excluding Ashok Leyland, seems to believe that the best way to acquire customers is to give discounts,” he said. The high […]

 

NDRC to deepen pricing reforms in monopoly sectors | Chinadaily.com.cn

The National Development and Reform Commission, the country’s top economic planner, will further deepen the pricing reform in monopoly industries, such as electric power, natural gas and railroads, as part of the government efforts to perfect the market-oriented pricing mechanism by 2020. The country will further improve the trading rules and regulations in the electricity […]

 

Grab offers discounted rides in flood-affected Penang | MalaysiaKini

Grab offers discounted rides in flood-affected Penang | MalaysiaKini

To help with the livelihood of drivers, Grab is currently not taking any commissions until further notice from rides generated from Penang, meaning every fare goes back to the drivers’ pocket to support their welfare during this period. The statement said as many drivers and their vehicles were affected by the flooding, Grab would not […]

 

Household Electricity Pricing: Dynamic Pricing under Different Taxation Schemes | Advanced Science News

Household Electricity Pricing: Dynamic Pricing under Different Taxation Schemes | Advanced Science News

The developments in electricity production from renewable resources, like wind and solar power, requires an increasingly flexible power system. One option attracting considerable attention for several decades is to make use of idle flexibility from electricity consumers. The continuous roll-out of smart meters enables more detailed billing, and consumers could switch to dynamic pricing schemes […]

 

Rift Gets Dynamic Bundle Pricing In Oculus November Update | Upload

Rift Gets Dynamic Bundle Pricing In Oculus November Update | Upload

We’re still waiting on the big Rift 2.0 update promised back at Oculus Connect in October, but Oculus does have some small tweaks for us in the meantime. The Oculus November Update for Rift and Gear isn’t exactly headline-grabbing, but there are some nice inclusions. Namely on Rift the company has finally introduced dynamic bundle […]

 

AppNexus CEO Brian O’Kelley On Waging A Price War | AdExchanger

AppNexus CEO Brian O’Kelley On Waging A Price War | AdExchanger

You may get turned off if you are not able to create value or compete and a single-digit rev share. If a buyer sees there are three prices for the exact same thing, they will want the most cost-effective path. [Exchanges and SSPs] may have to compress their prices, or it could be worse than […]

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Match Group’s Tinder emerges as cash cow courtesy of data science, dynamic pricing, paying off tech debt | ZDNet

Match Group’s Tinder emerges as cash cow courtesy of data science, dynamic pricing, paying off tech debt | ZDNet

The more interesting development will be seeing how Tinder uses artificial intelligence to drive matches as well as monetization and revenue growth. Tinder has been building its data science team and added Dr. Xue Liu, a computer science professor at McGill University, as its chief scientist. Tinder is also adding analytics and data science talent […]

 

Grab and Uber offer discounts for Penang | The Malay Mail Online

Grab and Uber offer discounts for Penang | The Malay Mail Online

“Grab is not taking any commissions till further notice from rides generate from Penang so every fare goes back to the drivers’ pocket to support their welfare during this time,” he said. The ride hailing service will also not be implementing any surge or dynamic pricing at this period. In addition to that, Tiew said […]

 

Hertz +11% as Q3 earnings beat estimates on better U.S. pricing | Seeking Alpha

Hertz +11% as Q3 earnings beat estimates on better U.S. pricing | Seeking Alpha

Hertz (NYSE:HTZ) +11.4% after-hours as Q3 earnings comfortably beat analyst estimates, as higher revenues and better pricing offset canceled reservations in parts of the U.S. hit by hurricanes. HTZ says U.S. total revenue per day rose 2% in Q3, driven by strategic pricing actions supported by new revenue management tools and favorable customer and fleet […]

 

Sainsbury’s sales growth cools in ‘competitive market’ | Financial Times

Sainsbury’s sales growth cools in ‘competitive market’ | Financial Times

Grocery sales increased 1.4 per cent year-on-year (including Argos in the base figure) in the most recent quarter compared to 3 per cent in the first three months of the fiscal year. General merchandise was worse: 1.6 per cent lower than last year in the latest quarter, taking half year sales down 0.1 per cent. […]

 

Senators warn of job losses over minimum alcohol pricing | Irish Examiner

Senators warn of job losses over minimum alcohol pricing | Irish Examiner

The Government is amending the Public Health Alcohol Bill so that small shops can still show drink products without covering them up, a chief concern among mainly Government senators. Mr Harris told the Seanad that with current cheap alcohol prices, a woman could reach her weekly recommended intake of drink for €4.90 while a man […]

 

Growing Number Of Shoppers Visit Specialist Stores Over Mass Retailers | ESM Magazine

Growing Number Of Shoppers Visit Specialist Stores Over Mass Retailers | ESM Magazine

IRI’s study, which surveyed 2,600 consumers across seven European countries, reveals that make-up, perfumery and drug stores all outperform hypermarkets and supermarkets when it comes to customer satisfaction. The group attributes this to the higher level of customer experience that is delivered by specialist stores, aligned with shoppers’ expectations. “This a major challenge that manufacturers […]

 

PVinsights: Shrinking Demand for Mono PERC Products Forces Suppliers Spur Pricing War | AltEnergyMag

PVinsights: Shrinking Demand for Mono PERC Products Forces Suppliers Spur Pricing War | AltEnergyMag

Overall polysilicon prices drop slightly this week with minor correction in Chinese market. Although demand and supply remained quite balanced currently, the suppliers have sensed downstream price pressure and some reacted faster in lowering prices to retain clients. Furthermore, as to maintain the relationship with certain strategic mono-crystalline wafer makers in China, some Korean polysilicon […]

 

The Medicines Company’s PCSK9 Inhibitor Strategy: More Heart Patients Via Lower Pricing | Forbes

The Medicines Company’s PCSK9 Inhibitor Strategy: More Heart Patients Via Lower Pricing | Forbes

However, in a recent conversation, Meanwell shared that he doesn’t plan to compete solely on these benefits of inclisiran. Rather, he plans to broaden access to inclisiran via a significantly lower price as compared to the established agents. Part of his move to this position was based on studying the changes in the top ten […]

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UnionTech to grow commercial usage of SLA 3D printing | TCT Magazine

UnionTech to grow commercial usage of SLA 3D printing | TCT Magazine

In addition to applications, UnionTech has also announced its strategy to grow the commercial use of stereolithography. With its PILOT commercial series of industrial grade stereolithography equipment, priced at under 100,000 Euros, UnionTech says it is targeting the “commercial user who is currently priced out of access to one of the most widely used and […]

 

Another Victory for the Behavioral Economists | Energy Institute Blog

Another Victory for the Behavioral Economists | Energy Institute Blog

Consumers Do Reduce Consumption When the Price Goes Up The first result in the paper validates our basic Econ 1 models. During the event windows, the customers in the treated group consumed on average 12 percent less than the customers in the control group. So, higher prices imply less consumption. Check. It’s also interesting to […]

 

J.C. Penney bright spot among retailers | Arkansas Online

J.C. Penney bright spot among retailers | Arkansas Online

Ellison said the chain is trying to operate as a more “modern company” in a vastly changing landscape — and, in many cases, it’s playing catch-up. Ellison acknowledged to analysts on a call Friday that J.C. Penney was behind in chasing the active and casual clothing trend, and is using analytics to understand shoppers’ behavior. […]

 

Why being ‘priced right’ is the No. 1 factor when selling a home | Valley News

Why being ‘priced right’ is the No. 1 factor when selling a home | Valley News

The truth is there are three dynamics that are important – location, condition and price. Of the three, price is the ultimate trump card. Almost all buyers determine their price bracket first, before shopping for the best value within that bracket. The value of a home is certainly influenced by its location. Build identical homes […]

 

Cab firms for ride shares to beat shortage | Delhi NYOOOZ

Cab firms for ride shares to beat shortage | Delhi NYOOOZ

Summary: Tho ugh this will mean that passengers wouldn’t have to shell out more for a cab ride but the rise in demand could mean less availability of cabs. We welcome the odd even initiative and needless to say, have suspended peak pricing in Delhi,” said Ola in a statement. We have voluntarily rolled out […]

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Featured Content and Events

Certification: Certified Pricing Professional (CPP)

Certification: Certified Pricing Professional (CPP)

The Certified Pricing Professional (CPP) designation is the standard for advanced knowledge and expertise in the field of Pricing. Since 2003, over 900 individuals have taken courses in pricing through Professional Pricing Society and pass their exam to earn the CPP designation. The CPP indicates knowledge and skill in pricing across industries. We also offer the industry standard professional pricing certification via and live Workshops hosted during our conferences around the world. We can help you develop a personal pricing education roadmap to give you the exact tools your need based on your industry and professional background.

 

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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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“The show is not selling, let’s raise prices!”

     – Ronda Helton

 


 

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