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This Week in Pricing > 11/30/14

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-AsiaPricingProfessionals

This Edition is Sponsored by:

Asia Pricing Professionals

Asia Pricing Professionals (APP) is a not-for-profit community of pricing management practitioners. Our key objective is to raise the profile of pricing management in Asia through:

  • Organizing formal and informal meetings where we discuss the latest trends and challenges in Pricing
  • Sharing industry specific knowledge related to pricing management with interested parties
  • Building a network of industry pricing experts who are easily accessible

Click a link below to learn more…

 

Top Headlines

Don’t expect Best Buy to give away the store for you this holiday | MarketWatch

NEW YORK (MarketWatch) — Best Buy Co.’s so-called doorbuster specials when it opens at 5 p.m. on Thanksgiving include a $199 50-inch Panasonic TV or $79.99 Beats by Dr. Dre headphones, a $90 savings. But don’t expect the electronics retailer to give away the store for you. After Best Buy’s aggressive pricing last holiday to […]

Don’t Base Your Pricing On Costs – A Lesson From Chris Rock | Forbes

In his premier film appearance in the blaxploitation send-up “I’m Gonna Git You Sucka,” Chris Rock inadvertently addresses a key pricing challenge faced by most entrepreneurs. Watch the 93-second clip below and see if you can identify the pricing pitfall addressed in this humorous snippet. Caution: contains a bit of profanity (it is Chris Rock, […]

Pricing Shows Management’s True Thinking And Intentions | Tweak Your Biz

Instinctively, the hair on the back of my neck stood up. On one side of the balance scale was an international medical pandemic and on the other side of the scale was the crazy $7 bottle price. This made my head hurt, at first I didn’t know why. Pricing shows management’s true thinking and intentions. […]

3 Ways to Avoid Lowering Your Prices for Customers | Inc.com

When customers start complaining about price before buying your products, resist their arguments with these strategies. Just imagine: You’re heading to the end of your sales pitch and everything is looking great. The customer is smiling; you’ve nailed your pitch, and you’re ready to lock this deal down. At the perfect moment, you finally ask […]

How Much is Music Worth? Radical.fm Lets You Decide | The Next Web

Elsewhere, Spotify is looking to tempt more users on board by cutting prices and undercutting the competition. Less than a month after Spotify announced it was introducing family subscription plans, charging a few bucks less per-additional-person than Rdio, Rdio was forced to match Spotify dollar-for-dollar. Race to the bottom? There is so much competition now in the online music-streaming space, it […]

The Psychology of Price | Visual DNA

“It’s like when a 39-year-old turns 40, the birthday feels like a big deal,” says Robert Schindler, a professor of marketing at UCLA. He’s talking about the effect of prices that end .99, how just a single penny between two larger amounts creates this symbolic buffer in our minds. So we perceive £3.99 as being […]

The thrill of the hunt for discount prices | Marketplace.org

The Internet can tell us how long it takes to walk the length of the Great Wall of China (10 months), how many girlfriends George Clooney has had (lots) and even how many snowflakes fall in a year (about a septillion). But consumers still can’t quickly and easily compare prices for a leather purse (big […]

Is Apple Inc. Discounting Black Friday Deals More Than Usual This Year? – Target Corporation, Best Buy Co Inc | Benzinga

Price Controls Dan Miller, senior analyst and founder of Opus Research, did not seem overly surprised that Apple’s prices have come down over time. “It’s inevitable that the sales channels will assert some power,” Miller told Benzinga. “They have to capture share themselves. It […] reminds me of the old days of Levi’s blue jeans. […]

Black Friday Continues Its Frenzy | CloudTweaks.com

Industry watchers are expecting more online sales this year, with transactions happening earlier (as in earlier than Monday), with consumers having been spooked by slow deliveries and shortages caused in great measure last year due to extreme cold weather. The two-day event is quickly becoming a week-long happening, driven by large-scale retailers such as Amazon.com […]

Pink Pricing – France to study if women are overcharged on some items | CTV News

The group took its cue from a California state government study that found American women on average pay $1,300 more than men every year for identical products. Consumer Reports found similar disparities in 2010. “It’s a first victory if people are asking themselves the question when they walk into a store and compare prices,” said […]

10 Classic Studies on Pricing Psychology | Huffington Post

Utilizing smart pricing when selling your wares, be they products, services or subscriptions, is a must if you want to succeed in a competitive marketplace. The worst thing you can do is to try to wing it when it comes to pricing. Yet this is a mistake I see many entrepreneurs making. Today we will […]

Is This The Highest Surge Price Ever Recorded In Uber History? | Business Insider

Surge pricing is economics 101, mobile ride-hailing company Uber preaches. If you want supply to keep up with increasing demand, you need to incentivise drivers to get on the road and come pick you up. “By *raising* the price you *increase* the number of cars on the road and maximise the number of safe convenient […]

Smartphone Price Revolution? Not Yet, Not Just Yet | Technology Personalized

The old order changeth… not! For, while there is no doubt that the likes of Xiaomi, Motorola, Lenovo and OnePlus have shown that it is possible to deliver flagship-level specifications at prices that are much lower than those being charged by ‘established’ players, this does not seem to be affecting the established players themselves much. […]

An Analytics Based Pricing Strategy for Sports Franchises | Deloitte US

Five nuanced views of pricing decisions Explore five nuanced views of pricing decisions for sports franchises which could help maximize revenue and enhance fan experience: Fans aren’t looking for transactions: They want an experience Dynamic pricing doesn’t mean charging more for everything: It means charging the right amount for everything Not all customers are the […]

Supermarket price war blamed for food producers folding | BBC News

A supermarket price war is being blamed for a sharp rise in the number of food producers going bust. So far this year 146 food producers have entered insolvency, up from 114 last year, according to research by accountancy firm Moore Stephens. The company said supermarkets are squeezing producers in order to cut check-out prices […]

AWS is playing chicken with pricing, and enterprise incumbents will lose | TechRepublic

In Christopher Nolan’s The Dark Knight, Bruce Wayne’s longtime servant and friend, Alfred Pennyworth, says of The Joker, “Some men aren’t looking for anything logical, like money. They can’t be bought, bullied, reasoned, or negotiated with. Some men just want to watch the world burn.” Anyone watching the Infrastructure as a Service (IaaS) pricing wars […]

Walmart’s move to match Amazon deals spotlights mobile’s role in dynamic pricing | Mobile Marketer

With Walmart’s pledge to match Amazon’s prices this holiday selling season, dynamic pricing is in the spotlight, emphasizing mobile’s role in impelling brands to change prices on the fly to attract online shoppers looking for the best deal. Walmart, the world’s largest retailer, last week said it will enforce a price-matching policy in all its […]

B2B Pricing Strategy Process – Focus First | OpenView Labs

Picking a number is actually the last step in a successful pricing process. Value management and pricing strategy consultant Steven Forth breaks down what you need to do first. Pricing matters at early-stage growth companies because it brings into focus all the work you are doing to a) understand your customers; and b) define the […]

Chemist Warehouse accused of misleading consumers with “normal price” | SmartCompany

Discount pharmacy chain Chemist Warehouse has come under fire from industry groups, which have accused the company of misleading consumers by printing a “normal price” and the amount a customer has apparently saved on store receipts. The ABC reports the Pharmacy Guild and National Pharmacies group are calling for the Australian Competition and Consumer Commission […]

What Might Black Friday E-Commerce Look Like This Year? [Infographic] | MarketingProfs Article

Looking at the past can help you prepare for the future. So, here’s what Black Friday e-commerce looked like last year. This year won’t likely be too much different, so plan accordingly. The overall online sales for Thanksgiving and Black Friday in 2013 was $1.964 billion, according to the infographic by Nextopia. The top purchases […]

Everyday Low Pricing May Not Be the Best Strategy for Supermarkets | Stanford Graduate School of Business

When stores like Wal-Mart, Sam’s Club, and Costco began their rapid expansion in the 1990s, supermarkets were thrown for a loop. The limited service, thinner assortments, and “everyday low pricing” of items in these “supercenters” — including foodstuffs — created enormous cost savings and increased credibility with consumers. What was a Safeway or a Stop […]

Amazon’s Pricing Strategy Makes Life Miserable For The Competition | Forbes

During the Christmas shopping season we will see Amazon change prices on as many as 80 million products during a single day. That is amazing since companies like Walmart, Best Buy and Toys “R” Us have already announced that they will not be undersold and will match any competitors’ prices in a printed flyer or […]

Amazon.com, Inc. How Its Prices Compare To Competitors’ | Value Walk

Amazon still leads in toy pricing In a report dated Nov. 11, 2014, analyst Matthew Fassler and his team said that in general, prices of toys remained the same as last week. They report that Amazon’s pricing got more competitive this week, however, and the online retailer increased the gap between its prices and the […]

Click here for more recent articles.

 

Events & Resources

 

Events

Webcast: Learn How B&B Trade Distribution Centre Uses Strategic Pricing Tools to Identify Price-sensitive Products and Services | SPA

When: Tuesday, December 9, 2014 2:00 PM Eastern

Register to attend our webcast that starts at 2:00 PM EST where Robb Howe, General Manager for B&B Trade will share their journey to pricing excellence and how they are leveraging science-based strategic pricing tools to identify price-sensitive products and services. To implement a solution that enhanced profitability, […]

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 […]

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: Finding Your Pricing Mojo – YEAH BABY! | David Mok

The word “mojo” derives from an African language and relates to magic and spells to generate luck and power. In today’s language, the word still refers to a source of vigor, energy, sexual potency and power. An entire Austin Powers movie was devoted to lost mojo and the desperate search to find it. Austin Powers […]

Pricer’s Points: 5 Tips on Market Segmentation | Frank Luby

An Inc. article this week asked whether Apple could kill the freemium music model when it relaunches Beats Music. It also cited some data and interesting analyses from Venrock’s David Pakman on how much people spend on music. Think about that phrase for a moment: “how much people spend on music”. Music spending and music […]

Pricer’s Points: Psychological Pricing and Localized Pricing Strategies | Chris Krystalowich

Over the course of my career, I am often asked for information and strategies for selling into other markets. I have compiled these requests into this article; hopefully you will find this information useful. Charm Pricing In English speaking markets, it is widely believed that prices ending in 9 generate more sales. This theory has […]

 

Top Discussions

Discussion: 9 Ways Your Pricing Strategy Sucks

Why do I want to talk about pricing? There is a disease called “Price Discounting.” It is like heroin. It will kill you and your business. Let me give you an example to explain this: You make a 40% gross margin. You decide one day to reduce your prices by 6%. That means that you […]

Discussion: Designers speak out on Adobe price controversy

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 […]

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 […]

 

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.

The Art of Pricing – How to find the Hidden Profits to Grow Your Business

Summary: Want to make a bad year better or turn a good year into a blockbuster? Stop leaking profits and discover the untapped gold mine that exists in your products. The Art of Pricing is the first practical, easy-to-understand guide to solving one of the most important dilemmas in business: how to use price to […]

The Definitive Guide For Better Pricing

Summary: Give your business a competitive boost by optimizing your pricing strategy. By focusing on four key areas, you can make sure that your sales team is selling on value and not depending on discounting to close deals. In this informative new eBook, you’ll learn how to: Identify opportunities for new customer acquisition Segment your […]

The Distributor’s Fee Based Services Manifesto – Why you need to consider charging for your services

Summary: Wholesale Distributors in the knowledge-based lines of trade (Electrical, Automation, Fluid Power, Power Transmission, Industrial Mill Supplies, Plumbing and Heating and other) face a tough decision. As market forces, demographics, alternative channels and the internet push against their half-century old model of value-added services wrapped into margins, wholesale distributors must change revenue model or […]

 

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 Books and E-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.

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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