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This Week in Pricing > 1/13/18

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

Currently, PPS produces three major annual pricing conferences in Europe and North America. Each conference also houses a technology hall where sponsors display the latest in Pricing Solutions software. PPS also offers more than two dozen, full-day training workshops every year, taught by leaders in the pricing community. These workshops serve as the foundation for PPS’s Certified Pricing Professional (CPP) designation, our state of the art pricing certification program. Candidates may be certified after mastering a multi-stage curriculum followed by rigorous testing. Successful CPPs have acquired the core knowledge which not only places them in the top rungs of the pricing field, but also gives them the tools to enhance substantially their own careers.

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Top Headlines

Costco Exposes Seattle’s Sugary Drink Tax With the Perfect Sign | Digital Politics Daily

Costco Exposes Seattle’s Sugary Drink Tax With the Perfect Sign | Digital Politics Daily

On January 1, Seattle’s new ‘Sugary Drink Tax’ went into effect. Why? Seattle leftists want to dictate behavior and stop people from drinking soda because it can be unhealthy. So by taxing the soda, they are hoping to deter people from drinking it. But now, thanks to Costco, customers know exactly how much the city […]

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How Payers Can Build a Successful Bundled Payment Strategy | HealthPayer Intelligence

How Payers Can Build a Successful Bundled Payment Strategy | HealthPayer Intelligence

The Bundled Payments for Care Improvement (BPCI) Initiative helped cut Medicare reimbursements at participating hospitals by $3,286  during its first 21 months for lower extremity joint replacements.  The BPCI is split into four bundled payment models with different strategies for when an episode of care starts. Each of the models relies on 48 MS-DRGs codes […]

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Movie Theater Chain Kills Uber-Style Surge Pricing After Internet Backlash | Gizmodo

Movie Theater Chain Kills Uber-Style Surge Pricing After Internet Backlash | Gizmodo

An Australian movie theater chain said it has ended “dynamic pricing” trials on Wednesday after Redditors complained of “price gouging.” Last week, an anonymous user uploaded an internal memo from Village Cinemas describing concession stand increases during busy periods. After images of the memo circulated online, Village Cinemas announced that all pricing trials had been […]

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Trump is right: Negotiate for lower drug prices | IndyStar

Trump is right: Negotiate for lower drug prices | IndyStar

All Hoosiers have seen the headlines about drug price increases, and too many of us see the struggle first-hand. A vial of insulin can cost a person with diabetes 10 times as much as it did in the late 1990s.The price of an EpiPen has risen 450%. Some new treatments for cancer and other diseases […]

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​Pipeline, transportation bottlenecks causing lower prices for Canadian oil and gas: Deloitte | JWN Energy

​Pipeline, transportation bottlenecks causing lower prices for Canadian oil and gas: Deloitte | JWN Energy

Canadian oil and gas producers and the governments they pay royalties too are not benefiting as much as they could be from improving commodity prices. A new report from Deloitte says that concerns over transportation bottlenecks to the U.S. market have increased the historic price differential between Canadian WCS and U.S. WTI oil, while infrastructure […]

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Law firm that extracted $450M settlement in Apple e-books case is going after company for throttling iPhones | Apple Insider

Law firm that extracted $450M settlement in Apple e-books case is going after company for throttling iPhones | Apple Insider

Hagens Berman, the consumer rights law firm that successfully obtained a $450 million settlement from Apple over e-book price fixing, once again has the tech giant in its sights, and on Friday filed a class-action lawsuit over the iPhone throttling debacle. In a suit filed with the U.S. District Court for the Northern District of […]

 

Bitcoin price WARNING: Bitcoin could be the biggest bubble EVER | Express.co.uk

Bitcoin price WARNING: Bitcoin could be the biggest bubble EVER | Express.co.uk

Bitcoin could be an even bigger bubble than tulip mania, the first recorded economic bubble, economist and author Jim Rickards has warned. Speaking to Business Insider, he said: “Personally, I’m very sceptical of bitcoin, I know where the price action is. It’s you know, going up about 10 percent a day at this point. “Although […]

 

Oil rally ends as U.S. production expected to keep prices in check | The Globe and Mail

Oil rally ends as U.S. production expected to keep prices in check | The Globe and Mail

Global crude markets carried their end-of-year momentum into 2018, but will have trouble taking prices higher in the coming weeks barring a major geopolitical event, analysts say. Leading international and North American benchmark prices hit their highest levels in nearly two years near the end of last week, before a profit-taking selloff on Friday. Analysts […]

Companies divided on raising prices or slashing benefits to handle wage hike | 680 NEWS

Companies divided on raising prices or slashing benefits to handle wage hike | 680 NEWS

TORONTO – Signs announcing price increases and letters to employees slashing benefits have grown rampant in Ontario, revealing two very different approaches businesses have gravitated toward in the wake of province’s minimum wage hike. Some Tim Hortons franchises have faced significant backlash after cutting paid breaks and forcing workers to cover some of their dental […]

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As a driver, I would support pay-per-mile road pricing | The Independent

As a driver, I would support pay-per-mile road pricing | The Independent

You can see the problem though. Once we all have our electric personal transportation pods what will happen to the roads? Apart from some toll bridges, motorway sections, and the London congestion charge zone today, they are free to use at the point of use. Some method of prioritising essential and emergency traffic has to […]

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Surge Pricing Is Just The New Dynamic Pricing | PYMNTS.com

Surge Pricing Is Just The New Dynamic Pricing | PYMNTS.com

Surge pricing goes back ages, before it was even known by that name. Restaurants offer “early bird” discounts for diners willing to eat their meals before 6 P.M., for example. Tuesday night dinner discounts and lunch buffets are also a part of restaurant pricing history. One of surge pricing’s innovators is M. Douglas Ivester, the […]

More Headlines

The New Flat Rate Launches App to Make Home Repair Decisions Easier | CISION

The New Flat Rate Launches App to Make Home Repair Decisions Easier | CISION

The New Flat Rate Interactive App advances the company’s menu pricing system by making it truly interactive. Field technicians can enter customer choices – there are five options for every type of repair job – to make ordering repairs quick and easy. And there is an automatic electronic invoicing option for contractors. “This app gives […]

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Domestic airline industry follows global practice of dynamic pricing | Business Standard News

Domestic airline industry follows global practice of dynamic pricing | Business Standard News

Union Minister Jayant Sinha on Friday said the domestic airline industry follows the “global practice of dynamic pricing”. The Minister of State for Civil Aviation was defending the industry against the latest observations made by the Parliamentary Standing Committee on Transport which pointed to airline staff’s misbehaviour and over-pricing of air tickets. “Globally, airlines follow […]

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Innovative companies have good reason to be optimistic | TTG

Innovative companies have good reason to be optimistic | TTG

The Payment Services Directive 2 changes will be important, and I have a feeling many travel companies are still undecided on their medium and long-term strategy and will watch the competition closely in a bid to give themselves the best chance to make the right strategic pricing move. Barclays’ travel customers in the luxury, adventure […]

 

Essential reading for successful investing, fearless market forecasts, and a simple but solid ETF portfolio | The Globe and Mail

Essential reading for successful investing, fearless market forecasts, and a simple but solid ETF portfolio | The Globe and Mail

Now with BlueMountain Capital Management, his latest piece is typically great. In it, Mr. Mauboussin details yet another way the human brain is uniquely ill-suited to investing, specifically how poorly we make comparisons between potential investments. The paper first recounts a pricing strategy used by The Economist magazine where an online subscription was $59, a […]

 

Pa.’s state university system eyes changes to tuition plans | Pittsburgh Post-Gazette

Pa.’s state university system eyes changes to tuition plans | Pittsburgh Post-Gazette

Several state-owned universities want to modify how they price tuition next year, including Indiana University of Pennsylvania, which seeks to bill out-of-state students per-credit, rather than by flat rate, and reduce charges at branch campuses. A State System of Higher Education board of governors committee discussed the proposals Monday. It then agreed to forward most […]

 

Capping of air fares could raise prices: Government | newkerala news

Capping of air fares could raise prices: Government | newkerala news

New Delhi, Jan 6: The government on Saturday said that capping of air fares could “raise prices for the 98-99 per cent of the passengers”. The Ministry of Civil Aviation, in a statement, defended the domestic airline industry against the observations made by the Parliamentary Standing Committee on Transport which pointed to airline staff’s misbehaviour […]

 

Nokia 6 (2018) Vs Xiaomi Mi A1 Vs Moto G5s Plus, Specs, Price | iGyaan

Nokia 6 (2018) Vs Xiaomi Mi A1 Vs Moto G5s Plus, Specs, Price | iGyaan

HMD Global’s pricing strategy for its mid-range and budget smartphones in India has baffled everyone. The Nokia 6 was launched in India in early-2017 and was heavily panned for its excessive pricing. However, it appears that HMD Global has learned its lesson and will be willing to rectify such costly errors with its new budget […]

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Prices and Competition to Shape the Year Ahead | Pharmaceutical Executive

Prices and Competition to Shape the Year Ahead | Pharmaceutical Executive

The pharmaceutical industry faces a tumultuous year in Washington, as policymakers continue to press for curbs on too-high drug prices, and tax and budget reforms may threaten resources and initiatives for the FDA, the National Institutes of Health, and public health programs. Inaction by Congress and the White House will prompt more states to propose […]

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BRAUN: Surge pricing made Monday’s power failure even worse | Toronto Sun

BRAUN: Surge pricing made Monday’s power failure even worse | Toronto Sun

This came from Lyft Communication Manager Campbell Matthews: “Due to the winter weather and the power outage, there were more people requesting Lyft rides this morning than there were drivers to provide them. We monitored the conditions, communicated with drivers, and encouraged them to get on the road. Still, this heightened demand caused some areas […]

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Government rejects Parliamentary panel suggestion to cap airfares | India Today

Government rejects Parliamentary panel suggestion to cap airfares | India Today

The report clearly placed the onus on the Ministry of Civil Aviation to fix things. It read, “The Ministry of Civil Aviation, though aware of the rampant exploitation, is not showing any proactive role in regulating airfares. The Committee therefore recommends the Ministry of Civil Aviation to consider fixing an upper limit of fares for […]

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The SaaS Trends You Need to Know for 2018 | OpenView Labs

The SaaS Trends You Need to Know for 2018 | OpenView Labs

Companies Pay Attention to Pricing (Finally) 2018 will be the year that companies finally pay attention to pricing. After all, it’s fundamental to how businesses make money and is a SaaS company’s most efficient profit lever. Yet, 53% of companies have no one on their team dedicated to pricing, even if it’s just one component […]

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MakeMyTrip: We didn’t want to compromise on market leadership: MakeMyTrip, CEO, Rajesh Magow | The Economic Times India

MakeMyTrip: We didn’t want to compromise on market leadership: MakeMyTrip, CEO, Rajesh Magow | The Economic Times India

At a time when our focus was to drive hotel business from a growth perspective really aggressively, the market dynamics changed with the Ibibo group taking to a very aggressive pricing strategy in terms of acquiring customers in the hotel space and were more volume-focused. This was about a year before the merger. In this […]

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Striking the right balance in fuel pricing | Punch Newspapers

Striking the right balance in fuel pricing | Punch Newspapers

The acute fuel shortage experienced during the last festive season may have abated but the major issue remains: How best to address the challenge of appropriate fuel price that guarantees adequate supply without much damage to the economy. With the international crude oil price likely to stay above US$50 per barrel in 2018 (thanks to […]

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Three Pricing Predictions for 2018 (and How to Use Them to Your Advantage) | OpenView Labs

Three Pricing Predictions for 2018 (and How to Use Them to Your Advantage) | OpenView Labs

January 2018 already! Your inboxes are no doubt full of predictions for the New Year, so let me suggest why you should care about pricing predictions. Pricing is where all the different aspects of your offering (be it product or service), your marketing plan, your sales process and your customer, converge. If you can’t agree […]

 

T-Mobile reveals NB-IoT pricing strategy challenging Verizon | TelecomLead

T-Mobile reveals NB-IoT pricing strategy challenging Verizon | TelecomLead

Mobile US announced its pricing strategy for narrowband IoT (NB-IoT) services challenging main rival Verizon. Based in Bellevue, Washington, T-Mobile said its price for the narrowband IoT (NB-IoT) will be $6 per year – offering at one tenth the cost of Verizon’s Cat-M plans. T-Mobile is able to offer cost effective NB-IoT plan to enterprises and […]

 

Commentary: Adventures in big data wonderland – Don’t get lost in the rabbit hole | American Shipper

Commentary: Adventures in big data wonderland – Don’t get lost in the rabbit hole | American Shipper

Chasing the elusive white rabbit. Today, 3PLs and brokers are stuck in a cycle of chasing loads, agreeing to fixed-price contracts with shippers, and getting burned when capacity tightens and rates rise. Margin compression is a daily concern, and the key to a failsafe pricing strategy remains just out of reach. In addition to pricing […]

 

Trump’s HHS pick appears to be on track for confirmation | POLITICO

Trump’s HHS pick appears to be on track for confirmation | POLITICO

Azar, a former pharmaceutical executive and HHS official in George W. Bush’s administration, is expected to lead efforts to unwind the Affordable Care Act through regulation, pursue conservative change to entitlement programs long sought by Republicans and follow through on Trump’s unfulfilled pledge to tackle soaring drug prices. With many Republican lawmakers wary of waging […]

 

Brazilian Retailer Lets Customers Negotiate The Prices Of Electronics | psfk

Brazilian Retailer Lets Customers Negotiate The Prices Of Electronics | psfk

Brazilian retailer Fast Shop is committed to providing customers with a personalized experience at its brick-and-mortar locations—so much so that allows customers to negotiate on the prices of electronics during the sale. To manage its flexible pricing, the company implemented Microsoft Azure’s machine learning to pull dynamic information about inventory, competitors and even weather conditions. While the […]

 

Why airlines need to segment smarter | EyeforTravel

Why airlines need to segment smarter | EyeforTravel

At one airline, Williams’ methodology led to airline was further breaking down business and leisure into sub-segments. He identified seven such segments; four business and three leisure. Business segments included both commuters (short haul; out on Monday, back on Friday) and seasonal workers (long stays); leisure included a differentiation between weekend vacationers and weekday vacationers. […]

 

Coal India to charge customers on energy content in coal | The Economic Times

Coal India to charge customers on energy content in coal | The Economic Times

In technical terms, coal price will be based on Rupees per kilo calorie — that is Rupees per unit of energy. “It is a global system of coal pricing and we would put in place systems for measuring energy content for each consignment. It will lead to financial benefit for customers who pay for what […]

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ACCC Report into Mortgage Pricing Includes ‘Some Surprises’ | Digital Finance Analytics (DFA)

ACCC Report into Mortgage Pricing Includes ‘Some Surprises’ | Digital Finance Analytics (DFA)

The chairman of the Australian Competition and Consumer Commission has revealed that there will be some “surprises” in the upcoming draft report into how the banks price residential mortgage products. The inquiry into how the major banks price their mortgage is the first undertaking of the ACCC’s new Financial Sector Competition Unit, which is tasked […]

 

HarperCollins settles over Jobs’ cartel | FudZilla

HarperCollins settles over Jobs’ cartel | FudZilla

A rather nasty chapter in Steve Jobs’ biography has finally drawn to a close after publisher HarperCollins has agreed to donate $120,000 in books as part of a settlement with a Canadian law enforcement agency. For those who came in very late,  Apple’s messiah Steve Jobs arranged a pricing cartel which jacked up the prices […]

 

‘Worst single traffic hot spot in nation’ to get I-95 express-lane extension with 10 more miles of tolls | richmond.com

‘Worst single traffic hot spot in nation’ to get I-95 express-lane extension with 10 more miles of tolls | richmond.com

The tolls on the lanes will be all electronic and will feature the same “dynamic pricing” as the existing lanes, in which tolls climb higher as usage increases. That feature, which also exists on the Interstate 66 express lanes, has drawn fire from some drivers, who have seen tolls exceed $40 during certain times. “It’s […]

 

Red Robin Makes Nationwide Announcement On All 570 Locations — Direct Result of Failed Liberal Policies | Your Daily Breifing

Red Robin Makes Nationwide Announcement On All 570 Locations — Direct Result of Failed Liberal Policies | Your Daily Breifing

On Monday, the national restaurant chain Red Robin announced it would eliminate busboys at all of its 570 restaurants, as the company expects it will save $8 million in 2018 by doing so. Red Robin’s chief financial officer Guy Constant told attendees at the ICR retail conference, “We need to do that to address the […]

 

2018: The ‘Year of AI and Machine Learning’ for Financial Marketers | The Financial Brand

2018: The ‘Year of AI and Machine Learning’ for Financial Marketers | The Financial Brand

5. Product Pricing Should products and services be priced exactly the same for every customer or member in your database? Optimally, product and service pricing should reflect the profitability of the relationship and the overall impact a specific pricing decision would make on the relationship (similar to pricing done in commercial business relationships). With dozens […]

 

The Importance of Pricing for UK Retailers | The Market Mogul

The Importance of Pricing for UK Retailers | The Market Mogul

Pricing Importantly, offering discounts must be combined with an effective digital marketing strategy – and this is where Debenhams went wrong despite the price cuts. Brick-and-mortar shops have been closing, including those of Marks & Spencer, Toys R Us and Forever 21. Retailers must become more flexible and adapt to consumers who are offered more […]

 

ComfortDelGro to launch dynamic pricing fare option for its taxis from Jan 19 | The Straits Times

ComfortDelGro to launch dynamic pricing fare option for its taxis from Jan 19 | The Straits Times

An Uber spokesman said on Thursday that the company will share more details of UberFlash later on. He said: “We are excited about our partnership with ComfortDelGro to improve the overall transportation landscape, giving Singapore more choices to move around at the tap of a button.” Following ComfortDelGro’s tie-up with Uber, all 23,000 taxis in […]

 

New fares will leave passengers at the mercy of aggregators | The Hindu

New fares will leave passengers at the mercy of aggregators | The Hindu

The rules had specified that digital meters be installed in taxis. However, the notification is silent on this matter. “Some taxi aggregators had approached the High Court against the rules. Now the matter is sub-judice,” said Mr. Dayananda. Even taxi drivers have expressed discontent with the notification. “The notification will only benefit the aggregators. It […]

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Featured Content and Events

EU Pricing Summit 2018 - IQPC

European Pricing Summit 2018 | Finance iQ

Date: April 16-18, 2018

Location: TBD in London, England

The advent of disruptive technology, growth of e-commerce and increasing competition from global markets are just a few of the reasons why leading companies are spending time and money to develop a pricing strategy that works.

Many pricing leaders are wondering what direction to take their pricing strategy in and want to benchmark with other organisations to decide what is the most profitable option. But KPIs and pricing models are almost always confidential, and the majority of organisations are unwilling to disclose the facts and figures that the industry needs. The industry has a dilemma where practitioners want to have insights on new developments in strategies, but they are usually subject to commercial secret.

Given this situation, IQPC will be launching a limited-access, confidential mentoring panel as part of our European Pricing and Commercial Excellence Summit to enable our clients to obtain first-hand tips from our mentors to assist them in creating the most profitable pricing strategy.

 

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29th Annual Spring Pricing Workshops & Conference | PPS

Date: May 1-4, 2018

Location: Loews Chicago O’Hare Rosemont Hotel in Chicago, IL

We are excited to announce we’ll be in Chicago, IL for our 29th Annual Spring Pricing Workshops & Conference May 1-4, 2018!

You can register now and take advantage of our Early Bird Offer (Buy 2 Get 1 Free, expires March 23rd).

 

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.


The following is a daily-dose of pricing cartoons and quotes, enjoy…

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“People tend to be clueless about prices. Contrary to economic theory, we don’t really decide between A and B by consulting our invisible price tags and purchasing the one that yields the higher utility, he says. We make do with guesstimates and a vague recollection of what things are “supposed to cost.””

     – William Poundstone

 


 

Pricing Resources

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