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This Week in Pricing > 1/18/15

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.


This Edition is Sponsored by:

Value Innoruption Advisors

Founded by Dr. Stephan Liozu, Value Innoruption Advisors provides training and consulting resources for organizations interested in embedding value-based methodologies in their go-to-market strategies related to innovation, marketing, pricing, and sales. Value Innoruption Advisors offers two popular value and pricing management certification programs – Customer Value Modelers™ (CVM™) and Change Agent in Pricing™ (CAP™).

Click a link below to learn more…



Three Tips to Avoid Price-Discounting Pitfalls | Selling Power Blog

No matter what your reasoning is for lowering your price, continual price discounting is going to end up creating two major problems for you. PROBLEM #1: You will trade a temporary uptick in revenue for a substantial reduction in profit. Almost all sales leaders are evaluated on their ability to post revenue gains each quarter. […]

Why You Cannot Match Your Competitor’s Price | S. Anthony Iannarino

Let’s say you and your competitors both sell the same thing to your customers. You both buy the same raw materials to develop your product. You both pay $100 for those raw materials. You sell your product for $150, and your competitor sells theirs for $130. Your higher price is enough to cause some buyers to […]

What drives our wine choice – taste, or the price tag? | SBS News

For wine producers specific pricing strategies to follow will depend on the quality of the wines produced and the nature of competition that producers face in the market. For example, some low quality producers may be able to charge higher prices than implied by quality, in the short term, as buyers may find it uneconomic […]

9 Ways to Stand Out Among Lower Cost Competitors | Small Business Trends

There are two things we know about how the majority of consumers make their purchasing decisions. It’s no secret that most people want to be getting the appropriate value for what they are paying. And many potential customers make their purchasing decisions before even leaving the house by comparing products or services through an online […]

Amazon’s ‘Make an Offer’ system might just kick off a pricing revolution | VentureBeat

On December 9, Amazon surprised the retail world with “Make an Offer”, a new system that allows shoppers to negotiate prices on over 150,000 collectible and antique items. While some news outlets have compared “Make an Offer” to eBay’s “Best Offer” and Priceline’s “Name Your Price,” they undersell its potential significance. As a co-founder of […]

Why Consumers Hate Dynamic Pricing, but Shouldn’t | paymentweek

Without surge pricing, the heavy traffic, higher rate of drunk drivers, and drivers’ own desire to celebrate could motivate many independent contractors to not work at all. The old way of ensuring enough drivers are on the road is hiring them as employees, and ordering them around. In the Uber age, this is no longer […]

How Stores Manipulate Prices So You’ll Spend More | Business Insider

Ever look at the number on a price tag and wonder where that number came from? According to Mark Ellwood, the author of “Bargain Fever: How to Shop in a Discounted World,” a price consultant was probably paid a lot of money to help determine the number on that tag. Ellwood says price consulting started […]

The promotional price: what happens after the deep cut | Arbitrage Research

Sales sell in the short term. In the long term they have an impact on the future response of customers to price. The sales of a high priced brand may attract price conscious and sales prone customers who would not have otherwise purchased it. However the regular customers who have not been price sensitive in […]

Five Pricing Myths You Should Avoid at All Cost | IndustryWeek

When executives in industrial markets think about trying to get a price premium for their products, they often raise the white flag before even stepping onto the battlefield. Five beliefs, in particular, have become ingrained to the point that they seem immovable. While companies dedicate ample resources to continually reduce costs or sell greater volumes, […]

Is price reasonableness really unreasonable? | Washington Technology

With so many IT and professional services contracts being awarded to the lowest priced offeror, you have to wonder if the government is worried about awarding contracts to firms whose prices are unreasonably low. As it turns out, in many procurements the government does not look for unreasonably low prices, and in some instances, is […]

What is a pricing officer and does your firm need one? | Canadian Lawyer

Ways to charge clients beyond the traditional hourly billing approach have become part of the continuing evolution of how law firms manage their operations. Many of these alternatives, however, see the risk shift from the client to the firm — somewhat terra incognita still for many. A growing trend to ensure law firms continue to […]

More Uber trouble as SA taxis seized | IOL Motoring Industry News

DYNAMIC PRICING A RIP-OFF – CUSTOMERS Uber, which also came under fire for charging commuters up to 12 times the usual rate on New Year’s Eve, has hit back, saying subscribers had a choice to confirm rides and pricing before boarding the taxis. After New Year’s celebrations last week, a slew of disgruntled Uber commuters […]

Viewpoint: Uber endangers public safety with fare spikes | USA TODAY College

While apparently sincere, that apology represented a complete turnaround from Dec. 14, when @Uber_Sydney tweeted, “fares have increased to encourage more drivers to come online & pick up passengers in the area.”  With its oscillating messages, it appears as though Uber was playing public opinion like a chess game. In fact, drivers are the last […]

This App Will Help You Avoid Paying Uber Surge Prices Tonight | Business Insider

If you’re looking for a way to skip surge pricing altogether, an app called SurgeProtector might solve your problems. SurgeProtector was released in November. It uses Uber’s API, which became available in August, to find places close to you that don’t have surge pricing. Once it locates a place nearby without surge pricing, SurgeProtector redirects you back to Uber’s app so you […]

W.Pa. ride-sharing ventures Uber, Lyft, Yellow Z prepare for fare fight | TribLIVE

Competing ride-sharing services Uber, Lyft and Yellow Z will face off in the new year, with each hurrying to master a mobile business model as young and capricious as the growing market it serves. Uber has submitted a detailed compliance plan to the state Public Utility Commission that, if approved, will allow the ride-sharing company […]

Marketing Experimentation And Offering ’Smart’ Discounts | Bizzmark Blog

A study conducted by CBP Research shows that income is increased by up to 40% and selling costs are reduced by 35% with the use of CRM systems (Customer Relationship Management), but the net boost to margin is minimal, so businesses resort to conventional discounting in order to attract customers and increase their revenue. In […]

Case Study: Second Thoughts About a Strategy Shift | HBR

“They would put on their matching hats and take the bus and spend the day going into one store after another, hunting for bargains,” Augustín said. “I still remember the junk they came home with. And why? Because some shop owner had made up a ‘full’ price for a fan or a pair of gloves […]

The right price, not the lowest price | Internet Retailer

While price is important online, always going for the lowest price can be a sure path to bankruptcy. E-retailers use price-monitoring services to find the right price for their own businesses. Amazon.com Inc. makes 2.5 million price changes on an average day, and, according to data from price monitoring firm Profitero Inc., it sometimes changes […]

Sony employs halo pricing strategy with $1,100 Walkman | Stark Insider

$1,100!? For a glorified MP3 player!? In the words of James Bond, you must be joking! Sony, though, is dead serious. This week the company famous for liberating our music listening world in the 1980’s with the introduction of the cassette-based Walkman, resurrected the brand and unveiled an all-new Android-powered high-res audio player at CES […]

Is Verizon Abandoning Its Premium Price Strategy? (VZ) | The Motley Fool

Whether the CEO likes to admit it or not, Verizon (NYSE: VZ  ) is feeling the pressure from Sprint (NYSE: S  ) and T-Mobile (NYSE: TMUS  ) as they offer low-price alternatives to Big Red’s premium service plans. The company has offered several price cuts and limited-time promotions over the past year to attract new customers and keep […]

Apple Changes App Pricing Worldwide After Currency Swings | Bloomberg

Apple Inc. (AAPL) changed the prices of software applications from Canada to Europe last week, in one of the company’s broadest global responses to currency fluctuations in recent years. With the U.S. dollar rising, Apple earlier last week told software makers selling programs through its online App Store that it’s increasing app prices in the […]

Cadillac Does U-Turn On Pricing Strategy, Drops Prices On Some CTS Trim Levels | Motor Authority

Despite Cadillac chief Johan de Nysschen as recently as September saying he wouldn’t reduce prices or offer huge incentives, even in the face of slowing sales, the price of certain CTS trim levels have been reduced, in some cases by as much as $3,000. To help rebuild its image as a premier luxury brand, Cadillac […]

Family Dollar Profit Drops as Pricing Changes Crimp Margins | Businessweek

Family Dollar Stores Inc. (FDO:US), the discount retailer at the center of a takeover battle, posted a 47 percent decline in first-quarter earnings after a new pricing strategy and a shift to lower-margin products took a toll on profit. Net income fell to $41.4 million, or 36 cents a share, from $78 million, or 68 […]

It is time for U.S. businesses and business leaders to give pricing the respect and resources it deserves | Supply & Demand-Chain Executive

While the U.S. market is highly competitive, many U.S. companies are sheltered from the more complex business and pricing realities of the European and other outward-looking, international markets. They can build large, successful business in the relatively simple American market without ever having to face many of the complexities of everyday European businesses. Because of […]

Publishing Sales Execs Consider the Future of Book Pricing | Publishing Perspectives

A trio of international publishing sales executives reflect on the different attitudes toward book pricing across the world, wondering what the future holds. Around the world the picture changes from country to country with regard to book pricing, with some countries that might appear very free market – such as Japan and South Korea – opting for […]

Retailers urged to try digital pricing | Global Marketing Alliance

This intensified price competition is driving a gap between channels, as operational and financial constraints leave bricks and mortar stores unable to update prices at the shelf edge as quickly as online. The disparity has not gone unnoticed; 46% of UK consumers believe retailers offer different prices offline and online, while 68% have been deterred […]

Price Discrimination At The Altar of God – Revisited | Iterative Path

A while back I wrote about the single price model at a Hindu temple to bless cars, known among the community as “car puja”.  I then wrote about the value left on the table by not setting different prices, The last time I walked past one such event at a East Bay Hindu Temple, I […]

5 Nasty Pricing Pitfalls and How to Fix Them | Institute of Quantitative Pricing, LLC

Every business whether newly established or covered in Ivy has to come up with prices for their services or products. Most businesses won’t take the time to analyze the competition, segment their customers, and develop short and long term pricing strategies. Instead, most managers will grasp at whatever information is readily available (usually very little), […]

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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 […]

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Pricer’s Points Blogs

Pricer’s Points: How to successfully move to a Value based pricing model | Martin Wennerblom

Moving into value based pricing give a lot of added benefits for a company in terms of higher margins and better competitive position but the transition must be carefully planned and executed. In this article I am explaining some of the important steps that should be put in place to successfully move to a value […]

Pricer’s Points: I hit my head on an algorithm | Jesper Hansson – CPP

Online shopping is becoming a jungle for some and for other a nightmare. Dynamic pricing strategies are becoming more and more frequent and companies like Amazon is said to be working with 2,500,000 price changes a day. Dynamic pricing is basically a pricing strategy where you change your prices often based on different factors. Some […]

Pricer’s Points: Pricing Quality (Designs) – it’s all about Psychology | Lee-Bath Nelson

Pricing a product is tricky – lower isn’t always better (some examples below) and the price conveys so much more than just cost plus profit, especially when selling to consumers. This is where psychology steps in with beneficial tips for pricing. So, let’s say you have designed a beautiful vase that can be 3D printed, […]

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


Top Discussions

Discussion: The 5 biggest challenges in pricing in Asia

I was part of a discussion recently about where I see the biggest current challenges in pricing in Asia and it inspired me to share my views with you in this blog. When it comes to developing powerful pricing strategies and well-oiled pricing departments, Asia is still behind both North America and Europe. There is […]

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: Netflix CFO – We Still Have Pricing Power

Undeterred by soft domestic subscriber growth due in part to a $1 price hike enacted at the end of the second quarter, Netflix remains bullish on its ability to raise prices and lure domestic subscribers, CFO David Wells told an investor group. Netflix is also planning to launch service in six or more new countries […]

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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-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 […]

World Class Pricing

Summary: World Class Pricing is the Indispensable roadmap on how to take your pricing organization from its’ current state to world class. It is built upon the 5 Levels of World Class Pricing which has become the industry standard for tackling pricing improvement amongst pricing professionals. The approach to pricing improvement shared in this book […]



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.

Pricing Strategy




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.

“The moment you make a mistake in pricing, you’re eating into your reputation or your profits.”

     – Katharine Paine


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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