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This Week in Pricing > 11/9/14

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-ValueInnoruptionAdvisors

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…

 

Top Headlines

How Do You Manage A Salesperson Who Always Asks For Lower Pricing? | Sales Architects

Scott has been a member of your technology services sales team for about a year. When it comes to prospecting, there is no one better on your team than Scott. He gets prospects on the phone and locks-in meetings with the right people. However, every time he gets close to the finish line with an […]

Dealing with a Customer Who Demands a Discount | The Sales Hunter

Customers who buy only on price will leave you on price. They never will come to accept the value proposition. The biggest mistake you can make when you hear the demand is to panic.    Relax!  In fact, initially ignore the demand and try and close the sale anyway.  Surprisingly, there will be those who make […]

Pricing determines your business | A Smart Bear

It’s often said that you shouldn’t talk about price during customer development interviews. The usual justification is that your goal is to uncover the details of your potential customers’ lives and pain-points, whereas a mention of price turns attention away from that topic, diverting the discussion to budgets and comparative value. But I disagree. Price […]

Overstock declares book price war with Amazon | RetailWire Discussion

Overstock’s management has not made a decision on whether it will extend the deal to a later point in the holiday selling season. “We will analyze the results and cost benefits of this price war against Amazon and decide how long to continue the promotion,” said Patrick Byrne, CEO of Overstock, in a statement. Overstock […]

The Key to Setting and Changing Your Prices | Entrepreneur

Lots of business owners stress out about pricing. For good reason. Price your product too high and you can lose customers to your competitors. Too low and risk losing money. No matter if you’re setting your prices for the first time or changing your prices, sales expert and entrepreneur Grant Cardone says you need to […]

Amazon’s Grand Design in Devices | NYTimes.com

Amazon now makes four different kinds of devices. There are dedicated e-readers, multipurpose tablets and, starting this year, a TV streaming device and a smartphone, the Fire Phone. Just this week, Amazon introduced another streaming machine, the Fire TV Stick, a $39 gadget that is the size of a USB stick and promises to turn […]

Oil ends at 3-year low after Saudis cut selling prices for U.S. | MarketWatch

Saudi Arabia’s move on Monday was viewed as a way to keep itself competitive amid tanking oil prices and a threat to U.S. domestic producers. It was also taken as a sign OPEC would not move to cut production when it meets in three weeks in Vienna. A output cut would prevent oil prices to […]

How to Respond to “Can You Just Give Me a Price?” | The Sales Hunter

How many times have you received a phone call or an email from a prospect who says something like, “All I’m looking for is a price. How much?” Admit it! We’ve all had calls like this and wow are they tempting. We think the quick quote will result in the quick sale.  Quit kidding yourself! […]

Dynamic Pricing – Bad for Consumers? | MIT Sloan Executive Education

Dynamic pricing strategies can benefit consumers Of course, dynamic pricing can also benefit the consumer. Hotels loathe empty rooms. The same pricing model that raises the rates on some days also allows hotels to offer last-minute deals to fill inventory. And in those cases, the consumer wins. There is another aspect of dynamic pricing, however, […]

Advice for Artists – Be Flexible When Pricing Your Art | ArtBusiness.com

Q: My philosophy about pricing is derived from the basic idea that you get what you pay for. My prices are reasonable but not so low as to lack credibility. I will not sell or even create art below a certain price because if I did that, I would be compromising my integrity as an […]

How To Avoid A Freemium Flop | KillerStartups.com

The freemium business model has become the model of choice for a wide variety of startups. Like any good courtship, it gives two parties a chance to know one another better before signing on as lasting partners. And, as in any relationship, there are risks for things to go wrong. Here’s how to make the sparks fly […]

How Apple and Beats Music Could Kill the Freemium Model | Inc.com

Beats co-founder Jimmy Iovine has never been a fan of free streaming music. Now, as the longtime record exec helps Apple prepare for the relaunch of Beats Music next year, he hopes the industry will do away with the freemium model that so many competing services have come to rely on. According to a New York […]

Why It’s Time For A Streaming Pricing Reset | Music Industry Blog

There is a growing realization that that streaming revenue is not growing quickly enough to offset the impact of declining download sales. It is an eerily familiar echo of the recurring narrative of the noughties that download sales were not growing quickly enough to offset the impact of declining CD sales. The situation is very […]

Free Is Never a Value Statement | Twenty One Twelve Group

The first rule of product value is always assign a value. Even when something is free, it should have a price — even if it’s just representative — to demonstrate to customers that it has a real value. Microsoft has done a huge disservice to itself, competitors and partners by giving unlimited free storage through […]

Maryland Insurers Using ‘Price Optimization’ Ordered to File Corrective Action Plan | Insurance Journal

The Maryland Insurance Administration (MIA) issued a bulletin alerting insurers that the use of “price optimization” in Maryland is in violation of §27-212(e)(1) of the state’s Insurance Article. MIA said it is requiring insurers that currently utilize price optimization to rate insurance policies in Maryland to file a corrective action plan with MIA by no […]

Tesco’s Downfall Is a Warning to Data-Driven Retailers | Harvard Business Review

What the heck happened to Tesco? Many analysts and unhappy investors point to Tesco’s ill-fated Fresh & Easy convenience store foray in America just as the global financial crisis kicked in. The failed expansion effort ultimately led to write-downs topping $3 billion. At the same time, dramatically increased price competition by discounters such as Aldi severely undercut […]

Pricing The Brand Ecosystem | Branding Strategy Insider

Key Learnings: Choice is not the same as access. In Ryan’s graph, Apple has used product, price, capacity and configuration to turn 3 lines into 25 different ways to buy. The choices shown here are simple: iPhone; iPod; and/or iPad. The technical features offer scope to pay more or less for each product without cannibalizing […]

How to price risk to win and profit | McKinsey on Marketing & Sales

Any project has an associated risk—delays, cost overruns, unexpected government interventions, market dynamics, etc. For large projects involving significant operational commitment, these risks can turn into considerable and unexpected financial costs. We’ve seen overruns hit tens and hundreds of millions of euros/dollars or more. Despite these significant financial penalties, companies rarely give risk its due […]

David V. Goliath: 2014 Pricing Slingshots For Small Retailers | Retail TouchPoints

Price — It Truly Matters To Your Customers As discussed in my recent Retail TouchPoints blog post, Virtual Showrooming has online shoppers bouncing in and out of e-Commerce stores at a terrifying rate. Virtual showrooming exists when a shopper looks at a product on one site, then visits a number of other sites to compare […]

Amazon exec blames lackluster Fire Phone sales on pricing, says project will continue | Apple Insider

An Amazon executive on Thursday said the Fire Phone’s failure was a pricing issue and that the company plans to move forward with next-generation products, even after eating a $170 million charge largely associated with the device’s poor market performance and supplier costs. In an interview with Fortune, Amazon SVP of Devices David Limp […]

 

Events & Resources

 

Events

Webcast: Learn How Crawford Supply Uses Strategic Pricing Tools to Identify and Capture Available Margin Premiums | SPA

Tuesday, November 18, 2014 2:00 PM Eastern Register to attend our webcast that starts at 2:00 PM EST where Jeff Heksh, Sales Director of Crawford Supply will share their journey to pricing excellence and how they are leveraging science-based strategic pricing tools to identify and capture available margin premiums. To implement a solution that enhanced […]

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

Using decoy pricing to maximise profits. | Matt Burnett

Use decoy pricing to encourage your customers to trade up. The main objective of any pricing manager is maximising revenue and profitability. It’s not easy and is in fact an endless task. One way we can try to achieve this is through trade up. If we can encourage our customers to buy our most highly […]

Not identifying the obvious | Ben Blaney

I have gout. It’s familial gout, so it’s not caused by an extravagance of port and stilton (though I am partial to both). When I go to the doctor for a prescription, it’s usually a ludicrous charade, where I say “I have gout, my dad has gout, my brothers have gout, my grandfather had gout, […]

When pricing is annoying | Jesper Hansson – CPP

It is funny how, when you work as a pricing practitioner, you seem to catch almost all details of pricing. When you get an offer, you study the pricing very carefully and you take your time to try to understand what the thought process behind it has been. On a weekly basis, I see loads […]

 

Top Discussions

Discussion: Pricing discipline in a complex decentralized organization is a headache

Pricing Strategy & Optimization LinkedIn Group Discussion Local managers may disregard central pricing recommendations. Moreover they may give a lot of latitude to their salesforce. The end result is chaos and far from optimal. All comments welcome! inspire me… Top Comments Wendy Wise High Tech Marketing and Sales Strategist I hear you. Have been there […]

Discussion: Uber CEO says new feature will tell customers when surge pricing ends

The Verge Article Surge pricing, which raises fares steeply during periods of high demand, has been in place since the service launched but gained renewed attention in late 2013, when prices rose to $35 a mile. Regardless of whether the move was economically sound, it wasn’t popular, and Uber was accused of price gouging. Not long […]

Discussion: Bed, Bath & Beyond Trumps Amazon! The Revenge of Old School Retail

Yahoo! Finance Article What’s exciting about Bed, Bath & Beyond is less about the company itself and more about what it says about the retail industry as a whole. They have taken the price wars a step further by compressing margins enough to beat Amazon without gimmicks. The company is seeing margins shrink as it […]

 

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.

Six Sigma Pricing -Improving Pricing Operations to Increase Profits

Summary: Many companies have developed solid sales strategies– but without equally good pricing operations, those strategies alone will not add a dime to the bottom line. The goal of pricing operations is to consistently control price deviations in transactions and contracts over time and across customer segments. This goal of ensuring the prices are not […]

Smart Pricing – How Google, Priceline, and Leading Businesses Use Pricing Innovation for Profitability

Summary: In Smart Pricing: How Google, Priceline and Leading Businesses Use Pricing Innovation for Profitability, Wharton professors and renowned pricing experts Jagmohan Raju and Z. John Zhang draw on examples from high tech to low tech, from consumer markets to business markets, and from U.S. to abroad, to tell the stories of how innovative pricing […]

Smarter Pricing – How to capture more value in your market

Summary: The most neglected element of the marketing mix can have an unrivalled impact on the bottom line. Smarter Pricing helps managers make more intelligent pricing decisions, implement pricing strategies and structures more effectively in the market and capture more value for their business. At no time has effective pricing been more significant. Buyers are getting stronger, […]

 

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

Price Wars

Dilbert on Price Wars

 

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.

“Perhaps the reason price is all your customers care about is because you haven’t given them anything else to care about”

     – Seth Godin

“Nowadays people know the price of everything and the value of nothing.”

     – Oscar Wilde

 

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.

The PricingBrew Journal

Whether you’re in sales, marketing, product management or a pricing professional, it’s important to stay up-to-date on the latest practices and research in B2B pricing—and get fresh perspectives and ideas that can help make your business (and career) more profitable.

The PricingBrew Journal is the only publication of its kind, providing a regular dose of real-world experience and insight from the PricingBrew research team and a global network of seasoned B2B pricing professionals and consultants. Every two weeks, subscribers get access to in-depth articles, training, research, best practices, case studies, expert interviews and educational webinars.

use coupon code “PricingNews” to get one month free on any subscription package >

 

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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