This Week in Pricing > 12/23/17

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.

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Strategic Pricing Solutions

Strategic Pricing Solutions, LLC (SPS) is a management consulting firm helping clients with pricing strategies, data analytics, and pricing processes. SPS was formed by Scott Francis in 2005 with a vision of enabling B2B clients to build sustainable strategic pricing capability to significantly improve their profitability. By providing flexibility in how we serve our customers, SPS consulting enables clients to build sustainable strategic pricing capability and continuous improvement in profitability through better pricing decisions.

Click a link below to learn more…

 


 

Top Headlines

Big Pharma Is Urged to Report on Links Between Pricing and Pay | Bloomberg

Big Pharma Is Urged to Report on Links Between Pricing and Pay | Bloomberg

Pharmaceutical companies should be required to regularly report whether there’s a link between drug-pricing strategies and executive-compensation plans, according to a shareholder group. The Interfaith Center on Corporate Responsibility, a coalition of institutional investors with more than $400 billion of assets, said in a statement Wednesday that it submitted proposals for inclusion at the 2018 annual […]

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Forwarders claim carriers are controlling capacity to force up air freight rates | The Loadstar

Forwarders claim carriers are controlling capacity to force up air freight rates | The Loadstar

Air freight forwarders have accused some airlines of exploiting the spot market by cancelling scheduled flights and not providing sufficient capacity. As rates have risen over past months, shippers have struggled to secure space, which they claim airlines have strictly controlled. “We observe carriers applying more and more dynamic pricing, especially on constrained routes,” Ingo-Alexander […]

 

No, the Internet is not about to be destroyed | WKYC 3

No, the Internet is not about to be destroyed | WKYC 3

American consumers experience vast and expanding choice at their grocery stores without federal mandates. There’s no reason to believe market forces wouldn’t deliver the same results online. Second, there’s throttling, the intentional limiting of available bandwidth. It slows Internet connections to help decrease congestion due to high-use times or sites or services that use large […]

 

Are $40 Toll Roads The Future? | NPR

Are $40 Toll Roads The Future? | NPR

How much would you pay to avoid traffic jams on your daily commute? $10? $20? How about $40? That’s how much a tollway in the Virginia suburbs of Washington, D.C., charged for a short time last week. Outraged commuters call it highway robbery. But transportation officials say the high-priced toll is less about money and […]

 

Wal-Mart shrinks gap with Amazon, makes pricing more competitive | Business Standard News

Wal-Mart shrinks gap with Amazon, makes pricing more competitive | Business Standard News

Wal-Mart Stores Inc is within striking distance of matching Amazon.com Inc’s online prices for the first time, a key milestone in its effort to regain the “low price leader” title. Wal-Mart has aggressively invested in making its prices more competitive against brick-and-mortar rivals since the start of the year. Now, the shrinking gap is also […]

 

T-Mobile to launch TV service in 2018, challenging cable and satellite giants with purchase of Layer3 TV | GeekWire

T-Mobile to launch TV service in 2018, challenging cable and satellite giants with purchase of Layer3 TV | GeekWire

T-Mobile says it will launch its own TV service in 2018, expanding its competitive focus beyond the U.S. wireless giants to target major cable and satellite providers with its latest “Uncarrier” initiative. The Bellevue, Wash.-based wireless company says it will acquire Layer3 TV Inc., a Denver, Colo.-based television technology company started by cable veterans, leveraging […]

 

29th Annual Spring Pricing Workshops & Conference | PPS

29th Annual Spring Pricing Workshops & Conference | PPS

Date: May 1-4, 2018 Location: Loews Chicago O’Hare Rosemont Hotel in Chicago, IL Hear from our President, Kevin Mitchell, give insight on the conferences we offer. 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 […]

 

 

More Headlines

San Francisco will expand its demand-based parking pricing city-wide | Quartz

San Francisco will expand its demand-based parking pricing city-wide | Quartz

Last week, the city announced a broadened effort to combat the harrowing traffic and search for parking by expanding demand-based parking pricing to the entire city. The change, scheduled to begin at the start of 2018, will include every meter and city-owned lot and garage, making San Francisco the first US city to implement such […]

 

Doctor calls Uber ‘mercenary’ after £149 quote for a 10-mile trip in the snow | iNews

Doctor calls Uber ‘mercenary’ after £149 quote for a 10-mile trip in the snow | iNews

Uber said the price had been an “automatic” response to over demand. Birmingham was hit with six inches of snow on Sunday, closing schools, stopping buses and halting bin collections on Monday. Dr Mullhi said: “Whilst I understand that taxi firms may charge some additional fees in adverse weather, I feel that the surcharge Uber […]

 

What’s cheaper — taxi or Uber in Brisbane? Discounts offered to lure customers | The Courier-Mail

What’s cheaper — taxi or Uber in Brisbane? Discounts offered to lure customers | The Courier-Mail

Black & White Cabs is offering 20 per cent off fixed-price weekend bookings, which includes New Year’s Eve, Gold Coast Cabs has a similar special but this weekend only while Yellow Cabs will offer a slight discount for prepaid phone bookings. Black & White’s chief operating officer John Lobwein admits cab companies have not sold […]

 

Talking Technology with Waste Management’s Chief Digital Officer | Waste 360

Talking Technology with Waste Management’s Chief Digital Officer | Waste 360

Sjoqvist joined the company in 2012 and was previously vice president of pricing and then vice president of revenue management. In those roles, he had responsibility for pricing, disciplined growth planning, marketing and advanced revenue analytics. Waste360 recently sat down with Sjoqvist to discuss his new role and how Waste Management will use technology in […]

 

Casey’s Reports Second Quarter Results; Opens 2000th Store | Convenience Store Decisions

Casey’s Reports Second Quarter Results; Opens 2000th Store | Convenience Store Decisions

“The company surpassed the 2,000 store milestone and now has 200 new-store sites either under agreement or under construction at the end of the quarter, including its first store in the state of Michigan,” said Terry Handley, president and CEO, in a prepared statement. “In addition, we recently began the consultation phase of our digital […]

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Use stabilisation levy to build strategic stocks, not as ‘subsidy’ | Graphic Online

Use stabilisation levy to build strategic stocks, not as ‘subsidy’ | Graphic Online

He told the Graphic Business in an interview that the country would be better off if the government continued to use the PSRL to build up strategic stocks to stabilise prices. He was speaking to the paper on the pros and cons of a recent directive by the Ministry of Energy (MoE), asking the NPA […]

 

TPG has jumped on new NBN pricing and released its typical evening speeds | finder.com.au

TPG has jumped on new NBN pricing and released its typical evening speeds | finder.com.au

When NBN Co announced its new NBN pricing strategy this morning, which is designed to get more consumers to switch to 50/20Mbps plans, it did so by dropping the access price that providers pay for those plans, with the expectation that ISPs would switch plan pricing around for consumers. TPG is the first cab off […]

 

Four Ways To Avoid Vendor Lock-In When Moving To The Public Cloud | Forbes

Four Ways To Avoid Vendor Lock-In When Moving To The Public Cloud | Forbes

Today, the cloud market is dominated by a few mega-providers: Amazon, Google and Microsoft. On the surface, they deliver a similar looking set of infrastructure, with the virtual machine being the basic computational unit. Under the hood, however, there are important differences among them. While moving an application from one virtualization format to another is […]

 

Pricing Strategy of HubSpot: The Inventor of ‘Inbound Marketing’ | Pratham Mantri

Pricing Strategy of HubSpot: The Inventor of ‘Inbound Marketing’ | Pratham Mantri

Pricing is the center of any business. It is everything you do from your copy writing and marketing to your product and support works to drive people to your pricing page and justify the number you’re charging. Pricing isn’t hard, it’s a process. Let us walk through the SaaS pricing pages of one of the […]

 

Avion and Acella Pharmaceuticals Provide Statement Related to Avondale Drug Pricing News | PR Newswire

Avion and Acella Pharmaceuticals Provide Statement Related to Avondale Drug Pricing News | PR Newswire

Avion and Acella were made aware of the recent 800 percent price increase for Avondale’s version of niacin, going from $32.46 to $295 per 100 pills.  Avion and Acella pharmaceuticals are led by CEO, Art Deas.  Mr. Deas has confirmed that both companies were unaware of the Avondale pricing activity and that neither company has […]

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Amazon faces probe by watchdog over delayed Christmas gifts as customers complain they’ve been ‘duped’ into paying premium | The Sun

Amazon faces probe by watchdog over delayed Christmas gifts as customers complain they’ve been ‘duped’ into paying premium | The Sun

AMAZON faces a probe by the advertising watchdog after customers complained they were failing to deliver Christmas presents on time. Shoppers said they were “duped” into signing up to the online giant’s Prime service to make sure they got their deliveries before the 25th. Amazon could face a probe by the Advertising Standards Authority after customers […]

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Investor group pushes big pharma to report links between pricing and executive compensation | Becker’s Hospital Review

Investor group pushes big pharma to report links between pricing and executive compensation | Becker’s Hospital Review

A group of institutional investors, with more than $400 billion of assets, is urging big pharmaceutical manufacturers to begin reporting links between drug pricing strategies and executive compensation, according to Bloomberg. The Interfaith Center on Corporate Responsibility, submitted shareholder proposals at the annual meetings of Abbvie, Amgen, Biogen, Bristol Myers Squibb and Eli Lilly Co. […]

 

U.S. Sets Final Tariffs for Canadian Softwood Lumber | WSJ

U.S. Sets Final Tariffs for Canadian Softwood Lumber | WSJ

WASHINGTON—The U.S. set big tariffs on imports of softwood lumber from Canada, increasing economic tensions between Washington and Ottawa at a time when North America’s trade architecture is in jeopardy. The U.S. Commerce Department announced its final tariffs Thursday, saying Canadian lumber mills have benefited from improper subsidies and dumped lumber at unfairly low prices […]

 

Amazon’s Moves on Smart Speakers Spurs Price War | Investopedia

Amazon’s Moves on Smart Speakers Spurs Price War | Investopedia

Amazon.com Inc.’s (AMZN) has taken a low-cost strategy in the smart speaker market, slashing the prices on its Echo voice-activated speaker lineup and prompting its rivals to follow suit. That has resulted in steep declines in prices for the consumer electronics device, something that typically takes a decade to happen. Citing Consumer Intelligence Research Partners, The Wall […]

 

Starbucks cracks Chinese culture to succeed | WARC

Starbucks cracks Chinese culture to succeed | WARC

“In order to climb up the hierarchy, however, you needed to internalise the rules of that hierarchy. You need to advance by mastering convention, not bucking against tradition… this is the core unifying tension in China that brands need to resolve, in order to charge a price premium,” he said at the recent Mumbrella360 Asia […]

 

Tokyo Steel to raise product prices for a second month in Jan | KITCO

Tokyo Steel to raise product prices for a second month in Jan | KITCO

Tokyo Steel Manufacturing Co Ltd , Japan’s top electric-arc furnace steelmaker, said on Monday it would raise its product prices for a second straight month in January due to tight market conditions at home and abroad and expectations for higher market prices. Prices for steel bars, including rebar, will increase by 3,000 yen ($26.63), or […]

 

Batman’s new villains: How T-Mobile CEO John Legere plans to foil the cable and satellite TV giants | GeekWire

Batman’s new villains: How T-Mobile CEO John Legere plans to foil the cable and satellite TV giants | GeekWire

Opportunity for disruption: It’s no coincidence that Legere is taking aim at cable’s practice of bundling TV, phone, Internet and other services for the best prices. One of T-Mobile’s first signature “Uncarrier” moves was essentially a pricing strategy, decoupling the cost of the phone from the monthly price of the wireless service. There are opportunities galore […]

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Common strategies to overcome rivalry in markets | NewsDay

Common strategies to overcome rivalry in markets | NewsDay

Price wars in a competitive environment arise from factors such as the number of firms in an industry; the rate of market growth that lies between fast and slow growing sectors; the costs associated with equipment that relates to fixed costs and storage costs and switching costs that are associated with the level of product […]

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Swiss Post rejects COMCO allegations regarding large-scale customer discounts | Post&Parcel

Swiss Post rejects COMCO allegations regarding large-scale customer discounts | Post&Parcel

The Swiss Post statement summarized the company’s position: “On 8 April 2011, COMCO initiated proceedings against Swiss Post’s pricing systems for addressed domestic letters for business customers. “More than six years later, COMCO has fined Swiss Post for allegedly granting discounts that are unlawful under antitrust law to large-scale customers for domestic addressed letters between 2009 […]

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CarMax Earnings Preview: 3 Trends to Watch | Nasdaq.com

CarMax Earnings Preview: 3 Trends to Watch | Nasdaq.com

Customer traffic CarMax’s growth has been a mixed bag lately. Comparable-store sales gains slowed to a 5% pace in the second quarter from 8% in the prior quarter . On the bright side, CarMax converted more of its shoppers, both online and in its stores, into buyers. The retailer also enjoyed a 17% traffic boost […]

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Congestion pricing? Sure. But steer clear of those $40 Lexus lanes | Chicago Tribune

Congestion pricing? Sure. But steer clear of those $40 Lexus lanes | Chicago Tribune

IDOT says it hasn’t made up its mind whether to charge a flat toll rate for cars using the I-55 express lanes, or go the Virginia way, known as “dynamic pricing.” Dynamic pricing is a variation on congestion pricing, under which drivers pay a premium to travel in lanes that move faster. Those tolls can […]

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Editorial: Don’t price state parks to penalize the poor | The Bulletin

Editorial: Don’t price state parks to penalize the poor | The Bulletin

Parks Director Lisa Sumption told the Legislature that the department is “very mindful that our job is to provide equitable, affordable access to Oregonians.” This new fee strategy can have the opposite effect. The department said it would be able to offer steep discounts at lesser-used parks. But that means the department is effectively setting […]

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Amazon And Walmart Battle For Retail’s Future | Forbes

Amazon And Walmart Battle For Retail’s Future | Forbes

Amazon will soon cap off another banner year: The Internet giant is expected to win roughly half of all online shopping sales this holiday season. But Amazon’s greatest rival wants to beat the company at its own game: Walmart recently announced that it grew its online sales 50% YOY in Q3 2017. As the de […]

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Car-sharing operators face roadblock from ride-hailing firms Grab and Uber | TODAYonline

Car-sharing operators face roadblock from ride-hailing firms Grab and Uber | TODAYonline

STAYING AHEAD OF THE COMPETITION Car Club has taken various steps to stay ahead of the curve, including rolling out a loyalty rewards programme allowing members to earn NTUC LinkPoints when they use the firm’s cars. The company has also marketed its membership perks “in a bigger way” in the last year or two, said […]

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Uber users say they’ve been charged up to ’12 times’ more | Daily Mail Online

Uber users say they’ve been charged up to ’12 times’ more | Daily Mail Online

It’s traditionally the biggest party weekend of the year, as Christmas revellers all over the country hit the town. But some have been waking up with more than just a hangover, as Uber users have complained about having to pay significantly more than usual in order to get home. A host of social media users […]

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The Simple Reason Why I Won’t Buy Fitbit, Inc. Stock | The Motley Fool

The Simple Reason Why I Won’t Buy Fitbit, Inc. Stock | The Motley Fool

Hitting low Let’s start with how inexpensive fitness trackers are hurting Fitbit. In mid-2017, Strategy Analytics published a report that showed that China-based tech company Xiaomi had leap-frogged Fitbit’s wearable sales to take the No. 1 wearable vendor spot by shipments. At the time, Xiaomi held 17% of the worldwide wearable tech market, and Fitbit […]

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Are GoPro’s Price Cuts a Reason to Panic or a Planned Strategy? | The Motley Fool

Are GoPro’s Price Cuts a Reason to Panic or a Planned Strategy? | The Motley Fool

GoPro Inc (NASDAQ:GPRO) recently cut prices on its lineup of cameras just before the end of an all-important holiday season. The move isn’t entirely surprising given the discounts we’ve become accustomed to in recent years, but the market doesn’t seem to know quite what to think of the price cuts. Is GoPro trying to top […]

 

Liverpool to consider fans’ views over ticket pricing | BelfastTelegraph

Liverpool to consider fans’ views over ticket pricing | BelfastTelegraph

Liverpool will consult with supporters before formulating a long-term ticket pricing strategy ahead of the 2018-19 season. The club held a fans forum earlier this month where a range of issues were discussed relating to ticket prices. Liverpool managing director and chief commercial officer Billy Hogan stressed input from the forum would be considered before […]

 

Alcohol prices: National Alcohol Strategy suggests floor pricing for standard drinks | news.com.au

Alcohol prices: National Alcohol Strategy suggests floor pricing for standard drinks | news.com.au

WINE lovers and young drinkers would be hardest hit by a government proposal to increase booze prices. A draft strategy released by federal government ministers, which aims to significantly reduce Australians’ alcohol consumption, has recommended a “minimum floor price” for alcohol. The pricing plan would prevent the cost of all alcoholic drinks from dropping below […]

 

NZX to change pricing next year in effort to stoke liquidity | The National Business Review

NZX to change pricing next year in effort to stoke liquidity | The National Business Review

NZX will change the price structure of the local stock market in the second half of next year as part of a new strategy aimed at reinvigorating the domestic capital market. The Wellington-based company will bring its trading and clearing pricing model into line with global practice, which will give participants greater price transparency when […]

 

MarginFuel raises cash in bid to bring dynamic pricing to rental vehicles | Stuff.co.nz

MarginFuel raises cash in bid to bring dynamic pricing to rental vehicles | Stuff.co.nz

Andrew Pascoe, who previously worked for Air New Zealand and has also worked on dynamic pricing models for companies including Interislander owner Kiwirail, now heads MarginFuel, a small Wellington operation that offers a cloud-based product mainly targeting rental vehicles. “Rental car operators have a huge amount of price points live in the market at any one […]

 

Railways may offer discounts like airlines, hotels: All you need to know| ET Now

Railways may offer discounts like airlines, hotels: All you need to know| ET Now

2) “We have been deliberating on a dynamic pricing policy. So far we have been discussing that the price should not go up but I want to go a step ahead. I am exploring a possibility where, suppose trains are not going full like in airlines, we get discounted fares,” he said. 3) Mr Goyal […]

 

Lawmakers want state to take up ‘net neutrality’ fight | Minnesota Public Radio News

Lawmakers want state to take up ‘net neutrality’ fight | Minnesota Public Radio News

A pair of Democratic legislators proposed Tuesday that Minnesota toughen state standards for internet service providers just as the federal government is giving them more flexibility in pricing and content control. State Sen. Ron Latz of St. Louis Park and Rep. Paul Thissen of Minneapolis said lawmakers should step up in response to a Federal […]

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MTA fare hike or congestion pricing are only options for funding agency, Cuomo says | am New York

MTA fare hike or congestion pricing are only options for funding agency, Cuomo says | am New York

Gov. Andrew Cuomo on Tuesday railed against members of the New York State legislature, issuing them a veritable ultimatum: figure out a way to fund the MTA, or prepare for a fare hike. Cuomo, who has been advocating for congestion pricing to fund the agency and is expected to provide more details of the plan […]

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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).

 

Book: 8 Keys to Price Optimization

Book: 8 Keys to Price Optimization

Summary: Price optimization enables companies to move beyond cost-plus pricing and determine the range of prices that could be charged for a variety of customers and products. Price optimization can increase current operating income by 1 to 4% of sales, which in many cases will translate into a 20 to 50% increase in operating income. The most sophisticated […]


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

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“With the price of life these days, you’ve got to get everything for free you can.”

     – Carl Rogers

 


 

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