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This Week in Pricing > 12/28/14

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…

 

Headlines

Neuroscience Marketing – Is the Product Worth the Price? | HBS Working Knowledge

Are consumers more likely to buy if they see the price before the product, or vice versa? Uma Karmarkar and colleagues scan the brains of shoppers to find out. Think of the last time you went shopping. By the time you decided to buy a product, you knew both what you were buying and how […]

Dynamic pricing and fairness – Uber in Sydney | For What It’s Worth

The car-sharing service Uber uses dynamic pricing (also called surge pricing): prices rise in response to local excess demand (where the demand for rides at the current price exceeds the supply of cars), and fall in response to local excess supply (where there are more cars available at the current price than there is demand […]

What Economists Don’t Get About Uber’s Surge Pricing | HBR

The posture here is to blame the reaction on ignorance. Those who object should be educated, or should at least admit that they are unlikely to help anyone stuck in a danger zone out of the goodness of their hearts. In other words, their negative reaction to the notion of charging a higher price under […]

Uber Seeks to Patent Pricing Surges That Critics Call Gouging | Bloomberg

When Uber Technologies Inc. jacked up prices in Sydney this week to meet the demand of people fleeing a hostage crisis, critics accused the ride-sharing service of price gouging. The company, though, makes no apologies for what it calls “surge pricing” — and in fact is seeking to patent it. Uber applied for a U.S. […]

Dynamic Pricing Fuels the Automated Price War | AllAnalytics

Tis the season for price wars, but now the wars are far more automated than anyone would have imagined. For decades, pricing was viewed as a financial science, with elasticity, demand, profit margins, environmental factors, and branding all factoring into the actual price of a company’s product or service. Today the pricing landscape in the […]

Pay TV Disruption Doesn’t End With Unbundling | TechCrunch

In a simplistic generalization, unbundling would remove the subsidization of pay TV, banishing the requirement for every pay TV subscriber to bear the cost of content that only a portion of the subscriber base actually wants and consumes, e.g., sports content, typically the most expensive channels. Ostensibly, the logic makes sense. But when you follow […]

The Psychology Behind A Mysteriously Fluctuating Holiday Sweater Sale | Fast Company

WHEN J.CREW EMAILED THE AUTHOR WITH 50% OFF ON ONE DAY, 80% OFF ON ANOTHER, HE WONDERED: WAS THIS DYNAMIC PRICING OR A FORCE BEYOND DATA? Check your inbox right now, and you’ll likely have an email about a big sale waiting for you. Chances are, you received one the day before, from the same […]

France fines 13 consumer goods firms €951m for price-fixing | The Guardian

Unilever, Procter & Gamble and Gillette are among those facing penalties for colluding on price rises between 2003 and 2006 Some of the world’s biggest consumer products companies, including Unilever, Reckitt Benckiser, Procter & Gamble and Gillette, have been fined a combined €951m (£748m) by the French competition watchdog for price fixing in supermarkets. The […]

Price Optimization Allegations Challenged, NAIC Investigating Practice | Insurance Journal

Reaction to industry-wide price optimization allegations from a consumer group known to call out insurers has been somewhat critical yet guarded – however it appears regulators may already be starting to look into the practice. Consumer Federation of America this week said it has “clear evidence” that insurance giant Allstate is basing auto insurance premiums on […]

Lowe’s Targets Key Consumer Segments with Personalized Video | G/O Digital

The videos were distributed by local store zip code and delivered unique item and price content based on which consumer segment was being targeted in which market. Using dynamic video, Lowe’s was able to transform existing ad content into highly relevant, personalized digital marketing assets targeted to serve the unique messaging needs of 2 distinct audiences and help drive in-store sales in key markets. KEY FEATURES & BENEFITS […]

Year End Discounting – Can You Kick the Habit? | Strategic Pricing Solutions

Year-end discounts are like heroin – they are highly addictive, and they have many negative side effects.  I am specifically referring to the practice of abandoning your pricing strategy and increasing discounts in December in order to boost sales and reach certain targets.  Once a company starts those discounts, the selling company and their customers […]

Constantly Changing Prices Stump Online Bargain Hunters | DailyFinance

NEW YORK — Online shopping has become as volatile as stock market trading. Wild, minute-by-minute price swings on everything from clothes to TVs have made it difficult for holiday shoppers to “buy low.” A growing number of retailers are using software that changes online prices based on demand, competition, inventory and other factors. The main […]

Washington D.C. Announces ‘parkDC’—Value Pricing—for Downtown | Planetizen

“Under the pilot program, called parkDC, the cost of street parking in that zone will vary much more than it has, and the effects of the changes will be monitored so that more adjustments can be made. The goal of the prices changes is to reach a sweet spot where there’s always one parking space […]

Boost Your Pricing Power with Emotion | OpenView Labs

Value management and pricing strategy consultant Steven Forth explores the surprisingly powerful role emotion plays in setting the right price for your software. … The Role of Emotion in B2B Pricing Think about your own buying behaviors. You can start with something simple — laundry soap for example. In reality, there is not much difference between one […]

Pricing “unreasonably high” – Holiday pricing for FBA sellers | FBA (Fulfillment by Amazon) Mastery

As we approach some of the biggest online shopping days of the year, a few notes on repricing your Fulfillment by Amazon offers for the holidays. Repricing Fulfillment by Amazon (FBA) offers for the holidays is a little different. And in this article, I’m going to explain how, what you should be doing, and what […]

Click here for more recent articles.

 

Events

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 […]

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 […]

Click here for more recent events.

 

Resources

Pricer’s Points Blogs

Pricer’s Points: Your sales force is the most important part of your pricing strategy | Jesper Hansson – CPP

The world is full of amazing people with amazing abilities to develop incredible products and still you will often see that some of these products are not really successful when they are launched in the market. One example I saw about 20 years ago, was a building services product, which was developed to save energy. […]

Pricer’s Points: Rules When Online Shopping Fails | Rocky D’Adamo

For the last 8 years my Christmas shopping has been a breeze. I always received great deals and was pretty much finished in 1 day. This is shocking and envious for some. My parents always had a bad habit of waiting until the week before Christmas to out to Woodfield Mall and fight a crowd […]

Pricer’s Points: Boost your Profits with a Submarine Warrior’s Lesson | David Mok

The U.S. Navy’s nuclear submarine is one of the most modern, efficient and effective weapons in the military arsenal. Submarines are the cornerstone of the Navy’s conflict avoidance and resolution. Attack submarines or hunter-killers, which I served on, are specifically designed for the purpose of attacking and sinking other submarines, surface combatants and merchant vessels. Furthermore, […]

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 […]

Click here for more top pricing discussions.

 

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 Price of Everything – Solving the Mystery of Why We Pay What We Do

Summary: Many of the prices we pay seem to make little sense. We shell out $2.29 for a coffee at Starbucks when a nearly identical brew can be had at the corner deli for less than a dollar. We may be less willing to give blood for $25 than to donate it for free. Americans […]

The Pricing & Profit Playbook: A Practical & Strategic Guide to Generating Superior Profits Based on DuPont’s Success

Summary: Pricing is one of the largest levers companies have for improving profits, yet B2B companies so often under-invest in pricing. This book provides simplified, practical ways to improve profits. It shows leaders how to transform and sustain high-profit pricing one play at a time. The playbook’s holistic approach covers the key management elements (culture, […]

The Psychology of Price – How to use price to increase demand, profit & customer satisfaction

Summary: Explaining the science behind pricing, The Psychology of Price has practical, jargon-free advice on pricing strategies and techniques that can be immediately applied. Includes a toolkit to work out the price point for any product plus expert tips to help businesses understand consumer behavior and achieve higher sales. Authors: Leigh Caldwell Publisher: Crimson Publishing […]

 

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.

“You can determine the strength of a business over time by the amount of agony they go through in raising prices.”

     – Warren Buffett

 

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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