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This Week in Pricing > 1/4/15

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.

EditionSponsor-Wiser

This Edition is Sponsored by:

Wiser

Wiser provides a complete suite of solutions to give retailers, brands, and manufacturers the edge to stay both competitive and most importantly, profitable. Wiser’s flagship product is WisePricer, a full-featured dynamic pricing and merchandising engine that monitors, analyzes and reprices retail products in real-time. WisePricer enables retailers to boost profit margins and revenue, price with confidence, and improve merchandising through powering the development of a sound pricing strategy. Wiser also offers a MAP monitoring solution, WiseMapper, for brands and manufacturers to monitor and protect their pricing across the thousands of retailers selling their products.

Click a link below to learn more…

 

Headlines

The Demise of Fixed Pricing Has Been Greatly Exaggerated | Inc.com

You’ve heard this before: Fixed pricing is disappearing. Dynamic pricing–that’s a fancy way of saying pricing that adjusts depending on customer data and real-time assessments of supply and demand–is taking over. Not a week goes by, it seems, without hearing about how one organization or another is tinkering with traditional standstill pricing. Three recent examples: The city […]

The Downside of Discounts | HBR

It’s a vicious circle familiar to most companies engaged in B2B sales: A customer threatens to move to a competitor unless it gets a discount. So the seller cuts the price, hoping to hold firm the next time—but the precedent makes that even harder to do. To better understand the dynamics of pricing exceptions, Vantage […]

The Top 10 Pricing Mistakes Companies Are Making | TechCrunch

Price strategy is emerging as a critical path for companies to increase their competitive advantage and bottom line. Many companies have spent years achieving gains through cost cutting, outsourcing, process re-engineering and adoption of innovative technologies. However, the incremental benefits from these important activities are diminishing, and companies need to look at other areas to improve […]

Why Discounting Your Price is a Stupid Strategy | The Sales Hunter

The argument is about as old as the oldest profession. You know the argument I’m talking about.  It’s the one where the salesperson argues they could close more sales if only they could discount the price. In fact, I contend it’s more than an argument – it’s a disease that inflicts a high number of […]

Uber apologizes for surge pricing during Sydney terror attack | SiliconANGLE

“Our priority was to help people out of the CBD safely in the midst of a fast-moving event. The decisions we made were based only on helping to achieve this but we communicated this poorly, leading to a lot of misunderstanding about our motivations.” Uber explained that “surge pricing is algorithmic and kicks in automatically when […]

Are You Training Your Customers to Buy Only on Sale? | Inc.com

Like you, I buy a lot of office supplies. And I am betting that you–like me–haven’t paid full price for them in years. One of the world’s worst kept secrets is you can always find a coupon–that can be used in the store or for orders via the web–for Staples, Office Max, and Office Depot. […]

Pricing Points, Perceived Value And How To Make More Money Per Sale | Entrepreneurs-journey.com

How Did I Choose Test Prices? I’d like to say I had some form of scientific method for coming up with my very first pricing scheme, but I didn’t. All I did was use some intuition and my own perception of the going rate of pay for contract editing work to come up with price. […]

How does Uber’s surge pricing work – and how ethical is it? | Phys.org

Popular cab-hailing service Uber seems as accident-prone as ever, attracting criticism for quadrupling its rate to a minimum of $100 during the Sydney siege hostage situation. Having been criticised in several countries for its unregulated operation and irresponsible business practices, now people are questioning the firm’s ethics too. This rate hike is the norm under […]

Rents rise at hottest pace in six years | MarketWatch

WASHINGTON (MarketWatch) — Landlords have ramped up rents by the fastest pace in six years, with national vacancy rates the lowest in two decades, according to government data. Annual rent inflation hit 3.5% in November — the hottest growth since November 2008 — up from 3.3% in October, the Bureau of Labor Statistics reported Wednesday. […]

Cadillac ELR Pricing Strategy An Automotive Blunder Of 2014 | GM Authority

Automotive News recently ran a feature on the worst industry blunders of 2014, and put Cadillac’s $75,995 pricetag for the plug-in ELR at the top of their list. The luxury automaker revealed the MSRP of the ELR in October of last year, raising questions about General Motors’ pricing strategy for the car. As AN points […]

Price gauging: Amazon heightens its appeal with new pricing strategy | Keycode

Ask any customer what they think of Amazon as it relates to describing their buying experience, and most will argue that the online entity is a bevy of breathtaking products and pricing that is highly competitive, particularly when you consider the diversity of the items being offered. Furthermore, Amazon doesn’t just compete with the brick […]

Pricing Guide For The New Year | Fstoppers

It is the time of the year when we look back at the past 12 months and decide what worked and what didn’t work in our businesses. This is the most common time of the year to re-vamp pricing for the upcoming season.There are many things to consider when it comes to pricing products and services. […]

Government to ‘Name and Shame’ Businesses Over Higher Prices | TheLedger.com

Canada | The Canadian government wants to “name and shame” businesses and manufacturers who routinely charge higher prices for goods sold in Canada. It’s part of the Price Transparency Act but it is not intended to set or regulate prices, said Industry Minister James Moore. The act is the result of a Senate investigation into […]

Clearing the roadblocks to better B2B pricing – Bain Brief | Bain & Company

When executives in business-to-business (B2B) markets think about pricing their products, they often raise the white flag before even stepping onto the battlefield. Over the years, they’ve accumulated beliefs that limit their pricing effectiveness. Five beliefs, in particular, have become ingrained in many companies to the point that they seem immovable: Our products are commoditized, […]

8 Psychological Triggers to Optimize Your Pricing Page | Kiss Metrics

Pricing pages have a huge impact on online sales. Designing the right pricing page is key to increasing checkouts and revenue, but there’s a lot more to a pricing page than its design. Since emotions and psychological triggers influence purchasing behavior, and since consumers depend on products and services to fulfill emotional needs in their […]

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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 Strategy & Tactics of Pricing – A Guide to Growing More Profitably (Fifth Edition)

Summary: A comprehensive and practical, step-by-step guide to pricing analysis and strategy development. The Strategy and Tactics of Pricing shows readers how to manage markets strategically–rather than simply calculate pricing based on product and profit–in order to improve their competitiveness and the profitability of their offers. The fifth edition contains a new chapter on price […]

The Value Profit Chain – Treat Employees Like Customers and Customers Like Employees

Summary: James Heskett, Earl Sasser, and Leonard Schlesinger reveal powerful new evidence that paying close attention to the employee-customer relationship will enable any organization to be a low-cost provider and achieve superior results — proving that you can have it all, a goal thought inadvisable just a few short years ago. At the heart of […]

Value Above Cost – Driving Superior Financial Performance with CVA, The Most Important Metric You’ve Never Used

Summary: This book systematically explains how to maximize shareholder value. Columbia University’s Don Sexton fully identifies the real drivers of shareholder value, unifying key concepts from marketing, branding, economics, management, finance, accounting, and statistics. Sexton introduces a powerful new metric: Customer Value Added (CVA), the difference between customer-perceived value and variable cost per unit. Next, […]

 

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 Transparency

 

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.

“There is scarcely anything in the world that some man cannot make a little worse, and sell a little more cheaply. The person who buys on price alone is this man’s lawful prey.”

     – John Ruskin

 

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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