This Week in Pricing > 1/6/18

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.

This Edition is brought to you by:value innoruption final 0612 rev

 

 

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

Evolution Of The Four Ps: Revisiting The Marketing Mix | Forbes

Evolution Of The Four Ps: Revisiting The Marketing Mix | Forbes

Price Simply put, price refers to how much a customer is willing to pay for a product or service. Pricing strategies are becoming more dynamic to keep up with highly educated consumers. For instance, discounting strategies could be permanently anchored in the minds of consumers, who may refuse to pay retail prices later. The advancement […]

 

Cheap Amazon shipping leaves the Postal Service ‘dumber and poorer,’ Trump says | The Washington Post

Spokesmen for the Postal Service and Amazon didn’t immediately respond to requests for comment Friday. In July, Amazon told Fortune magazine that the Postal Regulatory Commission, which oversees the Postal Service, “has consistently found that Amazon’s contracts with the USPS are profitable.” Amazon defended its program in July after Josh Sandbulte, a hedge fund manager with a […]

Pricing Psychology: 7 Clever Tweaks To Make Customers Buy Again | Post Funnel

Pricing Psychology: 7 Clever Tweaks To Make Customers Buy Again | Post Funnel

Your price points and structures may be impacting purchase decisions more than you might think. If you’re struggling to gain customers and, more importantly, keep them — read this! Of course: Your level of service, the quality of experience you offer and many other emotion-driven factors come into play… But pricing has massive psychological impact. […]

Keeping legal pot prices in Canada at optimum level will be tricky | Toronto Star

Keeping legal pot prices in Canada at optimum level will be tricky | Toronto Star

Ottawa wants prices to be low enough to starve the illegal market, but not so low that they lead to excess use. To achieve that, provinces will have to use a combination of tax and pricing strategy. Liberal MP Bill Blair, who is leading the federal government’s legalization effort, said the price of pot will […]

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DICK’S Sporting Goods now honors World Series merchandise… | Click2 Houston

DICK’S Sporting Goods now honors World Series merchandise… | Click2 Houston

HOUSTON – Online shoppers awoke the day after Christmas to find World Series Astros gear priced astronomically low on the DICK’S Sporting Goods website. Customers thought it was a sale, but it appears it was a glitch and now the athletic store is canceling those orders. “Very upset because if it was a mistake and it would have […]

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Pharma, under attack for drug prices, started an industry war | The Washington Post

Pharma, under attack for drug prices, started an industry war | The Washington Post

It’s not easy to get Americans mad at a behind-the-scenes industry they’ve barely even heard of, but pharmaceutical companies have spent most of this year trying. “Who decides what you pay for your medicines? Not who you might think,” a concerned woman’s voice says in a radio spot airing in the District last month. “More […]

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Spark Should Spark a Pricing Trend | Bloomberg Gadfly

Spark Should Spark a Pricing Trend | Bloomberg Gadfly

Spark Therapeutics Inc. announced lower-than-expected pricing and a performance-based discount program Wednesday for its recently approved gene therapy Luxturna, a one-time treatment that helps restore sight for patients with a rare genetic condition. It’s a risky move for the company; there are very few such patients, and the price of every treatment matters a great deal.But […]

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Pricing Tactics – #Infographic | Digital Information World

Pricing Tactics – #Infographic | Digital Information World

Most online retailers don’t pay enough attention to their pricing strategy, they don’t see it as a game changer for their business, and hence they opt for other tactics that take cost more time and money. For example, they may spend weeks trying to fix their SEO and website optimization to increase their conversion rates, […]

 

Village Cinemas Dynamic Pricing Trial slammed as ‘price gouging’ | news.com.au

Village Cinemas Dynamic Pricing Trial slammed as ‘price gouging’ | news.com.au

VICTORIAN moviegoers have slammed Village Cinemas for upping their prices at peak periods over the school holidays. The Dynamic Pricing Trial kicked off at Christmas and will be in place until the end of the month at selected Victorian locations including Crown, Fountain Gate, Doncaster, Jam Factory, Southland and Werribee. The increased prices will affect […]

 

More Headlines

Aggressive smart speaker pricing could hurt HomePod sales | Cult of Mac

Aggressive smart speaker pricing could hurt HomePod sales | Cult of Mac

A new report notes that both Amazon’s Echo and Google’s Google Home family of devices were so heavily discounted over the holidays that they likely lost their companies a few dollars per unit. This is in sharp contrast with the kind of pricing that Apple plans for its $349 device, when it goes on sale […]

 

This Is How Airlines Determine the Price of Flights | Civilized

This Is How Airlines Determine the Price of Flights | Civilized

Airline ticket prices seemingly change every day, week, or hour, without notice, but there’s actually a real science behind this. Some people spend their whole lives trying to figure out how much to charge each passenger when they fly, because there are many factors that go into ticket pricing. In order to understand this science […]

 

Will Target’s (TGT) Efforts Help Overcome Impediments in ’18? | Nasdaq.com

Will Target’s (TGT) Efforts Help Overcome Impediments in ’18? | Nasdaq.com

Impediments Shares of Target did come under pressure following third-quarter fiscal 2017 results.  Despite a positive earnings surprise, investors remained concerned about the year-over-year decline registered in the bottom line and management’s commentary about highly competitive environment in the fourth quarter. The competition has intensified following Whole Foods Market’s buyout by Amazon AMZN . Further, […]

 

The Luxury Trends Of 2018: Green Is The New Black, And More | Forbes

The Luxury Trends Of 2018: Green Is The New Black, And More | Forbes

A recommendation engine is in development that will machine-learn from other user habits and image databases to suggest outfit combinations and help plan new purchases. Luxury brands will need to adapt to selling to algorithm-driven systems as well as humans with implications for pricing strategy, marketing approach and more. … Green luxury Green is the […]

 

Getting Started With Pricing Your Photography Services | Fstoppers

Getting Started With Pricing Your Photography Services | Fstoppers

Whether you know it or not, psychology plays a big role in successful pricing strategies for both products and services. Our brains are wired to pick up on subtle cues when it comes to weighing the value of something. So how do we successfully price our photography services? Here are a few tips to help […]

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Forget Subway’s $5 Footlong, It’s $4.99 (For Now) | CMO Strategy – AdAge

Forget Subway’s $5 Footlong, It’s $4.99 (For Now) | CMO Strategy – AdAge

Subway has tried a variety of campaigns from a variety of agencies in the past few years aimed at getting customers to stop thinking about its $5 Footlong sub sandwich. Now it’s shaving a penny off that abandoned price point and hyping the price in the hopes of getting people to think about visiting the […]

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Is Taylor Swift’s ‘Reputation’ World Tour Bombing? | PopCrush

Is Taylor Swift’s ‘Reputation’ World Tour Bombing? | PopCrush

Ultimately, Marcus said the change could mean more money for Swift — a potential $1-1.5 million in revenue per show. Naturally, though, the change to “slow ticketing” isn’t seamless, and many fans are upset that the Reputation tour is asking for $1,500 VIP tickets and $800 “Snake Pit” tickets. But WME head of music Marc Geiger told the site that […]

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America’s Superstar Companies Are a Drag on Growth | Bloomberg

America’s Superstar Companies Are a Drag on Growth | Bloomberg

Here’s a story about the U.S. economy that more people are telling these days. Since the 1980s, antitrust enforcement has gotten weaker. As a result, a few big companies have managed to capture a much bigger share of the market in various industries. Technology may have helped too, by letting big companies spread their geographic […]

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Trump: Amazon Is Getting Rich on Low Post Office Rates | Fortune

Trump: Amazon Is Getting Rich on Low Post Office Rates | Fortune

USPS’s chief financial officer, Joseph Corbett, wrote in a post for PostalReporter.com in August that the service is required by law to charge retailers at least enough to cover its delivery costs. “The reason we continue to attract e-commerce customers and business partners is because our customers see the value of our predictable service, enhanced […]

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Shoppers Love Cheap Shoes, but Wall Street Prefers Deckers and Columbia Sportswear | The Motley Fool

Shoppers Love Cheap Shoes, but Wall Street Prefers Deckers and Columbia Sportswear | The Motley Fool

Similarly, Merrill observed promotional activity at Under Armour archrival Nike. As Ohmes noted, “following a favorable launch schedule in November,” sales of Jordan-brand shoes “have decelerated meaningfully.” Merrill highlighted “below retail” pricing on Jordan Retro 6 and Retro 13 shoes. Despite the fact that both brands were launched less than two weeks ago, they’re already […]

 

Is it bad to use Uber? | Quartz

Is it bad to use Uber? | Quartz

Then there’s the matter of how Uber treats its drivers. You know it’s not great, but it’s not as though competing services are much better. Before Uber, taxi companies were notoriously terrible employers. Lyft, like Uber, hires its drivers as independent contractors—they don’t get benefits or minimum-wage protection—and has cut their pay to make fares […]

 

How to sell your unwanted Christmas gifts on eBay | Express & Star

6. The price is right There is no worse feeling than to have sold a very expensive item for a very low price because you did not know its value so do your search. Consider your pricing strategy carefully. Follow the eBay pricing recommendations and check other eBay listings for similar product prices. Browse online […]

 

Village Cinemas Dynamic Pricing Trial scrapped | news.com.au

Village Cinemas Dynamic Pricing Trial scrapped | news.com.au

A statement sent to News.com.au revealed the trial had now been scrapped, effective immediately. “Village Cinemas acknowledges that some documents that appear to contain internal pricing information for cinema tickets have been posted on social media and in turn via the press. We are currently investigating the authenticity of these documents,” the statement read. “Village […]

 

Apple 2017 year in review: iPad gets cheaper than ever, more expensive than ever with new options | Apple Insider

Apple 2017 year in review: iPad gets cheaper than ever, more expensive than ever with new options | Apple Insider

A tale of two markets When the first iPad launched in 2010, its $499 starting price was seen as much lower than expected. Still, for some, it wasn’t low enough. As consumers found that an iPad could not yet completely replace their laptop, the market clamored for cheaper options, suitable for basic tasks like browsing […]

 

The gene therapy pricing debate gets real as Spark sets $850,000 charge for its pioneering drug | Endpoints News

The gene therapy pricing debate gets real as Spark sets $850,000 charge for its pioneering drug | Endpoints News

Years of debate, speculation and analysis have boiled down to this: Spark $ONCE Therapeutics has set an $850,000 wholesale acquisition cost for the US’s first gene therapy — $425,000 per eye damaged by an RPE65 gene mutation. Set to roll out in a matter of weeks, the WAC price for Luxturna falls toward the higher […]

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How Edtech Companies Should Go About Pricing Their Products | The Tech Edvocate

How Edtech Companies Should Go About Pricing Their Products | The Tech Edvocate

Landing a Whale While you’ve put resources into market research, product development and curriculum expectations you may be missing a critical step. How you present your product to schools, parents, and teachers can be a major factor in its acceptance or rejection. What do we mean by this? It’s simple. Pricing models have hurt edtech […]

 

Wilder Rejects Claim He’s Pricing Himself Out For Joshua Bout | Boxing News

Wilder Rejects Claim He’s Pricing Himself Out For Joshua Bout | Boxing News

Deontay Wilder has hit out at Eddie Hearn’s suggestions that he is pricing himself out of a lucrative unification fight with Anthony Joshua. The next year is set to be a mouth-watering one for boxing’s heavyweight division with WBA, IBO and IBF champion Joshua targeting fights with Wilder and Joseph Parker – the WBC and […]

 

How WowWee’s Fingerling toys work | CNBC

How WowWee’s Fingerling toys work | CNBC

The team paid attention to every detail. For example, they gave the sloth Fingerling, an exclusive product for Walmart, a slower motor in its head and slower sound effects to make him seem more lazy. The software, designs, circuits and animations for Fingerlings are all proprietary to WowWee, Sufer says, and were built from scratch […]

 

How Does Your Business Shape Your Pricing? | SmallBizClub

How Does Your Business Shape Your Pricing? | SmallBizClub

Harsh reality: Sometimes you have no choice. Economic conditions, market saturation, inventory issues or some other element of your business may force you to modify your prices, either temporarily or in rare cases, permanently. There is no such thing as forever when it comes to business strategy. We must all evolve or die, and pricing […]

 

Retailers are slashing prices and bumping online sales — and it could spell their own demise (AMZN) | Markets Insider

Retailers are slashing prices and bumping online sales — and it could spell their own demise (AMZN) | Markets Insider

Retailers, struggling with souring sales and the looming threat of Amazon, are trying to copy the ecommerce giant by offering steep discounts and focusing on online sales. That may just spell their own demise, said Keith Jelinek the managing director of Berkeley Research Group’s retail and consumer practice unit. While it may seem intuitive for retailers […]

 

Entrepreneurial Brothers From Algeria Launch Dynamic Pricing Food Delivery App In NYC | Forbes

Entrepreneurial Brothers From Algeria Launch Dynamic Pricing Food Delivery App In NYC | Forbes

The 5-person Gebni team works remotely or in the renovated basement communal room of the Merzouk brothers’ apartment building in Bedford-Stuyvesant, Brooklyn, amid a red pool table and minimalist sofas. They recently received a second round of funding, they’re not making the amount public; the first round was $150,000. They add that the Gebni app […]

 

Uber fare increase not benefitting us: drivers | ENCA

Uber fare increase not benefitting us: drivers | ENCA

“Driving on the Uber platform is a no-win for its partner drivers,” a driver calling him or herself Dow Benderf commented on the eNCA website. “Uber, its shareholders and the riders are the ones who truly benefit from the rider app. I am a driver-partner and drivers earn on average R30 per hour and that […]

 

Uber warns of New Year’s surge pricing, while taxis ask for patience | The Sydney Morning Herald

Uber warns of New Year’s surge pricing, while taxis ask for patience | The Sydney Morning Herald

Uber has warned there will be surge pricing during the peak of New Year’s celebrations, while the taxi association has urged customers to be patient on what will be one of the busiest nights of the year. More than a million people are expected to pack Sydney Harbour on New Year’s Eve for the city’s fireworks […]

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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: Dollarizing Differentiation Value – A Practical Guide for the Quantification and the Capture of Customer Value

Book: Dollarizing Differentiation Value – A Practical Guide for the Quantification and the Capture of Customer Value

Summary: Now is the time to answer that “value” question so well and so completely that your organization thrives. The biggest winners in the 21st century will have value-based strategies, value-based innovation, value-based marketing, and value-based pricing. There has never been a more exciting and lucrative time to pay attention to value and turn a […]


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

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“People tend to be clueless about prices. Contrary to economic theory, we don’t really decide between A and B by consulting our invisible price tags and purchasing the one that yields the higher utility, he says. We make do with guesstimates and a vague recollection of what things are “supposed to cost.””

     – William Poundstone

 


 

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