This Week in Pricing > 2/17/18

pricingnews-WeeklyThis Week in Pricing is a collection of pricing focused news, thought leadership , events, jobs and professional education resources for pricers.

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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.

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Top Headlines

Pricing-Careers.com is Now Live

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Pricing-Careers.com provides valuable career, pricing team/organization, and strategy thought leadership best-practice articles and research reports/studies, as well as training and professional development events. We also compile Thought Leadership, News, Studies, Papers, Books, Surveys, etc. Subscribe to Pricing Careers Weekly here: tinyurl.com/yb2w5hrp Looking to hire pricing Talent? Pricing Careers offers recruiters a very affordable way to […]

 

Why the car price you see is definitely not what you will pay | Irish Times

Why the car price you see is definitely not what you will pay | Irish Times

If you order a new jumper, a pair of jeans, some DVDs, a book, or even some household cleaning products from almost any online source, chances are that you will not be charged extra for delivery. Generally, once you’re spending more than a nominal amount (usually between €50 and €100), you won’t have to pay […]

 

Bitcoin price: Cryptocurrency volatility sends warning signal to global markets | Express.co.uk

Bitcoin price: Cryptocurrency volatility sends warning signal to global markets | Express.co.uk

Interest rates were slashed following the financial crisis as central banks attempted to jumpstart economies. This, along with increased money supply, forced investors to seek returns through investing in assets, which in turn sent the prices of goods as obscure as fine art rocketing. Now central banks are beginning to raise rates to pare back […]

 

Pricer’s Points: The decoy effect: Why you make irrational choices every day (without even knowing it) | Kent Hendricks

Pricer’s Points: The decoy effect: Why you make irrational choices every day (without even knowing it) | Kent Hendricks

The decoy effect describes what happens when, while choosing between two items, a third item is introduced that causes you to switch your preference between the first two items. A few weeks ago, I was at a clothing store trying to decide between two shirts. I liked the way one shirt fit, but I liked […]

 

Cryptocurrency price manipulation is ‘unavoidable,’ NEM president says | CNBC

Cryptocurrency price manipulation is ‘unavoidable,’ NEM president says | CNBC

Price manipulation in the cryptocurrency space is “unavoidable” but will disappear once the market has matured, the head of cryptocurrency firm NEM said Tuesday. “Price manipulation is not something new. You see it in mainstream markets as well. We are in a very nascent, growing phase of our industry and these things are unavoidable,” Lon […]

 

Budget, White Paper Provide Insight Into Trump Administration’s Strategy On Drug Pricing | Health Affairs

Budget, White Paper Provide Insight Into Trump Administration’s Strategy On Drug Pricing | Health Affairs

During his first year in office, President Donald Trump spoke often about the problem of high drug prices but took no action on the subject. President Trump’s new budget proposal and a newly released white paper from the White House Council of Economic Advisors (CEA) aim to change that by laying out a strategy for […]

 

US Consumer Price Index rose 0.5% in Jan, vs 0.3% increase expected | CNBC

US Consumer Price Index rose 0.5% in Jan, vs 0.3% increase expected | CNBC

U.S. consumer prices rose considerably more than expected in January, fueling fears that inflation is about to turn dangerously higher. The Consumer Price Index rose 0.5 percent last month against projections of a 0.3 percent increase, the Labor Department reported Wednesday. Excluding volatile food and energy prices, the index was up 0.3 percent against estimates […]

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CEDEX – Bringing Blockchain Innovation To The Diamond Industry | Crypto Daily

CEDEX – Bringing Blockchain Innovation To The Diamond Industry | Crypto Daily

One credible point that cryptocurrency skeptics often make is that there is little need for blockchain technology in most industries. Blockchains like Bitcoin’s are slow and costly to run, so it’s fair to argue that they will likely fail to take hold in industries where they don’t solve significant problems. Diamonds, however, are not one […]

 

Not so magical: Disney raises the cost of park admission again! | WSB-TV

Not so magical: Disney raises the cost of park admission again! | WSB-TV

Disney’s new price increases Much like the airlines and a host of other industries, Disney shifted the price of a day pass based on demand back in 2015. The company created three tiers of pricing at that time — “Value,” “regular” and “peak” — and has kept them in place ever since. New pricing at the […]

 

Trade Me fee change sparks angry response from retailers | NZ Herald

Trade Me fee change sparks angry response from retailers | NZ Herald

Plans by Trade Me to change its success fee model to include shipping costs has sparked an angry response from some retailers on the auction site. The change means that from March 14 success fees for professional retailers will apply to both the item sale price and the shipping cost. The change did not affect […]

 

 

 

More Headlines

Painkiller that once cost $138 is now $2,979 | CNN Money

Painkiller that once cost $138 is now $2,979 | CNN Money

An Irish drugmaker has jacked up the price of a painkiller to nearly $3,000 a bottle. The drug is 22 times more expensive than when the company acquired it in late 2013. The sticker shock for Horizon Pharma’s Vimovo drug is magnified by the fact that the painkiller’s two main ingredients can be purchased separately […]

 

 

Smart health care shoppers are saving money and getting cash awards | Detroit Free Press

Smart health care shoppers are saving money and getting cash awards | Detroit Free Press

Insurers rolled out these cost calculators as more of their customers enrolled in high-deductible health plans that require spending hundreds or thousands of dollars out of pocket each year before insurance kicks in. It’s still to be determined whether price transparency on its own can substantially slow the rise or even lower the costs of health care, and, by extension, insurance premiums. Early research suggests that […]

 

Are Cloud Companies Moving Away from Pricing Transparency?: eDiscovery Trends | JDSupra

Are Cloud Companies Moving Away from Pricing Transparency?: eDiscovery Trends | JDSupra

Last May, I wrote a post asking if pricing transparency is finally happening in eDiscovery.  Here’s an article where the trend seems to be reversing – at least for Software-as-a-Service (SaaS, aka cloud) companies in general.  And, what the heck is a SaaS “unicorn”? In his article on OpenView – Why SaaS Companies Are Moving […]

 

Greg Walden pursues giving consumers more information on health prices | The Washington Examiner

Greg Walden pursues giving consumers more information on health prices | The Washington Examiner

A top House lawmaker wants consumers to have as much information as possible on what health services such as MRIs, pharmaceuticals, or CT scans cost. Energy and Commerce Committee Chairman Greg Walden, R-Ore., said Wednesday that he is speaking with colleagues in the Senate on greater price transparency. The remarks come a few days after […]

 

 

Bill Cassidy says it’s unlikely Republicans will take another stab at Obamacare alone | Washington Examiner

Bill Cassidy says it’s unlikely Republicans will take another stab at Obamacare alone | Washington Examiner

Graham-Cassidy would convert Obamacare’s funding for the Medicaid expansion and subsidies toward the purchase of insurance to block grants, providing more flexibility to states. It would also seek to restrain Medicaid spending by giving states a fixed amount per beneficiary and controlling its rate of growth. Cassidy said that he hopes to get traction on […]

 

 

Pricer’s Points: The Untold Truth of Price Increases | Mike Lawson

Pricer’s Points: The Untold Truth of Price Increases | Mike Lawson

At some point, every company faces the question of when and how to increase price. For many companies, its an annual exercise. For others, price increases occur many times throughout the year. There are phantom price increases (think of that ½ gallon of orange juice that is now only 59 ounces, but costs the same), hidden price increases […]

 

Cisco surges after pricing switches-plus-subscriptions just below old hardware prices | The Register

Cisco surges after pricing switches-plus-subscriptions just below old hardware prices | The Register

It’s hardly the first time hardware vendors have attached software licensing models to iron, and Cisco is alert to why customers might resist it. On the company’s results call, CEO Chuck Robbins said for the Catalyst 9000, “we wanted the base subscription plus the product to be somewhere at or slightly below what they would […]

 

The toll on I-66 inside the Beltway hit $46.50 on Tuesday | The Washington Post

The I-66 tolls, which are meant to encourage drivers to carpool or use public transportation inside the Beltway, have raised criticism among some drivers since they began in December. Solo drivers who travel on those 10 miles of I-66 at peak periods are charged based on a “dynamic pricing” system that changes every six minutes, depending […]

 

 

 

Discussion: Is Electricity Pricing Different from “Real Markets”? Should It Be? | Energy Institute at Haas

Discussion: Is Electricity Pricing Different from “Real Markets”? Should It Be? | Energy Institute at Haas

“No company in a real market would ever price that way.”  If you’ve discussed electricity pricing much, you’ve surely heard this said by a person opposed to one retail tariff or another.  In almost every instance, however, the claim is both incorrect and irrelevant. Incorrect, because firms in unregulated markets are constantly experimenting with the […]

 

States tired of waiting for feds to tackle high drug prices | Washington Examiner

States tired of waiting for feds to tackle high drug prices | Washington Examiner

State legislatures are battling against high drug prices, tired of inaction from the federal government. Last year, states passed more than double the number of laws attacking high drug prices than in 2016, and legislatures show no signs of stopping. States approved 14 laws in 2017 targeting high drug prices through price transparency, compared to […]

 

All about penetration pricing strategy | Amazon Services

As an e-tailer, you must already know that it’s all about setting the right price when it comes to effectively catering to your target audience. A well-articulated penetration pricing strategy will help you break into an already established product category and gain traction. Initially, you’ll have to put up your offerings for sale at a […]

Bitcoin price crash: This is the reason cryptocurrency prices are plummeting | Express.co.uk

Bitcoin price crash: This is the reason cryptocurrency prices are plummeting | Express.co.uk

Express.co.uk recently spoke with Ryan Derks, an investor with years of experience under his belt who now runs his own federally registered fund specialising in cryptocurrencies, who was eager to explain why Bitcoin is coming down from such a dramatic high. He said: “What happened with Bitcoin over the last three to four months is […]

 

Abu Dhabi developers eyeing new pricing strategy | Trade Arabia

Abu Dhabi developers eyeing new pricing strategy | Trade Arabia

The UAE’s prominent real estate developers, particularly those based in the capital, are gearing up to create and unveil new pricing strategies for investors at the upcoming industry expo Cityscape Abu Dhabi. A leading regional event for the real estate industry, Cityscape Abu Dhabi will be held from April 17 to 19 at Abu Dhabi […]

 

Action News Investigation: Stores offering ‘Bogus Bargains?’ | 6abc.com

Action News Investigation: Stores offering ‘Bogus Bargains?’ | 6abc.com

PHILADELPHIA (WPVI) — Stores are always advertising sales, but are they really offering you a great deal? As it turns out, a nearly year-long test has found potentially disturbing pricing policies at more than a dozen national retailers. Checkbook Magazine found that, too often, sale prices aren’t offering you special savings at all. Instead, they’re […]

 

Pricer’s Points: Using Scope of Value to Price Your Next Project | Kathryn Williams

Pricer’s Points: Using Scope of Value to Price Your Next Project | Kathryn Williams

When you meet with a client to discuss your next big project, it’s important to have an idea of how much you are going to charge and if there is an opportunity to factor ‘value’ into the price. More often than not, businesses will set their price based on the estimated number of hours it […]

 

Bitcoin price CRASH sees ‘cryptocurrency billionaires’ suffer HUGE hit in financial value | Express

Many of them enjoyed a 14,409 average per cent rise to the coins in their wallets in 2017. The news has come as last week saw a mass sell-off of cryptocurrencies, leading prices to drop to their lowest levels for several months. The news has come as last week saw a mass sell-off of cryptocurrencies, […]

 

 

Vanguard’s new CEO on Canada’s rapid ETF growth and just how low investing costs will go | The Globe and Mail

Despite the differences between the markets in which Vanguard operates, Mr. Buckley’s message as incoming CEO is consistent: He will continue to focus on the Vanguard promise of providing investors with top performing funds at the lowest price possible. “Maybe competitors don’t realize that we are built to be low cost across the board, but […]

 

Energy UK launches commission for vulnerable customers | Utility Week

Energy UK launches commission for vulnerable customers | Utility Week

“We look forward to working constructively with the commission and to the development of concrete proposals that will make a meaningful difference to the lives of millions of vulnerable people.” But challenger provider Octopus Energy said the commission is “not enough” to protect customers of the big six suppliers. Greg Jackson, chief executive of Octopus […]

 

GSA’s Murphy sees another path to reduce commercial pricing burden on vendors | FederalNewsRadio.com

If you aren’t familiar with TDR and wondering what’s the big surprise, let me catch you up a little. GSA developed the TDR initiative to replace the dreaded commercial sales requirement and its corresponding price reduction clause in June 2016. The Commercial Sales Practices regulation requires contractors to disclose to GSA details of any discounts […]

 

Uber introduces exact upfront fares in Romania | Business Review

Uber introduces exact upfront fares in Romania | Business Review

Uber has announced that it will introduce upfront pricing in Romania starting on Wednesday, February 14. This means that passengers will be shown the exact fare before requesting a ride – until now, they would only be shown an estimated cost. The price shown in the app will include the distance to the final destination, […]

 

Engaging Patients, Engaging the Public | Pharmaceutical Executive

Engaging Patients, Engaging the Public | Pharmaceutical Executive

Has the emphasis on pricing been too prominent in the reputation debate? The whole pricing debate does detract from what the industry is really about, which is bringing good health and longevity to people through innovation. Healthcare costs are multifactorial; aging populations, infrastructure costs and increasing wage bills all contribute to increasing societal costs.  The […]

 

 

Paper – Mind Your Pricing Cues | Harvard Business Review

Paper – Mind Your Pricing Cues | Harvard Business Review

If you aren’t sure, you’re not alone: For most of the items they buy, consumers don’t have an accurate sense of what the price should be. Consider the findings of a study led by Florida International University professor Peter R. Dickson and University of Florida professor Alan G. Sawyer in which researchers with clipboards stood […]

 

Amazon package-delivery service to compete with FedEx and UPS | Business Insider

Amazon package-delivery service to compete with FedEx and UPS | Business Insider

Amazon is planning to debut a package-delivery service for businesses that’s designed to compete directly with FedEx and UPS, according to a new report. The Wall Street Journal’s Laura Stevens reported Friday that the e-commerce giant would roll out the service, called Shipping with Amazon, or SWA, in Los Angeles over the next few weeks. […]

 

IKEA’s Success Can’t Be Attributed to One Charismatic Leader | Harvard Business Review

IKEA’s Success Can’t Be Attributed to One Charismatic Leader | Harvard Business Review

IKEA’s success did not result from the kind of planful strategy development that is still taught in some business schools. Quite the contrary.  It has been mixture of emergence, haphazardness, and invention through necessity.  For example, when the first IKEA catalogue came out in 1951, many retailers had similar, mail-order business models. To crush the […]

 

DISCUSSION: How Our Brain Determines if the Product is Worth the Price | HBS Working Knowledge

DISCUSSION: How Our Brain Determines if the Product is 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. by Carmen Nobel Think of the last time you went shopping. By the time you decided to buy a product, you knew both what you were […]

 

Alibaba Could Take Kroger to the Next Level Fast | The Motley Fool

Alibaba Could Take Kroger to the Next Level Fast | The Motley Fool

A worthy opponent If a merger occurs, Kroger would become even more of a powerhouse in groceries, and a solid investment candidate. It’s already a quality company that has been knocked back due to the investments in pricing it needed to make to compete with Amazon and Walmart. The Amazon purchase of Whole Foods scared […]

 

New govt scheme may see Delhi cabs get metres to check surge pricing | The Asian Age

New govt scheme may see Delhi cabs get metres to check surge pricing | The Asian Age

A committee formed by the government to shape up the scheme has been working on compiling various suggestions, including one for installing fare metres with cab aggregator vehicles, and they are expected to be presented in the public domain soon, said the official. The metres will disclose to the passengers whether they have been charged […]

 

McCain and Baldwin to Trump: Hold pharma’s feet to the fire on drug prices | STAT

McCain and Baldwin to Trump: Hold pharma’s feet to the fire on drug prices | STAT

Frustrated by White House efforts to tackle rising drug prices, a pair of U.S. lawmakers is urging the Trump administration to more squarely focus on drug makers — by backing legislation requiring them to justify their pricing and provide a breakdown of expenses before raising prices on some medicines. In a letter to be sent on […]

 

Uber May Be Paying Women Less for Driving Better | Bloomberg

Uber May Be Paying Women Less for Driving Better | Bloomberg

According to the paper co-authored by academics working for Uber, Stanford and University of Chicago, some 48 percent of the gender pay gap is explained by speed alone. Male drivers go an average of 2.2 percent faster than female ones, which results in higher pay when miles pay better than time. But the researchers don’t believe men […]

 

 

 

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Events and Resources

European Pricing Summit 2018 | Finance iQ

EU Pricing Summit 2018 300x250Date: 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.

29th Annual Spring Pricing Workshops & Conference | PPS

640x240-Chicago-Co-Mark-banner-11.21aDate: 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).

 

This blog series provides a forum for pricing professionals to share their insights and experience. Our guest bloggers share their knowledge about specific product or industry challenges, geographic complexities, strategies, tactics, and technologies.

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This blog category offers a collection of top pricing related conversations on LinkedIn or in the comments section of pricing related blogs and articles.

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

“Anyone can sell a Mercedes for the price of a Hyundai.”

– Larry Best

 

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