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This Week in Pricing > 2/11/17

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.

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

Despite furor, branded Rx drug prices up nearly 11% last year | FiercePharma

Despite furor, branded Rx drug prices up nearly 11% last year | FiercePharma

In the face of a national backlash on drug prices, a handful of drugmakers have pledged to limit their prices on branded prescription drugs to 10% or less this year. As it turns out, that is roughly how much they increased last year anyway. Express Scripts, the largest U.S. pharmacy benefits manager (PBM), said today that […]

 

4 Simple Steps to Profits through Pricing Mastery | The Cogent Coach

4 Simple Steps to Profits through Pricing Mastery | The Cogent Coach

Are you a small business owner or entrepreneur that struggles to set a price for your products or services? Are you worried that your sales suffer because of incorrect pricing? You’re not alone. Over 35% of small business owners have problems with sales. When we consider sales and marketing together, over 50% of small businesses […]

 

Express Scripts says branded drug prices rose nearly 11% last year | BioPharma Dive

Express Scripts says branded drug prices rose nearly 11% last year | BioPharma Dive

Dive Insight: It’s no secret that pricing issues have been contentious in the last few years. And when it comes to who’s to blame, both PBMs and pharmaceutical manufacturers have pointed the finger at each other. To that end, Express Scripts didn’t mince words in laying out what it thought were the biggest issues facing […]

 

Naloxone Price Has Increased Six-Fold Since 2014 | attn:

Naloxone Price Has Increased Six-Fold Since 2014 | attn:

In the event of an opioid overdose, access to naloxone can mean life or death. That’s why experts are increasingly concerned that the drug company Kaleo has increased the price of Evzio, a popular device used to administer the anti-overdose drug, by 600 percent since 2014. Kaleo’s naloxone auto-injector is unique in that it’s designed to be used […]

 

Antitrust: Commission opens three investigations into suspected anticompetitive practices in e-commerce | European Commission

Antitrust: Commission opens three investigations into suspected anticompetitive practices in e-commerce | European Commission

The three investigations opened today by the Commission aim to tackle the specific issues of retail price restrictions, discrimination on the basis of location and geo-blocking. The preliminary results of the Commission’s competition sector inquiry on e-commerce show that the use of these restrictions is widespread throughout the EU. Under certain circumstances, these practices may […]

 

What Trump will do about high drug prices after meeting with pharma | Business Insider

What Trump will do about high drug prices after meeting with pharma | Business Insider

The executives — and the industry — came out of the meeting with a positive impression. Eli Lilly CEO David Ricks said that Trump’s drug pricing policy didn’t get discussed detail in the meeting, leaving some ambiguity about what the president will end up doing. Merck CEO Ken Frazier said in an earnings call Thursday February 2 that he […]

 

Trump is handing Democrats a gift on drug prices | The Washington Post

Trump is handing Democrats a gift on drug prices | The Washington Post

So what I want, we have to get lower prices, we have to get even better innovation and I want you to move your companies back into the United States. And I want you to manufacture in the United States. We’re going to be lowering taxes, we’re going to be getting rid of regulations that […]

 

Diabetes patients sue insulin makers for ‘pricing fraud’ | The Washington Post

Diabetes patients sue insulin makers for ‘pricing fraud’ | The Washington Post

A group of diabetes patients filed a lawsuit Monday against three drug companies for systematically increasing the list prices of insulin for years in an alleged fraudulent-pricing scheme that saddled patients with “crushing out-of-pocket expenses,” according to the filing. The insulin market is dominated by an oligopoly of companies that sell many billions of dollars worth of insulin each year […]

 

If Trump wants to lower drug prices, he’s going about it all wrong | Vox

Today, speaking before a meeting with pharmaceutical executives, Trump hinted at how he’d do that — through a still-hazy combination of lowering taxes, ramping up competition, and deregulating the drug approval process. In a statement posted on Facebook later, he suggested that bringing big pharma manufacturing back to the US would lower prices. The problem […]

 

Massive Price Hike for Lifesaving Opioid Overdose Antidote | Scientific American

Massive Price Hike for Lifesaving Opioid Overdose Antidote | Scientific American

Federal and state governments have spent millions of dollars equipping police officers and other first responders with naloxone. In communities particularly hard-hit by drug overdoses, places such as schools, libraries and coffee shops are keeping the antidote on hand. Physicians are prescribing it to patients who are taking prescription painkillers in an effort to make […]

 

Is Amazon about to change its pricing model? | New Republic

Is Amazon about to change its pricing model? | New Republic

Is Amazon about to change its pricing model?Ever since Amazon opened its first physical bookstore a year ago, people have been speculating what the point was. Amazon, after all, has strived above all else to keep infrastructure costs down. Spending more on infrastructure spooks its investors, who are obsessed with growth (something Amazon does effortlessly) […]

 

 

More Headlines

Pricing law vote postponed by Suffolk legislators | Newsday

Pricing law vote postponed by Suffolk legislators | Newsday

The Suffolk County Legislature Tuesday postponed voting on a bill that would require more retailers to put a price label on almost every item they sell or potentially face fines up to $1,000. The legislature voted Tuesday to table the bill, which was proposed by County Executive Steve Bellone. It would expand the scope of […]

 

Make sure you’re pricing your hotel rooms properly | Hotelogix

Make sure you’re pricing your hotel rooms properly | Hotelogix

Deciding on hotel rates is one of the toughest decisions for hoteliers and it requires a lot of planning, researching, doing their homework and re-evaluations. There are numerous key factors and influences that come into play when deciding on hotel rates, because not only do you want to fix them but you also want the […]

 

Funeral Rule Designed For Pricing Transparency Still Unclear | NPR

Funeral Rule Designed For Pricing Transparency Still Unclear | NPR

Shortly after Ed Howard’s father was diagnosed with an advanced form of cancer and given six months to live, Howard and his sister Kathy Howard-Almagor sat down and talked about what to do. One worry was their dad’s funeral arrangements. They decided Kathy would call around to some funeral homes to figure out how much […]

 

Your Brand Can Win Big If The Price Is Right | CMO

Your Brand Can Win Big If The Price Is Right | CMO

How to price their brands is a question increasingly keeping marketers awake at night. Long berated as an enemy of brand equity, the global economic and political upheavals in 2016 have now added weight to the argument that pricing, if thoughtfully and strategically handled, can be a strong brand equity builder. From global currency exchange […]

 

How Much Does an App Cost: A Massive Review of Pricing and other Budget Considerations | Savvy Apps

Factors to Consider When Pricing App Development The challenges I struggled with to properly address the cost question in 2010 have not changed. Costs obviously vary. For example, there’s a significant difference between engaging a freelancer, offshore development team, or an agency like savvy apps. Similarly, having an app that requires a back-end server built […]

 

An Argument Against “Pay What You Want” Pricing | Music Clout

An Argument Against “Pay What You Want” Pricing | Music Clout

Lady Gaga shot to the top of the sales charts upon the release of her last album, in part because it was deeply discounted on Amazon. Radiohead pioneered the “pay what you want” approach, with most downloaders opting to pay nothing at all. Last week I asked my fans which pricing model they prefer, and received dozens of […]

 

The Inequities of Water Pricing | PPIC Blog

The Inequities of Water Pricing | PPIC Blog

California’s residential water pricing is highly variable, with some of the state’s poorest communities paying many times more for water than neighboring towns and cities. We talked to JR DeShazo—director of the Luskin Center for Innovation at UCLA and a member of the PPIC Water Policy Center research network—about his work to document the inequities […]

 

Telecom Regulator, Attorney General Say Nothing Predatory About Reliance Jio Pricing | The Wire

Telecom Regulator, Attorney General Say Nothing Predatory About Reliance Jio Pricing | The Wire

New Delhi: Telecom regulator TRAI has said the tariff plans of Reliance Jio are in compliance with its regulations and the existing tariff orders. TRAI is expected to communicate the same to the incumbent operators including Bharti Airtel and Idea Cellular, which had moved telecom tribunal TDSAT against the regulator for allowing the Mukesh Ambani-led […]

 

Comcast clarifies pricing strategy for Xfinity TV app on Roku | FierceCable

Comcast clarifies pricing strategy for Xfinity TV app on Roku | FierceCable

Comcast has confirmed its pricing strategy for customers accessing their Comcast video service through Roku devices, both during the current beta test and into the future. For now, these beta users are not able to use the Xfinity TV app on their Roku device(s) without employing a pay-TV set-top. During the beta, Comcast is waiving […]

 

Drug pricing amendments on tap for vote-a-rama | POLITICO

Drug pricing amendments on tap for vote-a-rama | POLITICO

THE DRUG PRICING AMENDMENTS ON TAP FOR VOTE-A-RAMA — Sen. Amy Klobuchar has filed an amendment calling for government negotiation of drug pricing in Medicare Part D. It will likely be one of scores of amendments taken up as part of the Senate’s budget resolution vote this week. The Minnesota Democrat may also introduce other […]

 

Ed Sheeran’s Ticketing Fiasco Shines A Harsh Light On A Broken Industry | Music Industry Blog

Ed Sheeran’s Ticketing Fiasco Shines A Harsh Light On A Broken Industry | Music Industry Blog

Ed Sheeran has hit the news, bemoaning the inflated prices that tickets for his forthcoming tour are being sold at on ticket reseller websites. Some tickets have sold for as much as £999, compared to the original face value of £77. As the chart below shows, even the standard resold tickets are selling for up […]

 

Show us the money! How greater drug pricing transparency could fund innovation and improve access to medicines | Young Professionals Chronic Disease Network

Show us the money! How greater drug pricing transparency could fund innovation and improve access to medicines | Young Professionals Chronic Disease Network

Rising prices have reduced low-income countries’ and individuals of low socio-economic status’ ability to access many necessary medicines. People living with chronic diseases, who often pay exorbitant prices over long periods of time, are particularly vulnerable to growing costs – but increased drug pricing transparency can help. Prices of many medicines have increased substantially in […]

 

The Question of Setting An eBook Pricing Strategy | Just Publishing Advice

The Question of Setting An eBook Pricing Strategy | Just Publishing Advice

Rethink your ebook pricing strategy These two graphs show clearly that it may be time for authors to do a rethink on how they price their ebooks for each market. While US ebook buyers appear to accept a wide price range as good buying value, and even increasing substantially at the $10.00 mark, UK ebook […]

 

Major overhaul of rail ticket pricing system planned | Buying Business Travel

Major overhaul of rail ticket pricing system planned | Buying Business Travel

A radical overhaul of rail fares is to be trialled to guarantee passengers the “best possible deal” every time they travel. Certain fares, for long, connecting journeys will be removed from the system as cheaper alternatives exist. This will remove the need to passengers to split tickets. Travellers will also be shown the best available […]

 

Perception Beats Reality in Pricing | Bain & Company

A traditional grocer that caters mainly to higher-income customers, for instance, needs to have the whole assortment of grocery items and strong perceived quality. It would focus on very targeted moves, including key value items, promotions and signage, rather than on tactics that would significantly change the proposition, such as out-of-store advertising, price matching or […]

 

Saudi Arabia raises March crude oil pricing for all buyers | World Oil

Saudi Arabia raises March crude oil pricing for all buyers | World Oil

LONDON and DUBAI (Bloomberg) — Saudi Arabia, the world’s largest crude exporter, raised pricing for March sales to buyers from the U.S. to Asia as output cuts by OPEC and other producers shore up oil prices. State-owned Saudi Arabian Oil Co., known as Saudi Aramco, boosted its official pricing for Arab Light crude to Asia […]

 

Trump’s Ire at Pharma Industry Pricing: An Opening for Biosimilars? | Biosimilars Review & Report

Every day of the newborn Trump Administration, sets of executive orders are issued and bunches of meetings with business icons are held. The tweets, orders, and conferences produce the same uniform message—disruption. This is probably good and bad for the health care industry. Certainly, in the short term, this is bad for patients. The pharmaceutical […]

 

Charles Schwab beats Vanguard and Fidelity on pricing war | Fund Strategy

Charles Schwab beats Vanguard and Fidelity on pricing war | Fund Strategy

Charles Schwab, the US-based broker and wealth manager, has become the cheapest trading platform in the market beating Vanguard and Fidelity on price as it cuts its trading fees by 22 per cent. Starting from today, the $2.8trn giant broker has lowered its standard online equity and ETF trade commissions to $6.95 (£5.5) from $8.95, […]

 

TD Ameritrade’s Nally challenges advisers on pricing | Financial Planning

TD Ameritrade’s Nally challenges advisers on pricing | Financial Planning

SAN DIEGO – Advisers must start thinking differently about pricing, says TD Ameritrade Institutional President Tom Nally. “Pricing structures must evolve,” Nally said during the keynote address at his firm’s annual conference. “Traditional pricing models don’t necessarily reflect the value of the adviser.” Planners should review the traditional pricing model of charging clients on a […]

 

Competition is the best way to fuel growth and end tacit collusion | Herald Sun

Competition is the best way to fuel growth and end tacit collusion | Herald Sun

DO you know which day of the week is cheapest to buy groceries? Or which day is cheapest to buy whitegoods, cars and appliances? Spoiler alert: there isn’t one! So why is there a cheap day to buy petrol? If hundreds of petrol stations really are engaged in dog-eat-dog competition, why do they all raise […]

 

How sellers set their asking price | Valley News

How sellers set their asking price | Valley News

Depending on how a buyer is made aware of your home, price is often the first thing he or she sees. As a result, many homes may not be shown because they are discarded by prospective buyers for not being in the appropriate price range. When you decide to sell your home, setting your asking price is […]

 

Reliance Jio Reportedly Dragged to CCI by Airtel Over ‘Predatory Free Pricing Strategy’ | NDTV Gadgets360.com

HIGHLIGHTS Airtel has termed pricing strategy by Reliance Jio as ‘predatory’ The letter has accused Reliance Jio of abusing dominant position Reliance Jio has been accused of trying to eliminate small players Bharti Airtel has reportedly filed a complaint with the Competition Commission of India (CCI) against Reliance Jio Infocomm, questioning the pricing strategy adopted […]

 

What is the future of SMSF software pricing? | BGL Blog

What is the future of SMSF software pricing? | BGL Blog

At my CEO Institute meeting this morning, one of the topics on the agenda was product pricing. It was very appropriate as recently one of the software vendors in our industry announced a 30% price reduction. When I saw this I asked myself, why? Why would someone devalue their product by reducing their price by […]

 

London’s congestion charge ‘should be replaced by usage-based pricing scheme’ | MayorWatch

London’s congestion charge ‘should be replaced by usage-based pricing scheme’ | MayorWatch

TfL Commissioner Mike Brown recently told AMs that couriers delivering personal parcels to workplaces are also increasingly responsible for congestion. Today’s report calls on City Hall’s agencies, including TfL, to pilot of a ban on such deliveries to their premises. Caroline Pidgeon, who chairs the committee, said: “Something dramatic has to be done about the […]

 

Coming soon to a cinema near you? Ticket prices shaped by demand | The Conversation

Coming soon to a cinema near you? Ticket prices shaped by demand | The Conversation

Chances are that if you see just one film this year, you probably saw it already. The period between Christmas and Australia Day is typically the busiest and most competitive in our film calendar. But even when you arrive at a ticket counter at a quieter time of year you will usually pay the same […]

 

After blitzing Mylan, Klobuchar targets Kaléo’s pricey Auvi-Q, 700% jack-up on opioid antidote | FiercePharma

After blitzing Mylan, Klobuchar targets Kaléo’s pricey Auvi-Q, 700% jack-up on opioid antidote | FiercePharma

Despite Kaléo’s attempts to brand its $4,500 Auvi-Q relaunch as a positive for consumers, the small drugmaker hasn’t made itself popular with payers and lawmakers. Now, an influential senator is pressing Kaléo with fresh pricing questions—and not just about its EpiPen rival. Sen. Amy Klobuchar, D-Minn., has demanded more information about the Richmond, Virginia-based company’s strategy […]

 

Watch: Poundland exec on pricing, Pep & Co and Tesco | Retail Week

Watch: Poundland exec on pricing, Pep & Co and Tesco | Retail Week

Poundland unveiled its first full Pep & Co shop in shop last week at its Hanley store in Stoke. Retail Week caught up with Poundland’s trading director Barry Williams to discuss the move, Poundland’s pricing strategy and Tesco’s Booker acquisition. Williams, who turned down Morrisons to join the Steinhoff-owned retailer in November, revealed that up […]

 

Streaming Music Pricing: Inelastic Stretching | Music Industry Blog

Streaming Music Pricing: Inelastic Stretching | Music Industry Blog

Pricing has long been an issue for streaming music subscriptions, with the $/€/£ 9.99 price point above what most people spend on music each month. Streaming services have navigated around the issue with a combination of tactics such as telco bundles and aggressive price discounts (e.g. $1 for 3 months). However, these tactics place long […]

 

Getting out of the Freelance Web Design Pricing Trap | SpeckyBoy

Getting out of the Freelance Web Design Pricing Trap | SpeckyBoy

So, What’s the Freelance Pricing Trap? The freelance pricing trap is not charging enough for the work that you do. And it happens much more often than you would think. Many freelancers feel like they don’t have enough experience or expertise to charge a certain rate so they don’t. They bid below the market […]

 

 

 

Featured Content

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 […]

Book: Pricing and the Sales Force

Book: Pricing and the Sales Force

Summary: Pricing and the Sales Force is the first book to link pricing strategy and the sales force together. Pricing strategy is now well established as an important means of driving profits for many organizations. Countless companies are now mastering price-setting. But what about “price-getting” – converting those list prices into the realized sales, and […]

 

Conference: Battle for Margin > SPASIGMA Negotiation Workshop & Pricing Strategy Seminar | SPA 

Attend our SPASIGMA Negotiation Workshop & Pricing Strategy Seminar in Miami to learn how to increase your competitive advantage and improve performance. You will take back valuable information on how the SPA Solution portfolio can help grow your business and improve your bottom line…

Date: February 9-10, 2017

Location: Grand Beach Hotel Surfside, Miami Beach, Florida

 

 


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

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“Prices are ultimately set by value, not by the competition or supply/demand, but by value.”

Ron Baker

 

Pricing Resources

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