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This Week in Pricing > 2/18/17

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.

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Strategic Pricing Associates

SPA is the leading provider of pricing analytics to 100′s of complex companies of all types: manufacturing, distribution, equipment, services, and software/technology products. The benefits are staggering; and they are typically accomplished in less than 90 days. Our typical client improves profitability by two to four percent of sales. SPA Clients include over 200 manufacturing companies including Parker HannifinRockwellGEExxon MobilCaterpillar as well as over 400 distributors including Harry Cooper Supply CompanyIndustrial Distribution GroupAH Harris, and ThermoFisher Scientific.

Click a link below to learn more…

 

Top Headlines

Ola, Uber strike: Surge pricing returns, passengers pay extra for app-based cab rides | Hindustan Times

Ola, Uber strike: Surge pricing returns, passengers pay extra for app-based cab rides | Hindustan Times

Ola and Uber drivers have pulled their cabs off the roads in Delhi-NCR demanding that their companies reinstate bonuses that they had doled out in the initial days, reduce their hiked commission rates, limit the number of cabs registered on the app and shorten working hours, among other issues. With the agitators having threatened to […]

 

Meet the Australian couple behind Choovie, world-first Uber-style app for movies | The Daily Advertiser

Meet the Australian couple behind Choovie, world-first Uber-style app for movies | The Daily Advertiser

Maybe it was just because they didn’t have much else to keep them busy, but when security guards noticed a couple of punters dashing from cinema to cinema at the Jam Factory one Wednesday afternoon they quickly sprang into action. “What do you think you’re doing?” they asked Shane Thatcher and Sonya Stephen. Research, they […]

 

Price Wrong and Lower Your Profits | The Huffington Post

Price Wrong and Lower Your Profits | The Huffington Post

Too many respond to increased competition by lowering prices. The problem is that lowering the price often comes with unintended consequences. It can lower the image of your product and send the wrong message to customers that recently paid more. What is a company to do? The answer is set the price at the right […]

 

Walt Disney World Ticket Pricing Breakdown | TouringPlans.com Blog

Walt Disney World Ticket Pricing Breakdown | TouringPlans.com Blog

Yesterday, I shared with you that Walt Disney World tickets will be increasing beginning today. In addition, to that, there were a few other changes that occurred as well that include: Pricing that includes a range of options All new tickets will have an expiration date that the ticket must be used by. (Previously, only […]

Lawmakers warn EU pharma industry about drug pricing | EurActiv.com

Lawmakers warn EU pharma industry about drug pricing | EurActiv.com

Healthcare, not trade The resolution underlined that pharma companies were one of the pillars of health care rather than “a mere object of trade”. “Insufficient access to essential medicinal products and high prices of innovative medicines pose a serious threat to the sustainability of national health care systems,” the MEPs said in the resolution, pointing out […]

 

Tyson says SEC is investigating chicken-pricing allegations | Chicago Tribune

Tyson says SEC is investigating chicken-pricing allegations | Chicago Tribune

Accusations of collusion that have dogged the American chicken industry in recent months took a new turn after Tyson Foods, the country’s largest producer, said the U.S. Securities and Exchange Commission is investigating the allegations and sent it a subpoena. The company said Monday in a filing that based upon the limited information it has, […]

 

Does Disneyland Provide A Guide To The Future Of Personalized Medicine? | Forbes

Does Disneyland Provide A Guide To The Future Of Personalized Medicine? | Forbes

Disneyland and other amusement parks often charge a high entrance price at the gate but low prices (or nothing at all) for the rides inside. In healthcare, personalized medicines often have the same two-part pricing: companion diagnostic tests are the gate, and  drug therapies are the rides. Unlike at Disneyland, however, ownership of the gate […]

 

Here’s how Google’s own ads impact bids & pricing in AdWords auctions | Top Seo Soft

Here’s how Google’s own ads impact bids & pricing in AdWords auctions | Top Seo Soft

Google and its sibling companies at Alphabet collectively bid on thousands of keywords in AdWords. That has been going on for years. The search giant has said its ad buying does not “directly inflate” pricing for other advertisers because “advertisers are charged as if it wasn’t bidding.” However, that’s not quite accurate. Participating in its […]

Six Sigma Pricing > Control: Set and Enforce Pricing Authority Levels and Repeat Previous Steps | Strategic Pricing Associates

Six Sigma Pricing > Control: Set and Enforce Pricing Authority Levels and Repeat Previous Steps | Strategic Pricing Associates

In the Control phase, our job is to make sure the improvements we have put in place – stay in place. To achieve this you want to chart performance against upper and lower control limits. Run charts show single values plotted over time and indicate trends of process & shifts in process performance. The key to success […]

 

National Pharmaceutical Pricing Authority slashes stent prices by up to 85% | Times of India

National Pharmaceutical Pricing Authority slashes stent prices by up to 85% | Times of India

The National Pharmaceutical Pricing Authority on Monday fixed the ceiling price of drug eluting stents (DES) and bioresorbable stents at Rs 30,000 and that of bare metal stents at Rs 7,500. The prices will be effective from notification on February 14. This comes as a huge relief to lakhs of patients who have to undergo […]

 

Sanders and Cummings asking about Marathon Pharma’s new $89,000 drug | Business Insider

Sanders and Cummings asking about Marathon Pharma’s new $89,000 drug | Business Insider

Congress has some questions about the price of a decades-old drug that just got approved in the US to treat a rare disease. Senator Bernie Sanders and Rep. Elijah Cummings have sent a letter to the CEO of Marathon Pharmaceuticals, addressing the high list price of Emflaza (known generically as deflazacort), a drug that was […]

 

7 Habits of Highly Effective Pricing | Strategic Pricing Solutions

7 Habits of Highly Effective Pricing | Strategic Pricing Solutions

Far too often we see organizations who say they want to improve their margins through better pricing, but their actions belie their statements.  Effective pricing does not occur by chance, and it does not result from following trite slogans.  Likewise, it is not an outcome of a one-time initiative from pricing consultants.  Effective pricing comes […]

 

EpiPen alternative hits market for seven times the price | NY Daily News

EpiPen alternative hits market for seven times the price | NY Daily News

The anti-allergy medication billed as an “accessible and affordable” alternative to EpiPens actually has a list price that is more than seven times higher as part of a complicated pricing system lambasted by some others in the industry. Drug company Kaleo had trumpeted its product Auvi-Q last year after an uproar surrounding the EpiPen, which […]

 

Oil prices have doubled in a year. Here’s why | CNN Money

Oil prices have doubled in a year. Here’s why | CNN Money

The confirmation caps a remarkable year for OPEC, which was forced to devise a plan to boost prices after they fell to $26 per barrel in February 2016. The price collapse — to levels not seen since 2003 — was caused by months of growing oversupply, slowing demand from China and a decision by Western […]

 

 

More Headlines

Row breaks out among South Gloucestershire councillors over secret meeting about school meal charges | Gazette Series

Row breaks out among South Gloucestershire councillors over secret meeting about school meal charges | Gazette Series

“This specific report contained commercially confidential information and it was therefore not acceptable for it to be discussed in the public domain.” Speaking of the decision, Conservative Cllr John Goddard, Lead Member for Resources, explained that the money made from school meals “goes directly towards paying for other vital public services”. He added: “Handing private […]

 

12 cans of Heineken for €20? This is how minimum pricing could affect your pocket | thejournal.ie

12 cans of Heineken for €20? This is how minimum pricing could affect your pocket | thejournal.ie

The new Public Health (Alcohol) Bill has been under consideration by the government since late 2015 but has not yet been enacted. It is a far-reaching bill with new legislation on aspects such as minimum pricing, advertising and product labelling. Last week, we took a look at the impact the law’s advertising restrictions would have and, […]

 

Trouble at till …Tesco’s pricing problems are a lesson to us all! | The Vision of the Pension Playpen

Trouble at till …Tesco’s pricing problems are a lesson to us all! | The Vision of the Pension Playpen

So what’s with all this? When we’re at the till, we’re spending a few pounds, when we buy financial services, we’re spending thousands. We see a rate and believe we’re getting it. There is no till receipt telling us what we’ve actually paid. We only find out what’s come out , years later, and then […]

 

Adelaide’s Michell wool plant chooses shutdowns over high spot power prices | ABC News

Adelaide’s Michell wool plant chooses shutdowns over high spot power prices | ABC News

High spot prices for electricity in recent days have led South Australian businessman David Michell to shut down his wool processing factory in northern Adelaide. “In the past week, we’ve shut down two or three times — it was cheaper than paying the power bill,” Mr Michell said. Wool processing is energy intensive so when […]

 

8 Killer Tips On Marketing Pricing Strategies | Charlie Hutton

8 Killer Tips On Marketing Pricing Strategies | Charlie Hutton

What is your Marketing Pricing Strategy? Well, it depends. It depends on the value vs price, on how targeted the prospects are, on the price point itself, on how the prospect got to your page, etc. But I can offer you some helpful tips that’ll make marketing pricing strategies easier for you. 1. Stop being […]

 

Pricing Transparency in eSignatures at Signority: Where your money goes | Signority

Pricing Transparency in eSignatures at Signority: Where your money goes | Signority

For many, the price of a product or service is merely a number on a screen that they need to pay when they want to make a purchase. But the cost of this essential product or service is much more than that; it is made up of many different costs that, together, constitute to the […]

 

Coles price cuts keep on coming | Herald Sun

Coles price cuts keep on coming | Herald Sun

Managing director John Durkan says there will be no change in strategy at the heavyweight grocer, which launched its highly successful everyday low pricing strategy seven years ago. The bullish statements from Mr Durkan follow a report by investment bank UBS speculating that Coles and Woolworths were set to ease up on aggressive price discounting […]

 

Whole Foods Market makes shift in strategy | IGD Retail Analysis

Whole Foods Market makes shift in strategy | IGD Retail Analysis

Shift 1: focusing on its core customers A key element of this is accelerating category management implementation, following pilots in a small number of categories, which will impact its merchandising, pricing, marketing and loyalty strategies. To support this, it will partner with dunnhumby, which will apply its customer-data models to make more informed decisions in […]

 

Marathon Pharmaceuticals criticized for outrageous pricing of drug | CNBC

Marathon Pharmaceuticals criticized for outrageous pricing of drug | CNBC

Stung by criticism of its plan to charge a whopping $89,000 a year in the U.S. for a muscular dystrophy drug that costs less than $1,500 elsewhere, Marathon Pharmaceuticals on Monday said it was “pausing” that rollout for an unspecified amount of time. Marathon also said that American patients who now receive that drug, deflazacort, […]

 

SuperChoice takes shine to cloud ‘spot pricing’ | iTnews

SuperChoice takes shine to cloud ‘spot pricing’ | iTnews

Cuts cost out of infrastructure services. SuperChoice is reworking its applications to run across multiple public clouds, enabling the company to take advantage of “spot pricing” and significantly lower its infrastructure costs. Chief information officer Ian Gibson told iTnews that the company, which provides hosted superannuation management and clearing house software, conducted its own research […]

 

Three pricing strategies to boost your startup’s competitive edge | StartupSmart

Three pricing strategies to boost your startup’s competitive edge | StartupSmart

Aussie retailers are doing it tough. The Christmas period failed to meet expectations, large internationals like Amazon are knocking on the door, and consumers are demanding bargain prices. It’s no surprise then that many retailers have fallen into the trap of relying on discounts to win business. But anyone can discount; it’s a lazy form […]

 

How Farm Milk is Priced | International Dairy Foods Association

How Farm Milk is Priced | International Dairy Foods Association

Calculating the minimum prices for these different classes begins with valuing cheese, dry whey, NFDM and butter using weekly average wholesale market price trends monitored by the U.S. Department of Agriculture (USDA). The Class IV price is based on NFDM and butter prices; the Class III price is based on cheese, dry whey and butter […]

 

Well-Conceived Real-Time Pricing Strategies Increase Online Sales | Cue Connect Blog

Well-Conceived Real-Time Pricing Strategies Increase Online Sales | Cue Connect Blog

Data-driven flexible real-time pricing helps solve one of the biggest problems in retailing: What to charge for the product. Gone are the days when merchants have to guess what to charge and hope for the best. Comparisons with competitors’ prices are a great start, but merchants can also devise much more subtle and context-driven strategies. […]

 

Expect T-Mobile to Continue Inflicting Pain on Verizon and AT&T | The Street

Expect T-Mobile to Continue Inflicting Pain on Verizon and AT&T | The Street

With the company charging $70 per month for 1 unlimited line, $100 for 2 lines and $160 for 4 lines — and with taxes and fees included as of January — T-Mobile’s unlimited pricing still undercuts that of its larger rivals. Not counting taxes/fees, Verizon charges $80 per month for 1 line, $140 for 3 […]

 

Opinion: Putting dynamic pricing back on the shelf | Retail Week

Opinion: Putting dynamic pricing back on the shelf | Retail Week

Reactive pricing Improvements in technology are providing the opportunity to experiment with in-store dynamic pricing initiatives, following the lead of online retailers like Amazon and eBay, who flex pricing in response to demand and supply. Could digital display allow food retailers to experiment with the same concept for perishable goods? In a supremely competitive environment, […]

 

How we de-risked our SaaS pricing strategy | Front

How we de-risked our SaaS pricing strategy | Front

The pain point that every single B2B company shares is pricing. Countless philosophies flood the web on how to price your product (just see here, here, and here). More than 500 pricing products and services are offered in the tech space. All of this points to the fact that, when it comes to pricing, most […]

 

Marathon pauses Emflaza launch amid pricing furore | PMLiVE

Marathon pauses Emflaza launch amid pricing furore | PMLiVE

They want information on the cost of trials as well as licensing rights to the drug, the calculations used for setting its price and estimates of how much revenue Marathon intends to make from it. A report in Endpoints suggests that the cost of developing the drug is probably somewhere between $50m and $75m, and […]

 

Is Netflix Inc. Falling Behind in the World’s Fastest Growing Internet Market? | The Motley Fool

Is Netflix Inc. Falling Behind in the World’s Fastest Growing Internet Market? | The Motley Fool

Netflix’s pricing is a big problem Netflix’s biggest problem in India is pricing. In a country where consumption of pirated content is rampant, Netflix needed to get its pricing right before anyone else in order to drive adoption of its service. According to a survey by Irdeto, 66% of polled customers watch pirated content in […]

 

Did You Price Your Product Right? How to Know. | Entrepreneur

Did You Price Your Product Right? How to Know. | Entrepreneur

After building your product, pricing it is the hardest puzzle you’ll face. Get it right and making a profit is easy. Get it wrong and you may bankrupt your business fast. But it isn’t a guessing game; there is a right price, and you can figure it out by answering these three questions. 1. What’s […]

 

Digital ed tech pricing library brings transparency to procurement | Education Dive

Digital ed tech pricing library brings transparency to procurement | Education Dive

When Hal Friedlander was chief information officer of the New York City Department of Education, one of his routine frustrations was the lack of easy access to pricing information about ed tech products. It could take a month to adequately respond to a question about software options for better supporting English learners. Since leaving the […]

 

Sugar pricing: time for a sweeter deal? | CGA Peach

Sugar pricing: time for a sweeter deal? | CGA Peach

Turbulence in sugar pricing has led to challenges in the foodservice’s supply chain lately. And as the new Foodservice Price Index from Prestige Purchasing and CGA Strategy shows, there is more change—both positive and negative—still in store. As we shared in my blog post last week, wholesale price rises are being particularly keenly felt in […]

 

IBB: Merck Joins The Drug Pricing Coalition For Transparency – iShares Nasdaq Biotechnology ETF| Seeking Alpha

IBB: Merck Joins The Drug Pricing Coalition For Transparency – iShares Nasdaq Biotechnology ETF| Seeking Alpha

Introduction Although the political uncertainty has abated, Donald Trump has been able to single handily influence the movement of specific stocks [i.e. Lockheed Martin (NYSE:LMT), Ford (NYSE:F), Boeing (NYSE:BA) and others] and sectors (i.e. automotive, biotechnology, defense and healthcare). The overall healthcare sector has become volatile on the heels of any statement or tweet from […]

 

Mayweather v McGregor ‘pricing not difficult’ as bookies expect mass of wagers on super-fight | World Boxing News

Mayweather v McGregor ‘pricing not difficult’ as bookies expect mass of wagers on super-fight | World Boxing News

Mayweather, despite gearing up to turn 40 next week, is almost unbackable against McGregor, who MMA fans can bet on at a decent price for the contest. Reports from Ireland suggest the fight is on the verge of being announced, possibly by the end of this month, and bookies are expecting a flood of bets […]

 

Sweden Reviews Financing and Pricing | CHCUK

Sweden Reviews Financing and Pricing | CHCUK

Review Under the current pricing and reimbursement system, medicinal products aimed at smaller patient groups (eg, orphan drugs) will have difficulty proving cost effectiveness within QALY thresholds used by the TLV, due to high research and development costs and a very high price per patient ratio. The effectiveness of such a medicinal product is also […]

 

Minimum pricing among new alcohol laws facing wine lovers | The Irish Times

Minimum pricing among new alcohol laws facing wine lovers | The Irish Times

The Public Health (Alcohol) Bill currently working its way through the Oireachtas could have profound effects on the way we drink. Minimum pricing makes some sense to me, although a ban on below-cost selling might be more effective. However, we already have some of the most expensive alcohol in Europe, so obviously price alone will […]

 

Cheap Eats, Cheap Labor: The Hidden Human Costs Of Those Lists | NPR

Cheap Eats, Cheap Labor: The Hidden Human Costs Of Those Lists | NPR

This view of people of color as sources of “cheap” labor bleeds into our restaurant culture: Immigrant food is often expected to be cheap, because, implicitly, the labor that produces it is expected to be cheap, because that labor has historically been cheap. And so pulling together a “cheap eats” list rather than, say, an […]

 

Featured Content

Six Sigma Pricing > Control: Set and Enforce Pricing Authority Levels and Repeat Previous Steps | Strategic Pricing Associates

Six Sigma Pricing > Control: Set and Enforce Pricing Authority Levels and Repeat Previous Steps | Strategic Pricing Associates

In the Control phase, our job is to make sure the improvements we have put in place – stay in place. To achieve this you want to chart performance against upper and lower control limits. Run charts show single values plotted over time and indicate trends of process & shifts in process performance. The key to success […]

 

 

 

SPASigma – Build, Expand, and Retain World-Class Negotiation Skills | Strategic Pricing Associates

SPASigma is a new program to build, expand, and retain world-class negotiation skills throughout your organization. Using a unique combination of in-person seminars and an online academy with reinforcement activities, videos, and quizzes, SPASigma will set your team on the path to mastery of the art and science of negotiation. Improved pricing increases profit – Negotiation […]

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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“This thing called ‘price’ is really, really important. I still think that a lot of people under-think it through. You have a lot of companies that start and the only difference between the ones that succeed and fail is that one figured out how to make money, because they were deep-in thinking through the revenue, price, and business model. I think that’s under-attended to generally.”

     – Steve Ballmer

 

Pricing Resources

Pricer’s Points Blog Series

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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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.