This Week in Pricing > 2/25/17

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 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

Politicians are 100% wrong on health care: Column | USA Today

Politicians are 100% wrong on health care: Column | USA Today

Americans generally don’t file for bankruptcy because of the price of food, clothing, technology, housing or any other product or service. It is not a coincidence that health care, the one and only item permitted to be sold in the U.S. at different prices for different people, has imposed tremendous financial hardship — and was […]

 

Pricer’s Points: A Question About Pricing Models | Mark Stiving

Pricer’s Points: A Question About Pricing Models | Mark Stiving

“Mark, I was in your pricing class yesterday (I was the obnoxious one wearing a baseball cap) and it was very informative, I learned a lot. “I know you’re very busy, and I apologize for the imposition, but one thing we didn’t go over were different pricing models. For example, in our business we have […]

 

Canadian Dealers Export Thousands of Pickup Trucks to U.S. in Currency Arbitrage | Trucks.com

Canadian Dealers Export Thousands of Pickup Trucks to U.S. in Currency Arbitrage | Trucks.com

While the rest of the auto industry frets over potentially disruptive U.S. tariffs, a group of Canadian dealers is mining cross-border pricing differences to make a profit off of pickup trucks. Their enterprise — dubbed Canadian Super Sellers — makes a 4 to 5 percent margin by taking trucks purchased at lower prices north of […]

 

Industry Leaders SPA and Tour de Force Announce Partnership | Strategic Pricing Associates

Industry Leaders SPA and Tour de Force Announce Partnership | Strategic Pricing Associates

Strategic Pricing Associates and Tour de Force to deliver a joint solution. Strategic Pricing Associates (SPA) Inc. and Tour de Force Inc., two market-leading, respected providers of technology and training solutions to the distribution and manufacturing industries, have announced a Partnership to deliver an integrated pricing/quoting solution based on their respective platforms. Tour de Force, […]

 

Day 1 at JP Morgan: Pricing is top of mind for pharma CEOs | Medical Marketing and Media

Day 1 at JP Morgan: Pricing is top of mind for pharma CEOs | Medical Marketing and Media

There is also a general feeling of camaraderie. “Do you want a coffee?” asked the CFO of the small Finnish biotech I happened to be sharing a table with in the packed hotel lobby. “Are you going to the tweet-up?” asked a reporter at The Wall Street Journal. No one is here to make friends, […]

 

PhRMA distances itself from Marathon | BioPharma Dive

PhRMA distances itself from Marathon | BioPharma Dive

Dive Insight: Marathon Pharmaceuticals added to still-raging firestorm over drug pricing by setting the list price of Emflaza (deflazacort), an old steroid, at the steep price of $89,000 per year. The drug, which was approved by the Food and Drug Administration last week for DMD, has long been available in other countries for less than […]

 

Gov. Malloy Proposes Bill to Eliminate Minimum Alcohol Pricing Regulation | NBC Connecticut

Gov. Malloy Proposes Bill to Eliminate Minimum Alcohol Pricing Regulation | NBC Connecticut

Gov. Dannel Malloy has submitted a proposal to eliminate minimum price laws on alcohol. Under the current law, which was adopted in 1981, retail stores must sell alcohol at prices set by liquor wholesalers. The governor said this law results in unnecessarily high prices for consumers. According to the governor’s office, Connecticut is the only […]

 

Will President Trump directly negotiate Medicare prescription drug pricing? | IPWatchdog.com

Will President Trump directly negotiate Medicare prescription drug pricing? | IPWatchdog.com

Whether prospective voters took Mr. Trump’s pre-election statements “seriously but not literally” or visa-versa, President Trump’s post-election conduct has DC industry advisors guessing rather than predicting. What happens next at 1600 Pennsylvania Avenue is simply unpredictable. And because White House staff must create coherency between campaign promises, like Mexico’s paying for “the wall” and their […]

 

Demand-based movie pricing – a solution to soaring ticket prices | The News Daily

Demand-based movie pricing – a solution to soaring ticket prices | The News Daily

Discovering half-empty cinema screens at Village Cinemas’ Jam Factory in Prahran, Melbourne, on a Wednesday afternoon, entrepreneurs Shane Thatcher and Sonya Stephen spotted an opportunity. “The answer is introducing a more demand-related approach to pricing,” Mr Thatcher said. “Economics tells us this will drive up attendance and overall cinema revenue.” Working with an Uber-like model, they […]

 

 

More Headlines

Audi sticking by Q2 pricing strategy | Car Advice

Audi sticking by Q2 pricing strategy | Car Advice

Audi’s local arm has defended its premium price positioning for the all-new Q2 baby SUV, saying it will go with “what the market wants” rather than try to directly compete with more affordable mainstream rivals. When questioned on the Q2’s value proposition against something like a Mazda CX-3 – which starts at less than half the […]

 

Management Made Right Changes And Therefore GNC Is A Buy – GNC Holdings, Inc. | Seeking Alpha

Management Made Right Changes And Therefore GNC Is A Buy – GNC Holdings, Inc. | Seeking Alpha

The revenue has declined for several quarters already and there is a perception that this trend is going to continue until the company will go to bust. The most important reason of declining revenues is that the company lost its touch with the consumers. The company charged 10 dollars for the premium membership in order […]

 

As the Billable Hour Model Fades Away, Senior Pricing Execs Emerge as Legal Industry Profitability Czars | Law.com

As the Billable Hour Model Fades Away, Senior Pricing Execs Emerge as Legal Industry Profitability Czars | Law.com

In their recently published “2017 Report on the State of the Legal Market,” the Center for the Study of the Legal Profession at Georgetown University Law Center, and Thomson Reuters Legal Executive Institute, noted that 2017 marks the 10-year anniversary of the Great Recession–and the corresponding impact on the legal market that followed: One of […]

 

For Continued Growth, Music Streaming Needs Product & Pricing Innovation [MARK MULLIGAN] | hypebot

For Continued Growth, Music Streaming Needs Product & Pricing Innovation [MARK MULLIGAN] | hypebot

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 […]

 

India’s Jio introduces its first price plans | Telecom Asia

India’s Jio introduces its first price plans | Telecom Asia

Disruptive new Indian 4G operator Reliance Jio’s free services offer will soon be coming to an end, but the operator has announced an aggressive new pricing strategy in a bid to retain as many of its new customers as possible. Jio launched nationwide services in September last year, but made all services available for free […]

 

Watch auctions: towards two-tier pricing | Watchonista

Watch auctions: towards two-tier pricing | Watchonista

Luxury costs the price we are willing to pay Premium lots, defined as the rarest pieces, offered for sale in their original condition and with pedigree, are increasing in price at each new sale. This trend has already been observed in the collector car market, which has witnessed increasingly significant price increases for cars in […]

 

Why 3 Is The Magic Number in a Pricing Strategy | Ninjodo

Why 3 Is The Magic Number in a Pricing Strategy | Ninjodo

Have you ever wondered why prices tend to have 90, 95 or 99 cents? You know, $19.99 instead of $20? It may be small change, but the 1 cent difference can actually skew people to buy a product. This is called a pricing strategy and it’s designed to play with your psychology. It’s the oldest […]

 

Typical property asking price up £6k in February 2017 | This is Money

Typical property asking price up £6k in February 2017 | This is Money

Property sellers are being warned of the risks of listing their home at an unrealistic price as buyers are shunning ambitious listings. Newly-listed asking prices increased two per cent monthly in the month to mid-February, a jump of £5,986 compared to January, data from Rightmove reveals. But it warned that the property market is cooling […]

 

Flipping Houses for Top Dollar means Right Pricing | Jack Rainmaker

Flipping Houses for Top Dollar means Right Pricing | Jack Rainmaker

My observation of studying The MLS of the last four years that literally every property, even properties that I thought were priced too high, not worth the money, ended up selling at near or close, to their listing price. Now it may have taken four months five months six months, but the property did eventually […]

 

Console Price Evolution: Nintendo Switch | AUSRETROGAMER

Console Price Evolution: Nintendo Switch | AUSRETROGAMER

Cuponation Australia, a specialist in savings, delved into some market research to see how the prices of videogame consoles has changed through the last 30 years. The data includes prices from the launch of the first Nintendo video console in 1985 till their latest console release, the Nintendo Switch (March 2017). To see the evolution […]

 

Time for Growers to Start Pricing Their 2017 Crop | Cotton Grower

Time for Growers to Start Pricing Their 2017 Crop | Cotton Grower

Textile mills chipped away at their on-call sales this week, disposing of nearly 50% of them. However, most of the trading was not outright selling, but spread trading (buying the March contract and selling the May contract). Thus, the trading range continues, and the nearby March contract – now less than a week before first […]

 

As pricing criticism mounts, Lilly, other drugmakers roll out pay for performance | IBJ.com

As pricing criticism mounts, Lilly, other drugmakers roll out pay for performance | IBJ.com

With the pharmaceutical industry facing withering criticism over the cost of medicines, Eli Lilly and Co. and some of its rivals are embracing a partial solution that doesn’t involve outright price cuts: They’re refunding some of the money to insurers if a drug doesn’t work as expected. The concept of pay for performance isn’t new […]

 

Drug Pricing 2017’s Challenge Confronting Biopharma | Life Science Leader

Although just a part of total healthcare costs, drug prices have certainly attracted a lot of comments from politicians and mentions in the press. If the issue was limited to being primarily a talking point exploited by politicians to generate populist support, it might be one thing; however, the politicians’ commentary is giving voice to […]

 

Minimum liquor pricing bill to get hearing at State Capitol Tuesday | FOX 61

Minimum liquor pricing bill to get hearing at State Capitol Tuesday | FOX 61

HARTFORD – Governor Dan Malloy is popping the cork on a proposal to get rid of minimum prices for alcohol in the state. He announced a legislative proposal Monday to repeal the current law which forces package stores to sell alcohol at prices put in place by liquor wholesalers. Malloy argues this will give more […]

 

How Facebook and Google could disrupt the subscription model for news | Monday Note

How Facebook and Google could disrupt the subscription model for news | Monday Note

Based on your zip code, your browser (and the cookies stored in it), and the device you use (Mac, PC, iPhone, Android), you might get a slightly different price for exactly the same item, whether it is a hotel room, an entertainment ticket or even a stapler. The news sector has been almost untouched by […]

 

Staying one step ahead of road pricing | Trakm8

Staying one step ahead of road pricing | Trakm8

The Mayor of London, Sadiq Khan, has announced a new Toxicity charge or T-charge zone in central London. Coming into force on 23rd October, it will apply to pre-Euro 4 vehicles – typically those diesel and petrol vehicles registered before 2006 – with up to 10,000 vehicles expected to be potentially liable for the new […]

 

The Sahara Model of Value-Pricing | THCB

The Sahara Model of Value-Pricing | THCB

Surmising that the dying man’s demand for water is bound to be highly price-inelastic (the economist’s jargon for “insensitive to price”), one of the camel riders jumps off his camel and waves a bottle of water in front of the dying man’s face, asking him: “What would you give me for this bottle of water?” […]

 

Microsoft raises Surface prices because of Brexit | PC Retail

Microsoft raises Surface prices because of Brexit | PC Retail

Microsoft has announced an increase in pricing for its Surface and Surface Book computers in the UK by more than £400 for some models as a result of post-Brexit sterling valuation drops. This is not an unprecedented move as the likes of Sonos, Apple and HP have all raised prices of computers, speakers and apps by […]

 

Do iPhones Cost Too Much? | TechShout

Do iPhones Cost Too Much? | TechShout

Although smartphones have been on the market for years, the cost of Apple’s iPhone technology has remained relatively high. While the price of laptop computers and MP3 players has generally fallen given the amount of computing power that is packed into these devices, iPhones have maintained their high value. Are consumers over-valuing this particular brand […]

 

Analytics and Pricing Decisions | Data Science Central

Analytics and Pricing Decisions | Data Science Central

Enterprises make critical pricing decisions very often, these decisions have a major impact on their profitability index and also determines the bottom line of the organization. Often, managers and analysts are forced to determine prices and discounts with limited available information and inefficient toolsets. Pricing Analytics enables the leadership of a firm to proactively manage […]

 

Amazon’s Featured Sellers Don’t Always Have The Best Prices Upfront | Lifehacker Australia

Amazon’s Featured Sellers Don’t Always Have The Best Prices Upfront | Lifehacker Australia

When you go to a product’s page on Amazon, you might expect to be shown the best price. But new research suggests Amazon is more likely to put merchants who use algorithmic pricing front and centre, and they tend to charge you a little more than other sellers. Algorithmic pricing is a service independent sellers […]

 

Cost Discipline and Better Pricing Have Cushioned Gap’s Margins | Market Realist

Cost Discipline and Better Pricing Have Cushioned Gap’s Margins | Market Realist

Gap’s margins remain intact While the company is likely far from delivering a satisfactory performance, its cost-cutting initiatives, correct pricing strategy, and disposal of non-profitable businesses have helped Gap in maintaining healthy margins. As a result, its operating margin improved from 6.5% in 1Q16 to above 11% in the following two quarters. Comparing Gap’s margin to […]

 

Mobility pricing: Metro Vancouver mayors concerned about BC commitment | Vancouver Sun

Mobility pricing: Metro Vancouver mayors concerned about BC commitment | Vancouver Sun

An independent commission is set to start work on a region-wide mobility pricing strategy this spring, but Metro Vancouver mayors are concerned that the commission’s work won’t be supported by the provincial government. Mobility pricing — which includes road use fees — has been proposed as a way to help fund the upcoming second and third phases […]

 

Featured Content

Book: 8 Keys to Price Optimization

Book: 8 Keys to Price Optimization

Summary: Price optimization enables companies to move beyond cost-plus pricing and determine the range of prices that could be charged for a variety of customers and products. Price optimization can increase current operating income by 1 to 4% of sales, which in many cases will translate into a 20 to 50% increase in operating income. The most sophisticated […]

 

No Sacred Cows | Strategic Pricing Solutions

No Sacred Cows | Strategic Pricing Solutions

The year 2016 is almost over.  All businesses should reflect on what has worked, and what has not worked; and they should be prepared to adjust in 2017.  That evaluation should include reviewing the results of decisions made regarding pricing strategies and tactics.  Equally important, the evaluation should be rigorous and thorough, and there should […]

 

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: June 8-9, 2017

Location: Mandarin Oriental Las Vegas, Nevada

 

Conference: European Pricing Summit | Finance iQ

Conference: European Pricing Summit | Finance iQ

Date: June 27-28, 2017

Location: Palace Hotel in Berlin, Germany

About the European Pricing Summit and Benchmarking Survey 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 […]

 


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

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“Consumers rarely respond to the lower prices enough to offset lower margins.”

     – KURT JETTA

 

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