This Week in Pricing > 2/3/18

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

7 Keys For Pricing Managers Ebook | Professional Pricing Society

7 Keys For Pricing Managers Ebook | Professional Pricing Society

A Pricing Manager develops and implements pricing strategies for a company’s products or services. They work closely with several other departments, including sales, production, marketing and public relations. This position is growing in popularity within a changing pricing industry, and professionals are sharpening their skills to prepare. We have created a quick guide to outline […]

The case against the Uber economy | The Brock Press

The case against the Uber economy | The Brock Press

Maybe you have a stable, full-time job, and are not concerned whatsoever with troubling trends in the world of work (you should be). Your only worry should be how Uber affects you as a consumer. But the outlook for that side of things isn’t great either. Uber functions on a model of ‘surge pricing,’ (i.e., […]

 

States take on drug prices; Big Pharma takes on states | NBC News

States take on drug prices; Big Pharma takes on states | NBC News

It was expected to be a perfunctory state house meeting — three lobbyists and a legislator discussing a proposal to educate Louisiana doctors about the price of drugs they prescribe. The bill seemed like a no-brainer in a country where even decades-old medicines can cost thousands and consumers are urged to make smart choices in […]

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Seattle’s Soda Tax Is An Absolute Disaster – And Business Leaders Are Furious… | The Federalist Papers

Seattle’s Soda Tax Is An Absolute Disaster – And Business Leaders Are Furious… | The Federalist Papers

Local businesses are already providing feedback on the city of Seattle’s excessive new tax on sugary drinks and it’s not positive. The liberal-dominated City Council rammed through the 1.75 cents per ounce tax on sweetened beverages that affected sodas, energy drinks, sports drinks and non-milk-based products which went into effect on January 1st. The sticker […]

 

Grocery shoppers could move online twice as fast as originally anticipated | CNBC

Grocery shoppers could move online twice as fast as originally anticipated | CNBC

The shift is already evident: 49 percent of all shoppers bought a packaged good online within the last three months. That includes 61 percent of millennials and 44 percent of baby boomers. It also includes 54 percent of affluent households and 40 percent of low-income households. Grocery stores, cognizant of the price transparency the web […]

 

In MIT 3-Step Price Optimization Test, Sales and Profits Soar | WWD

In MIT 3-Step Price Optimization Test, Sales and Profits Soar | WWD

Developing a price optimization strategy used to be a complicated affair that involved various marketing research, in-store and online testing, analytics and consumer surveys — and even focus groups. But advances in technology are simplifying the process. And in a test involving Rue La La Inc., Groupon and B2W Digital, MIT professor of engineering systems David […]

Consumers Beware: Amazon Monopoly Will Price Gouge | IBD

Consumers Beware: Amazon Monopoly Will Price Gouge | IBD

What ails the retail industry is no secret: Amazon. In 2016, Amazon sold six times as much online as Walmart, Target, Best Buy, Nordstrom, Home Depot, Macy’s, Kohl’s and Costco. Combined. In 2017, it accounted for nearly 50% of all online sales. Imagine where Amazon will stand in 2018 and beyond. But while the e-commerce giant’s threat to retailers and […]

 

Pricer’s Points: Price discrimination: best practice, or a crime? | Ian Tidswell

Pricer’s Points: Price discrimination: best practice, or a crime? | Ian Tidswell

A recent article in the New York Times got me thinking about how to stay on the right side of the law, while still extracting the most from pricing. The article talks about the biggest no-no of pricing: colluding with competitors.  NEVER do this.  Never let your employees do this.  You will get caught and […]

Tester, Daines fight for transparency in drug pricing | American Pharmacists Association

Tester, Daines fight for transparency in drug pricing | American Pharmacists Association

“We have heard from numerous pharmacies in our communities—many of which are rural or medically underserved—that these fees cause so much uncertainty that they do not know if they can continue to serve American families,” wrote Tester and Daines. “This sort of opacity in the real cost of prescription drugs is exactly why Americans are […]

American Express Global Business Travel 2018 Forecast Indicates Moderate Price Increase Across Air, Hotel and Ground Transportation | hospitalitynet

American Express Global Business Travel 2018 Forecast Indicates Moderate Price Increase Across Air, Hotel and Ground Transportation | hospitalitynet

Air: While strong demand is expected to drive airfare increases across all regions, overcapacity on certain routes, aggressive expansion by low-cost carriers (LCCs), and low oil prices will keep them in check. Full-service carriers are increasingly unbundling fares and adding premium economy seating options to entice consumers to better compete with LCCs. Hotel: Hotel performance […]

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More Headlines

Price competitiveness and transparency is vital to WA sheep industry | Sheep Central

Price competitiveness and transparency is vital to WA sheep industry | Sheep Central

SHEEP and lamb price competitiveness and transparency with the eastern states is vital to the future of Western Australia’s sheep meat and wool industry, according to WAFarmers livestock executive officer Kim Haywood. Ms Haywood this week said a report exploring Australian sheep market structures and systems has acknowledged the significant price differences paid by meat […]

 

Xometry CFO’s Quest for “The Price Is Right” | CFO

Xometry CFO’s Quest for “The Price Is Right” | CFO

At large companies, many CFOs are only peripherally involved in pricing decisions. It’s often different at smaller firms, where finance chiefs tend to wear more hats. But even there, it’s probably quite rare for pricing to be the CFO’s primary focus, as it is at Xometry. In fact, the opportunity to instill more rational pricing […]

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How did you get that Grab ride? | Channel NewsAsia

How did you get that Grab ride? | Channel NewsAsia

INNER WORKINGS OF DYNAMIC PRICING The engineering chief also helped demystify some aspects of dynamic (or surge) pricing, which was introduced here about 10 months ago. He noted that before this feature, pricings were “flat” for drivers in Singapore but, since then, taxi drivers are on average earning 20 per cent more than previously. On […]

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Bitcoin mania is hurting PC gamers by pushing up GPU prices | The Verge

Bitcoin and other cryptocurrencies like Ethereum, Ripple, and Litecoin have soared in value over the past year, thanks to continued interest from a range of investors. As the price of these cryptocurrencies has increased, graphics cards have also seen big price increases thanks to retail stock shortages. A range of mid- or high-end graphics cards […]

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Dynamic pricing has come to Philadelphia’s museums: here’s what it means | philly.com

Dynamic pricing has come to Philadelphia’s museums: here’s what it means | philly.com

Tickets to get into the Barnes Foundation gallery on the Benjamin Franklin Parkway are pricey, $25 for adults. But a few days ago, a reader called and asked when the Barnes had raised its price to $30. Good question. Welcome to exhibition-oriented dynamic pricing: Museum prices rise and fall depending on what there is to […]

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Unpaid Internships Are Pricing Young People Out Of The Best Jobs | Forbes

Unpaid Internships Are Pricing Young People Out Of The Best Jobs | Forbes

Young people are being priced out of some of the more desirable careers by the proliferation of unpaid internships, according to a new report. The cost of undertaking an internship means young people from low income families are effectively being blocked from entering some careers, hampering social mobility and reinforcing existing divides. Internships have become […]

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Should Grocers Go Nuts Over The Nutella Pricing Strategy? | PYMNTS.com

Should Grocers Go Nuts Over The Nutella Pricing Strategy? | PYMNTS.com

Lines to get into the store are a rare sight at any brick-and-mortar retailer these days, let alone a supermarket. That’s exactly what French supermarket chain Intermarche brought upon itself this week, however. The chain slashed prices on popular chocolate hazelnut spread Nutella and suffered Black Friday-like crowds and chaos as customers fought to stock […]

 

“Mr. Wonderful” of Shark Tank Gives Farmers Advice in Iowa Appearance | Mix 94.7 KMCH

“Mr. Wonderful” of Shark Tank Gives Farmers Advice in Iowa Appearance | Mix 94.7 KMCH

O’Leary says the big ag companies he invests in that supply fertilizer and seed to farmers have seen their margins go up every year while farmers are seeing their margins go down. He says farmers need to adapt some of the methods of those big companies. “If you don’t know what the price of a […]

 

Ohio House bill seeks to add transparency to drug pricing | Dayton Daily News

Ohio House bill seeks to add transparency to drug pricing | Dayton Daily News

Under current practice, in many cases, pharmacy staff are not allowed to talk in detail to customers about pricing, or reveal the real cost of the medication they’re buying, under threat of losing their contracts with pharmacy benefit managers and insurers. Douglas Anderson is a professor of pharmacy practice at Cedarville University. He said there […]

 

Rising drug prices, changing health care pay models likely to dominate in 2018 | Ionia Sentinel Standard

Rising drug prices, changing health care pay models likely to dominate in 2018 | Ionia Sentinel Standard

Many of the biggest issues in health insurance in 2018 took root last year: Skyrocketing prescription drug prices. Big changes in the way we pay for health care. The fate of the Affordable Care Act. Here is a breakdown of stories that are likely to develop throughout 2018: Drug costs: Prescription drug prices continued surging […]

 

Who’s Really to Blame for the Tim Hortons Fiasco? | Yahoo! Finance

Who’s Really to Blame for the Tim Hortons Fiasco? | Yahoo! Finance

While the backlash from the recent debacle following Tim Hortons will likely be a drop in the bucket when considering its actual impact on financial results, I do believe the problems could have been minimized or even avoided altogether if management had communicated with its franchisees more effectively. Proper communication makes all the difference. Consider […]

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Reporter’s Notebook: Sens. want light shed on costs of Rx drugs | The Daily Star

Reporter’s Notebook: Sens. want light shed on costs of Rx drugs | The Daily Star

Health care cost transparency is an idea with growing traction. This week, a bipartisan group of 20 senators expressed support for a proposal from the Centers for Medicare and Medicaid Services that would help increase the transparency and accuracy of prescription drug costs in Medicare Part D. The senators signed a letter encouraging CMS to […]

 

Can Digital Technology Open Up the Art World? | The New York Times

Can Digital Technology Open Up the Art World? | The New York Times

Mr. Cwilich makes the obvious but inescapable point that paintings and drawings are unique items that are a lot more expensive than mass-produced songs and books. A six-figure price tag tends to deter digital impulse buys. Prints, photographs and design objects, which generally exist in multiples, are better suited to online sales platforms, but even […]

 

BART may consider parking fee increase during peak commute times | abc7news.com

BART may consider parking fee increase during peak commute times | abc7news.com

Not only do BART parking lots fill up quickly in the morning, each one has a waiting list for parking permits that average three thousand names. BART spokeswoman Alicia Trost told us, “So the idea is — let’s take a look at parking. Is there something we can do with our policies, our fees to […]

 

Dodgers’ New ‘Dynamic Pricing’ For Seats Has Some Fans Crying ‘Foul’ | CBS Los Angeles

Dodgers’ New ‘Dynamic Pricing’ For Seats Has Some Fans Crying ‘Foul’ | CBS Los Angeles

“Every time I tried to purchase tickets, they were sold out,” Patti Rivero told CBS2 News. She was all decked out in her Dodger blues and feeling the blues Friday, the first day tickets for this upcoming season became available. “It hurts when you’re a devoted fan and you want to go to the games, […]

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What does the Dodgers’ dynamic pricing schedule mean for fans? A seat that costs $33 one day will cost $80 another day | LA Times

What does the Dodgers’ dynamic pricing schedule mean for fans? A seat that costs $33 one day will cost $80 another day | LA Times

If you would like to see the Dodgers from a field-level seat overlooking the bullpen, the team will charge you $80 for your seat. That’s on April 21. If you can wait four days, the Dodgers will charge you $33 for the very same seat. The Dodgers put single-game tickets on sale Friday, with seats […]

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Pricer’s Points: Minimum Viable Product vs. Product – The Profit Factor | Rags Srinivasan

Pricer’s Points: Minimum Viable Product vs. Product – The Profit Factor | Rags Srinivasan

If a business has not figured out how to make and get it into the hands of customers at a cost lower than what the customers are willing to pay for, it is not a product yet. If you insist on calling it a product you are not running a business but practicing a hobby. That stricter […]

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Railways witnesses jump in premium class travel | Business Line

Railways witnesses jump in premium class travel | Business Line

Bitten by the travel bug in the year-end holiday season, many more people took to the most premium and priciest segment in trains — the first class air conditioned coaches. December 2017 saw a near 16 per cent surge in AC 1st class passengers with an additional 35,658 using the train compared to the year […]

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Utilities planning to move Californians to time-of-use pricing need solutions for low-income customers | Environmental Defense Fund

Utilities planning to move Californians to time-of-use pricing need solutions for low-income customers | Environmental Defense Fund

Last month, all three of California’s major investor-owned utilities submitted applications to the California Public Utilities Commission detailing their respective strategies for how to transition residential customers to time-of-use pricing. Time-of-use pricing, if done right, is a low-cost strategy to help meet California’s climate and clean energy goals. This innovative tool can help the state […]

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Wal-Mart Sharpens Online Edge, Join Forces With Rakuten | Zacks.com

Wal-Mart Sharpens Online Edge, Join Forces With Rakuten | Zacks.com

With the objective of capitalizing on the booming online shopping, Rakuten and Seiyu GK, a subsidiary of Walmart have reached a new agreement to launch “Rakuten Seiyu Netsuper”, a new online grocery delivery service in Japan. The service is likely to be launched in the latter half of 2018. Through the partnership both the companies […]

 

Price Hikes Slow for Mobile DRAM | ESPNews

Price Hikes Slow for Mobile DRAM | ESPNews

Lower than expected demand for smartphones is putting the brakes on price increases for mobile DRAM in the first quarter of 2018 but it may not last. Contract prices for mobile DRAM are forecast to rise by only three percent in the first quarter of 2018, according to DRAMeXchange, a research division of TrendForce. However, a rollout […]

 

Welcome mat rolls out for fairgrounds cabin | hutchnews.com

Welcome mat rolls out for fairgrounds cabin | hutchnews.com

The State Fair’s David Tobias listed the bookings: A swap meet, a llama show, three weddings, and a Kansas Department of Corrections’ Halloween party. “If you don’t mind waiting till after midnight when everything shuts down, then it is a great place to stay and very reasonably priced,” Standerwick said. Adjusting prices On weekends, a […]

 

Qualcomm is fined for anti-competitive practices—again | A fine habit

Qualcomm is fined for anti-competitive practices—again | A fine habit

Qualcomm’s pricing strategy, too, has won it few friends in recent years. Most contentious is the way in which it licenses its intellectual property to device-makers, charging them a percentage of the total selling price of their devices. Apple alleges that such royalties act as a tax on any innovative features it adds to its […]

 

Angioplasty costs down 8-18% post stent price cut, says study | Livemint

Angioplasty costs down 8-18% post stent price cut, says study | Livemint

Mumbai: The cost of angioplasty procedures has declined by 8-18% following the government’s decision to slash prices of coronary stents by up to 80% in February last year, a study conducted by IQVIA, formerly QuintilesIMS, on behalf of Advanced Medical Technology Association (AdvaMed), showed. The 8-18% reduction in overall angioplasty procedure cost is for patients […]

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Atlanta Falcons Broke the Rules of Stadium Food and It Paid Off | Bloomberg

Atlanta Falcons Broke the Rules of Stadium Food and It Paid Off | Bloomberg

When the Atlanta Falcons announced the food prices at their new $1.5 billion stadium — $2 hot dogs and sodas, $3 nachos, $5 beer — fans loved it, and people in other cities started pushing their local ownership groups to follow suit. Falcons owner Arthur Blank had made a calculated bet that what the organization […]

 

11 Common Misconceptions Homeowners Believe About Selling Their Property | Forbes

11 Common Misconceptions Homeowners Believe About Selling Their Property | Forbes

2. Early Preparation Is Key Many sellers don’t realize they need to begin the process 60 days in advance of when they want their home on the market. If you are aiming to list in April, begin the process in February. Start by meeting with a few agents to decide who you are most comfortable […]

 

New leak might’ve revealed Galaxy S9 pricing and release details | BGR

New leak might’ve revealed Galaxy S9 pricing and release details | BGR

Even if it looks and feels a lot like the Galaxy S8, the cheapest Galaxy S9 will not sell for the same price. ETNews has it on good authority that the Galaxy S9 will retail for between 950,000 to 999,000 won in Korea — that’s $895 to $935. The starting price for the Galaxy S8 […]

 

P&G discount strategy rings alarm bells | Financial Times

P&G discount strategy rings alarm bells | Financial Times

Procter & Gamble, the consumer products giant targeted by activist investors, has raised alarm bells about its long-term profitability, reporting that its discounting strategy had squeezed margins during the most recent quarter. P&G unveiled quarterly profits that beat forecasts, which chief executive David Taylor said would keep the world’s second-largest consumer group “on track to […]

 

After Backlash, Ubisoft Will Keep $40 Rainbow Six Siege Standard Edition | Bleeding Cool

After Backlash, Ubisoft Will Keep $40 Rainbow Six Siege Standard Edition | Bleeding Cool

Ubisoft issued an official statement on the Rainbow Six subreddit which in part announces that the Standard Edition of Rainbow Six would no longer be getting a price increase. The statement primarily concerns itself with issues brought up by Siege’s veteran players. “We have seen the frustration from our veteran players rise to the top of […]

 

Tester, Daines fight for transparency in drug pricing | American Pharmacists Association

Tester, Daines fight for transparency in drug pricing | American Pharmacists Association

“We have heard from numerous pharmacies in our communities—many of which are rural or medically underserved—that these fees cause so much uncertainty that they do not know if they can continue to serve American families,” wrote Tester and Daines. “This sort of opacity in the real cost of prescription drugs is exactly why Americans are […]

 

American Express Global Business Travel 2018 Forecast Indicates Moderate Price Increase Across Air, Hotel and Ground Transportation | hospitalitynet

American Express Global Business Travel 2018 Forecast Indicates Moderate Price Increase Across Air, Hotel and Ground Transportation | hospitalitynet

Air: While strong demand is expected to drive airfare increases across all regions, overcapacity on certain routes, aggressive expansion by low-cost carriers (LCCs), and low oil prices will keep them in check. Full-service carriers are increasingly unbundling fares and adding premium economy seating options to entice consumers to better compete with LCCs. Hotel: Hotel performance […]

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Featured Jobs

Pcareers logo NEW

We will be launching a Pricing Niche Job Board soon, Pricing Careers is a unique pricing industry resource where exceptional pricing professionals separate themselves from the crowd and recruiters find the pricing skills/experience they need – stay tuned! 
 

Title: Manager, Pricing & Analytics

Company: Tiffany & Co.

Location: New York City, NY, US

Seniority: Mid-Senior level

Click here for more

Title: Senior Pricing Analyst

Company: ROCKWOOL North America 

Location: Chicago, IL, US

Seniority: Mid-Senior level

Click here for more

 

Featured Content and Events

EU Pricing Summit 2018 300x250

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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“The single most important decision in evaluating a business is pricing power,” Buffett told the Financial Crisis Inquiry Commission in an interview released by the panel last week. “If you’ve got the power to raise prices without losing business to a competitor, you’ve got a very good business. And if you have to have a prayer session before raising the price by 10 percent, then you’ve got a terrible business.”

     – Warren Buffett

 

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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