This Week in Pricing > 2/4/17

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: SPOSEA logo JPG

 

SPOSEA B.V.

SPOSEA B.V. drives increased profitability for SAP users by SIMPLIFYING SAP’s Price Data Optimization, Management and Execution. We provide the SAP ecosystem with enterprise-wide Price Management that increases margins through optimized prices. Our family of products includes BrightPrice Optimizer, BrightPrice Manager and BrightPrice DealManager. We provide out of the box solutions for effectively managing Pricing in SAP. SPOSEA is headquartered in Eindhoven, the Netherlands, and has offices in San Francisco, California and Walldorf, Germany.

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Top Headlines

Trump Calls Drug Pricing ‘Astronomical’ and Promises Changes | Bloomberg

Trump Calls Drug Pricing ‘Astronomical’ and Promises Changes | Bloomberg

President Donald Trump told drugmakers at a White House meeting Tuesday they were charging too much and promised to get better bargains for government health programs, in addition to finding ways to get new medicines to market faster. “The pricing has been astronomical,” Trump said to chief executives of some of the world’s biggest drugmakers, […]

 

Apple’s iPhone 7 Plus Success Story Could Mean the iPhone 8 Will Be Huge | TheStreet

Apple’s iPhone 7 Plus Success Story Could Mean the iPhone 8 Will Be Huge | TheStreet

Though it has made a play for more cost-sensitive smartphone buyers with the iPhone SE, Apple (AAPL) has more than stuck to its guns when it comes to maintaining premium pricing for its flagship phones. Not only has the company not cut prices as the ranks of cheaper Android phones with high-end specs swelled, it […]

 

Clear cookies when searching for flights online | INSIDER

Clear cookies when searching for flights online | INSIDER

Entire novellas have been written on how to score cheaper flights, and the internet is flooded with sites and apps claiming to be able to get you the best possible deal. But you don’t need any of that. There’s one simple little thing you can do to trick the system and get a cheaper ticket, […]

 

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Biopharma goes to the White House and talks pricing, regulations, jobs | BioWorld

Biopharma goes to the White House and talks pricing, regulations, jobs | BioWorld

In his first official meeting with the biopharma industry, President Donald Trump repeatedly delivered a clear message: Get U.S. drug prices down. Way down. “You folks have done a terrific job over the years, but we have to get prices down for a lot of reasons. We have no choice,” he told industry representatives. “For […]

 

Price optimization: Big data boon or unfair practice? You decide | PropertyCasualty360

Price optimization: Big data boon or unfair practice? You decide | PropertyCasualty360

Price optimization is a hot topic in the insurance world right now. Insurers, customers, state insurance commissioners, big data experts, consumer advocacy groups and industry thought leaders are all weighing in on how the practice will affect insurance. In fact, nearly one in five insurance practitioners predicted price optimization would be the most impactful industry […]

 

Aldi, Lidi, Google Tops in Simplicity Index | MediaPost

Aldi, Lidi, Google Tops in Simplicity Index | MediaPost

Brands that embrace simplicity tend to enjoy increased revenue, valuation, brand advocacy and employee engagement, according to Siegel+Gale. The global brand strategy firm has revealed the top finishers of its seventh annual Global Brand Simplicity Index. Low-price grocery chain Aldi retains the number one spot as the world’s simplest brand, followed by Lidi, a German discount […]

 

Fed up consumers demanding changes over high drug prices | myDayton Daily News

Fed up consumers demanding changes over high drug prices | myDayton Daily News

Public fed up The development of new and better drugs has an immeasurable benefit to Americans. Health care has shifted toward prevention, and innovative drugs to treat more diseases have been a big part of that. An expensive drug that prevents an even more expensive surgery or a stay in a nursing home is arguably […]

 

Uber Apologizes After Surge Pricing During Trump Protests | The Daily Caller

Uber Apologizes After Surge Pricing During Trump Protests | The Daily Caller

Critics across the Twittersphere voiced their disapproval of Uber’s surge pricing during the demonstrations by using the hashtag “#deleteuber.” The protesters were publicly objecting President Donald Trump’s executive orders that temporarily bans immigration from several countries. Read complete article here: Uber Apologizes After Surge Pricing During Trump Protests | The Daily Caller.

 

The internet turned on Uber after it deactivated surge pricing during protests of Trump’s Muslim ban | Fast Company

The internet turned on Uber after it deactivated surge pricing during protests of Trump’s Muslim ban | Fast Company

After the New York Taxi Workers Alliance called on taxi drivers to protest Trump’s Muslim ban by avoiding John F. Kennedy International Airport for one hour, Uber turned off surge pricing. That didn’t go down well, reports the Guardian. Read complete article here: The internet turned on Uber after it deactivated surge pricing during protests […]

 

iPhone 7 Plus price may make up for overall slump in demand | Pocketnow

iPhone 7 Plus price may make up for overall slump in demand | Pocketnow

As we crash upon Apple’s imminent earnings report for its 2016 holiday quarter, we’re going to see where bottle-necked demand and disappointingly long wait times for products to ship meet. On the whole, investors are in good spirits about growth — Apple will have to beat 74.78 million unit sales in order to keep its record […]

 

Is ‘what the patient pays’ the right barometer for pricing drugs? | BioWorld Perspectives

Is ‘what the patient pays’ the right barometer for pricing drugs? | BioWorld Perspectives

Just a few months ago, Mylan NV got caught in a net of its own making when it raised the U.S. list price for a two-pack of its Epipen to $608, a 550 percent increase over several years. The hue and cry on Capitol Hill and from angry patients with serious allergies was that Mylan […]

 

More Headlines

Pricing strategy can spell the difference between success and failure | The Nation

Pricing strategy can spell the difference between success and failure | The Nation

IN general, pricing strategy is very important for retail companies in order to achieve their sell-through (the ratio of sales to beginning inventory over a period of time) target. Customers may have acceptable price-points in mind for different brands. Thus companies should set the right retail price by taking into account the required margin, competitors’ […]

 

Vodacom data prices dropped 15% in past year | ITWeb

Vodacom data prices dropped 15% in past year | ITWeb

The price of data per MB on Vodacom’s network dropped by 15.4% in the past year, while voice rates decreased by 17.6%. This is according to the mobile operator’s trading update for the quarter ended 31 December 2016. Despite price reductions, the telco grew its data revenue in SA by 22% year-on-year, to almost R5.5 […]

 

US shippers rethink truck contract pricing | JOC.com

US shippers rethink truck contract pricing | JOC.com

“Carrier networks are changing more quickly than they used to,” Broadhurst said, as assets are redeployed and dedicated to new customers. “It’s getting hard to know which carriers are optimal for certain lanes because carrier networks are changing so rapidly too,” he said. That’s making already complex supply chains more complex and posing tough decisions […]

 

Canadian Milk Pricing Policy Set up to Deter U.S. Imports, Groups Say | DTN Progressive Farmer

Canadian Milk Pricing Policy Set up to Deter U.S. Imports, Groups Say | DTN Progressive Farmer

OMAHA (DTN) — Just a few weeks after writing to President Donald Trump, U.S. dairy groups are now calling on governors to halt new changes in Canadian dairy rules. A coalition of 17 American dairy organizations, farmers and milk processors have written governors in 25 states asking them to press Canada into halting a new […]

 

High Drug Prices and Access Delays Putting Cancer Patients at Risk | PharmaPro

High Drug Prices and Access Delays Putting Cancer Patients at Risk | PharmaPro

Cancer patients are living longer and in many cases the disease is becoming chronic rather than acute. Access to drugs that help extend life and improve quality of life, and fair prices for those drugs are therefore essential for more and more people. But patients are badly served in this respect, with delays in the […]

 

Pricing – Science or Art? | independenttribune.com

Pricing – Science or Art? | independenttribune.com

There are plenty of formulas, theories and spreadsheets out there to help you determine how to set prices for your products and services. You may opt for pricing consistently below your competition. Or you may prefer to ensure that your prices return a minimum profit margin. Perhaps it’s just ‘what feels right’. Or you may […]

 

How “No-Brainer” Pricing Ruins Your Business (And What to Do Instead) | everyday bright

How “No-Brainer” Pricing Ruins Your Business (And What to Do Instead) | everyday bright

Much of the marketing advice out there encourages you to set prices that are a “no brainer.” That is, a price that is so low, compared to the value you are offering, it would be silly for customers not to buy from you. Sounds like a smart strategy, doesn’t it? But if you’re a coach, […]

 

Autonomous Car Pricing Will Turn Your Town Into A Science Experiment | Hackernoon

Autonomous Car Pricing Will Turn Your Town Into A Science Experiment | Hackernoon

In a future driven by shared autonomous vehicles, transportation becomes a utility. The name of the game is efficiency — you pay for what you use, and how you use it. No car ownership, no car insurance, no maintenance, no gas, no driveways or garages… you pay for a ride from A to B, and when you […]

 

Highmark opens the door to health care pricing | Pittsburgh Post-Gazette

Highmark opens the door to health care pricing | Pittsburgh Post-Gazette

Shopping for medical care is like shopping for nothing else: the charge is almost never known until the patient gets the bill. Now, health insurer Highmark Health is cracking a door into the arcane world of health care pricing by trying to guide members to the lowest cost, highest quality providers in its network. The […]

 

Recommendations to Promote Sustainable, Affordable Pricing for Specialty Pharmaceuticals | National Business Group on Health

Recommendations to Promote Sustainable, Affordable Pricing for Specialty Pharmaceuticals | National Business Group on Health

With that in mind, the issue brief explores the dynamics of the specialty pharmacy market—including the growth in specialty pharmaceutical development; price and price inflation; increases in utilization for an expanding list of conditions; and the impact of vertical consolidation on specialty drug prices. To contain prices, the Business Group recommends fostering a more competitive […]

 

With lofty real estate pricing, rental income is key in 2017 | The Investor

With lofty real estate pricing, rental income is key in 2017 | The Investor

As core real estate pricing climbs past prior peaks in key global gateway cities due to a shortage of supply and strong demand, investors should focus on generating income from quality buildings and tenants. “Concentrate on income in 2017 because trying to generate significant capital growth is going to be difficult given current pricing”, says […]

 

Etihad Is Starting To Price The Residence More Reasonably | One Mile at a Time

Etihad Is Starting To Price The Residence More Reasonably | One Mile at a Time

As you’d expect, The Residence is bloody expensive. For example, a one-way ticket from New York to Abu Dhabi will set you back over $29,000. Recently I wrote about how not all tickets in The Residence are too insanely priced. For example, a ticket from Abu Dhabi to Mumbai costs ~$3,000. That’s still a lot of […]

 

Moore on Pricing: The New Silk Road and other ocean challenges | Logistics Management

Moore on Pricing: The New Silk Road and other ocean challenges | Logistics Management

As previously reported in Logistics Management, vessels are being equipped with new power units, directional thrusters, as well as fuel and labor saving devices. The idea of an autonomous ship sailing continuously around the globe with self-repairing artificial intelligence is moving from science fiction to a port near you. When you roll up the facts, […]

 

Microsoft Hints At ‘More Realistic, Awesome’ HoloLens With Sub $1,000 Pricing | Hot Hardware

Microsoft Hints At ‘More Realistic, Awesome’ HoloLens With Sub $1,000 Pricing | Hot Hardware

“I can say it’s a consumer product tomorrow because I can remove the dev kit thing, [but] the $3,000 thing is going to get in the way of it becoming a mass market consumer product. You have to reduce the price point until it’s affordable to the majority of the populous of Earth, which will […]

 

Different Pricing Strategies: Discover What Works For You | ithemes

Different Pricing Strategies: Discover What Works For You | ithemes

Establishing a pricing strategy reflective of your value that clients agree is fair, is difficult. Here are three different pricing strategies to consider when establishing one for yourself or you company. First Things First: Pricing Strategy Considerations Before establishing price points for either your goods or services, there are multiple factors that need to be considered: […]

 

High time for hotels to integrate revenue management with customer relations | South China Morning Post

High time for hotels to integrate revenue management with customer relations | South China Morning Post

On the contrary, if these loyal customers are quoted a higher rate or denied the room they requested due to high demand through the revenue management system, they might feel upset and turn to a competitor for their intended hotel stay. It is necessary to note that this is rather a long term strategy than […]

 

harpercollins’s charlie redmayne on learnings from digital experiments & amazon wave, and more | ETtech

harpercollins’s charlie redmayne on learnings from digital experiments & amazon wave, and more | ETtech

On dynamic pricing and data analytics We now have guys with PhDs in mathematics who help us understand how retailing works. Based on algorithms, we have dynamic pricing now that helps us maximise a book’s value. At times, we may choose to give away profit to build the author for future. Data analytics has helped […]

 

Value-based pricing in pharmaceuticals: Hype or Hope? | KPMG Switzerland

Value-based pricing in pharmaceuticals: Hype or Hope? | KPMG Switzerland

In the face of stagnant healthcare budgets and ever-growing demand for care, pharmaceutical companies are under severe pressure to demonstrate the value of their products. Value-based pricing has exciting potential to help improve patient outcomes – and at an affordable cost. External challenges are forcing pharmaceutical companies to change business models from sales push to […]

 

Truckload pricing could rise 4% this year: FTR | Truck News

Truckload pricing could rise 4% this year: FTR | Truck News

BLOOMINGTON, Ind. – Trucking rates in the US will increase by about 4% this year, according to a projection from industry forecaster FTR. In its monthly State of Freight webinar, FTR transportation economist Noel Perry, said truckload contract rate increases could take hold as early as the first quarter of this year. The spot market […]

 

Tesla announces supercharger pricing structure | CNN Money

Tesla announces supercharger pricing structure | CNN Money

It will soon cost some Tesla owners $15 to charge up for a drive from Los Angeles to San Francisco, and $120 to go from L.A. to New York. The company has revealed the new pricing structure for its network of rapid charging stations around the world. CEO Elon Musk announced in November that Tesla […]

 

How Retailers Should Think About Online Versus In-Store Pricing | Harvard Business Review

How Retailers Should Think About Online Versus In-Store Pricing | Harvard Business Review

Should brick-and-mortar retailers set different prices in-store and online? If Amazon (or another web retailer) is not significantly stealing business away, it doesn’t make sense to slash online prices. Best to accept the minimal customer loss, maintain current prices, and be thankful. However, if a web retailer is successfully poaching a sizable number of customers, it’s time to […]

 

Pricing Strategies: What Works Best For Your Business? | Repsly

Pricing Strategies: What Works Best For Your Business? | Repsly

Determining which of these pricing strategies will help you reach your pricing objectives requires serious consideration. A crucial aspect to examine is aligning price with value. You can’t sell a valuable product for a ridiculously low price and expect to make a profit. Similarly, no one will buy an overpriced product that they feel is […]

 

Your Strategy Won’t Appeal To Everyone And That’s A Good Thing | Forbes

Your Strategy Won’t Appeal To Everyone And That’s A Good Thing | Forbes

Viable strategies are built less on what you will do, and more on what you won’t do. In fact, most businesses don’t find their true identity until they have said no to enough strategic detours to confidently embrace the right core strategy. Trying to be all things to all customers is like chasing multiple rabbits—you […]

 

Taxis, Uber face new regulations in Everett | HeraldNet.com

Taxis, Uber face new regulations in Everett | HeraldNet.com

“We’ve had exceptions built into regulations that allow for these servicemen and servicewomen to provide with their families,” Matthews told the council. The city also would no longer regulate taxi meter rates. Uber and other companies have used what’s known alternatively as surge pricing or dynamic pricing, in which rates typically rise as demand for […]

 

Pricing Strategy of the Future | Deloitte

Pricing Strategy of the Future | Deloitte

You probably know that the price of a product affects the customers’ buying behavior and that price is one of the most important factors influencing profit margin. But what is the right price? And how can companies set a price that is in accordance with the customer’s associated value of the product or service? Neuroscience […]

 

What Businesses Can Learn From Restaurants | Search Engine People

What Businesses Can Learn From Restaurants | Search Engine People

When it comes to pricing your services or products, you will be surprised to know that pricing changes can effect your business quite a bit. If you think about it, you probably have competitors, so your customers don’t need to buy your services or products. They usually do it because of your unique selling proposition, […]

 

easyJet® pricing strategy: should low-fare airlines offer last-minute deals? | LSE Research Online

easyJet® pricing strategy: should low-fare airlines offer last-minute deals? | LSE Research Online

easyJet, one of Europe’s most successful low-cost short-haul airlines, has a simple pricing structure. For a given flight, all prices are quoted one-way, a single price prevails at any point, and, in general, prices are low early on and increase as the departure date approaches. We observe from these policies and from the empirical section […]

 

Will more customer data mean the end of discounting? | National Retail Federation

Will more customer data mean the end of discounting? | National Retail Federation

“Uber wouldn’t be Uber without dynamic pricing. It’s what makes the service economical when demand is low, and reliable when demand is high,” Van Ryzin said. “That reliability is key to our service, and it’s dynamic pricing that makes that possible.” That’s because surge prices incentivize drivers, increasing the supply when needed so that customers […]

 

 

 

Featured Content

 Tech Spotlight – SPOSEA B.V. | PricingTech

Tech Spotlight – SPOSEA B.V. | PricingTech

SPOSEA B.V.’s main goal is to simplify SAP Price Optimization, Management and Execution. We provide the SAP ecosystem with enterprise-wide Price Management that increases margins through optimized prices. We provide out of the box solutions for effectively managing Pricing in SAP. SPOSEA is headquartered in Eindhoven, the Netherlands, and has offices in San Francisco, California and […]

 

SPOSEA BrightPrice Manager 2.0 Is Certified as Powered by SAP NetWeaver, and Achieves Certified Integration with SAP NetWeaver Running on SAP HANA | CBS 58

SPOSEA BrightPrice Manager 2.0 Is Certified as Powered by SAP NetWeaver, and Achieves Certified Integration with SAP NetWeaver Running on SAP HANA | CBS 58

SPOSEA BrightPrice Manager 2.0 Is Certified as Powered by SAP NetWeaver®, and Achieves Certified Integration with SAP NetWeaver Running on SAP HANA® Eindhoven, the Netherlands (PRWEB) October 05, 2016 SPOSEA BV a privately held company and software innovator in the price optimization and management software market, today announced that its BrightPrice Manager 2.0 has achieved […]

 

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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“The bitterness of poor quality remains long after the sweetness of low price is forgotten”

     – Benjamin Franklin

 

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