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This Week in Pricing > 2/8/15

TWIP 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.

EditionSponsor-Wiser

This Edition is Sponsored by:

Wiser

Wiser provides a complete suite of solutions to give retailers, brands, and manufacturers the edge to stay both competitive and most importantly, profitable. Wiser’s flagship product is WisePricer, a full-featured dynamic pricing and merchandising engine that monitors, analyzes and reprices retail products in real-time. WisePricer enables retailers to boost profit margins and revenue, price with confidence, and improve merchandising through powering the development of a sound pricing strategy. Wiser also offers a MAP monitoring solution, WiseMapper, for brands and manufacturers to monitor and protect their pricing across the thousands of retailers selling their products.

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Headlines

Soaring Super Bowl ticket prices in one wallet-busting chart | Fortune

Ticket prices for the Super Bowl are the highest they’ve been in five years, according to one ticket resale company. Here’s one must-see chart showing their ebb and flow over that time. With the Super Bowl in Arizona this weekend just hours away, something strange is happening with ticket prices: They’re far higher than they’ve […]

Super Bowl Ad Costs: Latest Info on Cost of 2015 Super Bowl Commercials | Bleacher Report

The lofty cost doesn’t come as a major surprise since it has consistently risen for the most part over the years. With that said, now that there are more advertising options than ever before, it is fair to question if $4.5 million is truly worth it. Per Lauren Johnson of Adweek, DigitasLBi Chief Investment Officer […]

The Myth Of The One-Time Discount | The Sales Fix

One Time Discounts Become Permanent Price Reductions Now you run head-on into the third unintended consequence which is that your base price to ABS is now 5% lower than it was last month. Salespeople suffer from situational amnesia. Customers don’t. A salesperson only sees a discount as a tactic to close orders. He or she […]

Disney ticket prices to increase again in February | Orlando Weekly

According to the theme park blogosphere, Walt Disney World guests should expect to see a small increase in the price of tickets beginning in February. Nobody seems to know exactly what the new price of tickets will be, but the new pricing is expected to be in place mid-month. Read complete article here: Disney ticket […]

A history of Disney World ticket price increases | Orlando Theme Parks

ORLANDO — The price to get into a Walt Disney World theme park has increased almost every year since 1971, and now, a one-day, one-park ticket to the Magic Kingdom costs $99, making it the most expensive Disney park in the world. The same ticket to get into Epcot, Disney’s Hollywood Studios or Disney Animal Kingdom […]

P.F. Chang’s restaurant sued by California woman over gluten-free menu pricing | Nation’s Restaurant News

A California woman is suing P.F. Chang’s China Bistro Inc., claiming the chain’s gluten-free menu pricing violates the Americans with Disabilities Act.In the lawsuit, moved last week to U.S. District Court for Northern California in San Jose, Calif., plaintiff Anna Marie Phillips claimed the Scottsdale, Ariz.-based chain violates civil and disability rights by requiring gluten-free […]

9 Factors That Help Anchor Your Brand Price | Branding Strategy Insider

De Beers anchored the value of their rings around “two months’ salary”. The message to purchasers – in this case, men in a jewelry store (perhaps the ultimate social fish out of water) – was that it will hurt but it’s worth it. At the other end of the value scale, when Coca Cola originally […]

Pricing Strategy: When $10 is Better than $9.79 | Entrepre.neuro

Customers like a good deal when they’re shopping for a product. But can some prices “feel” better than others? New research suggests that round numbers — like $10 — encourage buyers to rely on their feelings. More precise looking numbers — like $9.79 — encourage buyers to use logic and reason.   The Study Researchers […]

Do Lower Prices Lead to More Sales? | Copyblogger

Price decisions are made in a vacuum or by comparison Lower prices, alone, don’t produce more sales. We’re clear on that idea, aren’t we? And that’s because clients make price decisions either in a vacuum or by comparison. To start, let’s look at making price decisions in a vacuum. Say you decide to buy a […]

Everything Has Its Price | Michael Brenner

A visitor to New York City has access to a rich array of cultural resources. They come at a hefty price, though. That high cost can be intimidating for residents of the outer boroughs and for all those of limited means as well as for tourists. No — I am not referring to theater or […]

Situational Pricing: Lessons from the Super Bowl and Uber | Strategic Pricing Solutions

Uber’s surge pricing received more attention last week with the large snow storm in the Northeast, when Uber agreed they would not “gouge” consumers.  Prices would be higher than normal, but would not be excessive.  Conversely, tickets to the Super Bowl on the secondary market were higher than ever.  This past weekend, tickets in the […]

Cadbury shrinks Australian chocolate bars by 10%, but price stays the same | The Guardian

Company blames rising costs, including a doubling in cocoa prices, as Australian customers react with anger at decision to reduce family block by one row Cadbury has again risked public outrage by announcing that it will be shrinking the size of its chocolate bars by 10% – without reducing the price. The confectionary company – […]

Our Apple addiction is sending its profits sky high | Business Spectator

Apple has reported the largest quarterly profit ever made by a public company. This is largely thanks to record iPhone sales of 74.5 million units over the Christmas period. With prices starting at $US649 for the iPhone 6 in the US and costing more than $US1,000 in many other parts of the world, it’s no […]

VIDEO SALES TIP: Are You Freaked Out by NOT Discounting? | The Sales Hunter

Have you come to believe you can only sell if you offer a discount? That’s crazy.  You need to stop relying upon the discount. A better approach is a policy of NO discounting.  What?!  That’s right… make it a policy that you don’t offer a discount. Read complete article here: VIDEO SALES TIP: Are You […]

How Your Sales Presentation is Stopping You From Selling at a Higher Price | The Sales Hunter

One of the reasons salespeople don’t get the price they want or are pushed to offer a discount to close a sale is due to their value proposition. Too many salespeople use a single value proposition. They do so because they’ve had success with it and they’re comfortable with it. In my mind, the reason […]

5 Ways to Overcome an Objection to Your Price Being Too High | The Sales Hunter

You have the customer and the price you’re going to charge is right — at least it is to you. Problem is the customer doesn’t feel the same way. They feel the price is too high and they’re refusing to buy.  How should you respond?Here are 5 ways to deal with the customer rejecting your price:1. […]

Starbucks Earnings Show Us the Amazing Benefits of Pricing Power (SBUX) | The Motley Fool

Investors largely cheered the latest report from Starbucks (NASDAQ: SBUX  ) . Shares of the coffee giant rose 6% and hit a record last Friday due to better than expected fiscal first quarter earnings. The company grew revenue and profits, and the solid quarter capped off a very successful 2014. Starbucks reaped the benefits of its […]

Obama Wants Price Negotiations for High-Cost Drugs | NationalJournal.com

February 2, 2015 President Obama wants to let the federal government negotiate discounts for the most expensive prescription drugs, whose record-breaking price tags have set off a new debate over the cost of medical care. Obama’s budget request, released Monday, includes a proposal that would allow Medicare to negotiate with drugmakers over how much […]

In Colorado, Disparity in Health Plan Prices Underscores Ambitions, and Limits, of Affordable Care Act | NYTimes.com

At first glance, Colorado would seem to be one of the federal health law’s clearest success stories, offering nearly 200 plans and average premiums nearly unchanged in the coming year. But zoom in closer, and it is clear that a kind of pricing pandemonium is underway, one that offers a case study of the ambitions […]

The Other Products Falling Oil Prices Are Making Cheaper | Entrepreneur

In the past six months, the price of oil has plunged more than half, from more than $100 a barrel to less than $50. That’s devastating for the Russian economy and energy companies, but it’s great news for anyone in the U.S. who needs to fill up a car with gas and keep a home […]

Click here for more recent articles.

 

Events

Webcast: Learn How Iowa Fluid Power Improves Price Realization with SPA | SPA

When: February 18, 2015 2:00 PM Eastern 

Register to attend our webcast where Jim Kaas, President of Iowa Fluid Power, will share their journey to pricing excellence and how they are leveraging science-based strategic pricing tools to improve price realization by identifying price-sensitive products and services. To implement a solution that enhanced profitability, developed pricing […]

Webcast: Stopping Margin Erosion with Pricing Technology | SPA

When: March 11, 2015 2:00 PM Eastern

Register to attend our webcast where Brandon Liebhard, Vice President at Hodell-Natco Industries, will share their journey to pricing excellence and how they are leveraging science-based strategic pricing tools to stop margin erosion by identifying price-sensitive products and services. To implement a solution that enhanced profitability, developed pricing discipline, and […]

Seminar: The Value-based Pricing of Innovation | Stage-Gate International

When: April 14-15, 2015

Where: Washington DC

Are you capturing the value of your innovation? Firms are pouring billions in innovation investments every year with the goal of creating differentiation and competitive products and services. Many, however, forget two critical elements in the innovation management process: the clear definition and measurement of […]

Conference: Manufacturing Pricing Excellence – Barcelona 2015

When: May 20-22, 2015

Where: Barcelona, Spain

Event Overview On behalf of Copperberg and the entire Pricing competence team I am delighted to announce our 3rd Annual Manufacturing Pricing Excellence conference scheduled for 20-22nd of May 2015 in Barcelona, Spain. Since our last edition in Amsterdam, together with our advisory board and delegate network we have been […]

Click here for more recent events.

 

Resources

Pricer’s Points Blogs

Looking at everyday pricing as a consumer | Jesper Hansson

Whenever I get a chance, I always tell people not to base pricing on cost. Even Bart Simpson above is conveying the same message. However much of the pricing we are facing is cost based pricing. The most apparent when living in Asia is out everyday visit to the food courts. Last week I was […]

Pricing Strategies – Are You Charging Enough? | David F Lewis

Not too long ago, to my embarrassment, I learned I’d been pricing my service plans completely wrong. It pains me to think about the money that was unknowingly being left on the table. Of all the nuances of business and selling, pricing a product should be one of the easier parts. A product doesn’t just […]

Congestion Management by Congestion Pricing | Muhammad Bukhsh Bhatti

The urbanisation leads to increase in traffic congestion throughout the world and it is a fact that expansion in road capacity cannot keep pace with the rapid growth in travel demand resulting from increases in population and vehicle ownership. Hence some form of regulatory control is necessary to curtail traffic congestion. Congestion is mainly an […]

Click here for more articles by pricing professionals who share their insights and experience.

 

Top Discussions

Discussion: Pricing discipline in a complex decentralized organization is a headache

Pricing Strategy & Optimization LinkedIn Group Discussion Local managers may disregard central pricing recommendations. Moreover they may give a lot of latitude to their salesforce. The end result is chaos and far from optimal. All comments welcome! inspire me… Top Comments Wendy Wise High Tech Marketing and Sales Strategist I hear you. Have been there […]

Discussion: Four Reasons Why Your Salespeople Discount

Pragmatic Pricing Blog Of course sometimes sales really needs to discount in order to close the deal. If we want the business we need to discount. However, this then becomes an easy excuse for why we discount every deal. If you want to reduce discounting by your sales force, address these four issues: price fairly, […]

The Price War Over The Cloud Has High Stakes For The Internet

NPR Article This week, our tech reporting team is exploring cloud computing — the big business of providing computing power and data storage that companies need, but which happens out of sight, as if it’s “in the cloud.” It’s a timely topic, since there’s a price war going on as tech titans aim to control the cloud market. Amazon […]

Click here for more top pricing discussions.

 

Books

As a service to pricing professionals, we have compiled a collection of over 75 of the best pricing focused hard-copy books and e-books available. The entries for each book are tagged by subject matter, include the author(s), publisher, date of publication, a picture of the front cover, and a brief summary.

Crush Price Objections – Sales Tactics for Holding Your Ground & Protecting Your Profit

Summary: These days it seems like we’re always in a buyer’s market. But even at a time when the word value is used interchangeably with cheap and the Internet is a bargain hunter’s paradise, there are ways for sales professionals to regain the upper hand. In Crush Price Objections, Tom Reilly, bestselling author of Value-Added […]

Customer Value Investment – Formula for Sustained Business Success

Summary: The Customer is the ultimate driver of a business. Customers buy products and services that give them more value and this value is what gives one company the winning edge over another. Using the unique Customer-in-Center concept, this pathbreaking book explains how investing in Customer Value can increase the market share and profitability of […]

Estimation of Willingness-to-Pay – Theory, Measurement, Application

Summary: With the Price Estimation scene (PE scene) Christoph Breidert introduces a new method to estimate willingness-to-pay. It works as an additional interview scene appended to conjoint analysis and offers the respondents a dynamically generated sequence of product choices with assigned prices. The customers indicate whether they would actually purchase the presented product profiles. Authors: […]

 

Cartoons

One should always take a little time out to enjoy the lighter side of their profession. Enjoy the following sample from our collection of our favorite pricing related cartoons.

Pricing Strategy

 

Quotes

One should always take a little time out to enjoy the lighter side of their profession. Enjoy the following sample from our collection of our favorite pricing related quotes.

“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

 

Other Resources

Pricing Resources

The source for valuable pricing resources including: academic programs, articles, blogs, books, cartoons, certifications, papers, quotes, reports, training, and videos.

Pricing Certifications

The source for top formal pricing certification programs.

Pricing Training

The source for top formal pricing training programs and service providers.

Pricing Videos

Enjoy our collection of our favorite pricing related videos and share your favorites with us and we will add them to the collection.

Pricing Tech

The source for pricing technology vendor related information and resources.

Pricing Experts

The source for pricing strategy expert vendor related information and resources.

Pricing News LinkedIn Group

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.

 

About Pricing News

Pricing News is a sponsor supported organization dedicated to providing free high-value resources to pricing professionals. It is the source for daily and weekly digests of pricing strategy and industry newsevents, thought leadership articlesblogsreportsacademic research, and other resources and special offers. We also share highlights from top pricing discussions and publish articles from pricing practitioners in our Pricer’s Points blog series.

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