This Week in Pricing > 3/24/18

pricingnews-WeeklyThis Week in Pricing is a collection of pricing focused news, thought leadership , events, jobs and professional education resources for pricers.

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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, BrightPrice DealManager, and BrightPrice MarketDynamics. 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

Physician Salaries, Drug Prices Help Drive High US Health Costs | MedScape

Physician Salaries, Drug Prices Help Drive High US Health Costs | MedScape

He points out that in the United States there are 2.6 physicians per 1000 citizens, compared with  Germany, where the ratio is 4.1/1000, and in Sweden, which has 4.2/1000. He adds that high prices combined with high volumes play a role in the imbalance of countries. He used an example of angioplasties, writing that the […]

 

Consumers, Wine Seller Amend Contested Deal In Pricing Row | Law360

Consumers, Wine Seller Amend Contested Deal In Pricing Row | Law360

Law360 (March 13, 2018, 8:01 PM EDT) — Consumers and online wine purveyor Wines ‘Til Sold Out floated a revised settlement Monday that will see shoppers receive credits toward future purchases to resolve a New Jersey federal court action alleging misleading price advertising after their original class action deal spurred backlash from the federal government, […]

 

NYC yellow taxis mull pilot program that will allow for surge pricing | Curbed NY

The Taxi and Limousine Commission is set to vote on a pilot program that will give yellow and green taxi drivers the ability to offer customers upfront pricing, similar to how Uber and Lyft does, as well as the option to use surge pricing to determine their own rates, reports Politico. Passengers will have to […]

 

Airbnb Denies It Has Surge Pricing For The Boston Marathon | BISNOW

Airbnb Denies It Has Surge Pricing For The Boston Marathon | BISNOW

AirbnbWATCH issued a report that accuses the short-term home rental website of price gouging for Boston’s biggest sporting event. A downtown Boston apartment that normally fetches $77 per night was listed for $2K per night the weekend of the marathon. A condo that normally rented for $89 per night was asking $1,200 that weekend. Airbnb […]

 

A machine-learning approach to inventory-constrained dynamic pricing | MIT News

A machine-learning approach to inventory-constrained dynamic pricing | MIT News

Incorporating inventory constraints A main challenge to adopting Thompson sampling for revenue management is that the original method does not incorporate inventory constraints. However, the authors show that Thompson sampling can be naturally combined with a classical linear program formulation to include inventory constraints. The result is a dynamic pricing algorithm that incorporates domain knowledge […]

 

What Sushi Can Teach Us About Pricing Models and Consumer Psychology | Skyword

What Sushi Can Teach Us About Pricing Models and Consumer Psychology | Skyword

The pricing model you choose will determine the intrinsic amount of pain suffered by consumers. At one end is the “pay-per-bite” method, which is excruciating for customers, even if it it makes a lot of mathematical sense when pricing and selling items. Somewhere in the middle are more conventional approaches of selling: You purchase an […]

 

Conference: Virtual Pricing Summit 2018 | Professional Pricing Society

Conference: Virtual Pricing Summit 2018 | Professional Pricing Society

Date: Wed, 11 April, 2018 | 2:00 am – 4:30 pm (Eastern US) Location: Virtual Summit DESCRIPTION What Is The PPS Virtual Summit? The PPS Virtual Summit brings leading pricing executives to speak directly to pricing professionals in real-time for real results! Whether you’re looking for tactics on how to lead a Digital Transformation, develop a compelling […]

 

Walmart and Uber Team Up to Take on Amazon | Nasdaq.com

Walmart and Uber Team Up to Take on Amazon | Nasdaq.com

Walmart’s approach vs. Amazon’s: speed vs. control The biggest advantage of Walmart’s plan to outsource the crucial last-mile delivery to Uber and Lyft is that it’s fast and cheap. In the short run, this will allow the company to quickly scale, which is apparent when compared to Amazon’s Whole Food pilot delivery service. As previously […]

 

“Rigged” Pricing, Contracting And Rebate “Schemes,” And Drug Pricing “Shell Games:” FDA Commissioner Scott Gottlieb Lets Loose On The U.S. Biosimilar Market While Offering Peek At New Policies | Mondaq

“Rigged” Pricing, Contracting And Rebate “Schemes,” And Drug Pricing “Shell Games:” FDA Commissioner Scott Gottlieb Lets Loose On The U.S. Biosimilar Market While Offering Peek At New Policies | Mondaq

In a few short days, the United States will mark the eight-year anniversary of the Biologics Price Competition and Innovation Act (“BPCIA”). Signed into law on March 23, 2010, the BPCIA creates a regulatory pathway for the approval of biosimilar drugs in the United States and a mechanism, albeit voluntary, for resolving patent right disputes […]

 

Trump admin keeping drug price info under wraps | CNNPolitics

Trump admin keeping drug price info under wraps | CNNPolitics

The Department of Health and Human Services has not updated the databases that show the public how much money the government is paying for drugs, hospitals and physicians. The database has been instrumental for researchers, journalists and non-profit groups who keep tabs on trends in drug prices and abuses by physicians, and was considered to […]

 

 

 

More Headlines

 

Sláinte: Navigating Surge Pricing on St. Patrick’s Day Ridesharing | Saving Advice

Sláinte: Navigating Surge Pricing on St. Patrick’s Day Ridesharing | Saving Advice

One of the most lucrative nights of the year for Lyft and Uber drivers — and one of the most expensive for riders — is coming up this weekend. And even a couple of localized St. Patrick’s Day ridesharing discounts barely make a dent in surge pricing during the holiday. Both Lyft and Uber‘s surge […]

 

Customers not getting the best deal: ACCC | SBS News

Customers not getting the best deal: ACCC | SBS News

“It’s almost impossible for customers to obtain accurate interest rate comparisons without investing a great deal of time and effort,” Mr Sims told reporters in Sydney after the report’s release on Thursday. Mr Sims said banks were not competing to offer borrowers the best price, with the watchdog uncovering evidence decision makers were trying to […]

 

 

Prescription price transparency bill gets praise | Florida Politics

Prescription price transparency bill gets praise | Florida Politics

A bill approved by the lawmakers in the final days of the 2018 Legislative Session could save Floridians some money next time they pick up a prescription. HB 351, sponsored by Deltona Republican Rep. David Santiago, aims to bring some pricing transparency to the pharmacy by giving customers the right to know if they could […]

 

Spring training jacks up the prices, mostly because it can | Golf Digest

Spring training jacks up the prices, mostly because it can | Golf Digest

Chris Gouge was sitting in the warm Arizona sun while taking in the Giants late Sunday afternoon game against the Padres at Scottsdale Stadium. He wasn’t sitting in a seat in the stands, though, but rather on a blanket on the grass berm (aka, lawn) beyond the left field fence. And the cost of the […]

 

 

Azar demands price transparency, but how will he achieve it? | Modern Healthcare

Azar demands price transparency, but how will he achieve it? | Modern Healthcare

HHS Secretary Alex Azar has thrown down a passionate—and personal—challenge to healthcare providers and drugmakers, demanding they tell patients what a service or product will cost before they receive it. “Especially if we want to move to a system where we put patients more in charge of their own healthcare dollars, providers and insurers have […]

 

Ford tries to simplify car buying with Ready.Shop.Go | Roadshow

Ford tries to simplify car buying with Ready.Shop.Go | Roadshow

Ready.Shop.Go. is an online platform that will allow prospective customers to find a car, view pricing and incentives, schedule a test drive, apply for financing, estimate trade-in values and then lock in a deal for up to 48 hours. This will cut down on the opportunities for potential weirdness as well as the amount of […]

‘Dynamic pricing’ proposed for camping, lodging in state parks | Radio Iowa

‘Dynamic pricing’ proposed for camping, lodging in state parks | Radio Iowa

A bill eligible for debate in the Iowa Senate would let state officials charge varying camping and lodging fees at state parks. Senator Dan Dawson of Council Bluffs says it would allow officials to employ “dynamic pricing.” “There are peak times and non-peak times and we have a bunch of great properties and we have […]

 

How Fantastic Furniture is making omni-channel retailing a reality | CMO Australia

How Fantastic Furniture is making omni-channel retailing a reality | CMO Australia

Personalisation is a key priority. At present, Fantastic Furniture is using a point solution to provide product recommendations and limited merchandising capability online. “The biggest thing I’m looking forward is to getting out of our new platform is merchandising capability and optimising product listing results based on profitability, and what customers like,” McKnight said. “As […]

 

India’s Predatory Pricing Rules Trigger Telco Slugfest | Light Reading

India’s Predatory Pricing Rules Trigger Telco Slugfest | Light Reading

The methodology is important because the TRAI considers any operator with a market share of more than 30% (in a particular circle, or service area) to have SMP. The TRAI’s changes seem to favor Reliance Jio, which carries huge volumes of data traffic on its networks but serves fewer customers than Airtel, Idea Cellular Ltd. […]

 

March 19: Soybean Prices and Wheat Prices Crater in Chicago | FarmLead

March 19: Soybean Prices and Wheat Prices Crater in Chicago | FarmLead

Wheat Prices Also Experience Technical Selloff In Chicago, SRW wheat contracts for May contracts fell 17 cents to fall below $4.51 per bushel. July HRW prices fell 17.25 cents to close below $4.68 per bushel. In Kansas City, HRW wheat contracts for May plunged 29.25 cents to close above $4.70. July HRW prices fell 28.5 […]

 

Milk price cut a big blow to Limerick farmers | Limerick Leader

Milk price cut a big blow to Limerick farmers | Limerick Leader

THE County  Limerick chairman of ICMSA’s national dairy committee says the milk price cuts announced by Kerry and Glanbia raise “fundamental questions about the continued lack of price transparency and whether parts of the supply chain are benefiting from price volatility.” Gerald Quain, a dairy farmer in Colmanswell, said the decision of both Glanbia and Kerry Group to […]

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Ford Launches Online Car-Buying Platform With Plans to Include AutoFi Finance Options | Auto Finance News

Ford Launches Online Car-Buying Platform With Plans to Include AutoFi Finance Options | Auto Finance News

Ford Motor Co. has debuted its Ready.Shop.Go. online car-shopping platform, which will eventually include customizable purchase and lease options powered by AutoFi, the OEM announced today. The digital platform allows customers to search inventory, view pricing and incentives, lock in a deal for 48 hours (subject to vehicle availability), apply for financing, estimate trade-in values, and […]

 

 

A Southwest Airlines Executive Just Insulted United and American. Here’s Why Southwest Customers Will Love It | Inc.com

A Southwest Airlines Executive Just Insulted United and American. Here’s Why Southwest Customers Will Love It | Inc.com

For example, whether the airline would start flying to Europe. (The answer was no, which strikes me as wise.) But then he lurched onto Basic Economy. This, which I prefer to call Sub-Cattle Class, consists of the (allegedly) cheapest fare offerings that are so unbundled that you’re surprised to get a seat cushion. Different airlines have […]

 

Transparency on drug pricing could help reduce costs | union-bulletin.com

Transparency on drug pricing could help reduce costs | union-bulletin.com

Drug pricing is certainly more complicated than most of us realize. And, perhaps, it’s wrong to put all the blame on drugmakers. However, when the information on how the prices were set is made public, that should work to make pricing more understandable to consumers. It should pinpoint the specific reasons for big jumps in […]

 

Creating a Profitable Revenue Model: Go-To-Market Strategy, Pricing, and Presentation | CustomerThink

Creating a Profitable Revenue Model: Go-To-Market Strategy, Pricing, and Presentation | CustomerThink

Pricing and Presentation Models Here is where the options open up for you. Thirteen pricing and/or presentation models are listed below and this is not an exhaustive list. If one of these models doesn’t fit, perhaps it will spark another idea to help grow your revenue. Repackage your products to appeal to a new or […]

 

Bitcoin Price Spirals Toward $8,000 After Google Bans Cryptocurrency Ads | Investopedia

Bitcoin Price Spirals Toward $8,000 After Google Bans Cryptocurrency Ads | Investopedia

Bitcoin prices took an 11% dive Wednesday after Google announced it will ban cryptocurrency advertising on its platform. The ban takes effect in June. The price of one bitcoin token (BTC) was about $8,137 as of this writing, down 11% from 24 hours earlier. The original virtual currency hit an intraday low of $7,955, according to CoinDesk. The […]

 

Firm backs cost-based pricing study for broadband | The Guardian

Firm backs cost-based pricing study for broadband | The Guardian

Estream Networks, has risen in support of the move by the Nigerian Communications Commission (NCC) to reposition the Nigerian telecom industry ecosystem in the area of determining appropriate cost-based pricing for retail broadband services. Muyiwa Ogungboye, chief executive officer, Estream Networks, said the recent event on cost study for the determination of cost-based pricing for […]

 

AI Is Fast Disrupting The Travel Industry. Here’s How. | Analytics India

AI Is Fast Disrupting The Travel Industry. Here’s How. | Analytics India

Dynamic Pricing And Forecasting This point ties in with recommendation. While OTAs make recommendations based on various factors, the most important factor is affordability. To keep a track of these changing prices and suggest the best price to a customer, AI can come handy. It forecasts where travellers would want to go and accordingly present […]

 

Pret a Manger’s pricing policy is raising eyebrows when wealth divides are widening | Verdict

Pret a Manger’s pricing policy is raising eyebrows when wealth divides are widening | Verdict

The move could raise awareness of Pret’s (and others) current flat pricing strategy. Pret a Manger has boasted its employees had given away 1.7 million free cups of coffee through its “random acts of kindness” scheme in its 2016 financial report — but the value of a free cup of coffee is not the same […]

 

Big airlines that launched basic economy fares rank below Southwest Airlines in survey | LA Times

Big airlines that launched basic economy fares rank below Southwest Airlines in survey | LA Times

For good reason. Four in 10 travelers surveyed by Consumer Reports said they chose their airline primarily based on price. Although American, United and Delta have all reported generating strong revenues from the sale of basic economy seats, the survey found that all economy flights got low scores for seat comfort and legroom, with nearly […]

 

Report: Knowing prices could slash health care spending | East Oregonian

Report: Knowing prices could slash health care spending | East Oregonian

“Most of us wouldn’t buy a toaster without knowing how much it costs. But you might have to buy a new knee, or an expensive procedure, without any clue what your bill is going to be,” said Jesse O’Brien, OSPIRG Foundation policy director and co-author of the report. “Consumers have the right to know how […]

 

Bitcoin’s Bubble Is Bursting. How Low Will Prices Fall? | Forbes

Bitcoin’s Bubble Is Bursting. How Low Will Prices Fall? | Forbes

Professional investors and amateur traders alike predicted that Bitcoin’s price would increase even more in 2018.  “Bitcoin will never crash,” said one Reddit user, “because then everyone would buy it when it’s much cheaper.” Like everyone buys the dips in a highly volatile high-yield market. Others looked forward to universal adoption and a price tag in […]

 

 

Macy’s (M) Sharpens Edge, to Roll Out Mobile Checkout Option | Nasdaq.com

Macy’s (M) Sharpens Edge, to Roll Out Mobile Checkout Option | Nasdaq.com

Additionally, Macy’s is in the process of launching an advanced reality shopping experience to sell furniture. Through this platform customers are likely to virtually place the furniture in their room to see how it fits before the purchase. Macy’s CEO Jeff Gennette stated that “Like a lot of brands, we’ve experimented with VR in a […]

 

Ola & Uber Indefinite Strike Enters 3rd Day: Surge Pricing & Delay Issues Continue For Commuters | Latestly.com

Ola & Uber Indefinite Strike Enters 3rd Day: Surge Pricing & Delay Issues Continue For Commuters | Latestly.com

March 21, Mumbai: The Ola and Uber indefinite strike has entered its third day today. As compared to the other two days of the strike, reportedly, today there are more app-based cars out in the streets of Mumbai. However, the issue of surge pricing and delay continues to be there for the commuters. The strike […]

 

 

Marketplaces Bring Competition To Healthcare | PYMNTS.com

Marketplaces Bring Competition To Healthcare | PYMNTS.com

Matchmakers ZendyHealth and Alegeus independently set out to provide consumers with a tool kit to help them make those hard decisions – and fund them, too. Now, the companies have joined forces to make it even easier to find the right care at the right price. In this week’s Matchmakers discussion, Dr. Vish Banthia, founder […]

 

PokerStars Announces Pricing Changes as of March 26 | PokerNews

PokerStars Announces Pricing Changes as of March 26 | PokerNews

PokerStars announced on its blog two changes to its fee structure in many of its multi-table tournaments (MTTs) as of March 26. The changes will effect lower-stakes and recreational players and not impact higher-stakes players. Starting on Monday, rake on all MTTs with a buy-in of less than $20 will increase while rake will decrease […]

 

7 Reasons Why Salespeople Cut Their Price | Industrial Distribution

7 Reasons Why Salespeople Cut Their Price | Industrial Distribution

No. 1: Because they can This is one of the strongest arguments against salespeople having pricing authority — because most will cut price when pressed by the customer. In a recent seminar, a group of managers was discussing their discounting levels. One manager explained that their salespeople could discount up to 50 percent off list […]

 

Take Advantage of Minimum Advertised Pricing – Read These 4 Reasons Why | Small Business Trends

Take Advantage of Minimum Advertised Pricing – Read These 4 Reasons Why | Small Business Trends

Minimum advertised pricing policies are a big deal for small businesses. They sell goods and services through resellers both off and online. Specifically, if you run a retail or online business, these policies help by protecting brand reputation, preserving the price margins designated for authorized sellers and bumping revenue growth for everyone involved. The idea […]

 

RedTeam Introduces Price Lock Guarantee for Construction Software | PRWeb

RedTeam Introduces Price Lock Guarantee for Construction Software | PRWeb

RedTeam’s Price Lock Guarantee is a commitment from a partner who is willing to take a dedicated stance on doing what’s right for the customer and laying the groundwork for building long-term relationships. RedTeam’s Price Lock Guarantee secures the price of subscription fees purchased as part of the service agreement based on the initial agreement […]

 

Garages face parts pricing dilemma according to TechMan | Tyrepress

Garages face parts pricing dilemma according to TechMan | Tyrepress

“Say a starter motor fails after a few months, we just use TechMan to find the customer, view the job and see the date and supplier invoice number, making it really easy to arrange the warranty return.” Beyond streamlining returns and ensuring parts all get invoiced out, Mac Automotive has found the biggest benefit from […]

 

HomeSphere Continues New Product Offerings with HomeSphere-IQ | CISION

HomeSphere Continues New Product Offerings with HomeSphere-IQ | CISION

DENVER, March 20, 2018 /PRNewswire/ — HomeSphere, the country’s largest digital marketplace connecting major building product manufacturers and local builders, launched its newest product offering today. HomeSphere-IQ™ is a homebuilding insight platform for building product manufacturers that once again raises the bar for what to expect from a rebate management program. HomeSphere-IQ provides intelligence for […]

 

 

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Seniority: Mid-Senior level

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Events and Resources

Workshop: Value-Based Pricing and Differential Value Quantification | Stephan M. Liozu, CPP

Date: Tue, 1 May, 2018 | 9:00 am – 4:00 pm

Location: PPS Spring Conference | Loews Chicago O’Hare Rosemont Hotel in Chicago, IL

More firms and their pricing leaders are embarking on value-based pricing strategies every year. Research shows increased adoption from 17% of firms in 2008 to about 25-30% of firms in 2016. Part of the deployment process of value-based pricing is the implementation of the Economic Value Estimation® (EVE®) process to quantify differential value. While adoption of value-based pricing and the implementation of EVE® is increasing, pricing professionals still face difficulties in designing and executing value-based pricing strategies and particularly executing the EVE® methods across their organizations.

In this unique one-day workshop, we go through the latest science on value-based pricing and on the EVE® process. We also review how to operationalize the outcome in value-based innovation, value-based marketing and value-based selling strategies. This is a unique and powerful workshop to learn theoretical and practical dimensions of EVE® and value quantification. Participants will also receive a signed copy of the “Dollarizing Differentiation Value” book as well as an eBook called “A User’s Guide to Value Modeling.”

Attendees will learn:

  • How to operationalize value-based pricing and EVE® in your daily business and track that your approach is successful
  • How to practically link value-based pricing with value-based innovation, value-based marketing, and value-based selling
  • How to use multi-functional collaboration to accelerate deployment of value-based pricing

(Level 600 Workshop)

 

 

Workshop: Price Execution for Sustained Profitable Growth | Navdeep Sodhi

Date: Wed, 2 May, 2018 | 9:00 am – 4:00 pm

Location: PPS Spring Conference | Loews Chicago O’Hare Rosemont Hotel in Chicago, IL

DESCRIPTION

Many companies find themselves ill-prepared to handle disruption or tap into innovation opportunities due to a legacy of weak pricing execution. New product introduction, organizational redesign, big data solutions, and other strategic investments – all of these critical functions can fall short without solid price operations.  Customers frame their perception of value received or procurement risk based on their vendors’ ability to execute pricing. Given the ever-changing marketplace, even smart companies need to adapt quickly with continuous price improvement.

However, companies have far more control over their pricing operations than they realize. In the workshop Pricing Execution for Sustained Profitable Growth, we will discuss a breakthrough approach for superior execution, one that can systematically eliminate pricing-related risk or leaks to bring new profits straight to the bottom-line without alienating customers. In this workshop, our discussion will include a holistic organizational approach for keeping senior management engaged while dismantling functional silos with the spirit of continuous improvement.

Attendees will learn:

  • How to find the Hidden Pricing Factory within your organization
  • How to secure trust and organizational support with evidence-based assessment of the overall pricing capability
  • How to align pricing operations with your pricing and sales strategy

(Level 500 Workshop)

 

European Pricing Summit 2018 | Finance iQ

EU Pricing Summit 2018 300x250Date: 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.

29th Annual Spring Pricing Workshops & Conference | PPS

640x240-Chicago-Co-Mark-banner-11.21aDate: 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).

 

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.

 

Top Discussions

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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“Oil prices have fallen lately. We include this news for the benefit of gas stations, which otherwise wouldn’t learn of it for six months.”

– Bill Tammeus