This Week in Pricing > 3/11/17

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: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

Transparent pricing: will clarity cost car dealers? | AMOnline

Transparent pricing: will clarity cost car dealers? | AMOnline

A race to the bottom? Some dealers have expressed their concerns to AM that the new price labels will create a “race to the bottom”, with competitors looking to undercut each other and erode already thin used car margins. Neil Smith, operations director at Imperial Car Supermarket, uses CarGurus and Auto Trader to upload used […]

 

Stephan Liozu Talks Value-Based Pricing (Podcast) | Professional Pricing Society

Stephan Liozu Talks Value-Based Pricing (Podcast) | Professional Pricing Society

We’re back with another #PricingPodcast – this week Stephan Liozu talks Value-Based Pricing in business! We chat with pricing expert and author Stephan Liozu, and he answers some of the more popular questions surrounding Value-Based Pricing including, What is value-based pricing? Why is it more than a pricing strategy? How can companies deploy new strategies […]

 

SPOSEA Strengthens Enterprise Wide Price Data Management Capabilities with Acquisition of Darwinpricing | SPOSEA

SPOSEA Strengthens Enterprise Wide Price Data Management Capabilities with Acquisition of Darwinpricing | SPOSEA

SPOSEA, a privately held company and software innovator in the Price Optimization & Management for the SAP software market today announced the acquisition of Darwinpricing LLC, a leader in Dynamic Pricing Solution for Geo-Targeted Price Optimization. The popularity of shopping comparison platforms like Amazon and Google Shopping is increasing the pressure on e-Commerce companies to monitor the […]

 

Report: 30% of Fuel Retailers Using Daypart Fuel Pricing | Convenience Store News

Report: 30% of Fuel Retailers Using Daypart Fuel Pricing | Convenience Store News

COLORADO SPRINGS, Colo. — Thirty percent of fuel retailers actively use daypart pricing, and 50 percent of those who use fuel pricing software actively use daypart pricing, according to a new research report from PriceAdvantage, a fuel price management software company and division of Skyline Products. The report was produced in collaboration with Schneider Electric […]

 

Taxi companies’ dynamic pricing should improve matching of supply to demand: Ng Chee Meng | The Straits Times

Taxi companies’ dynamic pricing should improve matching of supply to demand: Ng Chee Meng | The Straits Times

SINGAPORE – Taxi companies should ensure that dynamic pricing improves and not worsens the matching of supply to demand of taxi services, said Second Minister for Transport Ng Chee Meng in a Facebook post on Monday (March 6). Mr Ng’s remarks come in the wake of several taxi companies’ plans to introduce dynamic pricing for […]

 

IHS Markit Life Sciences Blog | Could drug pricing legislation be championed by US President Trump? | IHS Blogs

New Republican Healthcare Plan Pressure is certainly building on President Trump and the Republican leaders to introduce a plan to repeal and replace the ACA. Although Democrats continue to strongly advocate for plans to fix various issues with ACA rather than repeal and replace the law, Republicans are set on starting anew. We still don’t […]

 

Jetstar and Virgin handed penalties for ‘drip pricing’ techniques | The Sydney Morning Herald

Jetstar and Virgin handed penalties for ‘drip pricing’ techniques | The Sydney Morning Herald

The fines, which amount to $200,000 for Virgin and $545,000 for Jetstar, were handed down in the Federal Court on Tuesday, following its finding in November 2015 that their use of “drip pricing” techniques was in contravention of Australian consumer law. “I think this is a very big deal,” said Rod Sims, chairman of the Australian Competition and […]

 

Amazon shoppers prioritize price and shipping when deciding whether to buy | internet RETAILER

Amazon shoppers prioritize price and shipping when deciding whether to buy | internet RETAILER

Data from CPC Strategy shows more than half of shoppers will check prices elsewhere and not just turn to Amazon. Amazon.com Inc. shoppers care about price and shipping, and they will compare what other retailers offer before deciding whether to complete a purchase, according to a new report from digital marketing agency CPC Strategy. CPC’s […]

 

Sales Success Article: Right Price. Wrong Assumptions. | Engage Selling

Sales Success Article: Right Price. Wrong Assumptions. | Engage Selling

“What do I do when my customer says our price is too high and that they can get what I’m selling for less elsewhere?” I’ve been running sales workshops for over fifteen years and without fail, this question comes up in every session. In the most recent case, I had reps from two companies who […]

 

Freddo chocolate bar price increases to 30p causing ‘outrage’ online | BBC Newsbeat

Freddo chocolate bar price increases to 30p causing ‘outrage’ online | BBC Newsbeat

The price of the Cadbury’s Freddo has risen, causing “outrage” among fans of the small chocolate bar. People are reporting seeing packets of the 18g treat labelled at 30p, up from 25p earlier this year. That’s an increase of 5p and to some it might only be a few pennies but to others it’s a […]

 

Four pricing mistakes you’re making with your developer product | TechCrunch

Four pricing mistakes you’re making with your developer product | TechCrunch

Heroku’s* free dyno is a great example of this. Heroku’s initial pricing had a single unit — the dyno — and only charged for incremental dynos beyond the first. An app running one dyno would cost $0/month, an app running two dynos would cost $37.50/month, an app running three dynos would cost $75/month, etc. This […]

 

 

Donald Trump tweet about new drug pricing system | Business Insider

Donald Trump tweet about new drug pricing system | Business Insider

President Donald Trump has big plans for the way we price our drugs. “I am working on a new system where there will be competition in the Drug Industry,” Trump tweeted Tuesday. “Pricing for the American people will come way down!” What that new system might look like isn’t clear, but biotechnology stocks were down […]

 

Pricing power returns for paper makers on costlier imports | OptionsTip

Pricing power returns for paper makers on costlier imports | OptionsTip

Since January, most paper companies have raised prices at least twice, believing they see a demand-supply balance returning and imports getting costlier. Prices of most varieties have gone up by three to four per cent; over a year, by eight per cent, on average. A higher price for wood pulp globally has had a big […]

 

Drugmaker shares slip as Trump tweets about pricing system | Reuters

Drugmaker shares slip as Trump tweets about pricing system | Reuters

Shares of U.S. pharmaceutical and biotechnology companies fell on Tuesday after President Donald Trump said he was working on a “new system” to reduce prices in the industry, without providing details of his plan. Trump’s comments came as he backed a Republican bill to repeal and replace the Affordable Care Act, known as Obamacare. “I […]

 

Rollback: Wal-Mart to focus more on everyday low pricing initiative | The Globe and Mail

Rollback: Wal-Mart to focus more on everyday low pricing initiative | The Globe and Mail

Wal-Mart Canada Corp. is going back to the future in its discount-pricing practices. The retailer is focusing more than ever on so-called everyday low pricing (EDLP), which was a foundation of its low-cost business model. In past years, it occasionally drifted to shaving weekly prices on a short-term basis and then raising them again, as […]

 

 

More Headlines

Simplified Price Management and Renewed Pricing Optimization SAP | SPOSEA

Simplified Price Management and Renewed Pricing Optimization SAP | SPOSEA

Managing pricing is one of the best but least utilized improvement strategies. Most of the pricing projects failed or did not take off, though an effective price management proved essential in the current connected economy. People still depend on old traditional pricing strategies. Exorbitance of the pricing products and endless consultancies are the key reasons […]

 

Maximizing revenue: Pricing lessons from South Florida’s best value meal | Miami Herald

Maximizing revenue: Pricing lessons from South Florida’s best value meal | Miami Herald

You might not have given it much thought, but odds are you’re part of a company’s smart bundled pricing strategy. I know I am. I really wanted blind spot detection in my new Subaru, so I bought that option as part of a bundle that included pre-collision braking, lane sway warning and adaptive cruise control. […]

 

Chicago Cubs see ticket pricing start to soar for home opener against Dodgers in April | Chicago Business Journal

Chicago Cubs see ticket pricing start to soar for home opener against Dodgers in April | Chicago Business Journal

The Chicago Cubs are seeing ticket prices for the world champs’ 2017 home opener starting to surge on the resale market. And the game is still more than a month away. The Cubs won’t face the hot Los Angeles Dodgers for the home opener at Wrigley Field until April 10. But already prices have soared […]

 

ComfortDelGro is third taxi firm with plans to introduce surge pricing | The Straits Times

ComfortDelGro is third taxi firm with plans to introduce surge pricing | The Straits Times

ComfortDelGro had earlier said it wanted to introduce dynamic pricing – popularly known as surge pricing because fares can skyrocket to five times the usual rate – for some time now, but it was “not allowed” to.   Taxi fares in Singapore have been deregulated since 1998, but the industry operates under an unspoken understanding […]

 

How austerity-fatigued consumers will spend in post-price rise Britain | The Drum

How austerity-fatigued consumers will spend in post-price rise Britain | The Drum

Coffee, Marmite, fish fingers and Walkers crisps – nothing appears to be safe from the Brexit-themed price rise. With an unfortunate mix of uncertainty and inflation expected to make the pound in our pocket feel much lighter in 2017, many people fear a sharp downturn in consumer spending could hurt brands. It raises the question: […]

 

How shelf-edge technology will transform retail | Digital Signage Today

How shelf-edge technology will transform retail | Digital Signage Today

Despite 76 percent of purchase decisions (and 60 percent of brand ‘switch’ decisions) being made impulsively at the shelf-edge, the power of the shelf-edge as a premium marketing tool can sometimes be underestimated. Traditionally, static shelf-edges with paper-printed labels have been used only to fulfill one purpose – to inform customers of the price of goods. […]

 

Japan’s parcel shippers forced to revise unprofitable strategy | Nikkei Asian Review

Japan’s parcel shippers forced to revise unprofitable strategy | Nikkei Asian Review

Earnings under pressure Earnings at parent Yamato Holdings will likely erode even further for the current financial year. The group is booking an 8% increase in outside contracting expenses for the period. Although package volume is slated to hit an all-time peak, the increase actually translates to weaker profitability due to slim unit prices paid […]

 

Surprise Oil Price Cut Shows Saudis Are Trying to Fend Off U.S. Sweet Crude | Bloomberg

Surprise Oil Price Cut Shows Saudis Are Trying to Fend Off U.S. Sweet Crude | Bloomberg

The Middle East producer cut the pricing for some of its April oil sales to Asia, surprising customers who were expecting an increase that was signaled by the structure of the market. That shows it’s trying to lure buyers toward its lighter and less sulfurous crude varieties at a time when similar-quality grades are rushing […]

 

FCA should outright ban ludicrous practice of dual pricing | FTAdviser.com

FCA should outright ban ludicrous practice of dual pricing | FTAdviser.com

The issue arises from the dual-pricing mechanism used by most unit trusts, whereby the product will quote the price at which it will issue units and the price at which it will cancel them. The difference between the two is meant to capture any sales charge – less of an issue post-RDR – plus the […]

 

How to Improve the Rare Disease Treatment Pricing Problem | Patient Worthy

How to Improve the Rare Disease Treatment Pricing Problem | Patient Worthy

The high price of rare drugs is a complex issue. Even personally I have cognitive dissonance about it. On the one hand, I think “We get it. Big pharma needs fair return-on-investment when introducing these drugs to market.” On the other hand, I think “Wow, if being sick/in pain/having a fatal illness isn’t bad enough, you […]

 

These new air fares are for the cheapest of the cheapskates | The Washington Post

These new air fares are for the cheapest of the cheapskates | The Washington Post

The big airlines have jumped into the “basic economy” market, competing with the super-cheap airlines that cater to the most frugal passengers. Within hours of each other, American and United announced that they had begun selling basic economy fares that push down the price of a ticket. The lower price can come with caveats, however, […]

 

Fidelity Significantly Cuts Online U.S. Equity Trade Pricing to $4.95 and Lowers Options and Margin Pricing for Retail Clients | Fidelity

Fidelity Significantly Cuts Online U.S. Equity Trade Pricing to $4.95 and Lowers Options and Margin Pricing for Retail Clients | Fidelity

Fidelity retail clients enjoy best of both worlds: award winning brokerage platform1 and online U.S. equity trades that are 50 percent lower than TD Ameritrade and E*Trade and 28 percent lower than Schwab1, plus best in class option and margin pricing BOSTON — Reaffirming its longstanding commitment to provide the best overall value in the […]

 

Do Tiered Pricing Plans Work? | S&D Marketing

Do Tiered Pricing Plans Work? | S&D Marketing

Tiered pricing is commonly used by businesses in all industries and for a good reason—it actually works. When a strategy is regularly employed by various companies, it’s because the strategy has been proven to be effective. So, if you want to boost conversion rates, learn how to set up tiered pricing. What is a Tiered […]

 

Express Scripts responds to Gilead drug pricing comments | Business Insider

Express Scripts responds to Gilead drug pricing comments | Business Insider

As scrutiny of high drug prices in the US intensifies, so has the finger pointing about who is to blame. This week, that came in the form of an interview in which an executive at Gilead blamed high prices on pharmacy benefit managers, the companies that help insurance plans determine what drugs they’ll cover and how much they’ll pay. […]

 

Pricing in a Connected Economy | SPOSEA

Pricing in a Connected Economy | SPOSEA

The world is now heading faster to be a connected economy. And Pricing in such an economy has become dynamic, influenced by different markets, time, geopolitical scenario and location. A pricing system that does not meet the need of the hour becomes obsolete in due course of time.A pricing to constant quality becomes difficult at […]

 

Yankees tickets now feature variable and dynamic pricing | Newsday

Yankees tickets now feature variable and dynamic pricing | Newsday

Airlines and hotels have been doing it for decades. Most pro sports teams have been doing it for years. Now, at last, the Yankees have taken a plunge into the world of ticket prices shaped by the winds of market forces. Many fans first became aware they had begun using both variable and dynamic pricing […]

 

Murray Goulburn pricing controversy ends four generations of dairy at Dubbo | Australian Broadcasting Corporation

Murray Goulburn pricing controversy ends four generations of dairy at Dubbo | Australian Broadcasting Corporation

A Dubbo dairy family with four generations of involvement in the industry is the latest casualty of the Murray Goulburn pricing controversy. Kylie and Peter Squires are selling all their Holstein Friesian cattle and their Buckhobble stud, near Geurie, east of Dubbo in western New South Wales. “In the past five to six months we […]

 

Early Bird Pricing – How to Boost Event Ticket Sales with Advance Pricing Promotions | attendstar

Early Bird Pricing – How to Boost Event Ticket Sales with Advance Pricing Promotions | attendstar

Early bird pricing isn’t a new concept. Airlines have been doing it for a very long time. For events, Scotland’s T in the Park pop music festival pioneered early bird ticket prices according to The Economist, and today, it’s common practice to offer a discount to people who purchase event tickets in advance. Why? Because […]

 

Older cabbies not keen on surge pricing | The New Paper

Older cabbies not keen on surge pricing | The New Paper

The likely introduction of surge pricing for taxis has not gone down well with older cabbies. Most of those who spoke to The New Paper were apprehensive about the pricing system and the technology involved. Mr Chia Chiong Soon, 70, a cabby of 20 years, said: “Why must we make things so complicated? Older people […]

 

SPA Featured in The Distributor Channel article “Every Silver Cloud has a Dark Lining: Things to Consider in a Growth Economy” | Strategic Pricing Associates

SPA Featured in The Distributor Channel article “Every Silver Cloud has a Dark Lining: Things to Consider in a Growth Economy” | Strategic Pricing Associates

“I believe a solid pricing process is an essential part of any strategic initiative.  There’s three big reasons why:” Pricing Process drives bottom line results.  The typical distributor using David Bauders’ Strategic Pricing Associates improves gross margin by two points.  In some industries, this nearly doubles the bottom line results.  For most distributors the gain […]

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The Benefits of Dimensional Weight Over Physical Weight Pricing | MINI PAK’R

The Benefits of Dimensional Weight Over Physical Weight Pricing | MINI PAK’R

As more and more shipping companies are switching over to dimensional weight pricing, a lot of people are wondering what the deal is. Why not stick with the traditional physical weight pricing model — after all, the heavier the package, the more it should cost, right? It turns out physical weight might not actually be […]

 

Costco raising membership fees | USA Today

Costco raising membership fees | USA Today

Costco Wholesale Corp. announced Thursday that it’s raising its membership fees, as the warehouse club operator released quarterly results that fell short of Wall Street’s expectations. Its shares fell more than 4 percent in after-hours trading. Starting June 1, annual membership fees for individual, business and business add-on members in the U.S. and Canada will […]

 

Featured Content and Events

Workshop: Dollarizing Differentiation Value | Stephan M. Liozu, CPP at PPS Spring Conference

Workshop: Dollarizing Differentiation Value | Stephan M. Liozu, CPP at PPS Spring Conference

The dollarization of differentiation value is at the heart of value-based pricing. Join this one-day workshop to learn the 6 steps of value-based pricing and to discover a realistic approach to the science and art of dollarization. You will discover multiple case studies and go through short dollarization exercises. At the end of the workshop you will learn how to operationalize dollarization in your business and your culture. Participants receive a signed copy of Stephan’s latest book called “Dollarization of Differentiation Value”.

Attendees will learn:

  • The 6 steps of value-based pricing
  • The science and art of dollarization
  • What to dollarize and when to use numbers in value-propositions

View Bio

 

PPS - Miami 2017 Conf

Conference: 28th Annual Spring Pricing Workshops & Conference | PPS

Location: Hilton Miami Downtown Hotel in Miami, FL

Date: May 2-5, 2017

You want your pricing “done right,” but how do you conquer the key pricing challenges that face your corporation?

Find out how you can build a winning corporate strategy at the PPS 28th Annual Spring Pricing Workshops & Conference in Miami, FL!

Download Brochure

We will be at the Hilton Miami Downtown Hotel, from May 2-5, 2017 for a week of opportunities to help you align your organization for its highest potential!

Follow the hashtag #PPSMIA on social media networks.

Visit pricingsociety.com for the latest information.

 

Conference: Battle for Margin > SPASIGMA Negotiation Workshop & Pricing Strategy Seminar | SPA 

Date: June 8-9, 2017

Location: Mandarin Oriental Las Vegas, Nevada

This big-picture seminar presents SPA’s unique blend of analytical and training tools to drive industry-leading profitability. The seminar provides critical insights to C-Suite Executives, Pricing Leaders, Sales Leaders, Procurement Leaders, across a broad cross-section of industries. This engaging seminar incorporates expert instruction, case studies, role-playing, and entertaining videos to present personality-type theory, negotiation skills, and analytical tools. These tools will enable any organization to maximize profitability, typically by 200 to 500 basis points, or 2 – 5% of sales. The seminar addresses the strategic and practical tools that are fundamental to maximizing shareholder value. It will help you to re-focus your organization increasing performance in their daily jobs while capturing greater economic value. With expert training, and long-term retention and analytical tools, your team can negotiate better to buy lower and sell higher, thus maximizing profits and shareholder value.

 

 

Conference: European Pricing Summit | Finance iQ

Conference: European Pricing Summit | Finance iQ

Date: June 27-28, 2017

Location: Palace Hotel in Berlin, Germany

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 access to others’ KPIs without fully revealing theirs!

 


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

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“Perhaps the reason price is all your customers care about is because you haven’t given them anything else to care about”

     – Seth Godin

 

 

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