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This Week in Pricing > 3/1/15

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.

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Strategic Pricing Solutions

Strategic Pricing Solutions, LLC (SPS) is a management consulting firm helping clients with pricing strategies, data analytics, and pricing processes. SPS was formed by Scott Francis in 2005 with a vision of enabling B2B clients to build sustainable strategic pricing capability to significantly improve their profitability. By providing flexibility in how we serve our customers, SPS consulting enables clients to build sustainable strategic pricing capability and continuous improvement in profitability through better pricing decisions.

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Headlines

6 Reasons Why Selling on Price Does Not Work | The Sales Hunter

6 Reasons Why Selling on Price Does Not Work | The Sales Hunter

For some reason salespeople always think if they can just lower their price, they can increase their number of sales. In theory it sounds great. Sure seems like a basic economic equation. The problem is that in the vast majority of situations, it simply does not work. Here are 6 reasons why: 1. Somebody will come […]

DISCOUNTING: Be Proactive, Be Selective, Be Timely | Arts Hacker

DISCOUNTING: Be Proactive, Be Selective, Be Timely | Arts Hacker

So how do you do it? EARLY BIRD: The key is to offer discounts strategically and to specific segments, not just a blanket offer. For our holiday concert weekend, I offer ticket buyers from the previous five years of holiday concerts the chance to get 10% off IF they purchase by October 31. I give […]

Should price optimization be Illegal? | Quoted

Should price optimization be Illegal? | Quoted

P.O. IN THE NEWS Just last week, the state of California declared the process of price optimization, which it defined as “any method of taking into account an individual’s or class’s willingness to pay a higher premium relative to other individuals or classes,” as illegal. This means California joins ranks with Ohio and Maryland, where […]

Insurance Industry Needs Better Arguments for ‘Price Optimization’ | Insurance  Journal

Insurance Industry Needs Better Arguments for ‘Price Optimization’ | Insurance Journal

This is clearly an innovation that would not have been possible without the modern digital economy. That we have enhanced predictability is clearly a good thing. For now though, I’m going to focus on the contingency expressed upfront “…where allowed by regulations.” The practice and culture of insurance pricing long has been predicated on making […]

US banks said to face manipulation probe over metals pricing | Livemint

US banks said to face manipulation probe over metals pricing | Livemint

‘Conduct Issues’ Three banks that settled currency-manipulation claims with US regulators in November—JPMorgan, Citigroup Inc. and Bank of America Corp.—were required under terms of those agreements to review and identify “other trading activities that could raise similar market conduct issues.” Those reviews triggered scrutiny of precious metals trading, another person familiar with the matter said. […]

J.P. Morgan in talks with Justice Department over auto loan pricing | MarketWatch

J.P. Morgan in talks with Justice Department over auto loan pricing | MarketWatch

J.P. Morgan Chase & Co. said it is in discussions with the Justice Department as part of a federal probe into whether auto lenders are doing enough to prevent dealers from charging higher interest rates to minorities. The largest U.S. bank by assets said in a securities filing disclosed Tuesday afternoon it is in talks […]

GEICO discriminates against low-income drivers, says consumer group | Insurance Business America

GEICO discriminates against low-income drivers, says consumer group | Insurance Business America

A consumer protection group in California is accusing GEICO of discriminating against lower-income drivers. The Consumer Federation of California says the auto insurance giant’s lowest-premium policies are not being offered to certain drivers who ask for quotes online; instead, they are offered policies that do not meet the minimum amount of coverage required by the […]

How Amazon-Style Pricing And Portfolio Tactics Can Hack The Crowded App Market | Forbes

How Amazon-Style Pricing And Portfolio Tactics Can Hack The Crowded App Market | Forbes

The pricing payoff Apps that debut as free tend to last twice as long on the top charts as those that don’t, according to the Arizona State researchers. But what about the more than 80% of apps that analytics firm Adjust calls “zombies” in a recent Fortune report, apps that don’t crack any top lists […]

Five lessons in Pricing from Apple | Ashridge Business School

Five lessons in Pricing from Apple | Ashridge Business School

I bought a new iPad last week. More fascinating than the iPad were the pricing options, cleverly designed to optimise revenue for Apple. There is an offer pitched to appeal to every price segment from entry level at £199 right up to a rich geek’s novelty indulgence at £659. Let’s look at some of Apple’s […]

Marc Lore Jet Raised 140 Million | Business Insider

Marc Lore Jet Raised 140 Million | Business Insider

Jet, the e-commerce startup founded by former Quidsi CEO Marc Lore that plans to compete with Amazon using a dynamic pricing model, just raised $140 million in new funding in a round led by Bain Capital. … Like Amazon, the site will sell just about everything — but it promises its prices will ultimately be […]

Drop in oil price squeezes ethanol producers | Ames Tribune

Drop in oil price squeezes ethanol producers | Ames Tribune

MINNEAPOLIS — The dramatic fall in oil prices has ended the party for another energy industry — ethanol. Some producers of corn-based ethanol made record profits in 2014, but that’s over. Industry executives now are talking about breaking even or staying slightly profitable. Cheaper gas affects ethanol producers because they sell into the same fuel […]

Qdoba Mexican Grill’s sales propelled by simplified pricing | Nation’s Restaurant News

Qdoba Mexican Grill’s sales propelled by simplified pricing | Nation’s Restaurant News

Qdoba Mexican Grill’s simplified pricing structure helped propel same-store sales 14 percent in the first quarter, boosting the chain’s average check 9.8 percent without giving the impression of a price increase, company officials said Wednesday. … That effort included a shift in October to a new pricing structure that let customers pay one price, based […]

How Psychology Can Optimize Your B2B Pricing Strategy | Business 2 Community

How Psychology Can Optimize Your B2B Pricing Strategy | Business 2 Community

There’s more to a perfect pricing strategy than economics alone. Alongside input costs, demand, and industry competition, there’s another factor determining the success of your pricing: psychology. Psychology and marketing go hand in hand. Today, I’m taking a quick look at four psychological principles behind successful pricing strategies. By combining these psychological quirks with a […]

Air Products’ (APD) Strategic Actions Should Yield Results | Zacks.com

Air Products’ (APD) Strategic Actions Should Yield Results | Zacks.com

Air Products’ first-quarter fiscal 2015 (ended Dec. 31, 2014) adjusted earnings, reported on Jan 29, outstripped the Zacks Consensus Estimate. The company’s profit rose in the quarter on the back of increased volumes and pricing. Air Products is gaining from a diverse customer base, cost-reduction measures and sustained pricing power. New business deals and strategic […]

Motorola Lashes Back At Apple For “Making So Much Money” With Outrageous Prices | TechFrag

Motorola Lashes Back At Apple For “Making So Much Money” With Outrageous Prices | TechFrag

Though the company did not really comment on Apple’s premium design, they chose to fire at their pricing strategy, “We do see a real dichotomy in this marketplace, where you’ve got people like Apple making so much money and charging such outrageous prices. We think that’s not the future,” Osterloh said. “We believe the future is […]

Stephan Liozu – Intentional Pricing Strategies (podcast) | Exit Coach Radio Show

Stephan Liozu – Intentional Pricing Strategies (podcast) | Exit Coach Radio Show

Stephan discusses  the art of designing disruptive innovation, value and pricing strategies and explains why intentional and formal pricing management is important for business owners.

Forget your hotel competitors, consumer demand is the way to set pricing | tnooz

Forget your hotel competitors, consumer demand is the way to set pricing | tnooz

So how can hotels be smarter about rate? There’s a new way to manage rate that won’t keep you looking over your shoulder. Hotels are beginning to get bottom-line value by abandoning their competitor-focused pricing in favor of strategies driven by consumer demand. This approach factors in how dynamic consumers search and book hotels online […]

Ski Resorts Experiment With Dynamic Pricing | Bloomberg Business

Ski Resorts Experiment With Dynamic Pricing | Bloomberg Business

(Bloomberg) — On a January Saturday in Utah’s Wasatch mountains, a chairlift whisked Stephen Percassi, an engineer from upstate New York, toward the top of Alta Ski Area. In his pocket was his lift ticket, which would’ve cost $84 that day. Instead, weeks earlier, he’d scored it online for $69. Percassi’s discount was enabled by […]

How closely should you eye your online shopping cart? | PBS NewsHour

How closely should you eye your online shopping cart? | PBS NewsHour

Online shopping has been convenient for more than just shoppers, who no longer need to leave their computers. For retailers, the Internet allows them to change prices in an instant. And yet, they don’t. Or at least they haven’t yet adopted this as a widespread practice. That surprised economists. A new National Bureau of Economic […]

Sainsbury’s swaps shelf price tags for e-paper displays | Pocket-lint

Sainsbury’s swaps shelf price tags for e-paper displays | Pocket-lint

Sainsbury’s is trialling plans to replace the price tickets on the shelves of its supermarkets with changeable e-paper equivalents. It has installed digital pricing displays in its Shoreditch Old Street Local store and if it proves successful for staff, the tech team at the supermarket chain will look to roll it out to other branches in […]

Rising, moving and crashing: Dynamic pricing | ArtsProfessional

Rising, moving and crashing: Dynamic pricing | ArtsProfessional

It does pretty much what we had thought it might do, using the flexibility provided by computer-based box office systems to let our ticket prices be as fluid as they want to be. From last September we have introduced three new models to our box office – Rising prices, Moving prices and Price crash – […]

Then Again, Maybe Delta’s Dynamic Award Pricing Will Lead To Reduced Award Prices | ThreadTripping

Then Again, Maybe Delta’s Dynamic Award Pricing Will Lead To Reduced Award Prices | ThreadTripping

Interestingly, amatrip sees the move by Delta and worries not so much about upcoming trips on Delta, but about the future of pricing in general: I actually don’t care about Delta FF program. I think I am more upset with the use of dynamic pricing. And the reality is it is not always a good […]

Discussion: Pricing Experiments You Might Not Know, But Can Learn From | ConversionXL

Discussion: Pricing Experiments You Might Not Know, But Can Learn From | ConversionXL

Lots of entrepreneurs struggle with pricing. How much to charge? It’s clear that the right price can make all the difference – too low and you miss out on profit; too high and you miss out on sales. Don’t ask, can’t tell Asking people what they’d pay for and how much rarely works. For one […]

Chart: The Extra-Caffeinated Cost of a Starbucks Latte in China | WSJ

Chart: The Extra-Caffeinated Cost of a Starbucks Latte in China | WSJ

Sticker-shock is starting to hit Chinese consumers. As more Chinese travel overseas and shop online, many are hit with the realization that they’re paying far more a variety of ordinary goods—from shoes and infant formula to mobile phones and cars.  As The Wall Street Journal reports today, government taxes and import tariffs are to blame […]

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Events

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 […]

 

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

 

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“The show is not selling, let’s raise prices!”

– Ronda Helton

 

Pricing Resources

Explore our archives of valuable pricing resources including:

Blog: 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 […]

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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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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