This Week in Pricing > 3/18/17

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: PPS Logo

 

 

 

Professional Pricing Society

Currently, PPS produces three major annual pricing conferences in Europe and North America. Each conference also houses a technology hall where sponsors display the latest in Pricing Solutions software. PPS also offers more than two dozen, full-day training workshops every year, taught by leaders in the pricing community. These workshops serve as the foundation for PPS’s Certified Pricing Professional (CPP) designation, our state of the art pricing certification program. Candidates may be certified after mastering a multi-stage curriculum followed by rigorous testing. Successful CPPs have acquired the core knowledge which not only places them in the top rungs of the pricing field, but also gives them the tools to enhance substantially their own careers.

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Top Headlines

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 […]

 

My Universal Pricing Strategy for Commercial and Non-Commercial Photography | Fstoppers

My Universal Pricing Strategy for Commercial and Non-Commercial Photography | Fstoppers

Pricing has always been a subject of interest for photographers. Whether you practice high-end commercial photography or you take beautiful family portraits, understanding and determining a just pricing strategy for you and the client is very important. When I started I didn’t have an idea how to put a price on my work. I began […]

 

Oil stretches losing streak to 6th session | MarketWatch

Oil stretches losing streak to 6th session | MarketWatch

Oil futures extended a losing streak to a sixth session Monday as traders looked to the release of monthly reports from major industry groups this week that are expected to provide updates on OPEC crude production and global demand. Prices held ground at their lowest settlement since late November as robust growth in U.S. oil […]

 

No surging towards dynamic pricing | The Straits Times

No surging towards dynamic pricing | The Straits Times

The surge of interest in dynamic pricing among taxi operators is a natural response to the growing competition from private-hire cars. Transport network companies based on technology, like Uber and Grab, have changed the game by taking cheaper fares during off-peak hours and higher fares when demand exceeds supply, for example during the rush hour. […]

 

The Relentless Quest For Low Prices | Forbes

The Relentless Quest For Low Prices | Forbes

According to PricewaterhouseCoopers’ latest report, price is the No. 1 factor that motivates purchases. Shoppers are relentless in their search for affordability, scouring the web to research and compare prices. Meanwhile, competitive pricing is unsustainable long-term as retailers compete with the flurry of new entrants in the onslaught of e-commerce disruption. Our recent retail survey found 64% […]

 

How Our Brain Determines if the Product is Worth the Price | HBS Working Knowledge

How Our Brain Determines if the Product is Worth the Price | HBS Working Knowledge

Are consumers more likely to buy if they see the price before the product, or vice versa? Uma Karmarkar and colleagues scan the brains of shoppers to find out. by Carmen Nobel Think of the last time you went shopping. By the time you decided to buy a product, you knew both what you were […]

 

Why we Love Value Pricing: Concerns and Myths Dispelled! | Wall Street Main Street

Why we Love Value Pricing: Concerns and Myths Dispelled! | Wall Street Main Street

I showed more value to my clients, I did more continuing education, but I was making less money. I was the little bird flapping ever harder just to continue losing altitude. It was exhausting and disheartening, and I didn’t even realize it. I thought that was simply how things were done. Then I found another way. At Scaling New […]

 

Collaborative and Dynamic Pricing for Product Manufacturers | The Wiglaf Journal

Collaborative and Dynamic Pricing for Product Manufacturers | The Wiglaf Journal

Price Waterfall The price waterfall tracks pricing decisions and sources of price variance between the list price and the pocket price.  As such, it can be used to delineate not only the pricing decisions, but also the responsibilities of different agents that contribute to pricing. At a high level, we can classify price variances into […]

 

Oil Services Stocks Regaining Pricing Power | ClearBridge

Oil Services Stocks Regaining Pricing Power | ClearBridge

The stabilization of crude oil prices above $50 per barrel (bbl) for West Texas Intermediate, increasing capital spending by exploration & production (E&P) companies and rising rig counts have meaningfully improved the pricing and profit outlook for the oilfield services industry. Oil service companies that provide drilling equipment, completions technology, specialized labor and other services […]

 

Vaccine Makers Ranked on Pricing and Research | The New York Times

Vaccine Makers Ranked on Pricing and Research | The New York Times

The pharmaceutical companies GlaxoSmithKline and Sanofi sell many doses of vaccines at high prices and do a lot of research with the profits, while the Serum Institute of India makes more doses than any other manufacturer and sells them at low prices, according to the first Access to Vaccines Index, which was released last week. […]

The Future of Shopping Is More Discrimination | The Atlantic

The Future of Shopping Is More Discrimination | The Atlantic

Two years ago, at a retail-marketing conference called “The Internet of Things: Shopping,” a consultant took the stage and predicted that by 2028, half of Americans will have implants that communicate with retailers as they walk down stores’ aisles and inspect various items. By 2054, he added, this would be true of nearly all Americans. […]

 

How Psychology and Strategy Work Together to Perfect Pricing (well, almost) | Medium

How Psychology and Strategy Work Together to Perfect Pricing (well, almost) | Medium

Pricing: Sensitive, Scary, and Crucial Pricing is one of the most powerful yet under-appreciated levers in business. Good pricing has the power to increase Customer Lifetime Value, make unprofitable businesses thrive, and completely change Brand perception. Done poorly, it can doom quality products to failure, tarnish reputations, and really piss off customers. Customers are sensitive to […]

 

How to Implement Gender-Neutral Pricing in the Salon | Modern Salon

How to Implement Gender-Neutral Pricing in the Salon | Modern Salon

Recently, there has been buzz surrounding two salons in the Logan Square neighborhood of Chicago for their pricing system. Counter to the traditional method of charging clients for men’s or women’s cuts, Barbara & Barbara and Logan Parlor salons price based on hair length, with a mission of creating an inclusive environment for clients. “From a social […]

 

Outlets at Shanghai airports, Disneyland move to fair pricing | Easy Branches

Outlets at Shanghai airports, Disneyland move to fair pricing | Easy Branches

MORE than 60 chain stores and restaurants in Shanghai’s two airports and Disneyland on Wednesday vowed to keep prices on par with those in their other outlets in the city, following pressure from Shanghai’s price regulator. The Shanghai Development and Reform Commission said that it had received a great deal of consumer complaints that dining […]

 

When Does Pay What You Want Pricing Work? | Psychology Today

When Does Pay What You Want Pricing Work? | Psychology Today

I am sure that at one time or another, many marketers have considered using a Pay What You Want (PWYW) pricing scheme to sell their products. On the face of it, it seems such an alluring idea, predicated on human decency and reciprocity. PWYW pricing is simple. Provide a good-quality product to customers, let them […]

 

 

 

More Headlines

HBCU Money™ Business Book Feature – Confessions of the Pricing Man: How Price Affects Everything | HBCU Money

HBCU Money™ Business Book Feature – Confessions of the Pricing Man: How Price Affects Everything | HBCU Money

The world’s foremost expert on pricing strategy shows how this mysterious process works and how to maximize value through pricing to company and customer. In all walks of life, we constantly make decisions about whether something is worth our money or our time, or try to convince others to part with their money or their […]

 

Restaurants add minimum wage surcharge | Business Insider

Restaurants add minimum wage surcharge | Business Insider

For years, restaurant owners have argued that a higher minimum wage means pricier meals.Now some restaurants in states that recently raised the minimum wage — including Arizona, California, and Colorado — are putting the proof in customers’ checks. Surcharges of 3% to 4% to pay for higher labor costs are “the emerging new norm,” a […]

 

How to Shut Down Seller’s Tired Pricing Excuses | The Strategic Agent

How to Shut Down Seller’s Tired Pricing Excuses | The Strategic Agent

Financial Consequences Include: There are so many stats on the problem of overpricing but I’m going to start with one from the National Association of REALTORS. Of houses that are on the market more than 17 weeks, 45% of the sellers took less than 90% of the asking price. This stat essentially confirms that the […]

 

News: Quake Champions Adopts Super Mario Run Pricing Model | MegaGames

News: Quake Champions Adopts Super Mario Run Pricing Model | MegaGames

Quake Champions, the latest iteration in the two decades old fast-paced arena shooter series, is adopting the same controversial pricing model Nintendo pioneered for Super Mario: Run. Speaking to Polygon, creative director Tim Willits revealed that Quake Champions players will get to play the full game with a single champion for free, or pay a […]

 

Pricing for international success | Dynamic Export

Pricing for international success | Dynamic Export

One of the challenges any company faces when looking to sell globally is trying to set the right price and the terms of sale for their products and/or services in overseas markets. There are many costs incurred in selling overseas. Before setting any price, you need to ensure that all costs have been taken into […]

 

Pricing psychology: How to set prices to increase sales? | Pixiolabs

Pricing psychology: How to set prices to increase sales? | Pixiolabs

Getting customers to make a purchase is the ultimate goal of marketing. How to set prices to increase sales? Oftentimes new online merchants overfocus on such things such as the size of the font used to show the price. Research into consumer psychology offers some interesting insights into the most effective way to display prices. […]

 

Surge Pricing: Is It Right for Tax and Accounting Firms | CPA Practice Advisor

Surge Pricing: Is It Right for Tax and Accounting Firms | CPA Practice Advisor

Surge pricing: Some call it price gouging, others call it the price of convenience. Still others just call it supply and demand. If you’ve used Uber or one of its competitors in a large city, particularly during peak traffic hours or during special events, you’ve likely paid what is known as surge pricing. But Uber […]

 

Your Value-Based Pricing Strategy: How to Price Your Event | Eventbrite

Your Value-Based Pricing Strategy: How to Price Your Event | Eventbrite

How Can I Apply Value-Based Pricing? There are three key components to value-based pricing: perceived value, the actual price, and the cost per ticket for the event. Perceived value is what the customer thinks they will get out of your event. Here it is perception, as much as reality, that drives the transaction. Next comes […]

 

Electricity pricing is confusing and that’s why they’re using it to mislead us | The Guardian

Electricity pricing is confusing and that’s why they’re using it to mislead us | The Guardian

The government has clearly decided that electricity prices is its key message for the next three years – and as a result the prime minister has ensured the policy debate will be biased towards climate change denial and will continue to treat Australians as idiots. When the prime minister let fly against Bill Shorten in […]

 

Biogen’s Spinraza sparks pricing concerns as Trump renews attack on pharma | FiercePharma

Biogen’s Spinraza sparks pricing concerns as Trump renews attack on pharma | FiercePharma

Is Spinraza the next Sovaldi? That’s the question on the minds of health insurers, analysts and investors as Biogen launches Spinraza (nusinersen), its highly anticipated spinal muscular atrophy (SMA) drug. The drug will cost $125,000 per injection, amounting to $750,000 for the first year and $375,000 after that. That’s why Spinraza is bringing to mind […]

 

The Secret of Airbnb’s Pricing Algorithm | IEEE Spectrum

The Secret of Airbnb’s Pricing Algorithm | IEEE Spectrum

How much should you charge someone to live in your house? Or how much would you pay to live in someone else’s house? Would you pay more or less for a planned vacation or for a spur-of-the-moment getaway? Answering these questions isn’t easy. And the struggle to do so, my colleagues and I discovered, was […]

 

Kenya: Manufacturers lure farmers in pricing war | The Standard

Kenya: Manufacturers lure farmers in pricing war | The Standard

Manufacturing firms are battling to strike a balance between selling products at affordable prices and buying raw materials at low prices. The growing number of firms manufacturing similar products has introduced cut-throat competition that calls for careful pricing and packaging to attract customers. However, the presence of many firms has given suppliers of raw materials […]

 

March madness. What’s causing gas prices to continue to plummet? | NJ.com

March madness. What’s causing gas prices to continue to plummet? | NJ.com

What’s forcing crude oil prices lower? Plenty of oil that is in storage on American shores, 528 million barrels worth, which increased 8.2 million from the prior week, according to the federal Energy Information Administration. Impatience from speculators, who were looking for a short term gain on the commodities market and are now selling, is driving […]

Change the Way You Think About Pricing | The Strategic Agent

Change the Way You Think About Pricing | The Strategic Agent

You’ve probably heard me say this before…we, real estate agents, simply were not taught how to discover an asking price correctly. Frequently, an agent will approach me about a troubled listing by saying, “Jo, I have a house that is not getting showings.  What do you think?” I respond by saying, “It’s over priced.” “No,” […]

Top restaurants slap on Sunday surcharge | The Sydney Morning Herald

Top restaurants slap on Sunday surcharge | The Sydney Morning Herald

Lucas says there are “absolutely” going to be more restaurants introducing Sunday surcharges across Melbourne bringing the restaurant industry into line with Sydney where surcharges are more common. It’s a business move Victor Liong has also imposed a 15 per cent surcharge on Sundays at his restaurant Lee Ho Fook to cover staffing costs. Lee Ho […]

 

Top 6 Myths About Pricing a Home For Sale | Max Real Estate Exposure

Top 6 Myths About Pricing a Home For Sale | Max Real Estate Exposure

We Just Need The Right Buyer “We just need to find the right buyer to sell our home for a great price.” Another misconception when it comes to the sale of a home. I am sure if I waited long enough dating a super model would be easy for me too. Fat chance! This myth […]

 

Amgen dodges drug pricing inquiry | The Acorn

Amgen dodges drug pricing inquiry | The Acorn

A shareholder group has been turned away in its attempt to force Amgen to reveal how it sets the prices of its top-selling prescription drugs. The shareholder group, Mercy Investment Services, told Amgen in a letter that its members are worried about consumer outrage over high pharmaceutical prices and by comments made by President Trump […]

 

James Hay overhauls pricing structure | Fund Strategy

James Hay overhauls pricing structure | Fund Strategy

James Hay has overhauled its pricing structure across a number of product ranges, set to favour the largest investors. The firm has increased charges for the lowest tiered investment brackets and decreased the fees for the higher band by 0.04 percentage points. For its Modular iPlan portfolio the firm has introduced a new tiered structure […]

 

Drug pricing: caught between ethics and politics | Financier Worldwide

Drug pricing: caught between ethics and politics | Financier Worldwide

Drug pricing has become a topic of much heated debate, both on the political stage and among drug companies, patients and payors. Many of us are either directly or indirectly (through friends and family) affected by what seem to be ever-rising drugs prices, insurance premiums or co-payments. Society, in the form of public payors or […]

 

J C Penney Company Inc (JCP): Data is Key to the New Pricing Algorithm | Smart Stock News

J C Penney Company Inc (JCP): Data is Key to the New Pricing Algorithm | Smart Stock News

Management is overhauling its merchandising approach by editing out brands/styles, investing in speed, building out its plus-size business and shifting mix towards casual/athletic … JCP’s new pricing strategy cuts across initial markups, coupons and clearance and should benefit sales/GM as it relies more on data to drive its pricing and couponing decisions. The company has […]

 

The Need For Transparent Pricing Of Bank Services | Bloomberg Quint

Calculating How Much To Charge Banks are arriving at charges in an arbitrary manner, as they lack accurate data on costing. They honestly don’t know what each product or service costs them. Instead, they offer a total cost or a branch cost which is meaningless. What we need from them is to know what the […]

 

An Expert Guide to Optimize Your SaaS Pricing | The Invesp Blog

An Expert Guide to Optimize Your SaaS Pricing | The Invesp Blog

Finding the right pricing strategy and price points for your SaaS (Software as a Service) company is no mean feat. As a matter of fact, quite a few companies and especially startups struggle with defining a successful pricing strategy. In recent years, the use of SaaS grew year-to-year at a rate of 24.4%, and by […]

 

Apple accused of counter-revolutionary pricing in Russia | The Register

Apple accused of counter-revolutionary pricing in Russia | The Register

Russia’s anti-monopoly regulator has taken a bite out of Apple, finding that Cupertino’s local outpost fixed iPhone prices in the country. The Federal Antimonopoly Service’s (FAS) investigation found that the company fixed iPhone 5 and iPhone 6 products in the retail supply chain. Not only does the FAS say Apple set retail prices for 16 […]

 

Three-tier pricing in effect as Hillside Festival eyes change | GuelphMercury.com

Three-tier pricing in effect as Hillside Festival eyes change | GuelphMercury.com

The situation got a lot worse in 2016, with Hillside estimating it sold 58% of its weekend passes, almost all of its Saturday passes, two-thirds of its Sunday passes and under one-third of its Friday evening passes. For 2017, Hillside is trying a new pricing strategy — a three-tier, step-up pricing system that has seen […]

 

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

 

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!

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.

 

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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“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

 

 

Pricing Resources

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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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