This Week in Pricing > 3/25/17

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.

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Strategic Pricing Associates

SPA is the leading provider of pricing analytics to 100′s of complex companies of all types: manufacturing, distribution, equipment, services, and software/technology products. The benefits are staggering; and they are typically accomplished in less than 90 days. Our typical client improves profitability by two to four percent of sales. SPA Clients include over 200 manufacturing companies including Parker HannifinRockwellGEExxon MobilCaterpillar as well as over 400 distributors including Harry Cooper Supply CompanyIndustrial Distribution GroupAH Harris, and ThermoFisher Scientific.

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Top Headlines

Apple ‘Underpricing’ Strategy for AirPods, Apple Watch: Analyst | Fortune

Apple ‘Underpricing’ Strategy for AirPods, Apple Watch: Analyst | Fortune

Apple has long been viewed as a “luxury” device maker with high prices. But now one analyst believes the company is changing its tack. The tech company has engaged in an “underpricing” strategy with its AirPods wireless earbuds and Apple Watch smartwatch, Above Avalon analyst Neil Cybart said this week. He believes Apple’s AirPods, which […]

 

“Dynamic Pricing” System for Taxis | REACH

“Dynamic Pricing” System for Taxis | REACH

The Land Transport Authority (LTA) and Public Transport Council (PTC) in a joint statement today (17 Mar) announced that taxi companies will be implementing a new “dynamic pricing” system (i.e. surge pricing) in which fares will vary according to passenger demand. The proposal for such a system was put forth by cab operators. This new […]

 

The Curious State of Apple Product Pricing | Above Avalon

The Curious State of Apple Product Pricing | Above Avalon

As Apple pushes deeper into luxury brand territory, the company is making its products more accessible through lower pricing. At $159, Apple is underpricing AirPods. The same can be said for Apple Watch, priced at $269. In just ten years, we have moved from the “Apple Tax” days, when Apple was accused of pricing products artificially […]

 

Impact Of Pricing War On Wal-Mart – Wal-Mart Stores, Inc. | Seeking Alpha

Impact Of Pricing War On Wal-Mart – Wal-Mart Stores, Inc. | Seeking Alpha

Wal-Mart (NYSE:WMT) is making additional investments in its pricing strategy to ensure it remains the most affordable retailer within the U.S. A recent price comparison by Reuters in five cities for a basket of 15 items showed Wal-Mart offering the goods at 5% to 10% cheaper than Aldi. Wal-Mart’s new pricing strategy is being used […]

 

Putting dynamic pricing back on the shelf | Elixirr

Putting dynamic pricing back on the shelf | Elixirr

Some European retailers have rolled out “version 1” solutions. In France, the move to the Euro and the requirement for dual pricing, as well as high labour costs led to the emergence of the Casio-watch style ESL. Customers quickly deemed it unattractive and inferior to colour printed labels. And it’s also been slow to catch […]

 

Financial dictionary: what does risk-based pricing mean? | Lansing State Journal

Financial dictionary: what does risk-based pricing mean? | Lansing State Journal

Risk-based pricing If you have applied for or researched loans, you may have already heard this term. Risk-based pricing is a practice commonly-used by many lenders, including your local credit unions to describe the total cost of a loan. When a borrower applies and is approved for a loan, it is then “priced” with an […]

 

Surge pricing, please don’t turn into a scourge | The New Paper

Surge pricing, please don’t turn into a scourge | The New Paper

Dynamic pricing for taxis may lead to fewer cabbies plying the road for flag-down customers So it looks like nothing is standing in the way of taxi companies imposing their version of “surge pricing” on customers. Last Friday, the Public Transport Council (PTC) and the Land Transport Authority (LTA) issued a statement saying they had […]

 

Direct primary care, a no-insurance healthcare model | Business Insider

Direct primary care, a no-insurance healthcare model | Business Insider

Dr. Bryan Hill spent his career working as a pediatrician, teaching at a university, and working at a hospital. But in March 2016, he decided he no longer wanted a boss. He took some time off, then one day he got a call asking if he’d be up for doing a house call for a […]

 

Trump blasts Big Pharma again — “somebody’s getting very rich” — and promises drug price legislation | ENDPOINTS NEWS

Trump blasts Big Pharma again — “somebody’s getting very rich” — and promises drug price legislation | ENDPOINTS NEWS

On Mon­day Eli Lilly CEO Dave Ricks out­lined his com­pany’s case that their drug prices are not spin­ning out of con­trol. In a lengthy re­port he as­serted that dis­counts on drug prices to pharma ben­e­fit man­agers has grown from 28% in 2012 to an av­er­age of 50% last year. And while list prices grew 14% […]

 

Cadillac subscription plan: GM tries a Netflix for cars at $1,500 a month | Business Standard News

Cadillac subscription plan: GM tries a Netflix for cars at $1,500 a month | Business Standard News

Ashley Sandall recently set aside the keys to her Porsche sport-utility vehicle for three months to try out a few Cadillacs. When the Caddy she was driving proved too small for her weekend plans, she ordered up a different model with her smartphone. It would arrive the next day. Ms. Sandall, a 35-year-old fashion executive […]

 

Lilly offers up drug pricing details amid ongoing scrutiny of industry | BioPharma Dive

Lilly offers up drug pricing details amid ongoing scrutiny of industry | BioPharma Dive

Dive Brief: Indianapolis drugmaker Eli Lilly on Monday disclosed more details about the effects of rebates and discounts on pricing, in what has become an increasingly common move among drugmakers to address concerns over the high costs of prescription drugs. In its 2016 Lilly Integrated Summary Report, the company said average net price increases for its […]

 

Understanding Penetration Pricing and Premium Pricing of your ebook on Amazon | Tiffany Writing

Understanding Penetration Pricing and Premium Pricing of your ebook on Amazon | Tiffany Writing

One of my daughters is a capable artist and headed to an undergraduate program in Medical Illustration soon. As an aside, she is getting smarter about posting her art to websites and beginning to think about how to charge for her work. I’ve recently had similar discussion with some other writers about how they price […]

 

Why Agency Pricing Needs to Evolve | Convince and Convert

Why Agency Pricing Needs to Evolve | Convince and Convert

I had one of the most energizing client negotiations of my career recently. It wasn’t a Fortune 500 marketing VP wanting to work with us. It wasn’t even a regional brand that I recognized. It was a small time retail company that had almost no online presence and very little track record. After the initial call, […]

 

 

 

More Headlines

Pricing strategies for startups | Telangana Today

Pricing strategies for startups | Telangana Today

I’m sure we have all heard of that fraud where tourists walk into a restaurant, order some basic food item-dosa, idli kind of thing-and are presented with a bill for thousands at the end of it. And the swindlers at the restaurant claim that the tourists should have checked the prices on the menu before […]

 

Dynamic-pricing option for taxi operators approved | TODAYonline

Dynamic-pricing option for taxi operators approved | TODAYonline

The new surge pricing model will complement the existing metered-fare model for commuters SINGAPORE — Paving the way for a sea change in how demand for taxis will be met during peak hours, the Public Transport Council (PTC) and Land Transport Authority (LTA) on Friday (March 17) gave several traditional taxi operators the green light […]

 

Volume pricing and the micro carrier | Business content from American Trucker

Volume pricing and the micro carrier | Business content from American Trucker

Trucking hauling rates are volatile and ever-changing—and based on multiple influences. Some of these influences are controllable and others are not, with the majority fitting into the noncontrollable category. There are fuel prices, costs of doing business, driver pay, etc. Then there are broad market forces, competition for loads, other specific market forces such as […]

 

Did Emflaza’s DMD approval expose cracks at the FDA? Lawmakers want to know | FiercePharma

Did Emflaza’s DMD approval expose cracks at the FDA? Lawmakers want to know | FiercePharma

After lambasting Marathon Pharma for its pricing strategy on a decades-old med recently approved to treat Duchenne muscular dystrophy, Sen. Bernie Sanders and Rep. Elijah Cummings are turning their fire on the FDA. The congressmen wrote FDA Acting Commissioner Stephen Ostroff to pose some “serious questions” about the agency’s review and approval for Emflaza. They […]

 

Discussion: How Hype and Greed Are Ruining Chinese Bike-Sharing (i.e., Mobike and Ofo) | Jeffrey Towson

Discussion: How Hype and Greed Are Ruining Chinese Bike-Sharing (i.e., Mobike and Ofo) | Jeffrey Towson

During the 2007 financial crisis, former Citigroup CEO Charles Prince famously said: “When the music stops, in terms of liquidity, things will be complicated. But as long as the music is playing, you’ve got to get up and dance.” Looking at the bike-sharing business in China today, you see a lot of such dancing. You […]

 

Bright Price Market Dynamics – Get a powerful solution to effectively optimize and analyze price data in SAP | SPOSEA

Bright Price Market Dynamics – Get a powerful solution to effectively optimize and analyze price data in SAP | SPOSEA

Dynamic pricing solution for Geo-Targeted Price Optimization The Right Price All Over the World DYNAMIC PRICING Our Dynamic pricing software combines real- time market analyses with intelligent price optimization techniques. The optimal pricing strategy will boost your traffic, sales and profits. EXIT INTENT TECHNOLOGY Our Exit Intent technology uses refined behavioral analysis techniques to trigger […]

 

IBM Announces New Pricing Model to Change Economics of Cloud Storage | IBM

LAS VEGAS – IBM InterConnect – 20 Mar 2017: IBM (NYSE: IBM) today unveiled new additions to the IBM Cloud Object Storage family. The company is offering clients new choices for archival data and a new pricing model to more easily apply intelligence to unpredictable data patterns using analytics and cognitive tools. IBM also announced an expanded partnership […]

 

No surge pricing now, but a flat-fare structure similar to metered fares soon: ComfortDelGro, Transport | THE BUSINESS TIMES

No surge pricing now, but a flat-fare structure similar to metered fares soon: ComfortDelGro, Transport | THE BUSINESS TIMES

THERE will be no surge pricing for now, but a flat-fare option based on current fare structures will be introduced in two to three weeks’ time for the mobile app users of Singapore’s largest taxi company, ComfortDelGro. This comes even as Singapore’s third-largest taxi company, SMRT, said that it will be introducing surge pricing, which […]

 

Samsung Galaxy S8 and S8 Plus Pricing Info and Color Variants Leaked | XDA Developers

Samsung Galaxy S8 and S8 Plus Pricing Info and Color Variants Leaked | XDA Developers

The Samsung Galaxy S8 and S8 Plus have had most of their relevant information leaked, which is not surprising in the least considering that they are the most anticipated phones of this year. Notable leaker Evan ‘evleaks’ Blass has now put forth some new information, in the form of European pricing and color variants. According to Mr. […]

 

Public call for cheaper flights | Port Lincoln Times

Public call for cheaper flights | Port Lincoln Times

Mr Pearson said the council charged an $8.80 passenger levy which covered the infrastructure and administration of the airport and it was among the lower levies in the state. He said as part of the council’s strategy, it would liaise with the airlines to see what could be done in relation to ticket prices. Facebook comments responding […]

 

Dynamic pricing comes to Australian cinemas | Film Journal International

Dynamic pricing comes to Australian cinemas | Film Journal International

I was sitting in a large cinema a few days before the Academy Awards watching La La Land. There were only six people in the cinema, including me. So it came as no real news to me that the average cinema seat occupancy rate in Australia is 16%. An Australian couple, Shane Thatcher and Sonya Stephen, […]

 

Solving Regional Traffic Congestion Through Pricing | Reason Foundation

Solving Regional Traffic Congestion Through Pricing | Reason Foundation

Under our current system, motorists can drive as much as they want with the price of gasoline as the only limiting factor. Our roads operate as an all you can eat buffet, not as a properly priced scarce public good. Government transportation agencies may invest in added lanes, or dream up hypothetical solutions such as a […]

 

The Quick-and-Dirty Pricing Guide for New Writers | Command Copywriter

The Quick-and-Dirty Pricing Guide for New Writers | Command Copywriter

Finally! You’ve got a live one. A marketer or other professional who wants you to write something for them, and now they want to know how much it’s going to cost. ACK. Is there anything anyone hates more than deciding what to charge? No, no there is not. If it’s any help at all, everyone […]

 

MPs debate £1,200 cap on insurance costs for young drivers | BBC News

MPs debate £1,200 cap on insurance costs for young drivers | BBC News

MPs are debating whether car insurance costs for young people between the ages of 18 and 25 should be capped at £1,200 a year. It follows an online petition that was signed by 185,000 people. So-called e-petitions that attract more than 100,000 signatures have to be considered for a debate in Parliament. It comes on […]

 

Zillow’s Economist Sees Housing Demand Slowing, But Pricing Growth Will Remain | The Registry

Zillow’s Economist Sees Housing Demand Slowing, But Pricing Growth Will Remain | The Registry

Speaking to a packed room at NAIOP’s monthly breakfast meeting Zillow’s Crystal Ball on Seattle Real Estate, held at the Four Seasons Hotel on Wednesday, Zillow’s senior economist, Dr. Skylar Olsen gave an enthusiastic and often playful presentation that answered some lingering questions about the Puget Sound’s housing market, speaking primarily on the renting and […]

 

Deadly Pricing Mistakes Most Real Estate Investors Make | REtipster.com

Deadly Pricing Mistakes Most Real Estate Investors Make | REtipster.com

Of all the “tricks” I know that can sell a property quickly, I’d say the most powerful tactic is to simply price your property right in the first place. It may sound like an obvious answer – but there is a lot more to this process than just picking the right number. Even when you […]

 

What to do when your SaaS pricing is WRONG! | ChartMogul

What to do when your SaaS pricing is WRONG! | ChartMogul

There’s nothing worse than changing the price of your SaaS product after your audience is used to your current digits. Oh wait. Yes there is: Failure. Bankruptcy. Going home for Thanksgiving dinner and explaining to your family why you moved back into your parents’ garage. The stakes are high, and if you didn’t guess right the […]

 

The prospective impact of food pricing on improving dietary consumption: A systematic review and meta-analysis | PLOS

The prospective impact of food pricing on improving dietary consumption: A systematic review and meta-analysis | PLOS

Background While food pricing is a promising strategy to improve diet, the prospective impact of food pricing on diet has not been systematically quantified. Objective To quantify the prospective effect of changes in food prices on dietary consumption. Design We systematically searched online databases for interventional or prospective observational studies of price change and diet; […]

 

Opinion: Pump Price Up, but Not for Long | CSP Daily News

Opinion: Pump Price Up, but Not for Long | CSP Daily News

The drop in crude-oil prices amounts to a crash of about 12 CPG. This is aiding refiners, who are now benefiting from gasoline margin recovery by keeping part of those oil price cuts, at least for now. They shared the rest by cutting wholesale gasoline prices. U.S. refinery output is very robust, with that abundance reflected […]

 

Does your pricing match your strategy? | Aalto PRO

Does your pricing match your strategy? | Aalto PRO

There are only three real drivers for profit: price, costs, and sales volume. Of these, price has by far the strongest impact. While many companies recognize that pricing decisions have substantial impact on the bottom line, far too many do not exploit this opportunity and fail to design a thorough strategy. “In many companies, pricing […]

 

Trump blasts Big Pharma again — “somebody’s getting very rich” — and promises drug price legislation | ENDPOINTS NEWS

Trump blasts Big Pharma again — “somebody’s getting very rich” — and promises drug price legislation | ENDPOINTS NEWS

On Mon­day Eli Lilly CEO Dave Ricks out­lined his com­pany’s case that their drug prices are not spin­ning out of con­trol. In a lengthy re­port he as­serted that dis­counts on drug prices to pharma ben­e­fit man­agers has grown from 28% in 2012 to an av­er­age of 50% last year. And while list prices grew 14% […]

 

Boost profits with these 3 insights into pricing psychology | GrowthLab

Boost profits with these 3 insights into pricing psychology | GrowthLab

Con Dowler is an entrepreneurial nomad. He travels often, launching businesses wherever he lands. He and his business partner have opened bars, restaurants, and hostels in Spain, Argentina, and Guatemala — always on a shoestring budget so they can recoup their investments quickly. His typical approach is to spend a couple years luring in crowds, […]

 

3 Ways You Can Conquer Customer Price Fixation | Jeff Shore

3 Ways You Can Conquer Customer Price Fixation | Jeff Shore

Salesperson: “Welcome, and thanks for stopping by.” Customer: “What’s your price?” Salesperson: “Well, we will certainly get to that. How’s your day going?” Customer: “What’s your price?” Salesperson: “Okay, I’ll be happy to answer that but can I ask you a few questions first?” Customer: “What’s your price?” Salesperson: “Well, we actually have several options […]

 

How To Beat the Airline Pricing Model | Boomer Travel Patrol

How To Beat the Airline Pricing Model | Boomer Travel Patrol

Go Non-Refundable and Travel Insure For those of you who book Refundable Airline Tickets, take a look at this Airline Ticket Hack from AardvarkCompare.com – Go Non-Refundable and Travel Insure – Your flight price has dropped by up to 70%. If you are even thinking about buying a refundable ticket, then do the math on […]

 

‘Full Measure’: Drug prices | WJLA

‘Full Measure’: Drug prices | WJLA

WASHINGTON (Sinclair Broadcast Group) – The Skenderian family has been in the pharmacy business for about 80 years. Today, Joe and his brothers operate Skenderian Apothecary in Cambridge, Massachusetts. Skenderian: “We have the same pharmacists that have been working here, some of us for 20 or 30 years and, of course, some of the patients […]

 

There’s a Middle Ground in Amgen’s Drug-Price Battle | Bloomberg Gadfly

There’s a Middle Ground in Amgen’s Drug-Price Battle | Bloomberg Gadfly

The February news that Amgen Inc.’s cholesterol-lowering drug Repatha helped prevent heart attacks was one of the most exciting biotech events of the year, renewing faith in the drug’s blockbuster potential. But the full trial results behind that headline, which Amgen released on Friday, disappointed investors, sinking the company’s shares more than 6 percent. Repatha’s sales have […]

 

The dynamic pricing conundrum | The New Paper

The dynamic pricing conundrum | The New Paper

Four taxi companies are expected to roll out a “dynamic pricing” option later this week, a pricing mechanism used by private-hire services Uber and GrabCar. ComfortDelGro said it will hold off dynamic pricing for the moment and Prime has not given a firm indication of whether it will introduce such a system. While flat charges […]

 

Featured Content and Events

Industry Leaders SPA and Tour de Force Announce Partnership | Strategic Pricing Associates

Industry Leaders SPA and Tour de Force Announce Partnership | Strategic Pricing Associates

Strategic Pricing Associates and Tour de Force to deliver a joint solution. Strategic Pricing Associates (SPA) Inc. and Tour de Force Inc., two market-leading, respected providers of technology and training solutions to the distribution and manufacturing industries, have announced a Partnership to deliver an integrated pricing/quoting solution based on their respective platforms. Tour de Force, […]

 

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

     – Ronda Helton

 

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