This Week in Pricing > 3/4/17

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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SPOSEA B.V.

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

A Strategic Mistake That Still Haunts JC Penney | Forbes

A Strategic Mistake That Still Haunts JC Penney | Forbes

Apparently, J. C. Penney’s strategic mistake came from a misunderstanding of a crucial difference between retail stores and Apple stores: Hype! Apple’s Word-of-Mouth (WOM) and buzz marketing machine — and unique products — already hype its customers. They know what they want; they don’t need conventional sales promotions to be lured to the stores. But retailers like JC Penney don’t […]

 

Price Optimization Finally Becomes A Supply Chain Tool | Forbes

Price Optimization Finally Becomes A Supply Chain Tool | Forbes

In the year 2000, supply chain optimization software companies were hot. Optimization was the new Messiah that would lead supply chain practitioners out of the desert. Wall Street agreed. They put a high valuation on i2 Technologies, the leader in supply chain planning and optimization. In that year, i2’s leading competitor, Manugistics, acquired Talus, a […]

 

New York takes drug pricing into its own hands with new clampdown | FiercePharma

New York takes drug pricing into its own hands with new clampdown | FiercePharma

As much of the pharma industry waits to see what kind of approach the incoming presidential administration will take on drug pricing, New York Governor Andrew Cuomo has plans of his own. He’s unveiled a first-of-a-kind proposal to curb “exorbitant” prescription prices in the Empire State. New York will create a “review board” to determine […]

 

Walmart Gets Tough On Prices And Suppliers | PYMNTS.com

Walmart Gets Tough On Prices And Suppliers | PYMNTS.com

Walmart is launching a new price-comparison test in about 1,200 of its U.S. retail locations as it moves to try and close the pricing gap with rival grocery peddlers (like Kroger) and discounters (like Aldi). The move is widely expected to put pressure on packaged good suppliers. The test ranges across 11 states located in […]

 

Pharma lobby launches crusade against Cuomo’s ‘flawed’ drug pricing plan in NY | FiercePharma

Pharma lobby launches crusade against Cuomo’s ‘flawed’ drug pricing plan in NY | FiercePharma

Pharma has heard enough of New York Governor Andrew Cuomo’s ideas for lowering drug prices. Just a month after the governor unveiled his plan, the industry’s trade group is rolling out a counteroffensive urging state officials to “Prescribe Real Solutions” instead. Gov. Cuomo’s plan would create a board to rule on “fair prices” for certain expensive […]

 

Exclusive: Wal-Mart launches new front in U.S. price war, targets Aldi in grocery aisle | Reuters

Exclusive: Wal-Mart launches new front in U.S. price war, targets Aldi in grocery aisle | Reuters

Wal-Mart Stores Inc (WMT.N) is running a new price-comparison test in at least 1,200 U.S. stores and squeezing packaged goods suppliers in a bid to close a pricing gap with German-based discount grocery chain Aldi ALDIEI.UL and other U.S. rivals like Kroger Co (KR.N), according to four sources familiar with the moves. Wal-Mart launched the […]

 

Drugmakers pledge restraint, but prices will still soar | American Press

Drugmakers pledge restraint, but prices will still soar | American Press

TRENTON, N.J. — Several big drugmakers are trying to quell the ongoing furor over high drug prices by revealing more information about their pricing and even pledging to keep a lid on increases. No one should expect to be paying less for medicine anytime soon, experts say, though the drugmakers’ response to public pressure may […]

 

FedEx and UPS pricing models no longer match up like the old days | Logistics Management

FedEx and UPS pricing models no longer match up like the old days | Logistics Management

Martinez also noted that with this announcement FedEx did not match UPS’s rate increase, with FedEx taking a 3.9% increase on Express and International Export and Import products compared a 4.9% average for UPS, and the FedEx Ground minimum charge at $7.25 compared to UPS’s $7.32, along with the companies set to have totally different […]

 

The science of the sale: re-imagining the sales experience with dynamic pricing | Manufacturing Global

The science of the sale: re-imagining the sales experience with dynamic pricing | Manufacturing Global

In order to survive, manufacturers need to move beyond traditional, low-tech, relationship-based sales processes and wholeheartedly embrace digital innovation. Doing so can minimize internal complexity, improve sales enablement and make the sales process quicker and more efficient. More importantly, it can simply make it easier for customers to buy what they need at a fair […]

 

Target shares dive on earnings outlook, price cut plans | Reuters

Target shares dive on earnings outlook, price cut plans | Reuters

Target Corp (TGT.N) said on Tuesday it will rely more on low prices to compete with rivals like Wal-Mart and Amazon, admitted many of its stores needed freshening up, and told Wall Street its sales and profit estimates for 2017 are too high. Shares of the retailer plunged to 2-1/2-year lows in heavy trading. Many […]

 

In video, Uber CEO speaks openly about impact of competitors on pricing | TechCrunch

In video, Uber CEO speaks openly about impact of competitors on pricing | TechCrunch

You can check out the full clip below to see what transpires, and why Kalanick might have been caught off guard. Kalanick initiates the exchange by talking work with Kamel, noting to him that, “We’re reducing the number of Black cars over the next six months. You probably saw the email.” “I saw the email, starts […]

 

 

More Headlines

The Struggle of Pricing Your Work | FineWoodworking

The Struggle of Pricing Your Work | FineWoodworking

If I could eliminate any element of being a professional woodworker, it would be pricing work. I genuinely despise the internal and external haggling over the value of my work. Finding a balance when pricing my work has been, and will continue to be, a work in progress. As a professional, I need and want […]

 

“There’s room for high-quality mobile games, and they don’t need to be free-to-play” | GamesIndustry.biz

“There’s room for high-quality mobile games, and they don’t need to be free-to-play” | GamesIndustry.biz

The backlash against Super Mario Run’s £7.99 price point, prompting scores of one-star reviews when the game launched, seemed baffling to many in the industry – myself included. While it’s undeniably more expensive than most premium games on the App Store, Square Enix had charged more than double that for mobile games. A casual glance […]

 

Debating the real cost of drinking water — Asit Biswas and Cecilia Tortajada | Malay Mail Online

Debating the real cost of drinking water — Asit Biswas and Cecilia Tortajada | Malay Mail Online

FEBRUARY 21 — Singapore’s decision to raise water prices after 17 years is to be applauded. Studies show that pricing can affect behaviour, and there is strong evidence to suggest that under-priced or free water leads to very inefficient uses of water, including increased wastage. Take the case of Doha, the capital of Qatar, where […]

 

Kiwi dairy leader on pricing system | The Milk Maid Marian

Kiwi dairy leader on pricing system | The Milk Maid Marian

Generally, in most countries the unwritten rule is that the largest Co-op in the market sets the milk price. In New Zealand’s case that is Fonterra, while the other Co-ops will return all profits they make (after any retentions) back to the farmers as milk price, so they sit outside that rule to a degree. […]

 

Stents pricing: Govt asks hospitals to make prompt refunds | The Economic Times

Stents pricing: Govt asks hospitals to make prompt refunds | The Economic Times

NEW DELHI: No action will be taken against hospitals under the scanner for overcharging on stents if they refund the money to patients before receiving a demand notice, drug price regulator NPPA said. The National Pharmaceutical Pricing Authority (NPPA) said the matter would end there for such hospitals if there were no further complaints. “If […]

 

Valve is being investigated by the European Commission over ‘suspected anti-competitive practices’ | PC Gamer

Valve is being investigated by the European Commission over ‘suspected anti-competitive practices’ | PC Gamer

The European Commission has today opened three investigations into practices where it believes companies are trying to prevent customers from benefiting from cross-border purchases. Alongside consumer electronics and hotel accommodation, videogames are being looked into—the commission is specifically investigating whether or not companies are “breaking EU competition rules by unfairly restricting retail prices or by […]

 

How to get media coverage at a reasonable price | Publicity.com

How to get media coverage at a reasonable price | Publicity.com

To understand what we do, you have to understand what we don’t do. I’ll tell you the difference between us and the competition, and I’ll tell you how to get media coverage at a reasonable price. Almost 30 years ago when we started selling PR by the story, things looked bleak. Most companies paid their […]

 

340B Update: Trump Administration Withdraws Omnibus Guidance, Delays Final Rule on 340B Drug Pricing and CMPs | The National Law Review

340B Update: Trump Administration Withdraws Omnibus Guidance, Delays Final Rule on 340B Drug Pricing and CMPs | The National Law Review

The new administration has had an immediate impact on the federal 340B Drug Discount Program (“340B Program”) with two significant developments in the first days since President Trump took office: (1) the withdrawal of the final 340B Program Omnibus Guidance, which was pending before the White House Office of Management and Budget (“OMB”); and (2) […]

 

How to set discounts for various related products | New Neuromarketing

How to set discounts for various related products | New Neuromarketing

So, what makes a specific chocolate bar different or better compared to others? Why would some shelves sell out immediately and are some shelves gathering dust? Well, we can think of many reasons like flavor (caramel seasalt, yeah!), brand, but for a large part: price. Unfortunately, a pricing strategy can be challenging, complex, and offers […]

 

6 Things Brands Should Consider When Pricing for Cross Border Markets | eShopWorld

6 Things Brands Should Consider When Pricing for Cross Border Markets | eShopWorld

Poor product pricing for new markets may be costing brands, we look at the key pricing concerns that affect conversion for International retailers To optimize conversion, online retailers should research pricing and aim to hit a price point that is sustainable in individual countries. The returns that can be generated in short tail markets can […]

 

Canadian Cancer Survivor Network Announces 2nd Annual Drug Pricing Policy Summit | Survivornet.ca

Canadian Cancer Survivor Network Announces 2nd Annual Drug Pricing Policy Summit | Survivornet.ca

OTTAWA, ON – The Canadian Cancer Survivor Network (CCSN), along with the Save Your Skin Foundation and the Schizophrenia Society of Ontario, is happy to announce the date for the 2nd Annual Drug Pricing Policy Summit. The two-day event will be held in Toronto, Ontario on November 15th- 16th, 2017. The theme for the 2017 edition will […]

 

Swiss Re Renewals Drop as Pricing Gets ‘Painful’ | ProgramBusiness

Swiss Re Renewals Drop as Pricing Gets ‘Painful’ | ProgramBusiness

Swiss Re said renewals in its main property and casualty (P&C) reinsurance business dropped by 18 percent in January as it opted out of more business because of falling industry prices. Chief Executive Christian Mumenthaler warned on Thursday, after reporting a 45 percent fall in net profit in the fourth quarter, that more pain was […]

 

We Need To Talk About Book Pricing by Tara Sparling | Writing.ie

We Need To Talk About Book Pricing by Tara Sparling | Writing.ie

Yesterday I was briefly let out of my cage to do a bit of investigating in three bookshops. The first was a big Irish chain. The second was a very big independent bookshop. The third was a very small independent bookshop. I went about each shop idly picking up titles to see how they were […]

 

Top hospitals under regulator’s lens for overcharging patients for stents | Times of India

Top hospitals under regulator’s lens for overcharging patients for stents | Times of India

NEW DELHI: Some of the country’s most prestigious hospitals are under the scanner of the National Pharmaceutical Pricing Authority (NPPA) for allegedly overcharging patients for stents. The regulator has initiated a probe against hospitals including PGIMER Chandigarh; Lilavati Hospital in Mumbai; Max Hospital in Saket, Delhi; Metro Hospital in Faridabad and Ballabhgarh (Haryana); and Ram […]

 

Pricing power won’t return to the telecom sector in the short term: Fitch | The Economic Times

Pricing power won’t return to the telecom sector in the short term: Fitch | The Economic Times

MUMBAI: Bharti Airtel BSE 2.66 %’s buyout of Telenor’s Indian operations is the latest sign of a shakeout in the sector after Reliance Jio Infocomm’s entry spurred incumbents to consolidate and weaker telcos to exit altogether, ratings agency Fitch Ratings said, warning that even with fewer players, pricing power won’t return to the industry in […]

 

AMD Ryzen pricing: £500 for 8-core 1800X CPU, undercutting Intel by £600 | Ars Technica UK

AMD Ryzen pricing: £500 for 8-core 1800X CPU, undercutting Intel by £600 | Ars Technica UK

AMD’s Ryzen high-end Summit Ridge CPUs have been priced—and it looks like Intel better batten down the hatches, or be ready to slash its prices to compete. At the top end the Ryzen 1800X will cost $500 (~£500), versus $1,100 (~£1,050) for the Intel Core i7-6900K that AMD is putatively pitching it against. Further down the […]

 

Tesla Plans Single Pricing For Maintenance, and Insurance! | Auto World News

Tesla Plans Single Pricing For Maintenance, and Insurance! | Auto World News

Tesla proves itself in building the best cars in the world. Recently, the Model S hit 0-60 MPH in 2.28 seconds making it the fastest accelerating car defeating any hypercars in the market. Now, Tesla aims to provide not only the best cars in the world but also the most practical cars. The company plans to […]

 

UNK grad Larreau’s broodmare pricing research gets published | UNK News

UNK grad Larreau’s broodmare pricing research gets published | UNK News

Larreau’s research evolved from her personal interest in horses and came about during economics research methods and senior seminar courses at UNK. “The current real average selling price of a thoroughbred broodmare is nearly half its peak value in 2000. While annual price changes are influenced by economic performance, different prices at an auction are […]

 

Pricing professional services, again | Agile

Pricing professional services, again | Agile

Here’s a bit of the note I got recently from a blog reader: I’m planning to start doing consulting and projects of seismic interpretation and prospect generations but I don’t know what’s a fair price to charge for services. I sure there’re many of factors. I was wondering if you can share some tips on […]

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Two taxi firms plan to use surge pricing, Latest Singapore News | The New Paper

Two taxi firms plan to use surge pricing, Latest Singapore News | The New Paper

Some taxi fares could soon fluctuate according to actual demand for cabs. Two taxi operators are planning to implement dynamic fares, popularly known as surge pricing, with a third looking to join the fray. Trans-Cab, Singapore’s second largest operator with 4,566 taxis, and Premier Taxi, the second smallest with 1,889 cabs, said they had informed […]

 

Taxify steadily gaining ground in Africa as Uber falls victim of its pricing | TechMoran

Taxify steadily gaining ground in Africa as Uber falls victim of its pricing | TechMoran

Taxify, one of the fastest growing transport apps in Europe with over 1M customers in 15 countries is seeing a tremendous growth in Africa where Uber is falling prey of its own economics of price fixing. Founded in Estonia in 2013, Taxify is building the market leading platform connecting people with taxis and private drivers […]

 

Value-Based Pricing: A Smarter Way to Set Freelance Writing Rates | The Write Life

Value-Based Pricing: A Smarter Way to Set Freelance Writing Rates | The Write Life

Want to level up as a freelance writer and start landing bigger contracts and better-paying clients? In The Creative Class, Paul shares the pricing, marketing and productivity skills he’s honed in his 16+ years of freelancing. *Deal alert* The best news of all? Paul is kindly offering The Write Life readers $100 off when you […]

 

You Cut Your Prices. So Why Didn’t Consumers Notice? | WSJ

You Cut Your Prices. So Why Didn’t Consumers Notice? | WSJ

In fact, other tactics, such as clear in-store or website signage and clear marketing communications, generally cost less and do a better job of helping shoppers understand a brand’s position in the price-value equation. For example, one major discount apparel retailer, facing stiff competition from other fashion discounters, fought back by slashing prices across the […]

 

Agency pricing didn’t restrain Amazon; it strengthened them | The Passive Voice

Agency pricing didn’t restrain Amazon; it strengthened them | The Passive Voice

Many, if not most, of the people in publishing houses I know have what they feel is a pretty clear picture of the changes we’re seeing in the business. There seems to be a strong consensus that the ebook share is leveling off or diminishing as opposed to print. And there is an enthusiasm about […]

 

Mayors urge province to talk mobility pricing for transit. | Vancouver Sun

Mayors urge province to talk mobility pricing for transit. | Vancouver Sun

VICTORIA — Metro Vancouver mayors are urging the B.C. government to seriously discuss mobility pricing, as losses mount at the Port Mann Bridge and work begins on a new George Massey crossing. Several mayors say the financial problems at the Port Mann — in which more drivers than expected are detouring to free bridges to avoid paying the toll — show the […]

 

Report Finds That Ontario’s Time-Of-Use Pricing Shifts Electricity Consumption | Energy Insider

Report Finds That Ontario’s Time-Of-Use Pricing Shifts Electricity Consumption | Energy Insider

A February 2017 report titled “The Impact of Time-Of-Use Rates in Ontario,” authored by the Brattle Group (with contributions from Mountain Economic Consulting and eMeter), looks at the impacts of the implementation of time-of-use (TOU) pricing in Ontario. The report (which can be found here) is summarized in a February 2017 article in Public Utilities […]

 

Research reveals huge lack of consistency in global pay-TV pricing | Rapid TV News

Research reveals huge lack of consistency in global pay-TV pricing | Rapid TV News

One size does not fit all in the global pay-TV industry, with research from Teligen, covering 115 providers in 31 OECD countries, showing significant price differences between countries and providers. The Strategy Analytics division’s new report, Pay TV Prices in OECD Countries, November 2016, not only revealed significant differences in package prices between providers in […]

 

McDonald’s Starts a Price War It Can Only Lose | The Motley Fool

McDonald’s Starts a Price War It Can Only Lose | The Motley Fool

It’s going to get a lot cheaper to get your drink on at McDonald’s (NYSE:MCD). Bloomberg is reporting that the chain is gearing up for a springtime promotion where it slashes prices on some of its more popular beverages. Soft drinks of any size will sell for $1 come April. McCafe beverages — including smoothies, frappes, […]

 

Mayors urge province to talk mobility pricing for transit. | Vancouver Sun

Mayors urge province to talk mobility pricing for transit. | Vancouver Sun

VICTORIA — Metro Vancouver mayors are urging the B.C. government to seriously discuss mobility pricing, as losses mount at the Port Mann Bridge and work begins on a new George Massey crossing. Several mayors say the financial problems at the Port Mann — in which more drivers than expected are detouring to free bridges to avoid paying the toll — show the […]

 

Featured Content and Events

Tech Spotlight – SPOSEA B.V. | PricingTech

Tech Spotlight – SPOSEA B.V. | PricingTech

SPOSEA B.V.’s main goal is to simplify SAP Price Optimization, Management and Execution. We provide the SAP ecosystem with enterprise-wide Price Management that increases margins through optimized prices. 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 […]

 

SPOSEA BrightPrice Manager 2.0 Is Certified as Powered by SAP NetWeaver, and Achieves Certified Integration with SAP NetWeaver Running on SAP HANA | CBS 58

SPOSEA BrightPrice Manager 2.0 Is Certified as Powered by SAP NetWeaver, and Achieves Certified Integration with SAP NetWeaver Running on SAP HANA | CBS 58

SPOSEA BrightPrice Manager 2.0 Is Certified as Powered by SAP NetWeaver®, and Achieves Certified Integration with SAP NetWeaver Running on SAP HANA® Eindhoven, the Netherlands (PRWEB) October 05, 2016 SPOSEA BV a privately held company and software innovator in the price optimization and management software market, today announced that its BrightPrice Manager 2.0 has achieved […]

 

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

Attend our SPASIGMA Negotiation Workshop & Pricing Strategy Seminar in Miami to learn how to increase your competitive advantage and improve performance. You will take back valuable information on how the SPA Solution portfolio can help grow your business and improve your bottom line…

Date: June 8-9, 2017

Location: Mandarin Oriental Las Vegas, Nevada

 

Conference: European Pricing Summit | Finance iQ

Conference: European Pricing Summit | Finance iQ

Date: June 27-28, 2017

Location: Palace Hotel in Berlin, Germany

About the European Pricing Summit and Benchmarking Survey 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 […]

 


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

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“Price is what you pay. Value is what you get.”

     – Warren Buffett

 

 

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