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This Week in Pricing > 3/8/15

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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Asia Pricing Professionals

Asia Pricing Professionals (APP) is a not-for-profit community of pricing management practitioners. Our key objective is to raise the profile of pricing management in Asia through:

  • Organizing formal and informal meetings where we discuss the latest trends and challenges in Pricing
  • Sharing industry specific knowledge related to pricing management with interested parties
  • Building a network of industry pricing experts who are easily accessible

Click a link below to learn more…

Headlines

Pricing for Profitability – Understanding the Pocket Margin | Deloitte CFO – WSJ

Pricing for Profitability – Understanding the Pocket Margin | Deloitte CFO – WSJ

Identifying and Leveraging Pocket Information While the analytic tools exist to identify costs at a pocket level, the data is often widespread and incomplete, and frequently siloed. Sales executives typically worry about revenue and the commissions associated with it; supply-chain professionals care about containing fuel and other factors; manufacturing wants the lowest unit costs; marketing […]

Is My Price Too High or My Customers Too Cheap? | The Sales Hunter

Is My Price Too High or My Customers Too Cheap? | The Sales Hunter

This is a question I get asked a lot. Recently, I was sitting in a room of salespeople discussing ways to grow the business, and one salesperson was adamant the easiest way to grow sales would be to cut prices. The argument was based on how the prices he was being asked to sell at […]

Apple App Store Revenue Surge And The Rise Of Freemium App Pricing | Forbes

Apple App Store Revenue Surge And The Rise Of Freemium App Pricing | Forbes

Apple deserves no particular credit for the adaptation by the developer community to the freemium model. In fact, developers have used it to solve a problem created for them by Apple, namely app pricing on the iTunes single song model. The 99-cent price of a basic app based on this model rapidly moved to free as […]

6 Ways to Turn Freemium into Premium | Aria

6 Ways to Turn Freemium into Premium | Aria

“Free” reigns supreme when it comes to online marketing. But “pay” is more profitable to your bottom line. In the popular Freemium world of digital offerings, where free and premium content or services are offered, it’s prudent to consider how you will transition free offerings into paid subscriptions before you actually take that leap. Here […]

Target undercuts Amazon on free shipping | Mashable

Target undercuts Amazon on free shipping | Mashable

Target is trying to hit Amazon where it hurts. The retail chain announced Monday that customers can qualify for free shipping on all orders of $25 or more placed through Target’s website “with virtually no exclusions,” down from a $50 minimum previously. … Target has previously attempted to compete with Amazon through holiday free shipping […]

D.C. cab drivers could have charged a $15 snow fee, but most didn’t | The Washington Post

D.C. cab drivers could have charged a $15 snow fee, but most didn’t | The Washington Post

Every D.C. cab had the option of tacking on an extra $15 fee to fares during Tuesday’s city-declared “snow emergency,” but not many drivers actually asked passengers to dish out the extra cash. Cabs were authorized to charge the $15 “snow emergency fare” from 7 a.m. to 2 p.m. Tuesday, the cab industry’s version of surge pricing. The idea […]

The Customer You Attract with Low Price Will Be the Customer You Lose to Low Price | The Sales Hunter

The Customer You Attract with Low Price Will Be the Customer You Lose to Low Price | The Sales Hunter

A concept I talk a lot about is how selling on price isn’t just a lousy strategy, it’s a dangerous one too! The salesperson shared that what I taught regarding price was huge in their mind with regard to why they were successful.   You see, I’m a huge believer if you attract a customer based […]

Brands And Discounts: A Dangerous Liaison | Branding Strategy Insider

Brands And Discounts: A Dangerous Liaison | Branding Strategy Insider

But just as you build brands by focusing on their associations, you break them when you reinforce the commodity at the expense of those associations. And that’s what discounting does. It draws attention to the price and the product and says to the consumer ‘forget about what we stand for, buy us because we are […]

The B2B Pricing Prison [Infographic] | Forbes

The B2B Pricing Prison [Infographic] | Forbes

When executives in business-to-business (B2B) markets think about pricing their products, they often raise the white flag before even stepping onto the battlefield. Over the years, they’ve accumulated beliefs that limit their pricing effectiveness. Five beliefs, in particular, have become ingrained in many companies to the point that they seem immovable: Our products are commoditized, […]

7 Pricing Mistakes To Avoid: Data-Based Insights from Salesforce, Uber and Kraft | Forbes

7 Pricing Mistakes To Avoid: Data-Based Insights from Salesforce, Uber and Kraft | Forbes

One of the biggest mistakes I’ve seen executives make over the years is not spending enough time thinking about their pricing models. They think about price, but not creatively enough about pricing model, which is more about how you package your prices. In an interview with Anil Kaul, the CEO of Absolutdata, which helps big […]

Identifying a Pricing Glitch Before it’s Too Late! | Crimson Hexagon

Identifying a Pricing Glitch Before it’s Too Late! | Crimson Hexagon

Price-matching… a great strategy for retailers to prevent shoppers from “showrooming” products in-store and then turning around to buy them cheaper online or from competitors. Walmart has been dabbling in the price-matching arena for a few years now, matching competitor pricing on everything from potato chips to Barbies. However, you may have heard that they […]

Is Variable Pricing Right For Your Business? | Mercury

Is Variable Pricing Right For Your Business? | Mercury

Uber has made headlines — some good and some not so good — on its variable pricing policies. Its version works like this: when demand is high, it increases the price for a ride. The company says this is not only profitable for it, but the financial incentive to make more money helps get more […]

Creating a Winning Pricing Strategy | Insurance House

Creating a Winning Pricing Strategy | Insurance House

Marketing people will usually advise you … never compete on price. They are right. At the end of the day, only one company can really end up with the lowest price. If you decide to compete with them and have the same low price, customers will go looking for another feature or point of differentiation. […]

Whole Foods finally got cheaper and it’s working | Quartz

Whole Foods finally got cheaper and it’s working | Quartz

Whole Foods Market is finally coming to terms with its image problem. The notion that its food is too expensive has kept a certain segment of grocery shoppers at bay, limiting the company’s growth. In 2013 and 2014, sales and growth went from stagnant to outright bad. The company lowered growth forecasts three times in one year, putting the stock price in a […]

Here Are The Big Winners And Losers Of Low Oil Prices | Business Insider

Here Are The Big Winners And Losers Of Low Oil Prices | Business Insider

America and its friends benefit from falling oil prices; its most strident critics don’t IN EARLY October the IMF looked at what might happen to the world economy if conflict in Iraq caused an oil-price shock. Fighters from Islamic State (IS) were pushing into the country’s north and the fund worried about a sharp price […]

Excited by Lower Energy Prices? Depends on Your Industry | WSJ

Excited by Lower Energy Prices? Depends on Your Industry | WSJ

Expectations about energy prices are generally not being built into pricing plans, either. In most of the industries surveyed, less than 25% of CFOs said their energy price expectations are affecting their own companies’ pricing plans. In contrast, 60% of energy/resources CFOs indicate their energy price expectations are affecting their own companies’ pricing plans, as did 48% of CFOs from […]

Another Big Reason to Think Oil Prices Aren’t Going Up Soon | Bloomberg Business

Another Big Reason to Think Oil Prices Aren’t Going Up Soon | Bloomberg Business

Oil just had its first weekly decline in a month, breaking a rally in crude prices. A bit of context: After what’s happened over the last year, “rally” seems a bit of an overstatement. One big factor that may be driving prices down this week: The U.S. is pumping so much oil it’s running out of places to stash […]

Priced to Sell: A Game Plan for Setting Your Listing Price | Zillow

Priced to Sell: A Game Plan for Setting Your Listing Price | Zillow

Setting a home’s list price is easier said than done. A good real estate agent will recommend a price range, but never assign an exact price — that’s ultimately for the seller to decide. Although sellers aren’t required to price according to inventory levels or the market condition, it’s smart to discuss these matters with your agent early and often […]

Free exchange: Guaranteed profits | The Economist

Free exchange: Guaranteed profits | The Economist

“YOUR shopping would have been cheaper elsewhere, so here’s a voucher for the difference.” Anyone who has recently visited a British supermarket will be familiar with such seemingly generous deals, typically extended to shoppers after they pay. The four biggest British supermarket chains all offer some form of price-match guarantee, promising that their customers could […]

Tinder launches premium service that costs twice as much for people over 30 | Mashable

Tinder launches premium service that costs twice as much for people over 30 | Mashable

“We’ve priced Tinder Plus based on a combination of factors, including what we’ve learned through our testing, and we’ve found that these price points were adopted very well by certain age demographics,” Pambakian told Mashable. “Lots of products offer differentiated price tiers by age, like Spotify does for students, for example,” she added. “Tinder is […]

The Science Of Menu Design: How Restaurants Can Make You Choose A Salad Over A Cheeseburger | Fast Company

The Science Of Menu Design: How Restaurants Can Make You Choose A Salad Over A Cheeseburger | Fast Company

INCREASING PERCEIVED VALUE Restaurants already use a number of hacks to make you think the food you’re ordering is cheaper than it already is. For example, they might list an entree without using a “$” symbol in order to downplay the item’s price. A menu might stagger the alignment of prices, so patrons can’t just […]

Menu descriptions an exotic language of their own | San Jose Mercury News

Menu descriptions an exotic language of their own | San Jose Mercury News

“The more expensive the restaurant, the longer the words on the menu, on average,” said Jurafsky, presenting his research Sunday in San Jose at the annual meeting of the American Association for the Advancement of Science in San Jose. Restaurants may be marketing their erudite staff — or targeting educated customers. For every extra letter […]

Wake-Up Call from Facebook: TV Ad Pricing Needs to Change | Advertising Age

Wake-Up Call from Facebook: TV Ad Pricing Needs to Change | Advertising Age

A new pricing system for TV commercials, based on the quality of ads as decided by viewers, is inevitable. If the internet has taught us one thing, it is that content is king — and a third of all content on TV is commercials. That a new pricing system is good in the long run […]

Insurance Department vs Price Optimization | Affiliated Insurance Solutions

Insurance Department vs Price Optimization | Affiliated Insurance Solutions

Practical considerations So, if optimization is right for your company, what are the key areas to consider? Before you even start work there are a number of issues that need careful thought, including legal considerations, price promises, market and brand positioning. In the European Union, the gender directive allows, subject to the local implementation, the […]

More Consumers Becoming Aware of Price Optimization | Superior Access Insurance Services (SAIS)

More Consumers Becoming Aware of Price Optimization | Superior Access Insurance Services (SAIS)

“Comparison shopping for car insurance now matters more than ever,” Amy Bach, who heads United Policyholders, a San Francisco-based nonprofit consumer advocate, told the site. “Not just because insurers are charging more to consumers who don’t, but also because there really are differences between what competing insurers charge and deliver.” When rising prices pose a […]

Pricing Points, Perceived Value And How To Make More Money Per Sale | Entrepreneurs Journey

Pricing Points, Perceived Value And How To Make More Money Per Sale | Entrepreneurs Journey

My business, BetterEdit.com, offers two services – essay editing and thesis editing. When I originally set up the business, which was nearly six years ago now, one of the hardest things to do was come up with pricing points. Back then I wasn’t all that clued in to how important perceived value is and how […]

Pricer’s Points: Eye-Tracking for Pricing and Brand Innovation | Jose Mendoza

Pricer’s Points: Eye-Tracking for Pricing and Brand Innovation | Jose Mendoza

The latter is somewhat novel as the current research on pricing and eye-tracking technologies is been restricted to a closed environment (i.e. a research lab) but with the potential of extending this research on pricing to the field. The study by Gidlöf et al. (2013) presented differences among the search and decision making behavior. Holmqvist […]

Discussion: Some Apple Watch pricing math | The Loop

Discussion: Some Apple Watch pricing math | The Loop

There’s been a lot of speculation about potential pricing for the highest tiered Apple Watch, the Apple Watch Edition line. John Gruber has been writing about Edition pricing on Daring Fireball. He initially thought that $5,000 was a ceiling for the Edition entry model, then moved his target up to $10,000, even suggesting that $20,000 […]

Pricer’s Points: WHY IS THERE NO BACHELOR OF PRICING!? | Alex Zveiris

Pricer’s Points: WHY IS THERE NO BACHELOR OF PRICING!? | Alex Zveiris

BACHELOR OF ECONOMICS, BACHELOR OF MARKETING…WHY IS THERE NO BACHELOR OF PRICING!? Many of my colleagues tell me that I have a very interesting job. I couldn’t agree more! A simple look at most university programs will show that you can’t learn “pricing” at school. However, you can definitely learn a lot about economics, marketing […]

Pricer’s Points: Is Being Number One Always the Best? Pricing Strategy That Succeeds in the Medicare Supplement Market | Andy Baillargeon

Pricer’s Points: Is Being Number One Always the Best? Pricing Strategy That Succeeds in the Medicare Supplement Market | Andy Baillargeon

In the game of life, we’re taught that we should strive to be Number One. Whether it is in school, an athletic competition or just every day activities, being the leader of the pack is a goal we drive ourselves to achieve. However, when it comes to Medicare Supplement insurance, it’s a different story. Having […]

 

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 […]

Workshop: Change Management in Pricing | Stephan Liozu

When: May 5-6, 2015

Where: Dallas, TX at the Hilton Anatole Hotel

Theories, Best Practices and a Transformational Framework More than 70% of projects fail because of the inability of organizations to change. The same goes with pricing projects and initiatives. Change in value and pricing management is challenging, sometimes tenuous, and might take a long time to […]

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 […]

Conference: Strategic Pricing Conference | SPA

When: June 11-12, 2015

Where: Las Vegas, NV at the Vdara Hotel & Spa at Aria

Learn how leading manufacturing and distribution executives have unlocked the keys to faster growth, stronger customer relationships, and market-leading profitability with SPA’s proven strategic pricing processes and technology. Event Overview Equal parts strategy and practical tactics, this complimentary Strategic Pricing Executive Overview event […]

 

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

 

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“You can determine the strength of a business over time by the amount of agony they go through in raising prices.”

– Warren Buffett

 

Pricing Resources

Explore our archives of valuable pricing resources including:

Blog: The story of Asia Pricing Professionals | Jesper Hansson

Asia Pricing Professionals (APP) was established in 2011 by a few pricing practitioners. I was one of them. At first we were just meeting up to share ideas and challenges from our daily jobs. There wasn’t many pricing practitioners in Singapore back then. Most people working with pricing were either doing so in a marketing, […]

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.

Check out some recent additions…

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.

Check out some recent favorites…

Pricing News LinkedIn Group

Join 1,000’s of your peers in the our LinkedIn discussion group. The group offers a place to share the latest pricing strategy and technology, news, events, resources, thought leadership, and discuss the latest pricing related successes and failures in the news.

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