This Week in Pricing > 4/14/18

pricingnews-WeeklyThis Week in Pricing is a collection of pricing focused news, thought leadership , events, jobs and professional education resources for pricers.

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Strategic Pricing Solutions

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

Click a link below to learn more…

 

Top Headlines

SAP announces “transparent approach to indirect licensing” | TechCentral.ie

SAP announces “transparent approach to indirect licensing” | TechCentral.ie

Now, the vendor has announced a new “transparent approach to indirect licensing” which encompasses a new sales, audit and pricing model. SAP has started out by giving its own, definitive definition of the two types of data access: “Direct/Human Access occurs when people log on to use the SAP Digital Core by way of an interface delivered […]

 

AI Gains a Greater Role in Price Setting | NHK WORLD

AI Gains a Greater Role in Price Setting | NHK WORLD

Price setting is an essential part of business operations. More and more companies are relying on artificial intelligence to do the job. They use an AI-based dynamic-pricing strategy that helps them to know when to raise or lower a product’s price. The approach is being adopted by Japanese companies, after spreading in other nations. US […]

 

Apple expected to maintain high iPhone ASP with 2018 releases | Apple Insider

Apple expected to maintain high iPhone ASP with 2018 releases | Apple Insider

The next iPhone line will probably consist of three models, including two OLED variants and an entry level version with an LCD screen, leading to “flattish” average selling price for the fiscal year 2019, according to a new analyst report. The report by Steven Milunovich of UBS, obtained by AppleInsider, lays out two scenarios for […]

 

CVS To Compare Drug Prices At The Pharmacy Counter | Forbes

CVS To Compare Drug Prices At The Pharmacy Counter | Forbes

CVS Health will introduce a new effort to help customers compare drug prices for more transparency at its pharmacy counters, ratcheting up pressure on the pharmaceutical industry and drug costs. Pharmacists have long advised patients on whether a drug is covered by insurance or whether a cheaper generic is available. But CVS admits a more […]

 

Blockchain-based Airbnb Rival Cuts World Hotel Pricing by 20% | Bitcoinist.com

Blockchain-based Airbnb Rival Cuts World Hotel Pricing by 20% | Bitcoinist.com

Lockchain (LOC) is the only Blockchain company that has been aiming and succeeding at providing people with statistically significant discounts from booking prices. This European company is quickly gaining traction by providing their clients with a workaround for the exorbitant commissions that increase the hotel prices (+20% on average) offered by booking oligopolists such as […]

 

UPDATE 1-SAP revises pricing after crackdown on big customers backfires | Reuters

UPDATE 1-SAP revises pricing after crackdown on big customers backfires | Reuters

LONDON, April 10 (Reuters) – SAP is revising how it prices its core business planning software after a legal crackdown against high-profile customers Diageo and AB InBev caused a backlash with its wider customer base, who feared they might be hit by hidden, indirect charges. The German company said on Tuesday it will offer a […]

 

SAP Project Trust – a stepping stone towards consumption based pricing | diginomica

SAP Project Trust – a stepping stone towards consumption based pricing | diginomica

In my earlier story about SAP Project Trust, an effort to finally nail the lid on SAP’s long-running indirect access issue, I made the point that enterprise software licensing models have not really adjusted to the digital world. Regardless of which vendor you talk to, the pricing model still revolves around the same basic unit of […]

 

 

Workshop: Successful Transformation for Strategy Optimization | Stratence Partners

Workshop: Successful Transformation for Strategy Optimization | Stratence Partners

Date: Tue, 1 May, 2018 | 9:00 am – 4:00 pm

Location: PPS Spring Conference | Loews Chicago O’Hare Rosemont Hotel in Chicago, IL DESCRIPTION Successful Transformation for Strategy Optimization (Level 300 Workshop) Most organizations have objectives to improve their results for profit, volume and market share, but not all of them are really leveraging the most powerful lever […]

 

 

Sanofi to Start Offering Discounts on Two Insulin Products | AJMC.com

Sanofi to Start Offering Discounts on Two Insulin Products | AJMC.com

The discount to patients comes as Sanofi, Eli Lilly, and Novo Nordisk are parties in a racketeering lawsuit where they recently acknowledged that consumers’ sticker shock over insulin prices are real. It’s just not the manufacturers’ fault, they argue, and it’s definitely not a crime. “Defendants acknowledge that pharmaceutical pricing is an important issue, especially […]

 

Price Transparency Strategy Needs Improvement | MedScape

Price Transparency Strategy Needs Improvement | MedScape

Although patients support healthcare price shopping in theory, few are doing it, dampening hopes that price transparency alone will drive down escalating healthcare costs, say authors of a health policy report published online April 4 in the New England Journal of Medicine. Ateev Mehrotra, MD, MPH, from Harvard Medical School, Boston, Massachusetts, and colleagues note […]

 

 

 

More Headlines

Private-hire car drivers seek to join taxi firms, as tide turns after Grab-Uber deal | TODAYonline

Private-hire car drivers seek to join taxi firms, as tide turns after Grab-Uber deal | TODAYonline

Mr Kwan Kar Wai, 51, had driven taxis for more than a decade with ComfortDelGro and later SMRT Taxis, before crossing over to Uber last July. He pointed out that driving for a ride-hailing platform means relying only on app bookings, which is an issue if Grab’s app is down. “Last week, the Grab app […]

 

 

Feedback App Lets Restaurants Pick Their Off-Peak Pricing | The Spoon

Feedback App Lets Restaurants Pick Their Off-Peak Pricing | The Spoon

If you’ve ever been to a restaurant between two and five o’clock, chances are pretty good that you walked into a near-empty establishment, with servers, hosts and kitchen staff waiting around until the dinner rush. Feedback wants to make those off-peak hours more productive by giving restaurants the ability to offer dynamic pricing and discounts […]

 

 

Tackling unfair trading practices in the food supply chain | European Commission

Tackling unfair trading practices in the food supply chain | European Commission

Will the price of food products increase for consumers? No. There is no reason why this EU legislation should lead to price increases for consumers: in the public con­sultation carried out by the Commission, there was no evidence presented to suggest that the unfair trading practices targeted lead to lower consumer prices or that prohibiting […]

 

This Medical Bill Can’t Be Right, Can It? | Medscape

This Medical Bill Can’t Be Right, Can It? | Medscape

Cutting the Cost of Care A recent study in JAMA[1] revealed that the high cost of healthcare in the United States is largely related to the price of labor (higher physician and nurse salaries) and goods (including pharmaceuticals and medical devices), more utilization of expensive CT and MRI scans, and higher administrative costs. The healthcare […]

 

 

Celanese (CE) Set to Raise Prices of Selective Products | Zacks.com

Celanese (CE) Set to Raise Prices of Selective Products | Zacks.com

Celanese Corporation (CE – Free Report) will raise the list and off-list selling prices of a few products. The price hike will be effective immediately or as contracts permit. The company will increase the price of Butyl Acetate and Ethyl Acetate by $50/MT in Asia outside China. Price of Vinyl Acetate Monomer will be raised […]

 

PM Modi bats for responsible energy pricing by oil producing countries | Business Standard News

PM Modi bats for responsible energy pricing by oil producing countries | Business Standard News

At a time when global oil prices have been on the boil, Prime Minister (PM) Narendra Modi has asked the oil producing countries to adopt “responsible pricing”. “We need to move towards responsible pricing that will balance the interest of producers and consumers,” Modi said, in his inaugural address at the 16th International Energy Forum […]

 

How exchange listings affect cryptocurrency prices | Brave New Coin

How exchange listings affect cryptocurrency prices | Brave New Coin

In 2017, hundreds of new digital tokens emerged onto the scene thanks to a booming ICO market. However, many of these new digital tokens and currencies never get in front of crypto investors or near the public eye because they fail to get listed on the major digital asset exchanges. Without the support of major […]

 

LTFRB lowers Grab surge pricing cap amid illegal fare allegation | Rappler

LTFRB lowers Grab surge pricing cap amid illegal fare allegation | Rappler

MANILA, Philippines – Lower Grab fares during peak hours. The Land Transportation Franchising and Regulatory Board (LTFRB) gave this order on Wednesday, April 11, to Grab, telling the ride-hailing service to lower its surge pricing cap during peak hours from 2.0 to only 1.5 times the normal fare. Surge pricing was capped at twice the […]

 

 

Killing Car Dealership Business With Faulty Pricing? Here’s a Fix | WardsAuto

Killing Car Dealership Business With Faulty Pricing? Here’s a Fix | WardsAuto

How to Tell If Your Online Pricing Strategy Is Killing Your Business The customer must trust that the posted price is a real price. Does your Internet sales team use one-pricing strategy, but your showroom team use a different one? If so, this is a red flag. In today’s transparent economy, customers expect consistency between […]

 

What happens after Uber was Grab’d | Philstar.com

What happens after Uber was Grab’d | Philstar.com

4. Fares may be different from Uber. In response to the question “Will fares change?”, Grab’s FAQs says “No.” However, that answer appears to address only the question of pricing methodology.  The FAQ states that services based on dynamic fares (like GrabCar or GrabShare) will continue to be calculated using base distance with a dynamic […]

 

Our view: Records shouldn’t come with a price tag | Gloucester Times

Our view: Records shouldn’t come with a price tag | Gloucester Times

In Massachusetts, the fee schedule for records featured prominently in a recent rewrite of the state’s open record laws. City and town clerks, and their advocates at the Massachusetts Municipal Association, lobbied for the authority to charge for their time. As a result, in addition to the 5 cents per page allowed by law, someone […]

 

‘Never been one this large’ Kroger price cuts are part of a multi-million dollar investment | thv11.com

‘Never been one this large’ Kroger price cuts are part of a multi-million dollar investment | thv11.com

Kroger has begun cutting prices on more 3,000 items in approximately 100 stores in its Delta region, which includes Arkansas, Tennessee, Mississippi, Missouri and Kentucky. Kirby estimated that that works out to about 10 percent of everything shoppers will find in a typical store. “There’s never been one this large,” Kirby said of the price-reduction […]

 

California Aims To Tackle Health Care Prices In Novel Rate-Setting Proposal | California Healthline

California Aims To Tackle Health Care Prices In Novel Rate-Setting Proposal | California Healthline

Backed by labor and consumer groups, a California lawmaker unveiled a proposal Monday calling for the state to set health care prices in the commercial insurance market. Supporters of the legislation, called the Health Care Price Relief Act, say California has made major strides in expanding health insurance coverage, but recent changes haven’t addressed the […]

 

New Amazon Conglomeration Means Healthcare Players Must Adapt to Price Transparency or Face Extinction | Markets Insider

New Amazon Conglomeration Means Healthcare Players Must Adapt to Price Transparency or Face Extinction | Markets Insider

For some industry players, the writing is on the wall. Some insurance brokers have already adopted a payment model that pays them based on how much money they save companies rather than collecting a percentage of every premium. And bill collection agencies already in-house at hospitals are making the switch to other customer service occupations. […]

 

City official: Improving Poughkeepsie parking doesn’t require adding more spaces | Spectrum News

City official: Improving Poughkeepsie parking doesn’t require adding more spaces | Spectrum News

“It always comes back to parking,” Poughkeepsie Community Development Coordinator Paul Hesse said. “If your parking experience is good, your experience [in Poughkeepsie] might be good, and you’ll come back.” Hesse said research done in the last year finds that out of 7,100 parking spots in this area, just half are occupied during the busiest […]

 

 

Spring House Hunt: A guide to real estate pricing terms | Boston.com

Spring House Hunt: A guide to real estate pricing terms | Boston.com

What is my home worth? It sounds like a simple question, but the answer can vary greatly, depending on why and whom you are asking. Are you selling your home and wondering what your listing price should be, or are you referring to the assessed or appraised values of your home? Words like “assessment’’ and […]

 

Fairview grad named to Trump administration post | GoErie.com

Fairview grad named to Trump administration post | GoErie.com

Dan Best, a 1987 graduate of Fairview High School, has long had an interest in controlling drug prices. The 49-year-old son of Ted and Marilyn Best now has a big platform to explore that interest. Health and Human Services Secretary Alex Azar on Friday named Best, most recently a CVS Caremark executive, to serve as […]

 

KIRO Radio hosts react to congestion pricing in Seattle | KIRO Radio

KIRO Radio hosts react to congestion pricing in Seattle | KIRO Radio

Part of Seattle Mayor Jenny Durkan’s plan to reduce traffic and greenhouse gases is to implement congestion pricing by 2021. The city will study congestion pricing in downtown neighborhoods. Results could come as early as later this year. Here’s how the hosts of KIRO Radio reacted to the news: John Curley You’re gonna be shocked, […]

 

 

Cabs a letdown, commuters deal with auto’s surge pricing | Times of India

Cabs a letdown, commuters deal with auto’s surge pricing | Times of India

CHENNAI: A number of buses off the streets, meant commuters on Thursday had to turn to autorickshaws and cab aggregators. But mobility came at a cost of either time or money as only a few cabs were available and auto rickshaws surged prices. Though roads were free of rush-hour traffic, fewer public transport options called […]

 

With RBI’s near-ban announcement, cryptocurrency prices crash sharply | Business Standard News

With RBI’s near-ban announcement, cryptocurrency prices crash sharply | Business Standard News

Without saying so categorically, the Reserve Bank of India (RBI) as good as banned crypto currency on Thursday. As a result, prices of bitcoin and other crypto currencies on Indian exchanges have crashed. Bitcoin was trading at $6,950 in international market just before RBI announcement but in India on Zebpay, a leading crypto exchange, it […]

 

Cyber Risk Scoring, Automated Vehicles and Price Optimization: Read Recaps of “Hot Topic” RPM Sessions | Casualty Actuarial Society

Cyber Risk Scoring, Automated Vehicles and Price Optimization: Read Recaps of “Hot Topic” RPM Sessions | Casualty Actuarial Society

Price Optimization Continues as an Unresolved Issue As Price Optimization has gained more traction in the insurance industry, there has been a divergence of opinions regarding its use. Panelists Serhat Guven, FCAS, regional director, Willis Towers Watson, Wanchin Chou, FCAS, chief actuary of the Connecticut Department of Insurance and Birny Birnbaum, executive director of the […]

 

CVS Health Kept Drug Price Growth Nearly Flat and Improved Medication Adherence for PBM Clients in | CVSHealth

CVS Health Kept Drug Price Growth Nearly Flat and Improved Medication Adherence for PBM Clients in | CVSHealth

Although manufacturer-driven price inflation for specialty drugs measured 8.3 percent in 2017, CVS Health was able to keep specialty drug cost growth at just 3.7 percent for clients. This was achieved through effective formulary strategies, indication- and outcomes-based contracting and cost-cap based rebates. CVS Health also offers PBM clients a variety of formulary strategies, which […]

DoorDash is here to deliver food from more than 1,500 local restaurants | Next Pittsburg

DoorDash is here to deliver food from more than 1,500 local restaurants | Next Pittsburg

Between 11 a.m. and 10 p.m, people in those areas can order from hundreds of local restaurants including Primanti’s, Kaya and Bluebird Kitchen, as well as national chains such as  Houlihan’s, PF Chang’s and Buca di Beppo. “Delivery is something we see as the future of restaurant dining, and we are excited to be a part […]

 

Rising fuel prices may dampen auto sales this year | Autocar India

Rising fuel prices may dampen auto sales this year | Autocar India

However, vehicle manufacturers could likely face a sales speed breaker in the form of rising fuel prices. Dynamic pricing or daily fuel revision, which kicked in on June 16, 2017, continues to give considerable heartburn to motorists in India. On April 2, motorists tanking up on petrol had to pay Rs 73.83 in New Delhi, […]

 

How Did Lift Tickets Become So Expensive? | TransWorld SNOWboarding

As the scope of resort offerings continued to expand, so did the inputs they needed to operate: massive amounts of energy, legions of seasonal employees, large equipment and infrastructure investments and maintenance–all while remaining highly dependent on weather. Given these factors, it’s logical to assume prices at a more complex and sophisticated resort to be […]

 

Samsung Offers Reduced Prices On Smartphones | UrduPoint

Samsung Offers Reduced Prices On Smartphones | UrduPoint

The global leader in technology and electronics recently held media press event at Hafeez Center, Lahore and revealed a new reduced price structure for its lineup of smartphones. Samsung invited the media along with its brand ambassador Fakhar Zaman a star cricketer of Pakistan, to reveal the new pricing strategy to the media and public […]

 

 

Travel Experts Discuss “Dynamic Pricing” and How Industry is Beginning to Set Prices Based on Consumer Income/Shopping Habits | Markets Insider

Travel Experts Discuss “Dynamic Pricing” and How Industry is Beginning to Set Prices Based on Consumer Income/Shopping Habits | Markets Insider

NEW YORK, April 4, 2018 /PRNewswire-PRWeb/ — The term “Dynamic Pricing” has been bantered about the travel industry for quite a while, but it certainly didn’t originate there. The retail industry has been tracking consumer purchases for quite some time and pushing discounts and special offers on future products based on past purchases. What makes […]

 

Hold on to your wallet if you drive into Seattle: mayor proposes congestion pricing | KVI.com

Hold on to your wallet if you drive into Seattle: mayor proposes congestion pricing | KVI.com

Seattle (April 5) – Seattle Mayor Jenny A. Durkan will announce new bold short- and long-term steps that the City will take to advance towards it’s greenhouse gas reduction goals to reach its commitment to the Paris Climate Agreement. Transportation and buildings are the leading causes of climate emissions. As part of the strategy to […]

 

Whole Foods prices still higher than competitors, study finds | pilotonline.com

Whole Foods prices still higher than competitors, study finds | pilotonline.com

When Amazon first lowered prices at Whole Foods Market after buying the grocer in August, customers wondered if the changes could eventually make Whole Foods as affordable as other stores. Eight months later, Whole Foods remains more expensive than some competing grocery chains, according to a report by investment firm Morgan Stanley. A basket that […]

 

 

 

 

Pricing Jobs

Location: New York City, NY, US

Seniority: Mid-Senior level

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Location: San Jose, CA, US

Seniority: n/a

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Events and Resources

European Pricing Summit 2018 | Finance iQ

EU Pricing Summit 2018 300x250Date: April 16-18, 2018

Location: TBD in London, England

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 to have insights on new developments in strategies, but they are usually subject to commercial secret.

Given this situation, IQPC will be launching a limited-access, confidential mentoring panel as part of our European Pricing and Commercial Excellence Summit to enable our clients to obtain first-hand tips from our mentors to assist them in creating the most profitable pricing strategy.

Workshop: Value-Based Pricing and Differential Value Quantification | Stephan M. Liozu, CPP

Date: Tue, 1 May, 2018 | 9:00 am – 4:00 pm

Location: PPS Spring Conference | Loews Chicago O’Hare Rosemont Hotel in Chicago, IL

More firms and their pricing leaders are embarking on value-based pricing strategies every year. Research shows increased adoption from 17% of firms in 2008 to about 25-30% of firms in 2016. Part of the deployment process of value-based pricing is the implementation of the Economic Value Estimation® (EVE®) process to quantify differential value. While adoption of value-based pricing and the implementation of EVE® is increasing, pricing professionals still face difficulties in designing and executing value-based pricing strategies and particularly executing the EVE® methods across their organizations.

In this unique one-day workshop, we go through the latest science on value-based pricing and on the EVE® process. We also review how to operationalize the outcome in value-based innovation, value-based marketing and value-based selling strategies. This is a unique and powerful workshop to learn theoretical and practical dimensions of EVE® and value quantification. Participants will also receive a signed copy of the “Dollarizing Differentiation Value” book as well as an eBook called “A User’s Guide to Value Modeling.”

Attendees will learn:

  • How to operationalize value-based pricing and EVE® in your daily business and track that your approach is successful
  • How to practically link value-based pricing with value-based innovation, value-based marketing, and value-based selling
  • How to use multi-functional collaboration to accelerate deployment of value-based pricing

(Level 600 Workshop)

 

 

Workshop: Successful Transformation for Strategy Optimization | Stratence Partners

Date: Tue, 1 May, 2018 | 9:00 am – 4:00 pm

Location: PPS Spring Conference | Loews Chicago O’Hare Rosemont Hotel in Chicago, IL

DESCRIPTION

Most organizations have objectives to improve their results for profit, volume and market share, but not all of them are really leveraging the most powerful lever for attaining these goals.

In Successful Transformation for Strategy Optimization, Commercial Effectiveness, and Pricing Excellence, pricers will learn the concepts, best practices and methodologies that have been proven effective in creating successful pricing transformation journeys. We will review these tactics by examining five real-world business case studies from across five different industries (Pharma, Heavy Machines, Distribution, Software Services, and Banking) and diverse global markets (Germany, France, Sweden, Italy, and UK). We will then use the lessons learned in these transformation examples to help attendees identify key challenges, solutions and recommendations for their own unique pricing transformation journeys.

Join us in moving beyond the theory as we connect with case studies from top professionals in different industries on their transformation journey to extract lessons learned.

Attendees will learn:

  • The concepts, best practices, and methodologies proven successful in transformation journeys
  • From 5 real world business cases across diverse industries and global markets
  • To expose key challenges and obtain pragmatic and successful solutions, insights and recommendations

(Level 300 Workshop)

 

Workshop: Price Execution for Sustained Profitable Growth | Navdeep Sodhi

Date: Wed, 2 May, 2018 | 9:00 am – 4:00 pm

Location: PPS Spring Conference | Loews Chicago O’Hare Rosemont Hotel in Chicago, IL

DESCRIPTION

Many companies find themselves ill-prepared to handle disruption or tap into innovation opportunities due to a legacy of weak pricing execution. New product introduction, organizational redesign, big data solutions, and other strategic investments – all of these critical functions can fall short without solid price operations.  Customers frame their perception of value received or procurement risk based on their vendors’ ability to execute pricing. Given the ever-changing marketplace, even smart companies need to adapt quickly with continuous price improvement.

However, companies have far more control over their pricing operations than they realize. In the workshop Pricing Execution for Sustained Profitable Growth, we will discuss a breakthrough approach for superior execution, one that can systematically eliminate pricing-related risk or leaks to bring new profits straight to the bottom-line without alienating customers. In this workshop, our discussion will include a holistic organizational approach for keeping senior management engaged while dismantling functional silos with the spirit of continuous improvement.

Attendees will learn:

  • How to find the Hidden Pricing Factory within your organization
  • How to secure trust and organizational support with evidence-based assessment of the overall pricing capability
  • How to align pricing operations with your pricing and sales strategy

(Level 500 Workshop)

 

29th Annual Spring Pricing Workshops & Conference | PPS

640x240-Chicago-Co-Mark-banner-11.21aDate: May 1-4, 2018

Location: Loews Chicago O’Hare Rosemont Hotel in Chicago, IL

We are excited to announce we’ll be in Chicago, IL for our 29th Annual Spring Pricing Workshops & Conference May 1-4, 2018!

You can register now and take advantage of our Early Bird Offer (Buy 2 Get 1 Free, expires March 23rd).

 

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.

 

Top Discussions

This blog category offers a collection of top pricing related conversations on LinkedIn or in the comments section of pricing related blogs and articles.

 

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Pricing Resources

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

 

 

“Pricing is the only element in the marketing mix that produces revenue; the other elements produce costs.

     – Phillip Kotler

 

 

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