This Week in Pricing > 4/21/18

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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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

Federal Court Calls State’s Law Against Price-Gouging ‘Unconstitutional’ | NPR

Federal Court Calls State’s Law Against Price-Gouging ‘Unconstitutional’ | NPR

States are continuing to do battle with budget-busting prices of prescription drugs. But a recent federal court decision could limit the tools available to them — underscoring the challenge states face as, in the absence of federal action, they attempt on their own to take on the powerful drug industry. The 2-to-1 ruling Friday by […]

 

The new USPS reform bill could shake up supply chains | Supply Chain Dive

The new USPS reform bill could shake up supply chains | Supply Chain Dive

Tracey believes if the USPS were allowed “more dynamic pricing flexibility as a market participant,” then the USPS might be able to turn a profit. But big changes to how the USPS operates would affect supply chains. Some companies may have to rearrange supply chains or absorb higher costs if USPS shipping rates increase or […]

 

 

Grab ordered to explain P2 per minute charge | Tempo

Grab ordered to explain P2 per minute charge | Tempo

Grab Philippines Public Affairs head Leo Gonzales said in a statement that they are “allowed” to set its own fares with the guidance of the regulating body. “Department Order 2015-011 allowed TNCs to set its own fares with the oversight of the LTFRB. In June 2017, Grab, upon review of its pricing structure, initiated per […]

 

Is your friend getting a cheaper Uber fare than you are? | The Guardian

Is your friend getting a cheaper Uber fare than you are? | The Guardian

We all know that ride-share companies like Uber and Lyft operate dynamic, or “surge”, pricing: they change their prices in real time, according to supply and demand. But is there something else behind these fluctuations in fees? Is your taxi fare actually being personalized according to how much the company thinks you are willing to […]

 

This year’s new iPhone X might cost more than $1,000 | BGR

This year’s new iPhone X might cost more than $1,000 | BGR

According to rumblings from the rumor mill, Apple’s 2018 iPhone lineup will consist of three new devices. On the low-end, Apple will release a 6.1-inch device with an edgeless LCD display. Above that, Apple will reportedly release a next-gen iPhone X along with a iPhone X Plus with a 6.5 inch OLED display. While analysts […]

 

Trump plans first major speech on drug prices next week | POLITICO

Trump plans first major speech on drug prices next week | POLITICO

President Donald Trump is set to deliver his first major speech on drug prices on April 26, revisiting an issue he campaigned on but that is unlikely to yield major legislative changes. The strategy is unlikely to call for actions of the sort Trump touted on the campaign trail like allowing the government to negotiate […]

 

States Stepping into the Breach on Drug-Pricing Transparency | Lexology

States Stepping into the Breach on Drug-Pricing Transparency | Lexology

In recent months President Trump, Food and Drug Administration Commissioner Scott Gottlieb, and Health and Human Services Secretary Alex Azar have all spoken publicly about the need to lower prescription drug prices and make the pricing models used by the nation’s drug manufacturers more transparent to consumers.  While at the federal level there has been […]

 

 

Insurers look to pass drug price breaks straight to consumer | Chicago Tribune

Insurers look to pass drug price breaks straight to consumer | Chicago Tribune

Some major health insurers plan to take a little sting out of prescription drug prices by giving customers rebates at the pharmacy counter. Aetna and UnitedHealthcare both say they will begin passing rebates they get from drugmakers along to some customers starting next year. They could spark a trend: The idea has been championed by […]

 

Gasoline prices hit highest point in three years | Houston Chronicle

Gasoline prices hit highest point in three years | Houston Chronicle

Gasoline prices rose Thursday to their highest levels since the summer of 2015 as the national average hit $2.68 for a gallon of regular unleaded. The current fuel prices even exceed the temporary spike nationwide last year when Hurricane Harvey knocked out much of the nation’s refining system along the Gulf Coast, triggering a temporary […]

 

 

 

 

 

More Headlines

New measures will see ‘rent register’ created for price… | NewsTalk

New measures will see ‘rent register’ created for price… | NewsTalk

Landlords who breach rent pressure zone caps will face criminal prosecution under new legislation. The Housing Minister Eoghan Murphy has announced a new bill aimed at giving tenants more protection. The Rental Tenancies Act will also introduce a rent register to keep prices down and give the Residential Tenancies Board (RTB) more power. … The […]

 

Ten Ways AI-Powered Algorithms Will Transform Your Supply Chain | Supply Chain Management Review

Ten Ways AI-Powered Algorithms Will Transform Your Supply Chain | Supply Chain Management Review

New Product, New Wins Digital Supply Chain knowledge should be added to the process of deciding what to make or do to drive growth. Winning companies will adopt a more integrated cross-functional view that includes their DSC to gather important customer insights and information. They add value by being in touch with the customer and […]

 

U of L moves to dynamic ticket pricing | The Louisville Cardinal

U of L moves to dynamic ticket pricing | The Louisville Cardinal

The University of Louisville Athletic Association hope to see game attendance increase by changing the way tickets are priced. ULAA passed a proposal on tickets at the April 13 meeting. Assistant Athletic Director Jeff Spoelker recommended U of L adopt dynamic pricing to give more people an opportunity to attend a game. “After some internal discussion we decided to try some […]

 

Online art market could stagnate unless transparency is improved, study finds | The Art Newspaper

Online art sales reached an estimated $4.2bn in 2017, up 12% year on year, this is lower than the 15% increase experienced in 2016, or the 24% rise in 2015. “Despite the online art market growing around 20-25% between 2013 and 2015, the last 24 months shows signs of a slowdown, perhaps as the industry […]

 

Someone made a game where you ride the rapidly changing prices of cryptocurrencies | TechCrunch

Someone made a game where you ride the rapidly changing prices of cryptocurrencies | TechCrunch

The cryptocurrency world is a strange one, but at least it has a sense of humor. A new game has you riding a little crypto-car along the wildly fluctuating prices of major and minor currencies. It’s quite ridiculous, and it isn’t even a bad game! It’s called Crypto Rider, predictably, and is very much a […]

 

WeHo Parking Meter Rates to Climb 33% on July 1 | WEHOville

WeHo Parking Meter Rates to Climb 33% on July 1 | WEHOville

Parking on the street in West Hollywood will cost a third more with the City Council’s passage last night of a variety of changes in city fees. Parking at a street meter now costs $1.50 an hour. That price will rise to $2 an hour beginning July 1. The increase is expected to raise $1.78 […]

 

 

Gas prices will surge this summer | Dayton Daily News

Gas prices will surge this summer | Dayton Daily News

Drivers, take heed: Gas prices are expected to head up for the warm-weather driving season. Pushed up by higher crude prices and lower inventory, the U.S. Energy Information Administration expects the retail price of regular-grade gasoline will average $2.74 per gallon this summer, up from an average of $2.41 a gallon last summer. The EIA […]

 

The ‘art of pricing’ is crucial | The Grocer

The ‘art of pricing’ is crucial | The Grocer

Twenty-five years ago, Philip Morris cut the price of Marlboro by 20% to fight back against generics, sending its stock price down a quarter and headlines proclaiming ‘the death of brands’. This conclusion proved premature. Brands have thrived since, with pricing generally robust, but they must remain relevant to justify their price premiums. Unsurprisingly, in […]

 

Rookie mistakes to avoid when you start an Airbnb rental | courier journal

Rookie mistakes to avoid when you start an Airbnb rental | courier journal

Letting Airbnb set your price Here’s the thing. Airbnb takes a cut of every stay, from both the host and the guest. I’m no mathlete, but if they book two million rooms a night (that’s their norm) at $100 apiece, they make more money than if they book a million at $250 (prices are just […]

 

BBB plan: Less inventory on the floor, fewer doors | Home Textiles Today

BBB plan: Less inventory on the floor, fewer doors | Home Textiles Today

Union, N.J. – Shrinking core assortments and applying dynamic pricing to store merchandise are just two of many initiatives Bed Bath & Beyond has planned. Under the new B3 format, Bed Bath & Beyond will take more of its core BBB inventory off the floor to make way for decorative furnishings, in-and-out treasure hunt merchandise, […]

 

 

Natural Gas Futures Rally on Bullish Storage Miss; Spot Prices Surge on April Chills | Natural Gas Intelligence

Natural Gas Futures Rally on Bullish Storage Miss; Spot Prices Surge on April Chills | Natural Gas Intelligence

Natural gas futures closed out the week on a bullish note Friday, with the front month adding close to a nickel on the heels of a larger-than-expected April storage withdrawal. Spot prices surged across the northern United States as forecasters were calling for colder temperatures and even some snow over the weekend; the NGI National […]

 

 

Three Big Reasons U.S. Healthcare Spending Outpaces Other High-Income Countries | Managed Healthcare Executive

Three Big Reasons U.S. Healthcare Spending Outpaces Other High-Income Countries | Managed Healthcare Executive

Key finding #2: Per capita spending for pharmaceuticals was $1,443 in the United States, compared with a range of $466 to $939 in other nations. For several commonly used brand-name pharmaceuticals, the United States had substantially higher prices than other countries. According to a Kaiser Family Foundation report, the United States is the world leader […]

 

‘The Bulls Are Back’ As Bitcoin Prices Surge | Forbes

‘The Bulls Are Back’ As Bitcoin Prices Surge | Forbes

Bitcoin prices rose sharply today, showing that bullish sentiment has returned to the digital currency markets. “The bulls are back in charge,” said analyst Charles Hayter, who pointed to Bitcoin’s robust intraday gain and a short squeeze taking place on Bitfinex. The world’s largest cryptocurrency reached $8,055.20, climbing almost 20% in less than six hours, CoinDesk Bitcoin Price […]

 

 

AMD Puts 2nd Gen Ryzen CPUs Up for Pre-Order, Ships Next Week | ExtremeTech

AMD Puts 2nd Gen Ryzen CPUs Up for Pre-Order, Ships Next Week | ExtremeTech

What the new CPUs do deliver is substantially increased clocks and, in one case, a somewhat higher TDP. The new Ryzen 7 2700X is a 3.7GHz base, 4.3GHz boost clock CPU, compared with the 3.6GHz base clock, 4GHz boost on the Ryzen 7 1800X. At first glance, that might not look like much, but looks […]

 

Oops… my business made a pricing mistake | Dynamic Business Australia

Oops… my business made a pricing mistake | Dynamic Business Australia

In my recent article, How to work out what price to charge, I discussed how pricing is one of the most crucial decisions business owners and managers must make, while touching on the eight rules for pricing effectively… But what happens when you get pricing wrong and how do you recover from pricing mistakes? In this […]

 

Fuel prices are stable for now, but continue to sting motorists | Times of India

Fuel prices are stable for now, but continue to sting motorists | Times of India

After rising steadily for a few weeks, prices of petrol and diesel have stabilised at Rs 79.50 and Rs 68.50 per litre this week, apparently under instructions from the Union petroleum ministry not to raise prices of the two commodities, for now. The manner in which prices of petrol and diesel were rising in the […]

 

Bitcoin Mining Pressures Hardware Prices | NewsBTC

Bitcoin Mining Pressures Hardware Prices | NewsBTC

Prices of PC Components Skyrocket Due to Bitcoin Mining The cryptocurrency mining boom is taking the blame for the inflationary prices in the PC hardware industry. The exponential demand for processing power and memory needed to mine crypto hashes for cryptocurrency is not being followed by similar growth in industrial capacity to supply those items. […]

 

Commuters protest Grab’s high fare; TNC firm denies surge pricing | Inquirer News

Commuters protest Grab’s high fare; TNC firm denies surge pricing | Inquirer News

Grab’s surge pricing during the morning rush hour on Monday shocked a number of commuters, who were forced to look for other means of transportation just to get to work. One of them was Joyce Yu who opted to take the bus from North Avenue to Ortigas since Grab was charging her P450 for the […]

 

 

 

Start monetizing those unused (discountable) billable hours | ABA Journal

Start monetizing those unused (discountable) billable hours | ABA Journal

Recently, a business trip took me to Paris. As the schedule was tight and I had a number of appointments across the city, I had to frequently rely on Uber to get me places in time. Doing a number of comparable rides over a couple of days, I started to notice that the prices could […]

 

Right Price For Brands | mydigitalfc

Right Price For Brands | mydigitalfc

The key to correcting the pricing problem is not to change the price. It is to establish policies that create an expectation of price integrity and to pay the sales force to sell value rather than volume. Part of the reason that pricing is misused and poorly understood is the common practice of making it […]

 

Putting a price on Europe’s spending on scientific journals | Chemistry World

Putting a price on Europe’s spending on scientific journals | Chemistry World

Analysis comes as consortia of institutes revolt over price increases and open access across the continent Europe’s academic institutions and libraries are spending over €383 million (£333 million) on their biggest contracts with scientific publishers. The figures, gathered for the first time, cover the price of 66 of 88 so-called ‘big deal’ contracts in 2016–17. […]

 

Sri Lanka’s fuel pricing formula comes into effect in May | Sunday Times

Sri Lanka’s fuel pricing formula comes into effect in May | Sunday Times

Sri Lanka is set to introduce a cost-reflective transparent fuel pricing, based on international market prices, next month. This new transparent mechanism will be submitted for cabinet approval in the next two weeks, Finance Ministry sources disclosed. In this much-delayed fuel pricing formula, prices would change with international market prices similar to many other commodities […]

 

Hero XPulse & Hero Xtreme 200R pricing strategy revealed | Indian Autos

Hero XPulse & Hero Xtreme 200R pricing strategy revealed | Indian Autos

A report from Autocar Professional gives a finer idea about the pricing strategy of Hero MotoCorp’s two upcoming premium motorcycles- Hero Xtreme 200R and Hero XPulse. The brand is reportedly focussing on the premium segment, especially where the price of the products is up to INR 1 lakh (core premium segment for the brand). Malo […]

 

Liverpool to challenge UEFA over Champions League ticket prices as Roma charge Reds’ fans £73 for semi-final | Mirror Online

Liverpool to challenge UEFA over Champions League ticket prices as Roma charge Reds’ fans £73 for semi-final | Mirror Online

Liverpool will once more more raise the issue of ticket prices in the Champions League with UEFA after seeing supporters asked to pay £73 to watch the semi-final with Roma at the Stadio Olimpico. Liverpool have been handed 5,000 tickets for the clash in the Italian capital, at a cost which is far in excess […]

 

 

Senator says pharma should’ve cut prices with tax savings, but many companies went the other way | FiercePharma

Senator says pharma should’ve cut prices with tax savings, but many companies went the other way | FiercePharma

Booker’s staff researched the top 10 U.S. drug companies by 2016 pharma sales: Pfizer, Merck, Johnson & Johnson, Gilead Sciences, AbbVie, Amgen, Bristol-Myers Squibb, Eli Lilly, Celgene and Mylan. The team reviewed fourth-quarter conference call transcripts and found that many pharma executives discussed pricing generally or acknowledged that patients struggle with costs, but that none discussed plans […]

 

SAS Global Forum 2018 – an initial take | diginomica

SAS Global Forum 2018 – an initial take | diginomica

SAS doesn’t shy away from tough topics – like its champagne price model or the war for talent. In some senses this should instill confidence among customers but then plenty of questions remain. … He adds: “The market is clearly more competitive – analytics is everywhere and digital transformation brings many challenges that analytics is […]

 

Mount Rainier and Olympic National Park entrance fees will go up by $5 | Curbed Seattle

The National Parks Service has decided to scrap a plan that would have tripled visitor fees to 17 highly-visited national parks, including Mount Rainier and Olympic National Park, instead opting for a small, flat increase, typically $5, to all fees for parks that charge admission. The new fee structure for Mount Rainier and Olympic National […]

 

Senate Republicans continue push for low, transparent pricing in health care | MNSRC

Senate Republicans continue push for low, transparent pricing in health care | MNSRC

Two of the proposals require health care providers and health insurance plans to provide clear cost estimates to consumers. S.F. 3480 allows consumers to request a good faith estimate for expected services, which health care providers and health insurance plans are required to provide within ten days. S.F. 3033 requires health care providers to publicly […]

 

Crude oil spike could pinch FMCGs hard; operating margins likely to suffer | Business Standard News

Crude oil spike could pinch FMCGs hard; operating margins likely to suffer | Business Standard News

Your favourite toothpaste or detergent bar could cost more if crude oil prices continue to rally the way they have in the past month. Between March 9 and now, crude oil has spiked to levels of about $72 a barrel, a jump of 10 per cent. The expectation is that it could cross the $75-mark […]

 

Can Apple Win Customers With $700 iPhone In 2018? | Dazeinfo

Can Apple Win Customers With $700 iPhone In 2018? | Dazeinfo

The Wall Street is abuzz with rumours of Apple Inc. (NASDAQ:AAPL) facing the worst quarter in the history as neither the price of iPhone X nor the specification of iPhone X could pull customers to the Apple Stores. It is estimated that Apple could manage to sell only 8 million iPhone X during Q1 2018, […]

 

 

 

 

 

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Events and Resources

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.

 

Pricing News LinkedIn Group

Join over 5,000 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.

 

Pricing Resources

Explore our collection of valuable pricing resources including:

 

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

 

 

“The moment you make a mistake in pricing, you’re eating into your reputation or your profits.”

     – Katharine Paine