This Week in Pricing > 4/28/18

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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Vistaar

Vistaar is leading SaaS software provider that enables companies to optimize pricing, promotion, configuration, and rebate management.  Our solutions are powered by predictive models leveraged by machine learning that deliver profitable growth and maximize shareholder value.  Our world-class customer base spans a broad range of industries throughout the Global 2000 and includes: manufacturing, beverage alcohol, retailers, and many others.

 

Top Headlines

Pricing: Does Fortune Favor the Bold or the Prepared? | Paul Greifenberger

Pricing: Does Fortune Favor the Bold or the Prepared? | Paul Greifenberger

With every sales bid, there are new data that can be used to improve pricing. Yet, much of this potential remains untapped. Why? Because data gaps and uncontrolled sales cycle data variables are significant roadblocks. Find out how Vistaar’s leading edge pricing practices and price science techniques can help you overcome the roadblocks. It’s worth the effort because […]

 

The Bears Are Right: Amazon Is Killing This Retailer | The Motley Fool

The Bears Are Right: Amazon Is Killing This Retailer | The Motley Fool

Analysts expect that pain to continue with the company’s revenue and earnings falling an estimated 1% and 25%, respectively, this year. When faced with these problems, retailers generally shutter weaker stores and cut costs. Yet Bed Bath & Beyond closed only three namesake stores and five World Market stores last quarter while opening one World Market […]

 

Diesel prices hit an all-time high as oil prices continue to rise | Moneycontrol.com

Diesel prices hit an all-time high as oil prices continue to rise | Moneycontrol.com

Diesel prices spiked to an all-time high costing Rs 65.27 in Delhi and Rs 69.50 in Mumbai on Thursday. The prices of diesel and petrol have been on the rise consistently since the Narendra Modi-led government introduced dynamic pricing for fuel in June last year. Under the scheme, the price of fuel is revised daily on the […]

 

P&G, Nestle, Unilever forgo price increases to move product | Reuters

P&G, Nestle, Unilever forgo price increases to move product | Reuters

WANING PRICING POWER? Consumer goods makers and retailers are always in complex negotiations around pricing and promotions to suit their ambitions. If a manufacturer wants to take market share, it might discount; alternately, it may seek price increases to boost margins. Russ Mould, investment director at AJ Bell, said trends suggested Unilever and some of […]

 

Machine Learning—a “Next Level” Pricing Element | Paul Greifenberger

Machine Learning—a “Next Level” Pricing Element | Paul Greifenberger

For a pricing strategy to be truly successful, it must be a “win-win-win” for sales, marketing, and finance. This calls for a revenue and margin balancing act consistently performed over time. Vistaar’s SmartQuote  pricing software enables pricing strategies and tactics to efficiently and rapidly adapt as market conditions change. SmartQuote is powered by advanced machine learning techniques […]

 

4 Big Opportunities for Entrepreneurs to Help the U.S. Healthcare System Save Money | Entrepreneur

4. Switch to strategic pricing. Healthcare systems need to stay up-to-date with technology while keeping costs down. The main cost areas would be maintaining the electronic records system, as well as having not just the latest, but most practical technology. This will require working with management to create suitable capital budgets. The healthcare system will have to […]

 

Netflix has no near-term plans to lower its pricing in India | Medianama

Netflix has no near-term plans to lower its pricing in India | Medianama

Surviving price increases Most of the international growth came as Netflix started producing larger originals outside the US like the German series Dark. So much so, that price increases across the world didn’t really impact Netflix. In the EU and Australia, Netflix raised prices by roughly a euro, around ₹100 last year. In the US, its mid-tier plan underwent […]

 

Trump rails against high oil prices, OPEC pushes back | Reuters

Trump rails against high oil prices, OPEC pushes back | Reuters

WASHINGTON/JEDDAH, Saudi Arabia (Reuters) – U.S. President Donald Trump accused OPEC on Friday of “artificially” boosting oil prices, drawing rebukes from some of the world’s top energy exporters. “Looks like OPEC is at it again. With record amounts of Oil all over the place, including the fully loaded ships at sea. Oil prices are artificially […]

 

The possible meanings of Trump’s OPEC tweet | Axios

The possible meanings of Trump’s OPEC tweet | Axios

President Trump’s decision Friday to burst like the Kool-Aid Man into oil market debates — bashing OPEC in a tweet over “artificially high” prices — has generated a burst of analyses about what motivated his comments. Why it matters: The tweet could herald a newly-aggressive posture toward the cartel as it weighs the longer-term future […]

 

AI, Machine Learning & Modern Manufacturing Productivity | EBN

AI, Machine Learning & Modern Manufacturing Productivity | EBN

Forecasting demand Piggybacking off operations, predictive analytics and AI will save manufacturers a great deal of time when forecasting demand for new machinery and parts. Excel spreadsheets may have been the way of yesteryear for handling inventory and managing distribution. But now, thanks to predictive analytics and machine learning, these tasks have never been more […]

 

Express Scripts’ plan to change drug pricing dynamic | Fox Business

Express Scripts’ plan to change drug pricing dynamic | Fox Business

Express Scripts told Reuters it is pressing them to give up on the usual plan of setting a high U.S. list price, then lowering the cost for health plans through hefty rebates. It is also seeking a refund if the drugs don’t work within a defined timeframe. That would also bring down costs. Wall Street […]

 

Colorado Price Transparency Law Potentially Confusing to Healthcare Consumers | Dark Daily

Colorado Price Transparency Law Potentially Confusing to Healthcare Consumers | Dark Daily

In an effort to promote price transparency in healthcare, Colorado legislators passed a new law requiring hospitals in that state to post self-pay prices for the most common procedures and treatments. Their hope is healthcare consumers who lack insurance will find it easier to price shop and, therefore, make informed healthcare decisions. However, not all […]

 

Reports indicate Kroger is losing its ‘fresh’ pricing advantage | Food Dive

Reports indicate Kroger is losing its ‘fresh’ pricing advantage | Food Dive

Dive Brief: Price checks conducted by Barclays in Nashville, Tennessee, found that Kroger has ceded its pricing advantage in perishables to two key competitors: Walmart and Sprouts Farmers Market. When comparing a basket of 117 items, representatives from the investment firm found that Walmart’s “fresh” items were 6.6% cheaper than Kroger’s, compared to the Cincinnati-based […]

 

 

More Headlines

Moving your B2B sales model online? Here’s what you need to consider | ITProPortal

Moving your B2B sales model online? Here’s what you need to consider | ITProPortal

How important is your website in your sales process? If your organisation uses highly customised pricing or you are bound by agreements with distributors, you may use your website as a catalogue of rich product content but don’t allow buyers to purchase goods online. These sites work best as search-engine friendly catalogues used to generate […]

 

 

Basis, a year-old startup that’s building a price-stable cryptocurrency, just raised $133 million from top investors | TechCrunch

Basis, a year-old startup that’s building a price-stable cryptocurrency, just raised $133 million from top investors | TechCrunch

The three founders, who worked at D. E. Shaw and Google out of school, have their eye on three ways to get their cryptocurrency adopted. The developing world is one target market, given that many countries’ currencies are inflating at annual rates of 5 to 10 percent and sometimes more. (Bitcoin was intended to solve […]

 

Mahindra adopts aggressive pricing strategy with launch of new version of XUV500 | Livemint

Mahindra adopts aggressive pricing strategy with launch of new version of XUV500 | Livemint

Mumbai: In a bid to regain lost ground in the utility vehicle (UV) segment, home-grown auto conglomerate Mahindra and Mahindra Ltd has adopted an aggressive pricing strategy for the third-generation model of its XUV500 SUV (sport utility vehicle), launched Wednesday. Introduced with a base price of Rs12.32 lakh (ex-showroom, Mumbai), the facelift costs almost Rs50,000 […]

 

ADB expects Cabinet to approve pricing mechanisms for fuel, electricity this year | Daily Mirror

ADB expects Cabinet to approve pricing mechanisms for fuel, electricity this year | Daily Mirror

The government is likely to put its rubber stamp on cost-reflective pricing formulae for fuel and electricity within this year, as the burden of state-owned enterprise (SOE) debt has been weighing on the economy for too long. According to the Asian Development Bank (ADB), the Cabinet is expected to approve a proposal to this effect […]

 

 

U.S. fund managers brace for trade war with focus on pricing power | Reuters

U.S. fund managers brace for trade war with focus on pricing power | Reuters

A trade war between the two countries would lop 0.7 percent off of the U.S. GDP and push inflation up 0.1 percent, according to estimates from MSCI. That, in turn, would sink U.S. stocks by about 5 percent, the firm estimates, a fall it says may already be priced into the market. Should other countries […]

 

Changing how we get around metro Chicago — and how we pay for it | Chicago Tribune

Changing how we get around metro Chicago — and how we pay for it | Chicago Tribune

“There’s no free ride, and you don’t get to just invent money,” Joseph Szabo, CMAP’s executive director, tells us. “The soundest policy is for the users of the system, those reaping the benefits of the system, to be the ones to pay for the cost of maintaining and modernizing the system.” Case in point: Congestion […]

 

Manchester United fans furious with FA Cup final ticket pricing | Manchester Evening News

Manchester United fans furious with FA Cup final ticket pricing | Manchester Evening News

However, some fans will have to pay as much as £145 for a ticket, an increase of £65 on what the same seats cost for the semi-final victory over Tottenham. Supporters were already disgruntled after learning tickets for the semi-final were increased to a record cost this season, with some prices having risen for the […]

 

 

Toyota Makes It Really Hard Not To Choose The Hybrid Version Of The 2019 Avalon | Forbes

Toyota Makes It Really Hard Not To Choose The Hybrid Version Of The 2019 Avalon | Forbes

“If you look back, historically at Avalon, we peaked at about 25 percent hybrid,” she said. “That was several years ago, when our value relationship was closer to where we’re coming in now, so we would expect to see that 15 percent grow with the value story that everyone will be hearing about.” One possible […]

 

Understanding life insurance pricing: why cheaper isn’t always better. | New York Life

Understanding life insurance pricing: why cheaper isn’t always better. | New York Life

Premiums are determined by each company’s underwriters, who look at several factors including your age, your current health, and family medical history to formulate their risk. The methodologies each company uses are similar, but can vary, thus affecting the amount a company is willing to cover you for and, ultimately, the price you are going […]

 

Pricing Strategies – Pricing by Customer | Starting a Small Business

Pricing Strategies – Pricing by Customer | Starting a Small Business

Restaurants, particularly buffets, often offer a senior rate because seniors generally eat less and eat earlier then non-seniors. McDonald’s offers similar burgers on the “Buy by the Number” board to burgers on the value menu. Customers can order a la carte for less money. This pricing strategy weeds out the cost-sensitive from the less cost-sensitive […]

 

 

The Definitive Guide to Pricing Your New Electronic Hardware Product | Predictable Designs

The Definitive Guide to Pricing Your New Electronic Hardware Product | Predictable Designs

Value-Based Pricing Finally, we get to the end buyer. Value-based pricing incorporates buyer psychology into the price. A value-based price is primarily based on the value it provides to the buyer. The easiest value-based example to consider is a product that saves the buyer money. For example, let’s say your product is an energy saving […]

 

The Psychology of Price in UX | Webdesigner Depot

The Psychology of Price in UX | Webdesigner Depot

Anchoring in the Real World Do this test at home: Find 3 bowls. Fill one bowl with cold water, the second with hot water and third one with lukewarm water. Now, stick one hand in the cold water and the other one in the hot water and keep them there for 30 seconds or so. […]

 

 

Will the proposals for fee transparency really improve consumer access to legal services? | Today’s Conveyancer

Will the proposals for fee transparency really improve consumer access to legal services? | Today’s Conveyancer

The nature of conveyancing can lend itself to set price structures. Many firms within a comprehensive 2014 study offered fixed fee conveyancing at around 74%, with the majority of the remaining offering a combination of both fixed fees and hourly rates (22%.)[6] As well as implying that it would be a prime case for fees […]

 

Southern California home prices jump to a record high | Los Angeles Times

Southern California home prices jump to a record high | Los Angeles Times

Southern California’s median home price jumped 8.4% in March from a year earlier, setting a new all-time high, as hopeful buyers engaged in bidding wars over a limited supply of homes on the market. The six-county region’s median price for new and resale houses and condos hit $519,000 last month, up $40,000 from a year […]

 

 

New technology will cut New York state’s emissions and utility bills | Crain’s New York Business

New technology will cut New York state’s emissions and utility bills | Crain’s New York Business

The right smart-home technologies can make these investments go further. Utilities, including Con Edison and National Grid, have innovated and enticed many customers to participate in efficiency programs. In addition, smart thermostats are foundational for other energy services such as demand response and dynamic pricing. Of course, the broader the engagement and participation, the greater […]

 

Complete Energy Democratization Is Coming. Let’s Get Ready. | Shift NewCo

Complete Energy Democratization Is Coming. Let’s Get Ready. | Shift NewCo

The underlying problem is that there aren’t many financial incentives for customers to buy smart meters (most customers who do have smart meters were required by their state, or were heavily subsidized, to install them). At present, smart meters don’t matter for most customers because they don’t make a difference to cost. Most customers are […]

 

Google and Amazon trump social influencers | Enterprise Times

Google and Amazon trump social influencers | Enterprise Times

Google and Amazon the starting point for shoppers Search engines are now the start point for many shoppers. According to the survey Google (32%) and Amazon (33%) are the start point for shoppers. This will worry retailers who have invested in their own applications. If consumers are not starting with the app they have built […]

 

Express Scripts Targets New Migraine Drugs to Change U.S. Pricing Dynamic | P&T Community

Express Scripts Targets New Migraine Drugs to Change U.S. Pricing Dynamic | P&T Community

The largest U.S. manager of prescription benefits is telling drug-makers that the current pricing model is broken and is taking aim at Amgen and other makers of new migraine medicines to try and fix it, according to a Reuters report. Express Scripts told Reuters it is pressing them to forego the usual strategy of setting […]

 

App cab commuters wary of surge-pricing burden | Times of India

App cab commuters wary of surge-pricing burden | Times of India

KOLKATA: The price burden has become heavier for appcab commuters nowadays as surge pricing prevails for the better part of the day and it has become difficult to figure out when and why it prevails. Also, it has become next to impossible to gauge whether surge fare prevails at a particular time as the apps […]

 

To work, dynamic pricing must be transparent | Travel Weekly

To work, dynamic pricing must be transparent | Travel Weekly

In the nearly three years I’ve been on the Travel Weekly staff, no story I’ve written has resonated as widely as my Feb. 19 report about the onset of dynamic pricing in the airline industry. Within two weeks of publication, the story had spawned coverage in sources as wide-ranging as Travel + Leisure, the Chicago […]

 

Colorado bill relies on transparency to lower health care prices, critics say it might not work | Denver Post

Colorado bill relies on transparency to lower health care prices, critics say it might not work | Denver Post

Let’s say you need a colonoscopy. (Sorry about that.) And let’s also say you know there’s one hospital in Colorado that quotes a price of more than $5,000 for the procedure and several that quote a price of around $1,500 and a couple more that come in with prices under $1,000. Would you choose to […]

 

 

 

Massachusetts insurers boost price transparency with cost estimator tools | Becker’s Hospital Review

Massachusetts insurers boost price transparency with cost estimator tools | Becker’s Hospital Review

Massachusetts insurers continue to make progress with their cost estimator tools and price transparency efforts, but there is still a lot more they can accomplish, according to a Pioneer Institute study. The study, conducted at the end of 2017, follows up on a 2015 evaluation by Boston-based advocacy group Health Care For All. As part […]

 

Your annual Amazon Prime membership fees are about to increase | TechCrunch

Your annual Amazon Prime membership fees are about to increase | TechCrunch

On today’s wildly successful earnings call, Amazon CFO Brian Olsavsky dropped a bit of a bombshell for Amazon Prime subscribers. The retailer’s everything-and-the-kitchen-sink annual subscription plan is about to get pricier. On May 11, Prime annual memberships will jump $20, from $99 a year to $119. The news follows a similar announcement back in January, […]

 

Watch: Minimum alcohol pricing in Scotland | Euronews

Watch: Minimum alcohol pricing in Scotland | Euronews

Let’s say you have a drinking problem — as a nation — and, let’s say, as the government, you wanted to do something about that. What are your options? There’s restricting alcohol or banning alcohol sales, there’s taxation which raised prices on all alcohol. But come May 1st, Scotland will become the first country to […]

 

Trump wants hospitals to post their prices online. There’s just one problem | MarketWatch

Trump wants hospitals to post their prices online. There’s just one problem | MarketWatch

The Trump administration plans to require that hospitals post their standard charges online and update the information, with the intent that price transparency will allow consumers to shop around. But experts say there are major limitations to the Centers for Medicare and Medicaid Services proposal, which has already been tried in some parts of the […]

 

Peanut Prices Surge Amid Concerns Over Supplies From Argentina | Spend Matters

Peanut Prices Surge Amid Concerns Over Supplies From Argentina | Spend Matters

The peanut market has seen an uptick in pricing lately, caused by the severe drought Argentina has been experiencing, which has also had an impact on other major crops, as reported in our previous post. Prices for Argentinian peanuts delivered to Rotterdam have increased from $1.26 per kg in February to $1.49 per kg in […]

 

Drastically amended ‘Share The Rebate’ prescription bill OK’d | watchdog.org

Drastically amended ‘Share The Rebate’ prescription bill OK’d | watchdog.org

The revised SB 282 advanced by the House Government Affairs Committee Thursday also delays implementation until 2020 and removes the state’s insurance commission’s capacity to enforce the rebate program through penalties and legal actions. These changes were included in 11 amendments presented to the panel by Jim Delatte, a Louisiana Board of Drug and Device […]

 

 

 

 

 

 

Pricing Jobs

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Seniority: Mid-Senior level

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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.

 

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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 bitterness of poor quality remains long after the sweetness of low price is forgotten”

     – Benjamin Franklin