This Week in Pricing > 4/1/17

pricingnews-WeeklyThis Week in Pricing is a recap of the week’s best pricing focused news, strategy expert and technology leader’s thought leadership, industry news and events, and resources for pricing professionals.

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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

In India Amazon Prime Is Taking On Netflix With Dirt-Cheap Pricing | TechTree.com

In India Amazon Prime Is Taking On Netflix With Dirt-Cheap Pricing | TechTree.com

With Netflix making most of its head-start, Amazon had to pull off something extraordinary to put up a fight. Sure, it has the Jeremy Clarkson’s insanely popular series The Grand Tour in its kitty. However, this wasn’t going to be enough to win over the Indian audience. So, Amazon decided to burn the cash to […]

 

A Patient’s Optimistic Call For Bipartisan Drug-Pricing Reform | Forbes

A Patient’s Optimistic Call For Bipartisan Drug-Pricing Reform | Forbes

With our nation’s fight over the Affordable Care Act in the rear-view mirror, it’s time for Donald Trump and Congress to focus on a genuinely bipartisan issue: drug prices. According to the Kaiser Family Foundation, 8 in 10 Americans want to allow the government to negotiate prices for people on Medicare. By the same margin, Americans want to […]

 

Slow start for taxi surge-pricing option, JustGrab | The Straits Times

Slow start for taxi surge-pricing option, JustGrab | The Straits Times

“I was surprised to see an SMRT cab pick me up because it’s usually private cars that come. I think surge pricing is going to become an inevitable part of the industry as consumers enjoy knowing the price of their ride upfront,” said the 44-year-old who usually books a private-hire car under Grab. Under JustGrab, […]

 

The Hidden Monopolies That Raise Drug Prices | American Prospective

The Hidden Monopolies That Raise Drug Prices | American Prospective

Frankil’s troubles cannot be traced back to insurers or drug companies, the usual suspects that most people deem responsible for raising costs in the health-care system. He blames a collection of powerful corporations known as pharmacy benefit managers, or PBMs. If you have drug coverage as part of your health plan, you are likely to […]

 

Consumers and pay-TV industry are far apart on a la carte channel pricing | LA Times

Consumers and pay-TV industry are far apart on a la carte channel pricing | LA Times

The TiVo wish list suggests that more than a few people would be just as happy, if not happier, without any sports programming. It also indicates that the average $7.20 a month that ESPN adds to people’s pay-TV bills is wasted money for many households. As for pricing, here’s where things get really interesting. We […]

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San Francisco commuters hit by Uber and Lyft surge pricing | Daily Mail Online

San Francisco commuters hit by Uber and Lyft surge pricing | Daily Mail Online

Trains from Oakland to San Francisco were delayed and suspended on Monday Commuters were forced to turn to Uber and Lyft to make their way into the city Many were furious when they found ‘surge pricing’ pushed costs up significantly Some said the trip that usually cost about $20 skyrocketed to as much as $110 […]

 

 

What Outcomes-Based Contracting Means For Drug Development Drug Pricing | Pharmaceutical Online

The mounting public outcry over drug prices — fueled by dramatic increases in cost for a few high-profile, older, life-saving drugs — has put intense pressure on the pharmaceutical industry to lower list prices and curtail price increases or face government controls. One way the industry is responding is by diverting the national dialogue from […]

 

The Public Discourse Around Pharma and Biotech Pricing and What the Industry Can Do | Klick Health

The Public Discourse Around Pharma and Biotech Pricing and What the Industry Can Do | Klick Health

The pharma and biotech industries continue to face the perception of unfair drug pricing. If left unchecked the result will be an irreversible vilification of pharma as a whole. What can we do to mitigate these perceptions, and convey actual benefits? The views expressed here are those of the author and not necessarily those of […]

 

Does Oracle’s AWS Pricing Increase Make Strategic Sense? | Forbes

Does Oracle’s AWS Pricing Increase Make Strategic Sense? | Forbes

What Exactly Happened? As first reported by in a blog post by U.K.-based Oracle consultant Tim Hall, Oracle changed something called the “Oracle Processor Core Factor” from .5 to 1 for deployments on AWS and Azure. “This change in licensing terms effectively doubles the licensing requirements for some cloud implementations,” said Craig Guarente, CEO of Oracle licensing consultancy Palisade […]

 

The good and bad of dynamic pricing | TODAYonline

The good and bad of dynamic pricing | TODAYonline

Last week, ride-hailing platform Grab announced that it would partner five taxi companies (SMRT, Premier, Trans-Cab, HDT Singapore Taxi and Prime) to introduce dynamic pricing for taxi rides booked through the app. This came after the taxi firms informed the Public Transport Council a few weeks ago of their plans to introduce fares that fluctuate […]

 

Will Rising Competition Force Time Warner to Change Its Price? | Market Realist

Will Rising Competition Force Time Warner to Change Its Price? | Market Realist

The price of HBO Now There’s rising competition in the streaming services industry with more new entrants. That could make it tough for direct-to-consumer services such as Time Warner’s (TWX) HBO Now to gain new subscribers. Late in February 2017, Alphabet’s (GOOG) YouTube announced it would be launching its online television service, YouTube TV, within […]

 

Pricer’s Points: The idea of an energy price cap could damage the energy markets | Lord Redesdale

Pricer’s Points: The idea of an energy price cap could damage the energy markets | Lord Redesdale

The recent hikes in energy prices, has led to the government contemplating price caps, because as they have said, the energy markets are not working. This idea was widely derided when Ed Miliband announced the Labour policy of a price freeze out of the blue in 2015. Even though Labour where not likely to be […]

 

 

 

More Headlines

“Double” pricing – you know it’s time for action when the Thais start to complain | Inspire Bangkok

“Double” pricing – you know it’s time for action when the Thais start to complain | Inspire Bangkok

“Double” pricing like this has been going on for decades, of course. What is different in this case is that Thais themselves are feeling the pinch of the policy and are demanding action. The boat operators are petitioning the national parks authority to lower prices by a suggested 50%. The term “double pricing” has always […]

 

Best schools add £18,600 to average house price | BBC News

Best schools add £18,600 to average house price | BBC News

Being near a good primary school adds £18,600 to the average house price in England, government research has found. A study by the Department for Education (DfE) has found prices are 8% higher near the best-performing primary schools and 6.8% higher near the best secondary schools. It said “selection by house price” was restricting access […]

 

Interchange Plus Pricing vs. Flat Rate | Pay Junction

Interchange Plus Pricing vs. Flat Rate | Pay Junction

For starters, there are more rate plans for your business to consider than just Flat and Interchange plus pricing. That said, comparing too many options at once can be overwhelming; therefore, we’re going to focus on only two plans to simplify things a bit. If you’re just starting to accept credit card payments, a Flat […]

 

Losing on Price | Pragmatic Pricing

Losing on Price | Pragmatic Pricing

Ask a salesperson why he lost a deal and the answer is often “price.” Let’s stipulate that is true. It is still only half the story. If you attach enough gold bullion to your product, the value would increase to the point where the customer would pay your price. When you lose on price, it […]

 

We will allow free-market pricing under commercial coal mining: Coal Secy Susheel Kumar | EnergyWorld

We will allow free-market pricing under commercial coal mining: Coal Secy Susheel Kumar | EnergyWorld

The Modi government is preparing to launch commercial coal mining in India for the first time in over four decades. For the mines to be auctioned, pricing will be left to the companies, Coal Secretary Susheel Kumar tells Debapriya Mondal in an exclusive interview. Edited excerpts.. What are the key priority areas your ministry is […]

 

U.S. lawmakers seek pricing info on PTC Therapuetics’ Duchenne drug | WHTC

U.S. lawmakers seek pricing info on PTC Therapuetics’ Duchenne drug | WHTC

(Reuters) – Two U.S. lawmakers sent a letter on Wednesday to PTC Therapeutics Inc, seeking information about the drugmaker’s pricing strategy for its recently acquired muscle-wasting disorder drug. PTC said last week that it would buy Marathon Pharmaceuticals LLC’s recently approved Duchenne muscular dystrophy drug (DMD), Emflaza, and promised to re-examine the hefty U.S. price […]

 

U.S. supply concerns keep oil prices under pressure | Reuters

U.S. supply concerns keep oil prices under pressure | Reuters

Oil prices slipped on Monday despite news that OPEC was supportive of extending a six-month deal to cut output as investors continue to grapple with worries about growing U.S. oil output and high inventories. Benchmark Brent crude futures briefly surged into positive territory, but edged back down again, after sources within the group said the […]

 

Opinion: The new low-cost iPad is further evidence of a new approach to Apple’s pricing | 9to5Mac

Opinion: The new low-cost iPad is further evidence of a new approach to Apple’s pricing | 9to5Mac

If anyone had asked you to describe Apple’s pricing strategy in a sentence, this would – until recently – have been extremely easy to do. Apple aims to sell premium products at high margins to upmarket demographics. The company had shown almost no interest in more affordable products pitched to those on tighter budgets. But Apple has […]

 

Grab to implement dynamic pricing starting from 29 March | The Online Citizen

Grab to implement dynamic pricing starting from 29 March | The Online Citizen

Ride-hailing application provider Grab has announced that it will implement dynamic pricing, JustGrab, starting from next Wednesday (29 March), following approval granted by the transport authorities last week. The new system will be put on trial starting from today among Grab employees and commuters on its rewards programme. The move means that commuters who book […]

 

General Mills’ pricing strategy hurts their Q3 sales. | CFO

General Mills’ pricing strategy hurts their Q3 sales. | CFO

General Mills’s pricing strategy was a double-edged sword in its third quarter, helping profits beat analysts’ estimates but contributing to a seventh straight quarterly sales decline. As rivals have been slashing prices to compete for retailers’ shelves, General Mills has opted instead to limit discounting in a bid to boost margins. That translated into adjusted […]

 

Dynamic pricing: Taxi data must be more transparent | TODAYonline

Dynamic pricing: Taxi data must be more transparent | TODAYonline

For commuters, dynamic taxi pricing is a mixed blessing: A greater chance of getting a taxi during rush hour but at a higher fare (Surge pricing: Taxis should also offer competitive fares; March 20). The taxi companies think this is a way to match demand with supply and to incentivise their drivers. So far, no […]

 

Retailers – can you be liable for cartel behaviour for using pricing software and algorithms? | JDSupra

Retailers – can you be liable for cartel behaviour for using pricing software and algorithms? | JDSupra

A key issue regulators are grappling with is what antitrust liability can attach to retailers who use price matching software or other algorithms to match competitors’ online prices? In a speech made on 16 March 2017, the EU’s Commissioner for Competition, Margrethe Vestager, confronted the growing issue of the use of price matching software (PMS) […]

 

Eight pricing strategies that drain your wallet | The Star Online

Eight pricing strategies that drain your wallet | The Star Online

THERE are many different pricing strategies that all attempt to do the same thing: to make you voluntarily spend as much money as possible. Below are eight pricing strategies that are used against your wallet. 1. The number “9”is a very powerful psychological number: many would perceive something which costs RM199 as much cheaper than […]

 

‘People aren’t spending’: stores close doors in ‘oversaturated’ US retail market | The Guardian

‘People aren’t spending’: stores close doors in ‘oversaturated’ US retail market | The Guardian

“We have been planning this very carefully,” said Jeff Gennette, Macy’s president and new CEO, announcing the cuts. “This is not something we did quickly.” In some areas of Manhattan, retail rents have declined 10-15%. But it has come too late for many retailers. The cycle of the change is apparent across much of downtown, […]

 

As the Billable Hour Model Fades Away, Senior Pricing Execs Emerge as Legal Industry Profitability Czars | The Alexander Group

As the Billable Hour Model Fades Away, Senior Pricing Execs Emerge as Legal Industry Profitability Czars | The Alexander Group

Senior pricing executives come from many developmental paths–from FP&A/technical finance backgrounds to MBA/strategy, business development, practice management, and even senior partners with extensive experience in key client negotiations and profitability analysis. Whatever the profile, the individual must have the credibility and capability such that they are viewed by the partnership as a trusted senior advisor, […]

 

Toledo-area shoppers drink up drop in milk prices | The Blade

Toledo-area shoppers drink up drop in milk prices | The Blade

Some shoppers may not have noticed, but milk prices have been falling steadily the past 18 months, and locally the price of a gallon is less than half the U.S. average cost, possibly stemming from pricing bait by the large grocery chains. In the Toledo area this week, a gallon of milk costs $1.09 at […]

 

Brokers’ take | The New Paper

Brokers’ take | The New Paper

After numerous taxi companies, including ComfortDelGro (CDG), earlier this year submitted plans to the Public Transport Council (PTC) as they seek to introduce dynamic pricing of taxi fares (i.e. flat fee structure with no surcharges that is similar to the private hire cars’ fare structure), PTC and Singapore’s Land Transport Authority (LTA) on March 17 […]

 

The Future of Retail: Electronic Shelf Labels Market Will Increase 10-Fold in Next Five Years | Yahoo! Finance

The Future of Retail: Electronic Shelf Labels Market Will Increase 10-Fold in Next Five Years | Yahoo! Finance

OYSTER BAY, New York, March 28, 2017 /PRNewswire/ — As retailers increasingly struggle to effectively match online pricing, digitize their physical stores, meet new order fulfillment models, and streamline the shopping experience, electronic shelf labels (ESLs) are gaining market momentum. ESLs will hit the mass market and accrue more than $4 billion in global revenues by […]

 

Mobile Mario Madness: Nintendo’s Pricing Conundrum | Modojo

Mobile Mario Madness: Nintendo’s Pricing Conundrum | Modojo

By contrast, Fire Emblem Heroes presented itself in a model that mobile gamers were familiar with, not only in pricing structure but in the way the game was laid out. When watered down enough, Fire Emblem matched up with the mobile scene surprisingly well. This method eases players into your game, and — if you’ve […]

 

New budget test puts UK on front line in global drug price fight | Reuters

New budget test puts UK on front line in global drug price fight | Reuters

RESPONSIBLE PRICING Carole Longson, director of NICE’s center for health technology evaluation, says the onus is on drugmakers to price medicines responsibly. “Given the pace of technological innovation, the demands of people who need healthcare and the return on investments that shareholders wish for, the system is struggling,” she said. “We need to find ways […]

 

The Ultimate Negotiation Strategy Checklist | Strategic Pricing Associates

The Ultimate Negotiation Strategy Checklist | Strategic Pricing Associates

Negotiation is like any sport. The best negotiators, like the best athletes, never stop training. They learn new skills and work to develop them. They welcome the coaching and equipment that can improve performance. We’ve trained thousands of master negotiators over the years, and if there’s one common trait among those who become expert negotiators, […]

 

Eligible founder Katelyn Gleason’s plan to upend the billion dollar medical billing industry | TechCrunch

Eligible founder Katelyn Gleason’s plan to upend the billion dollar medical billing industry | TechCrunch

Chaotic as it was in those early days, Gleason wanted to launch something of her own and saw the need to reform medical billing. While electronic medical claims processing is nothing new, the system has been stuck in a cloudless, pre-data sharing era. That means when a patient is at the doctor’s office and a […]

 

Wal-Mart ‘best positioned’ in online grocery battle against Amazon | CNBC

Wal-Mart ‘best positioned’ in online grocery battle against Amazon | CNBC

Wal-Mart Stores appears “best positioned” among the major food retailers to capitalize on the next phase of growth in online grocery and take on Amazon, according to a new report from Citi Research. Kroger also scored high among the pure-play grocers in terms of its online grocery positioning compared with e-commerce giant Amazon, particularly as […]

 

Pricer’s Points: Private labels can be more powerful and profitable than classic brands, enabling richer experiences and faster growth | Peter Fisk

Pricer’s Points: Private labels can be more powerful and profitable than classic brands, enabling richer experiences and faster growth | Peter Fisk

When I want to cook a great dinner at home, I head straight to Marks & Spencer’s food store. M&S’s Cook range of premium quality, organically farmed self-assembly dishes makes entertaining easy. Not only do they bring together all the ingredients, fresh and locally sourced, but there is an instore tasting kitchen and even a […]

 

Red-flag billing practices chronicled; report finds ‘upbilling’ by 21 percent of law firms | ABA Journal

Red-flag billing practices chronicled; report finds ‘upbilling’ by 21 percent of law firms | ABA Journal

Twenty-one percent of lawyers “upbilled” for their time in 2015, rounding up their hours worked to the next hour or half hour, according to an analysis of legal invoices from about 100 companies. Upbilling could raise the annual legal bill by about $29,000 for a partner billing 2,000 hours a year, according to the 2016 […]

 

Report: Low Gas Prices Have Little Effect on E85 Sales | Convenience Store News

Report: Low Gas Prices Have Little Effect on E85 Sales | Convenience Store News

In both sample sets analyzed by the Fuels Institute, E85 was priced at a level close to 50 cents below unleaded. During the second time period studied, E85 sales volume increased to an average store volume of 4.77 percent of unleaded sales volume, despite the decline in unleaded price. This indicates that the price of […]

 

Will pricing strategy of Tata Motors bring Tiago’s success to Tigor? | Zee Business

Will pricing strategy of Tata Motors bring Tiago’s success to Tigor? | Zee Business

While the Dzire is priced at Rs 5.35 lakh (ex-showroom Delhi), the VW Ameo costs Rs 5.24 lakh (ex-showroom Delhi), Honda Amaze Rs 5.53 lakh (ex-showroom Delhi), Ford Figo Aspire Rs 5.39 lakh (ex-showroom Delhi) and Hyundai Xcent Rs 5.44 lakh (ex-showroom Delhi). Tata Motors expects this price advantage to work to its advantage. It […]

 

Cheaper Movie Tickets May Be Easier Than Ever With A New App | Huffington Post

Cheaper Movie Tickets May Be Easier Than Ever With A New App | Huffington Post

“We partner with a cinema and they have a portal they put their prices through, our algorithm provides recommendations to price tickets, which is what the customer sees,” Thatcher said. If that’s all too confusing, basically the cinemas are in control with the ability to choose specific movie sessions that might not sell out, and […]

 

Featured Content and Events

Book: 8 Keys to Price Optimization

Book: 8 Keys to Price Optimization

Summary: Price optimization enables companies to move beyond cost-plus pricing and determine the range of prices that could be charged for a variety of customers and products. Price optimization can increase current operating income by 1 to 4% of sales, which in many cases will translate into a 20 to 50% increase in operating income. The most sophisticated […]

 

Workshop: Dollarizing Differentiation Value | Stephan M. Liozu, CPP at PPS Spring Conference

Workshop: Dollarizing Differentiation Value | Stephan M. Liozu, CPP at PPS Spring Conference

The dollarization of differentiation value is at the heart of value-based pricing. Join this one-day workshop to learn the 6 steps of value-based pricing and to discover a realistic approach to the science and art of dollarization. You will discover multiple case studies and go through short dollarization exercises. At the end of the workshop you will learn how to operationalize dollarization in your business and your culture. Participants receive a signed copy of Stephan’s latest book called “Dollarization of Differentiation Value”.

Attendees will learn:

  • The 6 steps of value-based pricing
  • The science and art of dollarization
  • What to dollarize and when to use numbers in value-propositions

 

PPS - Miami 2017 Conf

Conference: 28th Annual Spring Pricing Workshops & Conference | PPS

Location: Hilton Miami Downtown Hotel in Miami, FL

Date: May 2-5, 2017

You want your pricing “done right,” but how do you conquer the key pricing challenges that face your corporation?

Find out how you can build a winning corporate strategy at the PPS 28th Annual Spring Pricing Workshops & Conference in Miami, FL!

We will be at the Hilton Miami Downtown Hotel, from May 2-5, 2017 for a week of opportunities to help you align your organization for its highest potential!

Follow the hashtag #PPSMIA on social media networks.

 

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

Date: June 8-9, 2017

Location: Mandarin Oriental Las Vegas, Nevada

This big-picture seminar presents SPA’s unique blend of analytical and training tools to drive industry-leading profitability. The seminar provides critical insights to C-Suite Executives, Pricing Leaders, Sales Leaders, Procurement Leaders, across a broad cross-section of industries. This engaging seminar incorporates expert instruction, case studies, role-playing, and entertaining videos to present personality-type theory, negotiation skills, and analytical tools. These tools will enable any organization to maximize profitability, typically by 200 to 500 basis points, or 2 – 5% of sales. The seminar addresses the strategic and practical tools that are fundamental to maximizing shareholder value. It will help you to re-focus your organization increasing performance in their daily jobs while capturing greater economic value. With expert training, and long-term retention and analytical tools, your team can negotiate better to buy lower and sell higher, thus maximizing profits and shareholder value.

 

 

Conference: European Pricing Summit | Finance iQ

Conference: European Pricing Summit | Finance iQ

Date: June 27-28, 2017

Location: Palace Hotel in Berlin, Germany

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 access to others’ KPIs without fully revealing theirs!

 


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

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“Oil prices have fallen lately. We include this news for the benefit of gas stations, which otherwise wouldn’t learn of it for six months.”

– Bill Tammeus

 

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