SPA Pricing Education, Analytics & Decision Making Tools Webinar Series

This Week in Pricing > 4/15/17

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.

This Edition is brought to you by:value innoruption final 0612 rev

 

 

Value Innoruption Advisors

Founded by Dr. Stephan Liozu, Value Innoruption Advisors provides training and consulting resources for organizations interested in embedding value-based methodologies in their go-to-market strategies related to innovation, marketing, pricing, and sales. Value Innoruption Advisors offers two popular value and pricing management certification programs – Customer Value Modelers™ (CVM™) and Change Agent in Pricing™ (CAP™).

Click a link below to learn more…

 

Top Headlines

United Airlines: Four Seats Worth $1.5 Billion? | Time.com

United Airlines: Four Seats Worth $1.5 Billion? | Time.com

Many things are baffling about the decision by United Airlines employees to have a passenger dragged bleeding from one of their airplanes as other patrons taped the debacle on their smartphones. But with company CEO Oscar Munoz declaring that he “emphatically” backs the employees despite a plunge in the company’s stock price, it’s amazing that […]

 

Gas prices jump to 19-month high spring driving season | CNBC

Gas prices jump to 19-month high spring driving season | CNBC

Gasoline prices have rapidly risen to a 19-month high and could jump another 20 cents per gallon during the spring driving season. The average price for unleaded gasoline nationally is $2.38 per gallon, 8 cents per gallon higher than at the end of March, according to AAA. The price is also just above the highest […]

 

 

Airlines Make More Money Selling Miles Than Seats | Bloomberg

Airlines Make More Money Selling Miles Than Seats | Bloomberg

The airline-miles business, formally known as loyalty programs, has become a high-margin enterprise that’s grown in size and value amid airline consolidation, with carriers keen to expand credit-card rolls and see loyalty members spend more. This year, Alaska Airlines began tying a small percentage of its 19,000 employees’ performance pay to the market growth of its card with […]

 

Daily chart: United bumps more passengers than any other large American airline | The Economist

Daily chart: United bumps more passengers than any other large American airline | The Economist

GETTING “bumped” from a flight took on a whole new meaning on April 9th, when United Airlines summoned aviation-security officers to drag a passenger off a plane kicking and screaming—literally. The company needed to transport employees from Chicago to Louisville, Kentucky, and the flight was too full to accommodate them. After no one accepted United’s offer […]

 

U.K. Grocers Secretly Squeeze Customers as Brexit Bites | Bloomberg

U.K. Grocers Secretly Squeeze Customers as Brexit Bites | Bloomberg

U.K. grocers are finding creative ways of passing on Brexit-induced cost increases to consumers. If you’re shopping for candles or light bulbs, buyer beware. Unable to raise prices of staple goods from milk to Marmite because of tough competition from discounters and watchful tabloid newspapers, supermarket operators like Tesco Plc and Wal-Mart Stores Inc.’s Asda […]

 

Get Predictive: The Keys To Achieving Data-Driven Personalization And Pricing | Retail TouchPoints

Get Predictive: The Keys To Achieving Data-Driven Personalization And Pricing | Retail TouchPoints

Pricing, Even When Predictive, Requires Context Many predictive analytics platforms are designed for price optimization, but in today’s world of deep discounts and markdowns, brands must prevent themselves from entering a race to the bottom. Effective pricing requires studying both pricing trends and the consumer’s potential action. With predictive analytics, brands can monitor consumer’s buying […]

 

Online sellers write to CCI alleging predatory pricing by Flipkart’s WS Retail and Amazon’s Cloudtail | The Economic Times

Online sellers write to CCI alleging predatory pricing by Flipkart’s WS Retail and Amazon’s Cloudtail | The Economic Times

NEW DELHI: A group of online sellers has written to the Competition Commission of India alleging that Flipkart’s WS Retail and Amazon’s Cloudtail indulge in predatory pricing and discounting when selling their private label products, destroying the business of smaller rivals such as Snapdeal and online sellers. The vendors also complained that WS Retail and […]

 

Top 5 Antitrust Issues Facing Companies in the U.S. Today: #3 Pricing | The National Law Review

Top 5 Antitrust Issues Facing Companies in the U.S. Today: #3 Pricing | The National Law Review

Prices provide crucial information to buyers and sellers, and so have always been critical to a competitive economy and antitrust law. But the emergence of new online information-harvesting technology and instantaneous transmission of pricing information may lead to new versions of antitrust issues, including anticompetitive price fixing arrangements and disputes about distributors’ pricing. Pricing Algorithms […]

 

How Pharma Companies Game the System to Keep Drugs Expensive | Harvard Business Review

How Pharma Companies Game the System to Keep Drugs Expensive | Harvard Business Review

I help the University of Utah hospital system manage its drug budgets and medication use policies, and in 2015 I got sticker shock. Our annual inpatient pharmacy cost for a single drug skyrocketed from $300,000 to $1.9 million. That’s because the drug maker Valeant suddenly increased the price of isoproterenol from $440 to roughly $2,700 […]

 

How a razor revolutionised the way we pay for stuff | BBC News

How a razor revolutionised the way we pay for stuff | BBC News

Two-part pricing is also known as the “razor and blades” model, because that’s where it first drew attention – draw people in with an attractively priced razor, then repeatedly charge them for expensive replacement blades. Before King Camp Gillette, razors were bigger, chunkier affairs – and a significant enough expense that when the blade got […]

 

Two-thirds of EU travel websites mislead on prices: Commission | Reuters

Two-thirds of EU travel websites mislead on prices: Commission | Reuters

Two-thirds of travel booking websites provide misleading information on prices and so breached EU consumer protection rules, the European Commission said on Friday. In its survey of 352 online travel booking and comparison services, it found a third of the websites displayed initial prices which were not the final prices and in a fifth of […]

 

Adopting an unconventional pricing strategy, can Apple last for thousands of years? | The Technews

Adopting an unconventional pricing strategy, can Apple last for thousands of years? | The Technews

Amidst fierce competition CEO Tim Cook is steering Apple towards eternity. Cook wants Apple to last for thousands of years. We ponder, how? Adopting an unconventional pricing strategy, can Apple last for thousands of years? From the inception of the journey, Apple Inc. uncompromisingly brought quality technology products. Apple fans didn’t think twice to pay […]

 

 

 

More Headlines

Uncovering Unauthorized Sales – A Pricing Podcast | Professional Pricing Society

Uncovering Unauthorized Sales – A Pricing Podcast | Professional Pricing Society

In this #PricingPodcast, we talked with Whitney Gibson, a Partner at the Vorys, Sater, Seymour and Pease LLP law firm, and a knowledge expert on unauthorized sales, online. Whitney shared why businesses and consumers alike should be concerned with unauthorized sellers who sell diverted products. Sellers on eBay and other third party online marketplaces are causing many […]

 

4 Major Effects Of Dynamic Fuel Pricing Which India May Witness In Coming Days | Trak.in

4 Major Effects Of Dynamic Fuel Pricing Which India May Witness In Coming Days | Trak.in

Petrol and diesel is a commodity which is used by almost every Indian; and even if a person is not directly affected by fuels (example owns no vehicle), he or she is certainly indirectly affected by its usage. Business and corporate sector of India is abuzz with the introduction of dynamic fuel pricing in India, […]

 

Food Truck Menu Pricing Methods | Mobile Cuisine

Food Truck Menu Pricing Methods | Mobile Cuisine

Setting menu pricing for the products you sell from your food truck is one of the most crucial components to running it, because the prices you set directly affect your ability to sell, cover costs, and generate your desired level of profit. Food cooked on food trucks is normally priced on a per item basis. […]

 

AG urged to stop medical-pricing-law scofflaws | Boston Herald

AG urged to stop medical-pricing-law scofflaws | Boston Herald

Attorney General Maura Healey should “assert leadership” on behalf of consumers and motivate health care providers to comply with the state’s price-transparency law, the Pioneer Institute recommends in a report out today that found wildly varying costs for procedures and a reluctance to spell out those prices. “They take payment seriously, and they should. But […]

 

Google Home launches in the UK on April 6th priced at £129 | The Verge

Google says it has “hidden a few British treats” inside Home for the UK, including answering queries about hobbies or favorite foods. It appears the features available in the US version of Google Home will be supported in the UK, including any integrations with smart home devices. Google Home’s launch in the UK comes exactly […]

 

Gold pricing: a simple explanation | LegacyGold

Gold pricing: a simple explanation | LegacyGold

When you first think about buying gold, whether it’s a 1g bar or wafer, a 10g bar or a 1 kilo Bullion Bar, the way that it is priced can seem confusing. Don’t worry – we were all new to the game once! Let’s strip it down to the basics: Gold Bullion is 999.9 Fine […]

 

Opening up of coal sector may run into pricing hurdle | DNA India

Opening up of coal sector may run into pricing hurdle | DNA India

The government’s ambitious effort to open up coal mining to private and foreign players and end the virtual monopoly of Coal India Ltd (CIL) might come a cropper if some of the restrictive conditions put in the proposed guidelines are not reworked. Private miners – Indian or foreign – would be allowed to sell coal […]

 

A Look at Netflix’s Strategy in Developing Markets Like India | Market Realist

A Look at Netflix’s Strategy in Developing Markets Like India | Market Realist

Pricing strategy The company has also employed a pricing strategy in international markets, where its plans cost between $6 and $19 per month—closer to its US prices. Netflix noted that as it penetrates more international territories and has to appeal to households with various income levels, it could consider introducing various price tiers in international […]

 

Dynamic pricing in the new economy: Data up for grabs | The Straits Times

Dynamic pricing in the new economy: Data up for grabs | The Straits Times

Q Does dynamic pricing increase efficiency? A Dynamic pricing has caught the attention of many Singaporeans as digital technology continues to disrupt traditional industries. Consider the taxi industry. With the recent announcement by ride-hailing app provider Grab to offer taxi fares that vary throughout the day, it is timely to consider whether dynamic pricing is […]

 

Misleading Pricing and False Advertising: A New Trend in Retail | The Fashion Law

Misleading Pricing and False Advertising: A New Trend in Retail | The Fashion Law

Retailers that advertise sale prices in comparison with regular prices in California should ensure that the products were actually offered for purchase at those regular prices within the preceding three months, in order to avoid potential litigation. Los Angeles prosecutors have initiated lawsuits against J.C. Penney, Sears, Kohl’s and Macy’s for allegedly failing to do […]

 

How dynamic pricing and automated inventory impacts customer experience | Essential Retail

How dynamic pricing and automated inventory impacts customer experience | Essential Retail

Because customers often don’t distinguish between channels, customers expect the same products, prices, services, offers and promotions whether they are online, instore or on their mobiles. It’s therefore vital that fashion retailers ensure their propositions and consumer experiences are consistent across all channels. The challenge here for many fashion retailers is how to ensure this […]

 

Ridesharing companies made use of the BART outage | TG Daily

Ridesharing companies made use of the BART outage | TG Daily

Dynamic pricing by ridesharing companies The Dynamic pricing or surge pricing occurs when the demand is high. The cost of the rides will be more than the regular pricing because the demand is more than the supply. When the drivers are considerably low the ridesharing company cannot meet with the increasing booking request and so […]

 

U.S. Steelmakers Press Their Luck With Price Increases | Fox Business

U.S. Steelmakers Press Their Luck With Price Increases | Fox Business

U.S. steelmakers moved fast to raise prices after new tariffs were levied on some foreign competitors last year, but the quick increase has alienated some buyers and threatens to short-circuit a steel-market rebound. Domestic steel companies have raised prices by as much as 50% on popular types of steel in recent months. That has boosted […]

 

AAFP Joins Campaign to Push Back Against Rising Drug Prices | AAFP

AAFP Joins Campaign to Push Back Against Rising Drug Prices | AAFP

As family physicians counsel their patients on the best treatment regimens, sometimes that means turning to expensive prescription drugs. This week, the AAFP threw its weight behind efforts to push back against drug price increases by joining the Campaign for Sustainable Rx Pricing(www.csrxp.org) (CSRxP). The campaign is a nonpartisan coalition of organizations — including nonprofit […]

 

3 Pricing Misconceptions Entrepreneurs Need to Avoid | HelloAdvisr

3 Pricing Misconceptions Entrepreneurs Need to Avoid | HelloAdvisr

As consumers we’re constantly surrounded by pricing. Pricing when grocery shopping. Promotional signs in the store window. The latest email offer. With all the prices we see, it’s natural to build a comfort level with pricing and the purchase decision process. After all, we’re asked to compare offers, make tradeoffs and assess whether the price […]

 

Negative Prices – Q&A | EPEX SPOT

Negative Prices – Q&A | EPEX SPOT

What are negative prices and how do they occur? Negative prices are a price signal on the power wholesale market that occurs when a high inflexible power generation meets low demand. Inflexible power sources can’t be shut down and restarted in a quick and cost-efficient manner. Renewables do count in, as they are dependent from […]

 

Sony’s First Dolby Atmos Soundbar Gets Priced | CE Pro Europe

Sony’s First Dolby Atmos Soundbar Gets Priced | CE Pro Europe

The HT-ST5000 Atmos soundbar is officially on sale now, priced at £1,500 in the UK. Sony’s first Dolby Atmos soundbar wasn’t the only product that launched in March from the Japanese electronics giant. That’s because the company has hopped onto the micro soundbar bandwagon with the HT-MT300. This compact soundbar has been designed for installations […]

 

Pricing Is Branding | ART + marketing

Pricing Is Branding | ART + marketing

One of the best gems of business wisdom that I have ever learned originated with Andrew Gordon. Back in 2009, he was running two companies that specialized in providing design, creative, and interactive in various industries. Our mutual friend Tammy made an introduction after I got laid off from my copywriting job at a marketing […]

 

Autotask Cloud Backup: Fixed Price, Per Device Unlimited Storage Debuts | ChannelE2E

Autotask Cloud Backup: Fixed Price, Per Device Unlimited Storage Debuts | ChannelE2E

Autotask Endpoint Backup is moving to a per-device fixed price for unlimited cloud storage, CEO Mark Cattini confirms. That shift should allow MSPs to more rapidly roll out endpoint backup to customers, he asserts. Cattini shared that milestone during a wide-ranging interview ahead of next week’s Autotask Community Live 2017 conference in Europe. Part I of the ChannelE2E’s Cattini interview, focused on […]

 

Revenue growth likely to recover, driven by pricing | The Financial Express

Revenue growth likely to recover, driven by pricing | The Financial Express

At an aggregate level, FMCG growth will see a strong recovery not only from Q3 which was impacted by demonetisation but also from the levels seen in Q2. The key driver is the return of strong price growth compared to deflation in H1 FY17, while volume recovery will likely be more modest. Stark divergence is […]

 

Here’s the Pricing Mistake Almost Every Hourly Planner Makes | See Beyond Numbers

Here’s the Pricing Mistake Almost Every Hourly Planner Makes | See Beyond Numbers

Imagine that your prospects didn’t hesitate, not even for one second, to pay your price. That it would be – in fact – a no-brainer. Don’t believe that’s possible? Then stop here. However, if you don’t want to leave money on the table and if you don’t want to miss my free gift at the end of this article, you […]

 

This Quiz Will Help You Brilliantly Bundle Your Products, the Pizza-Breadsticks Way | Inc.com

This Quiz Will Help You Brilliantly Bundle Your Products, the Pizza-Breadsticks Way | Inc.com

Do you consider yourself a pricing guru? Someone who can take reliable data about what customer segments are willing to pay, and use it to construct a pricing plan that maximizes revenue? The experts at Simon-Kucher & Partners–the world’s largest pricing consultancy–hear such bluster from entrepreneurs all the time. And they think it’s nonsense. After […]

 

Russia clarifies procedures for Bilateral Advance Pricing Agreements | DLA Piper

Russia clarifies procedures for Bilateral Advance Pricing Agreements | DLA Piper

On 17 March 2017 the Ministry of Finance of Russia (MoF) posted a draft order on the procedure for conclusion of bilateral advance pricing agreements (APAs) with the authorised bodies of foreign states. This draft order fills in a legal gap in Russian administration of transfer pricing rules and treaty obligations with foreign states. Although […]

 

Saudi Arabia plans to change oil pricing for European customers | Gulf Business

Saudi Arabia plans to change oil pricing for European customers | Gulf Business

Saudi Arabia, the world’s top oil exporter, plans to change the way it prices oil for Europe from July, industry sources said, in an effort to increase the appeal of Saudi crude by making it easier for customers to hedge. State oil giant Saudi Aramco will start pricing its European exports against the ICE settlement […]

 

Pricer’s Points: Buying A Big House Comes With Big Hidden Costs | Anastasia Ivanov

Pricer’s Points: Buying A Big House Comes With Big Hidden Costs | Anastasia Ivanov

You have to consider all the angles before buying a home. While owning big beautiful home might be your dream, the cost of owning one over 30 years can quickly turn it into a nightmare. It’s important not to let short-term decisions impact long-term financial goals like retiring early or saving for your child’s education. […]

 

Mid-low Pricing Strategy Attracts Customers in Southeast Asian Market | The Huffington Post

Mid-low Pricing Strategy Attracts Customers in Southeast Asian Market | The Huffington Post

Foreign companies have also joined the competition. Japan’s Route Inn Japan plans to open the first business hotel in the heart of Danang to attract tourists and business travelers from Asia, Europe and other countries with low pricing strategy. It will offer rates as low as $70 a night, which is one third that of […]

 

Why daily change in petrol and diesel prices will benefit consumers | Deccan Chronicle

Why daily change in petrol and diesel prices will benefit consumers | Deccan Chronicle

Mumbai: State run Oil Marketing Companies, Indian Oil Corporation, Bharat Petroleum Corporation and Oil India considering plans to bring in ‘dynamic pricing’ model for petrol and diesel. Under dynamic model of pricing, once in place, prices of petrol and diesel will change everyday on the lines of global oil prices that change on a daily […]

 

Buying theater tickets is a whole new challenge | Connecticut Post

Buying theater tickets is a whole new challenge | Connecticut Post

The show’s tour recently began in San Francisco and presenting houses booked for the 2017-18 season are already reporting a jump in subscription sales by 30 percent. That’s no surprise because getting tickets for “Hamilton!” since its Broadway opening in 2015 has been a Herculean task. The stratospheric prices for premium seats — $750 tickets […]

 

Featured Content and Events

Stephan Liozu Talks Value-Based Pricing (Podcast) | Professional Pricing Society

Stephan Liozu Talks Value-Based Pricing (Podcast) | Professional Pricing Society

We’re back with another #PricingPodcast – this week Stephan Liozu talks Value-Based Pricing in business! We chat with pricing expert and author Stephan Liozu, and he answers some of the more popular questions surrounding Value-Based Pricing including, What is value-based pricing? Why is it more than a pricing strategy? How can companies deploy new strategies […]

 

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…

– – – – – – – – – – – –

“There is scarcely anything in the world that some man cannot make a little worse, and sell a little more cheaply. The person who buys on price alone is this man’s lawful prey.”

     – John Ruskin

 

Pricing Resources

Pricer’s Points Blog Series

This blog series provides a forum for pricing professionals to share their insights and experience. Our guest bloggers share their knowledge about specific product or industry challenges, geographic complexities, strategies, tactics, and technologies.

Check out some recent additions…

Top Discussions

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

Check out some recent favorites…

Pricing News LinkedIn Group

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