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This Week in Pricing > 4/19/15

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:

Wiser

Wiser provides a complete suite of solutions to give retailers, brands, and manufacturers the edge to stay both competitive and most importantly, profitable. Wiser’s flagship product is WisePricer, a full-featured dynamic pricing and merchandising engine that monitors, analyzes and reprices retail products in real-time. WisePricer enables retailers to boost profit margins and revenue, price with confidence, and improve merchandising through powering the development of a sound pricing strategy. Wiser also offers a MAP monitoring solution, WiseMapper, for brands and manufacturers to monitor and protect their pricing across the thousands of retailers selling their products.

Click a link below to learn more…

Headlines

The 10.000$ Apple watch – Worst practice for pricing consistency | Pricing for Startups

The 10.000$ Apple watch – Worst practice for pricing consistency | Pricing for Startups

Take-aways for founders Re-focusing on the pressing issue of new product pricing there are a few take ways from this case: An out-of-this world anchor price ($10,000 in Apple’s case) will not boost the sales of alternative product versions, but only confuse other customers. It seems that Apple apply’s pure markups to their cost base. In some […]

The Apple Watch’s Big Pricing Problem | HBR

The Apple Watch’s Big Pricing Problem | HBR

That wide range of options results in a wide range of prices. The Watch will cost from $349 (aluminum case, rubber band) to $17,000 (18 karat gold case, leather band with brass buckle). I’m not a tech reviewer, so I haven’t actually worn or tried out a demo version of the Watch, as some early […]

The pricing renaissance: New ways to reduce risk and unlock value | McKinsey on Marketing & Sales

The pricing renaissance: New ways to reduce risk and unlock value | McKinsey on Marketing & Sales

Pricing always involves risk and uncertainty. You make the best decision you can, but you can’t tell how it will play out until you put your price in front of customers and see how they react. That’s true whether you are changing list prices, adjusting discounts, altering your negotiating posture, or introducing a new pricing […]

LET YOUR CUSTOMERS SEGMENT THEMSELVES BY WHAT THEY’RE WILLING TO PAY | IMD

LET YOUR CUSTOMERS SEGMENT THEMSELVES BY WHAT THEY’RE WILLING TO PAY | IMD

If you’re out to capture more value, one surefire tactic is to figure out a way to charge different prices to customers with different willingness-to-pay (WTP). Economists sometimes call this “price discrimination,” which sounds bad since discriminating against people is generally illegal, not to mention immoral. However, most of us encounter forms of price discrimination […]

How to Formulate A Premium Pricing Strategy | Entrepreneur

How to Formulate A Premium Pricing Strategy | Entrepreneur

Customers are constantly looking for ways to save money rather than spend more of it, so companies that position products in the premium price range may struggle. However, with the right formula, you can earn the right to charge customers more than your competitors do. If you’ve been marketing your products or services as low-cost […]

They’ll sit but won’t stay: Are you training your customers to only shop for sales? | SDL

They’ll sit but won’t stay: Are you training your customers to only shop for sales? | SDL

Now imagine if Molly were part of the 80% of shoppers looking online for deals. If you’re like most retailers, you’ll offer some sort of discount, likely several times a year.  But by now, Molly has figured out the game, and will likely only buy from your site when there is a discount or coupon […]

The L.A. Dodgers Disaster: A Landmark Pricing Stalemate Costs Fans Dearly | New England Patriots

The L.A. Dodgers Disaster: A Landmark Pricing Stalemate Costs Fans Dearly | New England Patriots

Wrapped up in the near year-round sport that is America’s game, pro sports fans outside the west coast may have missed the long-running nightmare in the L.A. TV market that 70% of local Dodgers fans would like to wake up out of. Because of a unique sports programming pricing dispute (one in which service providers […]

Ticket price increases are forcing Clippers fans to not support team | CBSSports.com

Ticket price increases are forcing Clippers fans to not support team | CBSSports.com

After the Clippers lost at home to the Warriors on Wednesday night, Blake Griffin was frustrated with the lack of fan support at Staples Center. Griffin may have a point as Clippers fans are not going to home games because frankly, they can’t afford it. From Bill Plaschke of the Los Angeles Times: Five years […]

How to Set Prices When You’re New in Business | Entrepreneur

How to Set Prices When You’re New in Business | Entrepreneur

One of the most difficult decisions a new business will make is pricing its products or services. Businesses realize that accurate pricing is key to capturing customer attention in a competitive market. Not only are many new companies operating with limited information about competitor pricing schemes, but they also lack the experience necessary to predict […]

Another Look at Pricing Psychology Statistics | SaleHoo

Another Look at Pricing Psychology Statistics | SaleHoo

Price is always going to be a controversial issue for retailers, so we really don’t mind putting in new data whenever we come across it. Recent research shows that some of the most beloved of pricing strategies may be based on outdated pricing psychology. In other words, the magic is gone. We have discussed at […]

FutureView 2015 “Uber All” (Video) | The Futures Company

FutureView 2015 “Uber All” (Video) | The Futures Company

A confluence of factors — technological, economic and demographic — have come together in recent years to lay the foundation for a new brand value model affecting the future of every category and seen most prominently today in Uber. Prospects for strong, sustained growth in the old, established ways are diminishing rapidly. As a result, […]

Four aspects of pricing retailers should never overlook | ekmPowershop

Four aspects of pricing retailers should never overlook | ekmPowershop

A pricing strategy might be one of the most critical aspects to running an online business. Price comparison is the norm in ecommerce, with over half of customers visiting over four sites before making a purchase decision. And with retail giants like Amazon changing the prices of their products every 10-15 minutes, it can be […]

Walmart returns to playing offense with price? | LoyaltyOne

Walmart returns to playing offense with price? | LoyaltyOne

According to RetailWire and reports in The Wall Street Journal, Walmart CEO Doug McMillon said the chain was going back to its roots and “playing offense with price” to help achieve market share gains. The company’s increased emphasis on price was recently borne out by a Credit Suisse study, which found the price gap on consumables between […]

8 Reasons Companies Don’t Capture More Value | HBR

8 Reasons Companies Don’t Capture More Value | HBR

The challenge for executives is, of course, to manage their conflicting goals, or so-called trade-offs. The most prevalent tension to resolve is between market share (or sales revenue) and margin. If the product manager in a consumer packaged goods company is focused on gaining market share within her category (perhaps because her bonus is predicated […]

Saudi Arabia was worried about a danger much bigger than shale when it blindsided oil markets | Financial Post

Saudi Arabia was worried about a danger much bigger than shale when it blindsided oil markets | Financial Post

Last fall, as oil prices crashed, Ali al-Naimi, Saudi Arabia’s petroleum minister and the world’s de facto energy czar, went mum. He still popped up, as is his habit, at industry conferences on three continents. Yet from mid-September to the middle of November, while benchmark crude prices plunged 21 per cent to a four-year low, […]

The lower prices are a result of world oil supplies growing faster than demand because of higher production | Supply & Demand Chain Executive

The lower prices are a result of world oil supplies growing faster than demand because of higher production | Supply & Demand Chain Executive

NEW YORK (AP) — Drivers will see the lowest summer gasoline prices in about 6 years, according to the Energy Department. The national average price is forecast to fall 32 percent from a year ago to $2.45 a gallon between April and September, the period when Americans do most of their driving. That would mark […]

Skimming and penetration pricing strategies a thing of the past | Dynamic Business

Skimming and penetration pricing strategies a thing of the past | Dynamic Business

Pricing products at a high price or a low price to attract consumers are no longer widely used strategies, according to new study published in Marketing Science journal. The research found that the strategies of skimming, pricing products at high prices in order to drive demand and motivate shopping for quality, and penetration, launching products […]

Is Amazon Prime a scam? Shoppers asking tough questions as prices go higher | GeekWire

Is Amazon Prime a scam? Shoppers asking tough questions as prices go higher | GeekWire

James Froelich’s daughter asked him to buy her a magazine for the low cost of $5.21, but when he logged into Amazon to order the item, he saw a much higher price tag of $11. The difference between the two prices highlights one of Amazon’s biggest challenges today: Explaining its very complex algorithm technology to a […]

USPS to delay April’s planned price increases | Post & Parcel

USPS to delay April’s planned price increases | Post & Parcel

The US Postal Service has delayed its planned price increases that had been due to take effect on 26th April. The delay comes because some price increases proposed by the Postal Service have been rejected by regulators, USPS said this week. The Postal Service had been proposing to increase its monopoly service prices by an […]

5 Alternatives to discounting your price | Women Unlimited Worldwide

5 Alternatives to discounting your price | Women Unlimited Worldwide

And protecting your business profitability! Despite reports of greater economic confidence, customers are still incredibly cost-savvy and careful what they spend their money on. So how do you defend your prices against those pushing you to discount? Historically we Brits haven’t been up for haggling and pushing down prices. It’s not really in our nature […]

Giving Out Private Data for Discount in Insurance | NYTimes.com

Giving Out Private Data for Discount in Insurance | NYTimes.com

Andrew Thomas’s life insurer knows exactly when he arrives at his local gym. The company is notified when he swipes his membership card, and 30 minutes later,

Asked to Lower Your Price? Try These 5 Answers | Inc.

Asked to Lower Your Price? Try These 5 Answers | Inc.

It’s a conversation many of us have had with customers. Another company is offering pretty much the same product or service you are–but at half the cost. Or, anyway, substantially less. At this point, there’s a lengthy pause in the conversation while your customer waits hopefully for you to make a similar concession. Or the person […]

Task force for price control order for medical devices | ET HealthWorld

Task force for price control order for medical devices | ET HealthWorld

NEW DELHI: Even as the government is mulling regulating medical devices sector, a task force has recommended a separate price control order by putting them under the Essential Commodities Act. Once the devices come under the purview of the Act, the government can keep a tab on prices of equipment. The Task Force on Medical […]

 

Events

Webcast: How Strategic Pricing Tools Can Identify Price-sensitive Products and Services | SPA

When: April 22, 2015 2:00 PM Eastern

Register to attend our webcast where an SPA client will share their journey to pricing excellence and how they are leveraging science-based strategic pricing tools to stop margin erosion by identifying price-sensitive products and services. To implement a solution that enhanced profitability, developed pricing discipline, and removed emotion from the […]

Workshop: Change Management in Pricing | Stephan Liozu

When: May 5-6, 2015

Where: Dallas, TX at the Hilton Anatole Hotel

Theories, Best Practices and a Transformational Framework More than 70% of projects fail because of the inability of organizations to change. The same goes with pricing projects and initiatives. Change in value and pricing management is challenging, sometimes tenuous, and might take a long time to […]

Conference: Manufacturing Pricing Excellence – Barcelona 2015

When: May 20-22, 2015

Where: Barcelona, Spain

Event Overview On behalf of Copperberg and the entire Pricing competence team I am delighted to announce our 3rd Annual Manufacturing Pricing Excellence conference scheduled for 20-22nd of May 2015 in Barcelona, Spain. Since our last edition in Amsterdam, together with our advisory board and delegate network we have been […]

Conference: Strategic Pricing Conference | SPA

When: June 11-12, 2015

Where: Las Vegas, NV at the Vdara Hotel & Spa at Aria

Learn how leading manufacturing and distribution executives have unlocked the keys to faster growth, stronger customer relationships, and market-leading profitability with SPA’s proven strategic pricing processes and technology. Event Overview Equal parts strategy and practical tactics, this complimentary Strategic Pricing Executive Overview event […]

 


 

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

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

     – Benjamin Franklin

 

Pricing Resources

Explore our archives of valuable pricing resources including:

Blog: Does Psychological Pricing Work? | Wiser

Psychological pricing is a strategy in which retailers appeal to a consumer’s subconscious, unknowingly persuading them to buy. While this isn’t the first time that retailers have heard about psychological pricing, it hasn’t gotten any less effective. It’s a pricing strategy that can be utilized by all merchants, whether they sell online, in-store or both. Gone […]

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