OnDemand WTP Pricing Research

This Week in Pricing > 4/5/15

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:

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…

Headlines

The lowest price doesn’t mean the price is right | Econsultancy

The lowest price doesn’t mean the price is right | Econsultancy

Many retailers make the mistake of making their prices the biggest point of differentiation. Here’s how they can change that. Retailers need to treat their businesses like the treasures that they are. Incredible products, customer service, and prices can help shape brand value. However, impressions about your prices aren’t half as everlasting as your brand […]

Pricing for value: Develop a winning value-based pricing strategy | Managing Partner

Pricing for value: Develop a winning value-based pricing strategy | Managing Partner

Sally Calverley and John Campbell discuss how to create a value-based pricing strategy to increase matter profitability and client loyalty Five things you will learn from this Masterclass Where law firms lose money on pricing What clients mean by ‘value’ The benefits of value pricing at a matter level  How to address differing price sensitivities across your client base […]

Is My Price Too High? You May Just Have Bad Customers. | The Sales Hunter

Is My Price Too High? You May Just Have Bad Customers. | The Sales Hunter

The customer rejects your price. They tell you it’s too high. You’re nervous you’re going to lose another sale and you wonder what to do. Problem is you may very well come up with the wrong solution. Your best solution is not to cut your price. Your best solution is to find better prospects. The […]

Five Pricing Secrets of B2B Information-Services Companies | bcg.perspectives

Five Pricing Secrets of B2B Information-Services Companies | bcg.perspectives

The B2B information-services industry has struggled to rediscover modest, let alone rapid, growth since the onset of the global financial crisis, as banks and other major customers closely watch costs. Many providers have resorted to heavy discounting to maintain volume and cost cutting to preserve margins. There is a better approach. Pricing is a powerful […]

TV and music firms rage at EU digital plan | Telegraph

TV and music firms rage at EU digital plan | Telegraph

Britain’s creative industries are under threat from EU plans to impose a digital single market that will put an end to the way they sell films, television or music in individual European countries. Rights holders and distributors typically charge different rates for downloads and streaming services depending on demand in each nation. They vary the […]

Chicken Wings and Ribs: Marketing Successes | Strategic Pricing Solutions

Chicken Wings and Ribs: Marketing Successes | Strategic Pricing Solutions

This past weekend my wife and I decided to go to dinner someplace where we could watch March Madness on TV.  We picked a restaurant with plenty of TVs easily visible from most any table, a well-stocked bar, and a typically casual menu.  There were salads, burgers, chicken, pork, steaks and seafood available.  After each […]

What Is Dynamic Pricing & How Does It Affect Ecommerce? | Business 2 Community

What Is Dynamic Pricing & How Does It Affect Ecommerce? | Business 2 Community

2. It Allows Flexibility Without Compromising Your Brand Value Many eCommerce retailers shy away from dynamic pricing because of the potential damage it can cause to their brand value and user experience. After all, consumers can easily mistake your fluctuating product prices to manipulation or even fraud, right? Wrong! Brands can actually protect, and even […]

Game Theory and Strategic Pricing (Part 2) | Fractal Analytics Blog

Game Theory and Strategic Pricing (Part 2) | Fractal Analytics Blog

In the first part of this blog, we introduced the concept of Game Theory. We will now see how we can apply the game theory in pricing strategy. Let us look into a slightly complex pricing problem. Coffee S and Coffee B are in competition with each other near a college campus. They have to decide what […]

Why determining customer lifetime value is critical to profitability in the digital age | MyCustomer

Why determining customer lifetime value is critical to profitability in the digital age | MyCustomer

Customer journey Key to extending CLV is providing a better customer journey, which encompasses the overall combination of experiences a customer has had throughout the entire relationship; from first contact, to receiving marketing and sales communications, to buying, to after-sales service. The value of customer experience was highlighted in a recent report by Econsultancy, which […]

Vodacom’s ‘desperate’ price hike riles consumers | ITWeb

Vodacom’s ‘desperate’ price hike riles consumers | ITWeb

Vodacom’s surprise move to hike contract pricing for new and existing customers yesterday appears to be a move of desperation – and one that signals the operator sees dark days ahead in terms of its already under-pressure revenues. This is according to analysts, who note SA’s operators face a scenario in which voice revenues are […]

Contact Lens Makers and Discounters Tussle Over Price Setting | NYTimes.com

Contact Lens Makers and Discounters Tussle Over Price Setting | NYTimes.com

Anthony D. Morrow had been wearing the same brand of contact lenses for years, so when he saw the bill for his latest order last November, he did a double take. Rather than $169 for a one-year supply — the price he had paid, more or less, for the previous three years — the new […]

Subscriptions are enjoying a new prominence as a revenue engine for digital content and apps | Business Insider

Subscriptions are enjoying a new prominence as a revenue engine for digital content and apps | Business Insider

Many digital media companies have embraced monthly and annual subscriptions. The business model allows digital media companies to provide a premium experience that offers more than the basic, often ad-supported service level. Subscriptions are enjoying a new prominence as a revenue model for digital content and apps. Internet companies are exploiting the opportunity to boost ARPU (average revenue per […]

Wal-Mart Ratchets Up Pressure on Suppliers to Cut Prices | WSJ

Wal-Mart Ratchets Up Pressure on Suppliers to Cut Prices | WSJ

Wal-Mart Stores Inc. is increasing the pressure on suppliers to cut the cost of their products, in an effort to regain the mantle of low-price leader and turn around its sluggish U.S. sales. The retailing behemoth says it has been telling suppliers to forgo investments in joint marketing with the retailer and plow the savings […]

Nail Your Pricing Strategy | HubSpot

Nail Your Pricing Strategy | HubSpot

Pricing strategies are something no agency owner wants to think about. You got in this business to show off your creativity, right? But how you price and package your services will ultimately determine how successful your agency is, so you need to get it right. We believe value-based pricing hits the sweet spot when it […]

This One Word Is the Key to Sales Success | Entrepreneur

This One Word Is the Key to Sales Success | Entrepreneur

Pricing  One of the fastest ways to lose trust with a client is to change the price they were quoted. There is nothing more frustrating and annoying for a potential customer than to get excited about a product or service, getting a price quote that is palatable and then hearing that the price went up. That […]

Is UberX Cheaper Than a Cab? Here’s Why It Doesn’t Really Matter | CityLab

Is UberX Cheaper Than a Cab? Here’s Why It Doesn’t Really Matter | CityLab

But the study raises interesting urban mobility questions nevertheless. Wonkblog’s Emily Badger (who spotted the work) writes that being cheaper than a traditional cab “matters most for Uber’s long-term success” and suggests that UberX might win the head-to-head matchup if New York City regulators didn’t require all drivers to be commercially insured and licensed. Notwithstanding […]

5 Must-Read Optimization Posts for the Week of March 23 | Brooks Bell

5 Must-Read Optimization Posts for the Week of March 23 | Brooks Bell

One of the most powerful means of communication between a business and its customers is price. But research has found customers often develop a bias toward the cost of items as a result of brand reputation and other cues. For businesses looking to expand market share or solidify positions within the consumer consideration set, understanding […]

Price-Sensitive Customers Will Tolerate Uncertainty | HBR

Price-Sensitive Customers Will Tolerate Uncertainty | HBR

When I help a company with their pricing strategy, the typical first day of an engagement entails the client company’s vice president saying with a grin: “So, how are you going to help us raise prices?” While price-raising opportunities generally do exist, this is a provincial view of the upside of revamping a company’s pricing strategy. The […]

ph.logo.sublogos.news.white-ARTICLE

How Psychology and Strategy Work Together to Perfect Pricing (well, almost) | Medium

How Pricing Complements Strategy The curious thing about pricing is that it’s impossible to do perfectly. In most cases, the best we can hope for is ‘not completely terrible.’ The reason for this is the tension between the obvious goal of Pricing (Profit Maximization) and the non-obvious goals (not piss off your customers or diminish […]

6 challenges to bear in mind when it comes to Pricing | Minds & more

6 challenges to bear in mind when it comes to Pricing | Minds & more

As companies are getting ready for 2015, one of the key questions for senior leaders is how can the Pricing lever be used to support my 2015 business growth ambitions? Even a 1% improvement in price can have a dramatic impact on the bottom line and bring 3 to 4 times the impact on profitability […]

 

Pricer’s Points: Turning pricing power into profit | Giancarlo Colombo

Pricer’s Points: Turning pricing power into profit | Giancarlo Colombo

byJay Jubas, Dieter Kiewell, and Georg Winkler An international provider of technical gases had a problem. With a large, highly fragmented product portfolio of more than 500 SKUs, customers in a range of industries, and a broad segmentation of customers by size, prices varied widely even for the same product. And while managers believed there […]

Guest post: Pricing Power… and how to convert it into profit | Legal Business

Guest post: Pricing Power… and how to convert it into profit | Legal Business

The growth of professionals in Law Land with the word ‘pricing’ in their title has been explosive over the past couple of years. It’s a trend we applaud loudly and fervently, so perhaps it’s worth a primer on how it’s done in the major leagues: When B2B companies with thousands of SKU’s (Stock Keeping Unit) […]

Getting the Prices Right | Visceral Concepts

Getting the Prices Right | Visceral Concepts

Starting a business or launching a new product can be a trying time for an entrepreneur. There are tons of factors that must be plotted and planned if the launch is to be a success. None of these holds more weight on the future of your company than pricing the product. You see, when the […]

Pricing: Defining the Right Strategy | KPMG Africa

Pricing: Defining the Right Strategy | KPMG Africa

Constant discounting essentially telegraphs to consumers that products aren’t worth the regular price – the sale price is the true price – and he warns that the model can reset prices to a lower level permanently. “For a number of products, customers will now buy only if certain promotions are on.” More and more brands […]

Discussion: How Slack will break the SaaS pricing model as we know it… for the better | Jake Dunlap

Discussion: How Slack will break the SaaS pricing model as we know it… for the better | Jake Dunlap

The first point is a trend that many of us have seen in the last year but with companies like Zenefits proving this model at scale I’m sure you will see more organizations start at this point. Giving marketing the ability to control the complete top of funnel just makes sense as we shift toward […]

 

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…

– – – – – – – – – – – –

“Nowadays people know the price of everything and the value of nothing.”

     – Oscar Wilde

 

Pricing Resources

Explore our archives of valuable pricing resources including:

Case Study: Glass and Plastics Products Manufacturer | Strategic Pricing Solutions

Client Environment  Half-billion dollar global manufacturer of glass and plastics products was experiencing margin compression as prices did not keep pace with inflation.  Sales were through distributors, direct sales and OEM components.  List prices were changed annually according to “market conditions”, and the sales team had considerable discretion to discount. The Solution SPS created a […]

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.

2 Comments on "This Week in Pricing > 4/5/15"

Trackback | Comments RSS Feed

Post a Comment

WP-SpamFree by Pole Position Marketing