This Week in Pricing > 5/26/18

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

Walmart Earnings: More Signs It’s Fighting Hard on Pricing | Barron’s

Walmart Earnings: More Signs It’s Fighting Hard on Pricing | Barron’s

There’s more evidence that Walmart continues to fight hard on the pricing front. The retailer was recently cheaper, on average, than fellow Barron’s Next 50 stock Amazon.com (AMZN) in 8 of 10 categories studied by Guggenheim Securities, according to a Tuesday note. (Guggenheim checked prices on 10 baskets of 10 items.) In some cases, Walmart […]

 

Trump tries to break America’s addiction to high drug prices | Washington Examiner

Trump tries to break America’s addiction to high drug prices | Washington Examiner

President Trump, like former President Barack Obama, campaigned on the promise of taking on high drug prices. Trump, unlike Obama, is actually trying to keep that promise. The White House and the Department of Health and Human Services in recent days rolled out dozens of policies, which, if enacted, will lower the market prices we […]

 

Drug price ‘gag clauses’ make your medicine more expensive. Now, they’re under fire nationally | Philly

Drug price ‘gag clauses’ make your medicine more expensive. Now, they’re under fire nationally | Philly

Nancy Gordon is a retired insurance agent, fluent in health-care industry jargon, and even she can’t make sense of the prices she pays for prescription drugs. Last year, a three-month supply of Eliquis, which prevents blood clots, cost from $116 to $466 through her Medicare Part D prescription plan. The 75-year-old Philadelphia resident was thrilled […]

 

Taylor Swift is doing more to stop scalpers than Ontario’s new ticket act: experts | The Globe and Mail

Pressure for lawmakers to respond took shape, though enforcement solutions weren’t obvious. Some provinces and U.S. states have scalper bans in effect and they haven’t necessarily prevented tickets from being resold at significantly higher prices. That’s why Swift’s more aggressive swing at scalpers has a far better chance of making a dent in the black […]

 

Airlines will collapse because of rising oil prices, Ryanair CEO says | Business Insider

Airlines will collapse because of rising oil prices, Ryanair CEO says | Business Insider

“Some of those loss-making airlines who couldn’t make money when oil was at $40 a barrel certainly can’t survive this winter with oil at $80 a barrel.” O’Leary did not specify any particular airlines he thinks are at risk. Oil passed above the $80 per barrel mark last week, as a continuing squeeze by the […]

 

Summer Travel Plunges Due to Higher Gas Prices, GasBuddy Reveals | GasBuddy.com

Summer Travel Plunges Due to Higher Gas Prices, GasBuddy Reveals | GasBuddy.com

BOSTON – Rising gas prices have put a crimp in travel plans this summer as more Americans are planning staycations instead of hitting the road, according to GasBuddy’s 2018 Summer Travel survey. According to the annual survey, only 58 percent said they will take a road trip this summer, a 24 percent decrease from last year, […]

 

Gas hits $5 a gallon in New York City – Story | WNYW

Gas hits $5 a gallon in New York City – Story | WNYW

Regular gas has hit $5 a gallon at at least one station.  A Mobil station on 11th Ave. in Hell’s Kitchen has raised its prices to $4.999 a gallon.  That’s well above the current average for the five boroughs.  AAA says the average in New York City is $3.18 a gallon. Across the river in New […]

 

Requiring Prices in Drug Ads: Would It Do Any Good? Is It Even Legal? | The New York Times

Requiring Prices in Drug Ads: Would It Do Any Good? Is It Even Legal? | The New York Times

WASHINGTON — If President Trump has his way, television viewers who see commercials for the drug Keytruda will learn not only that it can help lung cancer patients, but also that it carries a price tag of $13,500 a month, or $162,000 a year. Viewers who see advertisements for Neulasta, a drug that reduces the […]

 

Will reference-based pricing be in Buffet’s future – or yours? | Redding

Will reference-based pricing be in Buffet’s future – or yours? | Redding

Today, we use Preferred Provider Contracts where the insurer pre-negotiates reimbursement amounts for procedures. To determine in advance the allowed amount for a procedure requires the skills of Columbo. Reference Based Pricing (RBP) is a new twist on the old pricing approach. It is currently being used by some self-insured plans. The plan specifies a […]

 

More Headlines

CollectPlus cuts pricing for Send service | Post&Parcel

CollectPlus cuts pricing for Send service | Post&Parcel

In a statement sent to Post&Parcel today (21 May), CollectPlus said that the cost of sending a 3-5-day Economy service parcel weighing under 2kg has been cut to £3.99 from £4.99, and the cost of sending a similarly weighted 2-day Standard parcel has been reduced in price to £4.69 from £5.69. Commenting on the introduction […]

 

Exclusive: Bonuses slashed at Schlumberger as ‘pricing pressure’ continues | Energy Voice

Exclusive: Bonuses slashed at Schlumberger as ‘pricing pressure’ continues | Energy Voice

An employee at the testing services division in Aberdeen said the move had heightened concerns that the company intends to shut down the operation. Schlumberger confirmed that it would be “realigning” bonuses to offset “continued pricing pressure”, but said there were no plans to remove testing activities from the north-east. … He said bonuses had […]

 

Trump’s Drug Blueprint Could Alter PBM Contracting | SHRM

Trump’s Drug Blueprint Could Alter PBM Contracting | SHRM

With much fanfare, President Donald Trump’s administration recently released a 44-page blueprint for executive action on drug pricing titled American Patients First. The blueprint proposes steps to end drug manufacturers’ “gaming” of the regulatory process and to create incentives for pharmaceutical companies to lower list prices. The proposals regarding pharmacy benefit manager (PBM) firms, in […]

 

‘Decent Probability’ Bitcoin Price Goes to Zero: Vanguard Economist | CCN

‘Decent Probability’ Bitcoin Price Goes to Zero: Vanguard Economist | CCN

An economist at one of the world’s largest asset managers believes there is a “decent probability” that the bitcoin price will eventually crash to zero. Joe Davis, the chief economist for $5.1 trillion asset manager Vanguard, wrote in an ETF.com op-ed that although the firm is enthusiastic about blockchain technology in general, it does not […]

 

 

Chandigarh: Shatabdi ticket prices surge by 50% due to airport closure | Hindustan Times

Chandigarh: Shatabdi ticket prices surge by 50% due to airport closure | Hindustan Times

With Chandigarh International Airport closed for runway expansion and rush of people heading out on summer vacation, travelling to Delhi on Shatabdi has been pinching pockets for the past nine days. Against the normal one-way fare of Rs 600, people are shelling out up to Rs 915 for the chair car ticket in the express […]

 

Study Shows Customer Preference for Direct Delivery from Restaurants | Food On Demand

Study Shows Customer Preference for Direct Delivery from Restaurants | Food On Demand

Customers report they would order from their favorite restaurants one extra time per month if delivery was offered, and more than 70 percent of QSR and fast-casual customers said they would choose a restaurant more often if delivery were offered. The importance of delivery doesn’t apply only to millennials. Of customers 35-44, around 78 percent […]

 

What Vancouver can learn from London about mobility pricing | CBC News

What Vancouver can learn from London about mobility pricing | CBC News

A London city planner says the U.K. capital’s mobility pricing program could be an effective strategy to combat Vancouver’s congestion woes. Mobility pricing refers to any fees or service charges or tolls associated with transportation costs, such as fuel taxes, transit fares, bridge and road tolls, and road usage charges. An independent commission is currently studying how […]

 

Why using customer wealth data is a tricky business | EyeforTravel

Why using customer wealth data is a tricky business | EyeforTravel

A recent Travel Weekly article suggested that travel suppliers could productively use customers’ personal wealth data to ‘price dynamically’. Most readers assumed the worst: travel suppliers could use individual financial information to exploit less price sensitive customers by extracting higher prices from wealthy customers. ‘Deals’ would only apply to customers who might not be able […]

 

 

Pass pharma discounts onto patients, not ‘highly-paid middlemen’, says expert | thepharmaletter

Pass pharma discounts onto patients, not ‘highly-paid middlemen’, says expert | thepharmaletter

Dr Matthews said: “Price transparency in health care, and especially pharmaceuticals, has become a major policy debate. “But price transparency is a problem in the whole health care system. Try calling a hospital to get a quote for the cost of an appendectomy. At least with prescription drugs, a patient can obtain and compare prices […]

 

Would requiring drug advertisements to list price tags really help lower prices? | THE BUSINESS TIMES

Would requiring drug advertisements to list price tags really help lower prices? | THE BUSINESS TIMES

IF US President Donald Trump has his way, television viewers who see commercials for the drug Keytruda will learn not only that it can help lung cancer patients, but also that it carries a price tag of US$13,500 a month, or US$162,000 a year. Viewers who see advertisements for Neulasta, a drug that reduces the […]

 

How to Use Customer Groups in Your Pricing Strategy | Mageworx

How to Use Customer Groups in Your Pricing Strategy | Mageworx

‘Price doesn’t matter!’ You can hear merchants saying this every now and then. Not that I disagree, but price does make or break a sale. Despite all the behavioral economics studies & pricing psychology proving otherwise, this is just common sense. Recent data by Radial proves that 60% of shoppers find purchasing items at the […]

 

My Price Is Right: What Millennials Want From Financial Services | Investor’s Business Daily

My Price Is Right: What Millennials Want From Financial Services | Investor’s Business Daily

Name Your Price: What Millennials Want From Financial Services When millennials weigh whether to hire an advisor, they want assurance that they’re hiring an educator acting in their best interest. They don’t want a salesperson pitching products. They may already understand the role of a fiduciary, but many advisors still define the term. Stating at […]

 

Bitcoin drops below $8,000. Why are cryptocurrency prices falling? | finder.com.au

Bitcoin drops below $8,000. Why are cryptocurrency prices falling? | finder.com.au

Consensus New York is widely regarded as the biggest cryptocurrency conference around, and in previous years it’s been clearly associated with rising prices. But the bounce didn’t eventuate this year. On the contrary, prices dropped throughout. Bitcoin, as the overall market barometer, gives us a solid look at the state of the cryptocurrency markets. Recent […]

 

Bitcoin Price Too Volatile for Merchants, Claims PayPal CFO | CCN

Bitcoin Price Too Volatile for Merchants, Claims PayPal CFO | CCN

The bitcoin price is too volatile to make it a useful payment tool for merchants, PayPal CFO John Rainey claimed in a recent interview. Bitcoin Price Too Volatile for Merchants Rainey made this claim during a recent episode of “Mad Money,” explaining that merchant margins are too thin to make bitcoin a viable payment medium. […]

 

Laugfs Gas urges Govt to introduce transparent mechanism for LPG pricing | Lanka Business Online

Laugfs Gas urges Govt to introduce transparent mechanism for LPG pricing | Lanka Business Online

“On the long term, there will continue to be global price volatility and other macro-economic factors, which are largely unpredictable, affecting the local LPG Industry,”Thilak De Silva, managing director, LAUGFS Group said. “Therefore, we believe a fair and effective pricing formula based on key indicators would help address this situation, where consumers would be able to enjoy […]

 

Value Pricing Policy Committee nears the end of a disappointing process | ClarkCountyToday.com

Value Pricing Policy Committee nears the end of a disappointing process | ClarkCountyToday.com

“Committee members were given 147 pages of analysis about the various Value Pricing concepts, and why WSP Consulting, which is working with ODOT to evaluate the plan, recommended dropping two of the five concepts that had made it to this point.’’ Brown accurately told readers what the primary news of the meeting was. So, I […]

 

DRAM Sales Decline Amidst Crypto Market Stutter | Bitcoinist.com

DRAM Sales Decline Amidst Crypto Market Stutter | Bitcoinist.com

According to a recent Morgan Stanley report, the decline in cryptocurrency prices has negatively impacted the semiconductor market. With crypto prices falling, miners can end up operating at a loss. Morgan Stanley previously stated that Bitcoin mining is not profitable at prices below $8,600. The meteoric rise of the market drove demand for DRAM (dynamic random-access […]

 

AEG Presents President Rick Mueller Talks Ticket Sales at Canadian Music Week | Billboard

AEG Presents President Rick Mueller Talks Ticket Sales at Canadian Music Week | Billboard

He cites the recent sale of K-pop boy band BTS. “They couldn’t be hotter. Blew out four shows at the Staples Center [in Los Angeles] in 10 minutes, but the attacks that we would see on the ticketing system from malicious bots, and people who are just trying to manipulate that in the secondary market, […]

 

Prescription drug prices: 3 ways Trump can drive them lower | WND

Prescription drug prices: 3 ways Trump can drive them lower | WND

“Distributors, called pharmacy benefit managers, have set up their businesses to help provide not only distribution supply chains so these institutions have their medicines but also to try to negotiate big discounts for them,” Turner told WND and Radio America. “There are questions about how much of that money – the discounts – is actually […]

 

Tabasco Just Released a Premium Version of Its Sauce (at an Astoundingly Premium Price) | Inc.com

Tabasco Just Released a Premium Version of Its Sauce (at an Astoundingly Premium Price) | Inc.com

Absurdly Driven looks at the world of business with a skeptical eye and a firmly rooted tongue in cheek. Are you the sort who always buys a Lexus, insisting that, say, a Toyota is for, well, other people? Do you always order the most expensive wine on the menu and never, ever fly Economy? Then this […]

 

Fuel prices set to touch all-time high | Times of India

Fuel prices set to touch all-time high | Times of India

RANCHI: Fuel prices in the state are set to touch an all-time high and a hike in prices of all other commodities as a cascading effect is bound to follow soon with the Union petroleum ministry hinting at an increase of Rs 4 per litre on existing petrol and diesel prices. Petrol and diesel prices […]

 

Behavioral Economics Powered by Machine Learning and AI Techniques | Pricing Matters

Behavioral Economics Powered by Machine Learning and AI Techniques | Pricing Matters

There is a growing focus among pricing practitioners to use price science to drive pricing decisions. It’s a fabulous trend with many recent innovations in the use of advanced techniques such as machine learning and AI. It is important however to consider behavioral economics because our economic decision making is often shockingly irrational. Naturally, we […]

 

Google’s YouTube Premium Is Poised to Be a Hit | The Street

Google’s YouTube Premium Is Poised to Be a Hit | The Street

Why Apple and Spotify Don’t Need to Panic Just Yet For all its strengths, YouTube Premium’s price ($2 per month more than what most music subscription services cost) makes it slightly less of a threat to the likes of Spotify and Apple than it would be if YouTube stuck with Red’s $10-per-month pricing. And this […]

 

Is Your Goal Volume or Profit? | Strategic Pricing Solutions

Is Your Goal Volume or Profit? | Strategic Pricing Solutions

If a company is creating a new market or new market niche, it may be important to build critical mass early in the process.  Doing so might enable them to spread their infrastructure costs over a wider base of business.  In that case, it could make sense to use penetration pricing which offers low prices […]

 

Amgen’s Just-Approved Migraine Drug Will Cost $6,900 a Year | Bloomberg

Amgen’s Just-Approved Migraine Drug Will Cost $6,900 a Year | Bloomberg

Renewed political pressure over drug costs has added to the challenge of finding the right price for innovative medications. While drugmakers want to maximize returns on the substantial investment required to develop new therapies, some payers have begun to push back. A pricing misstep helped slow sales of Amgen’s cholesterol fighter Repatha, which failed to […]

 

Congress and regulators slow to respond to drug pricing and shortage problem | TheHill

Congress and regulators slow to respond to drug pricing and shortage problem | TheHill

Conversely, unethical pharmaceutical companies continue their practice of price gouging, a naked effort to maximize short-term profits at the expense of patients who desperately need their medications. More than 300 generic drugs had price increases of 100 percent or more between 2010 and 2015, according to a U.S. Government Accountability Office report on Medicare drug […]

 

Feeling squeezed by pricing pressure? Here’s what to do | Advisor.ca

Feeling squeezed by pricing pressure? Here’s what to do | Advisor.ca

If you’re feeling pricing pressure, you’re not alone. At CFA Toronto’s Annual Wealth Conference this week, about two-thirds of audience members said they feel price pressure. (The question was asked and answered via smartphone, with responses tabulated.) In the current environment of low-cost online competition, that pressure comes as no surprise and will likely increase. […]

 

Thomas Cook’s Personalization Ploy Is Paying Off | Skift

Thomas Cook’s Personalization Ploy Is Paying Off | Skift

Putting a price on something that customers previously got for free has become a key part of the airline business model and it seems other parts of the travel industry are catching on. European tour operator Thomas Cook says in its UK market it now makes an additional $13.50 (£10) per person in sales of […]

 

Ryanair earnings: Costs and guidance in focus | MarketWatch

Ryanair earnings: Costs and guidance in focus | MarketWatch

FY 2019 GUIDANCE: The company said in November that it doesn’t “share the optimism of competitors and market commentators for summer fare rises.” UBS analyst Jarrod Castle says he expects the company to guide for lower profits in fiscal 2019. Goodbody says that if Ryanair leads the market to conclude that fiscal 2019 profit will […]

 

From cab to Uber to cab, drivers try to find a way to make a living | Philly

From cab to Uber to cab, drivers try to find a way to make a living | Philly

The legislation legalizing ride-share businesses in Philadelphia allowed cabs also to increase their rates during busy times — which Uber calls surge pricing —  but so far, none has done it, Kirlin said. People in the industry see a consistent rate as an asset that could attract customers, she said. Leventhal noted cab drivers’ training, pointing […]

 

11 ASCs embracing price transparency | Becker’s ASC Review

11 ASCs embracing price transparency | Becker’s ASC Review

Here are 11 surgery centers with prices posted online for their procedures. Boulder (Colo.) Surgery Center. Boulder Surgery Center provides estimates for the 25 most commonly performed procedures on its website. The prices don’t apply to patients covered by health insurance. Healthcare providers are required by Colorado’s Transparency in Healthcare Pricing Act of 2017 to […]

 

 

 

Pricing Manager | Carrier Enterprise

Pricing Manager | Carrier Enterprise

Seniority Level: Mid-Senior level

Industry: Building Materials Consumer Goods Retail Employment

Type: Full-time

Job Functions: Sales Management Analyst

Job description

Carrier Enterprise is looking for talented individuals to join our team. We currently have exciting opportunities for a Pricing Manager in Charlotte, NC and Orlando, FL. The Pricing Manager role is the dedicated revenue management leader for their […]

 

Pricing Manager | Xylem Inc.

Pricing Manager | Xylem Inc.

Seniority Level: Mid-Senior level

Industry: Electrical/Electronic Manufacturing Utilities

Type: Full-time

Job Functions: Finance Marketing Product Management

Job description

Xylem (XYL) is a leading global water technology company committed to developing innovative technology solutions to the world’s water challenges. The Company’s products and services move, treat, analyze, monitor and return water to the environment in public utility, industrial, residential […]

 

 

Events and Resources

Conference: International Pricing Forum – IPF Paris 2018 | French Pricing Club

Date: June 13-14, 2018

Location: Cercle National des Armées in Paris, France

The IPF is the number one international pricing event in France, organized by pricing professionals (the French Pricing Club) for pricing professionals.

Too many pricing conferences are frustrating when presentations focus on general statements such as “you need to do value pricing” or “you need to work with your sales teams”.

The greatest value that the IPF will bring, is to focus on concrete case studies: Which issues? Which actions? Which obstacles? Which solutions and which lessons learnt?

On top of that, the IPF will also enable you to meet pricers from your area of business, through speed-meetings. You will not leave without speaking with the right people!

The ambition of the IPF is that you take away new actions to improve your pricing!

The number of places is limited to ensure a quality and high-level event, so don’t wait any longer and register now!

 

Fall Pricing Workshops & Conference | PPS

Date: October 23-26, 2018

Location: Renaissance Dallas Addison Hotel in Addison, TX

Please make plans to join us and well over 450 of your peers for the best event anywhere. We will be in Dallas, TX, October 23-26, 2018.

Don’t miss out on the Early Bird Discount (When 2 people from the same firm register at the same time (item of equal or lesser value), the 3rd registrant can attend FREE of charge). Offer expires September 14th!

 

 

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.

 

Pricing News LinkedIn Group

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…

 

 

“Pricing is the moment of truth – all of marketing strategy comes to focus on the pricing decision.”

     – Raymond Corey