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This Week in Pricing > 5/10/14

TWIP is a recap of the week’s top pricing strategy in the news and resources for pricing professionals. We also publish a daily digest of top pricing news, strategy expert and technology leader’s thought leadership and industry news and events.

The Past Week’s Top Pricing Related Headlines

You priced this milkshake
theverge.com – How do you price a bottle of milkshake? Everyone from Ayn Rand to Karl Marx will give you a slightly different answer, but the majority of solutions boil down to some combination of cost, competiti…

I Scream, You Scream (But Only When the Price Goes Up)
strategy-business.com – Bottom Line: In a study comparing consumers’ reactions to price hikes and package sizes, shoppers responded far more negatively to paying more than to getting a little less—providing firms with a m…

Enron-style price gouging is making a comeback
america.aljazeera.com – The price of electricity would soar under the latest scheme by Wall Street financial engineers to game the electricity markets. If regulators side with Wall Street — and indications are that they w…

The Cost of Ketchup: Why Businesses Should Avoid Add-On Pricing
fool.com – Airlines made a cottage industry out of nickel-and-diming their passengers for any and all amenities associated with their flight, from checked-in luggage to pillows and blankets, with some even co…

Consumers Want the Best Deal, Not Just the Lowest Price
dbsquaredinc.com – Do More Business > April 2014 > Do Customers Want the Best Price – or the Best Deal? Do Customers Want the Best Price – or the Best Deal? A recent study notes that consumers and buyers alike in…

Pricing New Products
ww2.cfo.com – How much should you charge for a new product? Charge too much and it won’t sell — a problem that can be fixed relatively easily by reducing the price. Charging too little is far more dangerous: a c…

Low-Cost Airfares May Not Be the Deal They Appear to Be
mashable.com – Unbundled airline fares are becoming the new norm. Frontier Airlines announced a new, “simplified” airfare structure on Monday, offering lower initial fares while completely unbundling flight optio…

Valuable Strategies for Using Market Research to Determine Product Pricing
instant.ly – To buy or not to buy? For many consumers, the price of a product is one of the biggest influences in their decision to purchase. It makes sense. Most people love the feeling of satisfaction that co…

The Problem With Price
b2binternational.com – In the ever-changing business world of today, with increased globalization and low-cost manufacturing from Asia, competitive advantage is key. Competitive jostling is a never ending battle as conti…

The Psychology of Ecommerce Sales: Setting Your Prices
blog.hubspot.com – Great article Greg, There are entire MBA courses at Wharton on pricing theory. In the end it becomes as much of an art as a science. Which is why it’s so important to test and let your customers de…

Price Concerns
topsalesworld.com – When you get price objections, consider these suggestions: 1. Clarify what the prospect means when she says your price is too high. • She may mean she can’t afford the price, although the product i…

Scalable Sales Models in SaaS – It Starts With Your Pricing!
blog.kissmetrics.com – As a B2B company, you want new customers and increased market share. Salespeople can help you achieve both objectives, as long as you don’t hinder them with poor pricing plans. Here is some advice …

Are Bricks-and-Mortar Retailers Ready for Flexible Pricing
business2community.com – Airlines have been doing it for years. Professional sports teams are in on it, too. Most recently, the taxi industry is facing disruption, in part, over the introduction of dynamic-pricing models b…

Does Omnichannel Retailing Come at a Price?
retail.emarketer.com – Despite the concept of omnichannel retailing—reaching customers in a combination of online, in-store, mobile and catalog—being currently in vogue, shoppers don’t always find seamless pricing when s…

Dynamic Pricing Addendum
blog.controlgroup.com – Price conscious consumers are leading the charge back to in-store retail this Spring, armed with several tools to get the most savings out of their store visits. According to a recent Valassis stud…

Airlines’ Dynamic Pricing Model Comes to the Supply Chain
supplychainbrain.com – Dynamic pricing is a familiar, well-tested concept in the airline industry. It’s used as a means of tying supply to demand, and pricing seats accordingly. Now, Bacon believes that concept can be ap…

California Dad Says He’s Cracked the Code to Price Tags
abcnews.go.com – Kyle James, the founder of the coupon website Rather-Be-Shopping.com says he’s cracked the code that can help predict if something you’re buying might be marked down later. James, 40, in Redding, C…

Cloud Pricing A Race to the Bottom or More Than Meets the Eye?
information-management.com – In recent weeks Amazon, Google, and Microsoft have all announced another round of reductions in pricing for various facets of their Cloud offerings. Some pundits and media have highlighted the coll…

CenturyLink Joins Ongoing Cloud Pricing War
channelnomics.com – The cloud pricing war has a new combatant, CenturyLink, which is promising to undercut Amazon.com Inc.s’ Amazon Web Services by half. In what’s being called a bold move, the telecom carrier is not …

Comment: Are US retailers running downhill too fast?
essentialretail.com – My RSR partner and co-author of our most recent benchmark report on the state of pricing practices in retail recently has identified a “Pricing Paradox”. Here’s what Paula Rosenblum wrote: “Retaile…

Netflix’s pricing strategies are bound by the same laws of supply and demand that affect every other commercial entity’s rates
sdcexec.com – Netflix recently announced plans to increase its new-subscriber membership fees by $1 to $2 a month. While the streaming content provider said existing subscribers could maintain their current pric…

Pricing Google Glass at $1,500 only added to its problems
pando.com – It looks like Teardown.com has touched a nerve with Google. The tech site dedicated to taking apart fancy technology hardware to calculate its true built cost deconstructed Google Glass, which is c…

Morrisons cuts costs and ups price transparency to bring shoppers back
southwaleseveningpost.co.uk – Supermarket chain Morrisons has announced price cuts on 1,200 essential products in a bid to win back market share. The permanent reductions are across a range of Morrisons own label products and b…

Ottawa’s protectionist policies contributing to growing price gap between Canada and U.S.: new study
business.financialpost.com – Editor’s note: The following story has been corrected to reflect that shipments into Canada and the U.S. are exempt from duty and customs if under $20 and $200, respectively. Canadians pay more tha…

GM Posts First Quarter Profit Due to Pricing Strategy – Win?
torquenews.com – For the record, the first quarter of 2014 was GM’s worst showing since the sixth-month period after it emerged from bankruptcy in 2009. The report shows many factors playing a part including $200 m…

Sainsbury’s faces £100m profit blow in price war as opening salvo is fired against discount Germans
thisismoney.co.uk – The cheapo “supermarkets” growth is limited by three factors. Firstly, their product range is very limited. Most people want to do their whole weekly shop in one store. Secondly, they do have have …

This Week in Pricing – May 3, 2014
linkedin.com – TWIP is a recap of the week’s top pricing strategy in the news and resources for pricing professionals. We also publish a daily digest of top pricing news, strategy expert and technology leader’s thought leadership and industry news and events.

Recommended Resources for Pricing Professionals

Gartner, MarketScope for Price Optimization and Management Software for B2B: 2013, Chris Fletcher et al, 25 November 2013

As Pricing News’ mission is to help find the best resources and information for pricing professionals, click the link above to access a complementary copy of Gartner’s report.

The 2013 MarketScope for PO&M helps clients evaluate vendor software and service offerings, as well as align their price management strategies with the major trends affecting pricing professionals. The findings in the MarketScope are based on primary research conducted by Gartner, client interactions and inquiries on the multiple considerations that are part of developing a PO&M strategy, and Gartner research in technology and business adjacent to price management.

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About Pricing News

Pricing News is a sponsor supported organization dedicated to providing free high-value resources to pricing professionals. It is the source for daily and weekly digests of pricing strategy and industry newsevents, thought leadership articlesblogsreportsacademic research, and other resources and special offers. We also share highlights from top pricing discussions and publish articles from pricing practitioners in our Pricer’s Points blog series.

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Until next week,

Matt Balfour

Founder & Managing Director of Pricing News