SPA Pricing Education, Analytics & Decision Making Tools Webinar Series

This Week in Pricing > 5/13/17

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: SPOSEA logo JPG

 

SPOSEA B.V.

SPOSEA B.V. drives increased profitability for SAP users by SIMPLIFYING SAP’s Price Data Optimization, Management and Execution. We provide the SAP ecosystem with enterprise-wide Price Management that increases margins through optimized prices. Our family of products includes BrightPrice Optimizer, BrightPrice Manager, BrightPrice DealManager, and BrightPrice MarketDynamics. We provide out of the box solutions for effectively managing Pricing in SAP. SPOSEA is headquartered in Eindhoven, the Netherlands, and has offices in San Francisco, California and Walldorf, Germany.

Click a link below to learn more…

 

Top Headlines

New price for muscular dystrophy drug draws criticism | CNBC

New price for muscular dystrophy drug draws criticism | CNBC

Deflazacort wasn’t approved in the U.S., so McSherry and a number of other families of kids with Duchenne imported the drug from overseas. She says it cost about $1,200 a year out of pocket. Monday, deflazacort got a new price tag: $35,000 a year for a patient in the U.S. weighing 25 kilograms, or about […]

 

Amazon lowers free shipping minimum again, escalating price war with Wal-Mart | Retail Dive

Amazon lowers free shipping minimum again, escalating price war with Wal-Mart | Retail Dive

Enter Wal-Mart, which since its $3.3 billion acquisition of Jet last year and the hire of Jet founder Marc Lore appears to believe that Amazon’s emphasis on Prime has left a segment of e-commerce to be disrupted. In an interview with Retail Dive earlier this year, Keith Anderson, vice president of strategy and insights at […]

 

Consumers lose, margins win when robots set the prices | Wall Street Journal

Consumers lose, margins win when robots set the prices | Wall Street Journal

One recent afternoon at a Shell-branded station on the outskirts of Rotterdam, in The Netherlands, the price of unleaded fuel started ticking higher, rising more than US3.5c by closing time. It didn’t take long for a competing station down the road to raise its price about the same amount. The two stations are among thousands […]

 

The restaurant industry overindulged — and now it’s paying the price | The Washington Post

The restaurant industry overindulged — and now it’s paying the price | The Washington Post

So what is going on with diners? Experts say a confluence of factors is likely driving their decision-making. For starters, many restaurants have seen high workforce turnover of late and are relying heavily on part-time help, leading to an uneven eating experience, said Bonnie Riggs, a restaurant industry analyst for NPD. “They’ve not paid enough […]

 

This Company Charges $27,000 for a Single Piece of Fruit | Inc.com

This Company Charges $27,000 for a Single Piece of Fruit | Inc.com

By all accounts, the fruit thus sold is very high quality, grown under special conditions. However, the price this fancy fruit commands is geometrically greater than what it costs to grow, ship, and display it. The profit margins for these gift fruits must be astronomical. Why do people pay so much money for something that […]

 

The hidden sides of ‘dynamic pricing’ for airline tickets | LSE Business Review

The hidden sides of ‘dynamic pricing’ for airline tickets | LSE Business Review

A standard definition of dynamic pricing in airline markets typically focuses on how fares evolve over the booking period that precedes a flight’s take-off. Our research shows that such a definition is lacking because it fails to connect fare changes to some guiding principles of revenue management, defined as the combined methods used by carriers […]

 

Sanofi takes its own drug pricing pledge, pointing to a decline in their aggregate net price | ENDPOINTS NEWS

Sanofi takes its own drug pricing pledge, pointing to a decline in their aggregate net price | ENDPOINTS NEWS

What do you do when your industry is routinely pilloried by the president of the US for being run by a group of white collar price gougers, routinely ripping off the American consumer? Brent Saunders speaking at an Endpoints News event on Jan 10, 2017 (Endpoints News) In Big Pharma’s case, you begin to understand […]

 

With pay-as-you-go pricing on computers and storage, Dell looks to lead enterprises to the hybrid cloud | SiliconANGLE

With pay-as-you-go pricing on computers and storage, Dell looks to lead enterprises to the hybrid cloud | SiliconANGLE

The company, which now offers everything from Dell servers to EMC storage to cloud software from its VMware Inc. and Pivotal Software Inc. units, today introduced a raft of new storage products, previewed its new line of servers and announced new cloud-style monthly pricing for everything from servers to personal computers. … Indeed, Dell – […]

 

7 DOs and DONTs for Seed-Stage SaaS Pricing | Medium

7 DOs and DONTs for Seed-Stage SaaS Pricing | Medium

Pricing is one of the biggest levers that you have in SaaS. The recurring nature of the business model makes any price increase, decrease or discount an important decision. But at this early stage of your company, the goal of your pricing is not to optimise to make (THE real) money. The goal is to […]

 

Technology has the power to improve how we haggle with dynamic pricing | The Globe and Mail

Technology has the power to improve how we haggle with dynamic pricing | The Globe and Mail

Uber is one of the first mainstream examples to use surge pricing to manage supply and demand. For example, it’s raining and I’m going to be late for a meeting. Demand for Uber goes up, prices surge, more drivers join the marketplace, increasing supply, and price drops again to meet demand. Beautiful, isn’t it? The […]

 

Big Pharma Losing Leverage as Payers Raise Pressure on Price | Bloomberg

Big Pharma Losing Leverage as Payers Raise Pressure on Price | Bloomberg

The world’s biggest drugmakers don’t have the muscle they used to have. Pharmaceutical and biotechnology giants are finding it more difficult to charge high prices for a range of medications, their latest quarterly results show. That’s raising the pressure to pump up sales volumes and find lucrative new treatments for niche markets. “You had an […]

 

SPA Featured in The Distributor Channel article “Applying Black Belt Principles to the Pricing Process” | Strategic Pricing Associates

SPA Featured in The Distributor Channel article “Applying Black Belt Principles to the Pricing Process” | Strategic Pricing Associates

SPA was featured in a recent The Distributor Channel article, “Applying Black Belt Principles to the Pricing Process”, which discusses how distributors can apply Six Sigma methodology to the pricing function to generate repeatable margin gains and why a solid pricing process is an essential part of any strategic initiative. Excerpts of the article follow. “Initially, Black […]

 

More Headlines

Follow Michele Riffe on her journey to value pricing | Firm of the Future

Follow Michele Riffe on her journey to value pricing | Firm of the Future

Meet Michele, a veteran pro with a stable client base who wants to shift her focus to fewer, higher-value clients. She’d like to more confidently convey why her advanced services that help clients grow are well worth the price. … I bill Marsha hourly and sometimes I do that in the beginning for the first […]

 

Should You Put Pricing On Your Website | Freelance to Freedom

Should You Put Pricing On Your Website | Freelance to Freedom

The debate rages on — to display your prices up-front or not, that is the question. And it’s a question that plagues freelancers All. The. Time. Like any good debate, there are strong arguments for and against. Me, I’ve always been firmly in the “for” camp. But nothing convinced me (and will convince you) as […]

 

Economy Watch: Top Rental Markets Still Seeing Price Increases | Multi-Housing News

Economy Watch: Top Rental Markets Still Seeing Price Increases | Multi-Housing News

Despite talks of a pricing slowdown, the most expensive rental markets in the U.S. saw price increases in April, according to Zumper’s latest report. San Francisco and New York City remain the top two rental markets in the country. Changes in apartment asking rents in the top 100 U.S. rental markets were a mixed bag […]

 

British Airways launches inflight Internet: £5/hour to £24/flight | Australian Business Traveller

British Airways is now offering high-speed inflight Internet on selected international flights, with domestic and European flights to follow by the end of the year, at prices ranging from £5 to £24 (A$8.75 to A$42). First to be fitted with the satellite-based WiFi service will be BA’s Boeing 747 jumbo jets, followed by the Airbus A380 […]

 

Dell desktop to data centre strategy has new pricing model | Computer Dealer News

Dell desktop to data centre strategy has new pricing model | Computer Dealer News

Dell EMC has added to Flex on Demand with a new pricing program called Cloud Flex for HCI. HCI stands for hyper-converged infrastructure and it acts as a cloud subscription model with monthly pricing including built-in price reductions over time. This program has no upfront costs or obligation either. “As a private company it’s easier […]

 

The Secret Sauce to Pricing Your Products Or Services | Kim Garst

The Secret Sauce to Pricing Your Products Or Services | Kim Garst

Over the years, we’ve sold a ton of different products here at Boom Social. Something we’ve learned is that there’s no “one size fits all” strategy for pricing. No two products are exactly alike, and your pricing will also depend on your goals for a particular product or service. There’s no “one size fits all” […]

 

How to determine your price point when self-publishing | Nathan Bransford

How to determine your price point when self-publishing | Nathan Bransford

3) Get some feedback Bounce around your ideas, and if you have a community, try to talk to them too. I took a poll when I was launching How to Write a Novel, and the community’s vote of $4.99 matched my hunch so I went with that. 4) Take an educated guess when you launch […]

 

Was PTC Therapeutics playing games when it tried to defuse the deflazacort controversy with a $35,000 annual price? | ENDPOINTS NEWS

Was PTC Therapeutics playing games when it tried to defuse the deflazacort controversy with a $35,000 annual price? | ENDPOINTS NEWS

When PTC Therapeutics $PTCT CEO Stuart Peltz rolled out the biotech’s Q1 report this morning, he noted that company execs came up with what they believe is a “sustainable” price for the cheap, old steroid acquired from the controversial crew at Marathon Pharmaceuticals for $140 million up front and targeted at the Duchenne community in […]

 

Freemium Is About Marketing & Innovation, Not Pricing | Inc.com

Freemium Is About Marketing & Innovation, Not Pricing | Inc.com

The only gate that’s in place is the number of app users, up to 1,000, which speaks more to the value of our solution in helping them grow rather than some arbitrary messaging volume. And once they reach that limit, there are low-priced monthly plans they can adopt without worry that their investment in our […]

 

The Leadership Playbook: Allowing Your Sales Force to Change Your Strategy | The Sales Blog

The Leadership Playbook: Allowing Your Sales Force to Change Your Strategy | The Sales Blog

Sale leaders underestimate just how much impact their sales force can have on the execution of their strategy. If you do not intend to lead with price, competing on price is a change of strategy. “But we are not competing on price,” you say, “We are competing on value.” This may or may not be […]

 

Coffee price war takes jolt out of Dunkin’ results | Financial Times

Coffee price war takes jolt out of Dunkin’ results | Financial Times

The coffee price war that has broken out among US fast food chains has taken the jolt out of Dunkin’ Brands’ first quarter results. … In a bid to bolster traffic, Dunkin’ has been making a push into more premium coffee offerings such as cold brew and espresso-based beverages. However, competitors have responded by cutting […]

 

Sainsbury’s and Morrisons continue to battle in the UK supermarket price war | Investomania

Sainsbury’s and Morrisons continue to battle in the UK supermarket price war | Investomania

The first and most obvious reason is that investors, especially long-term buy-and-hold investors, may receive less income for holding Sainsbury’s shares. For many investors, the reason they hold shares is for gradual capital growth and a dividend that could exceed the income return they are able to achieve from a bank account. As far as […]

 

Gas price war erupts between Kleenheat and Alinta Energy after discount offer | Perth Now

Gas price war erupts between Kleenheat and Alinta Energy after discount offer | Perth Now

WA’s biggest gas retailer is offering some people up to a quarter off their bills in a bid to win them back as a price war with Wesfarmers-owned Kleenheat intensifies. … It is understood the product will be a type of “capped billing” service that will charge customers a flat price every month and give […]

 

Infinera Off 3%: Warns ‘Heavy Pricing Pressure,’ Customers Holding Off on Buying | Barron’s

Infinera Off 3%: Warns ‘Heavy Pricing Pressure,’ Customers Holding Off on Buying | Barron’s

Shares of fiber-optic networking equipment vendor Infinera (INFN) are down 35 cents, or 3.5%, at $9.60, in late trading, after the company this afternoon reported Q1 revenue that slightly exceeded expectations, but also projected its revenue and profit below consensus for this quarter, citing pricing pressure and customers reluctant to make new purchases. During a […]

 

Insurers must be forced to justify huge annual increases | Daily Mail Online

Insurers must be forced to justify huge annual increases | Daily Mail Online

Pensioners are the worst-hit because they are less likely to look for deals online. The calls for insurers to be forced to justify to customers why they have hiked their premium come after a Money Mail investigation found long-standing customers are being over-charged by up to £1,000, while insurers offer new customers loss-making introductory deals. […]

 

Beer prices have sports fans’ heads spinning | CBC Sports

Beer prices have sports fans’ heads spinning | CBC Sports

The cost of a beer at a Toronto Blue Jays game is among the highest in baseball. Take a 473-millilitre “tall” can that would retail for anywhere between $2.50 and $3.50 at your local Beer Store. The same beer at a Blue Jays game will cost you upward of $12, depending on the brand you choose. […]

 

Shaping audience behaviour: RSNO’s pricing strategy | ArtsProfessional

Shaping audience behaviour: RSNO’s pricing strategy | ArtsProfessional

Working in a multi-city and multi-venue environment requires an approach to pricing that is adaptable in the different marketplaces in which we operate. Pricing is therefore viewed as a flexible tool that helps us achieve the central and multiple imperatives of the organisation: generate revenue, encourage attendance, reach new audiences, offer new experiences and promote […]

British Gas owner to axe 1,500 jobs and warns against energy price caps | Business Matters

British Gas owner to axe 1,500 jobs and warns against energy price caps | Business Matters

British Gas owner Centrica is to cut 1,500 jobs this year and has warned that energy price caps could push up household bills, reports The Guardian. The company said warmer than normal weather so far this year had resulted in lower than expected energy consumption in the UK and North America. In the UK, wholesale […]

 

La. Politics: Lawmakers looking into prescription drug pricing | Daily Comet

La. Politics: Lawmakers looking into prescription drug pricing | Daily Comet

A set of bills moving through the state Legislature’s ongoing regular session would create new layers of disclosure in regard to prescription drug pricing in Louisiana. The policy push has caught the attention of the Pharmaceutical Research and Manufacturers of America, which represents companies that research, develop and market medicines. They’re also companies that are […]

 

Best Event Pricing Strategies to Boost Your Revenue | GEVME Blog

Best Event Pricing Strategies to Boost Your Revenue | GEVME Blog

Price is an integral stage of event planning process. Proper pricing allows you to accrue more revenue and to increase sales of event tickets. If your prices are too high, they may scare away your audience. On the other hand, pricing tickets too cheaply can decrease the rate of your event or attract an unwelcome […]

 

Holiday prices can soar by £3,000 in just one day | Daily Mail Online

Holiday prices can soar by £3,000 in just one day | Daily Mail Online

Study exposes inconsistencies in travel industry over the cost of family deals The price of a trip to Florida apparently soared by £3,370 in just a single day  Research finds families struggle to know if their quote is fair    We’re all wary of holiday rip-offs, knowing prices can soar if you book late or […]

 

How to Find Your Pricing Sweet Spot | Go Through the Roof

How to Find Your Pricing Sweet Spot | Go Through the Roof

Gather round, kids! It’s story time. I’d like to tell the story of my client whom I will call Hillary. She’s an acting coach who’s built a strong reputation for herself teaching small group classes and working with private clients. Hillary is a busy bee to say the least. When we started working together, she […]

 

Not in its DNA? Why Apple doesn’t cut pricing just to gain market share | Business Standard News

Not in its DNA? Why Apple doesn’t cut pricing just to gain market share | Business Standard News

Apple Inc sold fewer iPhones than expected in the first three months of the year, but that bare statistic hides an important bright spot for the company. The average selling price of an iPhone grew more than it has since the days of the iPhone 6. Apple does not break out figures for how many […]

 

Sprouts fights off pricing woes, beats estimates in Q1 | Supermarket News

Sprouts fights off pricing woes, beats estimates in Q1 | Supermarket News

Gross profit margins were down by 110 basis points from last year’s first quarter, when falling input costs had not yet filtered to the shelf level. Officials said deflation of 3% in the quarter was the highest it had ever experienced, but that it moderated throughout the quarter, led by rebounding produce prices. That was […]

 

Digital forwarder predicts airlines will bring cargo consolidation in-house | Air Cargo News

Digital forwarder predicts airlines will bring cargo consolidation in-house | Air Cargo News

However, Petersen believes this could all soon change with the continued digitisation of supply chain functions. “The advent of real-time dynamic pricing for air freight sold through digital marketplaces will allow airlines to consolidate freight at the plane-level instead of the pallet-level,” he said in a blog post. “Until now, consolidators have been necessary because […]

 

Steel City welcomes dynamic fuel price | Times of India

Steel City welcomes dynamic fuel price | Times of India

JAMSHEDPUR: New to dynamic pricing of fuel, customers at the filling stations are keeping employees busy with queries on the new daily tariff system. Since May 1, when the dynamic pricing of petrol and diesel came into effect in Jamshedpur, along with four cities —Visakhapatnam, Bharatpur, Chandigarh and Puducherry — the daily revision of prices […]

 

Is the Google Cloud Pricing Strategy Really That Different from AWS or Microsoft? | 1redDrop

Is the Google Cloud Pricing Strategy Really That Different from AWS or Microsoft? | 1redDrop

In an interview with CNBC, Tariq Shaukat, president of customers at Google Cloud, said: “We don’t need to compete on price to be honest. We definitely compete on value more than price … but if you look at the products, (they) are hard to compare side by side.” But in the very next statement he says […]

 

13 Pricing Strategies for Your Event Business | Event Manager Blog

13 Pricing Strategies for Your Event Business | Event Manager Blog

Are you wondering how to price your services? Here’s what you need to know about norms and the psychology behind pricing. Pricing is one of the most important things you will do for your event planning business. Too high and no one will pay. Too low and they’ll question your skills. Too high without credentials […]

 

Featured Content and Events

Bright Price Market Dynamics – Get a powerful solution to effectively optimize and analyze price data in SAP | SPOSEA

Bright Price Market Dynamics – Get a powerful solution to effectively optimize and analyze price data in SAP | SPOSEA

Dynamic pricing solution for Geo-Targeted Price Optimization The Right Price All Over the World DYNAMIC PRICING Our Dynamic pricing software combines real- time market analyses with intelligent price optimization techniques. The optimal pricing strategy will boost your traffic, sales and profits. EXIT INTENT TECHNOLOGY Our Exit Intent technology uses refined behavioral analysis techniques to trigger […]

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!

 

Conference: 28th Annual Fall Pricing Workshops & Conference | PPS

Conference: 28th Annual Fall Pricing Workshops & Conference | PPS

Date: October 24-27, 2017

Location: Hilton San Diego Bayfront in San Diego, California

Hear from our President, Kevin Mitchell, give insight on the conferences we offer.  Please make plans to join us and well over 500 of your peers for the best event anywhere as we discuss Data, Change Management and the Profit Landscape. Don’t miss out on the Early Bird Discount (Buy 2 Get 1 Free). It expires September 15th!

CONFERENCE HIGHLIGHTS

  • 12 Certified Pricing Professional Workshops
  • 4 Breakout Tracks
  • Over 40 Speakers
  • 2 Full Conference Days
  • Over 100 Hours of Networking

 


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

– – – – – – – – – – – –

“Product Pricing is aligned to the way customers want to acquire their solutions and are delivered via different delivery models including appliances, the cloud, or as on-premise software solutions.

     – N. Robert Hammer

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.