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This Week in Pricing > 5/30/15

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: SPA_logo_color LinkedIn 2

 

 

Strategic Pricing Associates

SPA is the leading provider of pricing analytics to 100′s of complex companies of all types: manufacturing, distribution, equipment, services, and software/technology products. The benefits are staggering; and they are typically accomplished in less than 90 days. Our typical client improves profitability by two to four percent of sales. SPA Clients include over 200 manufacturing companies including Parker HannifinRockwellGEExxon MobilCaterpillar as well as over 400 distributors including Harry Cooper Supply CompanyIndustrial Distribution GroupAH Harris, and ThermoFisher Scientific.

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Headlines

Do R&D Costs Matter When It Comes To Drug Pricing? | Forbes

Do R&D Costs Matter When It Comes To Drug Pricing? | Forbes

Avorn and Angell are focused on the wrong issue. When it comes to the pricing of new drugs, R&D costs are not the major driver. Nor should they be. The driver should be the value the drug brings to the healthcare system. Avorn is right to raise issues about drug costs. Recently, Actavis decided to […]

 

Practical Wisdom for Attorneys on Pricing and Price Shoppers | The National Law Review

Practical Wisdom for Attorneys on Pricing and Price Shoppers | The National Law Review

When attorneys come to me complaining of being shopped on price I tell them three things: Only 15 percent of people buy solely based on price, which means 85 percent of people take price into consideration but it’s not their only or even their most important consideration. The best thing you can do for your […]

 

Sale fail: Survey finds many items rarely sold at ‘regular’ price | KOMO News

Sale fail: Survey finds many items rarely sold at ‘regular’ price | KOMO News

SEATTLE — A 44-week survey of some well-known national stores suggests many items touted as being on sale are actually on sale virtually all the time and are rarely, if ever, sold at the so-called “regular” price. Beginning June of 2014, research teams from Checkbook.org tracked prices weekly for between 6 to 10 items each […]

 

J.C. Penney Sued for Never Charging Full Price | Money.com

J.C. Penney Sued for Never Charging Full Price | Money.com

The “original price” is a big fat lie. J.C. Penney has long been in the business of giving merchandise “fake prices.” That’s how Ron Johnson described the retailer’s pricing strategy when he took over as CEO in 2012, pointing out that less than 1% of store sales were for items at full original price. After […]

 

Ryanair is predicting an ‘irrational’ airline price war that could be great for customers | Business Insider

Ryanair is predicting an ‘irrational’ airline price war that could be great for customers | Business Insider

Budget airline tickets aren’t exactly expensive right now thanks to low oil prices, but Ryanair thinks the cost of flying could fall even further. Irish no-frills airline Ryanair reported its full-year results this morning, which revealed a 12% jump in revenue to €5.65 billion (£4 billion, $6.16 billion) and a 66% rise in profit after […]

 

Google fires first volley in new cloud pricing war | ZDNet

Google fires first volley in new cloud pricing war | ZDNet

Last year, we saw Amazon, Google, and Microsoft battle it out in a race to the bottom for cloud pricing. After a relatively quiet 2015, Google has restarted the transformation of cloud services to commodity priced services. Google stated that the company is reducing the prices of all Google Compute Engine Instance types. Indeed, Google […]

 

VIP buyers reject De Beers pricing strategy | IOL Business

VIP buyers reject De Beers pricing strategy | IOL Business

Diamond prices “De Beers has been too aggressive,” Anish Aggarwal, a partner at Antwerp-based industry consultant Gemdax, said. “You cannot sustainably price above the market and supply and demand fundamentals, and they’ve done that now for at least three quarters.” As De Beers raised its prices, the market has declined. Rough diamond prices fell 1.2 […]

 

Psychological Pricing Is Your Golden Ticket to Selling More | Shopify

Psychological Pricing Is Your Golden Ticket to Selling More | Shopify

You want to make money. That’s why you run a business. Whether you’re selling a product or a service—you’ll have to put a price on what you’re selling at some point. It isn’t easy to price something. It’s where a lot of business owners get stuck and put an arbitrary number on their product that just barely […]

 

The Ultimate Guide to the Psychology of Pricing | Inc.com

The Ultimate Guide to the Psychology of Pricing | Inc.com

When asked what he wishes he’d known before starting up, Neil Patel, co-founder of Web analytics start-up Crazy Egg, answered: “I wish I knew how to price test. When we first released the product, we based pricing based off of what we wanted to charge, versus optimizing price to achieve maximum revenue and profitability.” Chances […]

 

Beware of These Pricing Tricks Retailers Use to Fool Your Brain | Tech Blog

Beware of These Pricing Tricks Retailers Use to Fool Your Brain | Tech Blog

Retailers are darn good at inventing tricks to separate us from our money. Whether it be through the price points they choose, how they market their products, or their discounting techniques, they are experts at getting inside our brains and influencing our buying decisions. Here are a few of the most popular pricing tricks retailers’ […]

 

Are Free Trials Working For SaaS | SaaScribe

Are Free Trials Working For SaaS | SaaScribe

I love to follow the blogs of companies that help SaaS grow. One of these is analytics provider ChartMogul. On 5 May 2015 their post was an analysis of the pricing offers of their SaaS customers. Most of these customers are aiming at SME customers. The results make fascinating reading. The full post is worth […]

 

Art Business: How To Create A Master Price List | Forbes

Art Business: How To Create A Master Price List | Forbes

Creating a master price list is a must for any artist. This detailed inventory of your work and pricing will prove valuable in three areas: Sales: Sharing your master price list with collectors will validate your market, put your pricing in context and increase the likelihood of a sale. Archives: This list will serve as […]

 

A-share pharm firms to be supported by pending drug pricing reform | Xinhua Finance Agency

A-share pharm firms to be supported by pending drug pricing reform | Xinhua Finance Agency

China’s pending move to cancel restrictions on drug pricing will cast positive impact on the domestic pharmaceutical industry, according to a latest report by Moody’s. The drug pricing reform scheme, which is scheduled to take effect from June 1, 2015, is good for building sounder and healthier market-oriented pricing mechanism for medicines and will encourage […]

 

Name Your Own Price For A Plane Seat With This Brilliant New App | Conde Nast Traveler

Name Your Own Price For A Plane Seat With This Brilliant New App | Conde Nast Traveler

How much would you pay to upgrade your next flight? Online auction system Plusgrade lets you bid against other passengers for a better seat. But it’s not as simple as it sounds. Want to move from coach to business–and name your own price? Thanks to Plusgrade, that might actually be possible. Around 30 international airlines, […]

 

Get a consistent pricing strategy with Infocabs’ meter based, zone to zone and points of interest… | Medium

Get a consistent pricing strategy with Infocabs’ meter based, zone to zone and points of interest pricing system For a business to succeed and earn greater revenues, a flexible and consistent pricing system is one of the most important aspects. A flexible pricing system ensures that fares can be adjusted to suit the business needs […]

 

Take Care in Using Consumer Data to Drive Dynamic Pricing of E-Commerce | Data Privacy Monitor

Take Care in Using Consumer Data to Drive Dynamic Pricing of E-Commerce | Data Privacy Monitor

Dynamic pricing is the practice of offering different prices to consumers based on various factors designed to maximize sales and profits, which may include the retailer’s perception of the willingness of a particular consumer to pay at a given price point, often in connection with other factors such as a given point in time. Airlines […]

 

Supermarket pricing warning stepped up by Which? | BBC News

Supermarket pricing warning stepped up by Which? | BBC News

Consumer group Which? says it has uncovered more examples of misleading deals in UK supermarkets. It said it had found examples of offer prices being on the shelves for longer than the “normal price”. It also found a case in which the price of a box of tea bags increased despite there being fewer bags […]

 

Discussion: UK supermarkets dupe shoppers out of hundreds of millions, says Which? | The Guardian

Discussion: UK supermarkets dupe shoppers out of hundreds of millions, says Which? | The Guardian

The competition regulator is to scrutinise allegations that UK supermarkets have duped shoppers out of hundreds of millions of pounds through misleading pricing tactics. Which? has lodged the first ever super-complaint against the grocery sector after compiling a dossier of “dodgy multi-buys, shrinking products and baffling sales offers” and sending it to the Competition and […]

 

Glaxo unveils change in pricing strategy | Philly.com

Glaxo unveils change in pricing strategy | Philly.com

With a realistic pricing strategy, GSK will use its vaccine, over-the-counter health care, and prescription-drug divisions to “swim with” that global tide rather than against it, Witty said. “Going forward, the anxiety and pressure on this industry will only increase,” Witty said. “The ability of companies to achieve super-high prices, for product after product, in […]

 

What Is Strategy, Again? | HBR

What Is Strategy, Again? | HBR

If you read what Peter Drucker had to say about competition back in the late ’50s and early ‘60s, he really only talked about one thing: competition on price. He was hardly alone — that was evidently how most economists thought about competition, too. It was this received opinion Michael Porter was questioning when, in […]

 

Key Steps to Increasing Profitability Strategy— Determining Pricing Strategy | Weklar Business Institute

Key Steps to Increasing Profitability Strategy— Determining Pricing Strategy | Weklar Business Institute

Gain Pricing Power Pricing is always a conundrum. Price too high and you may lose business. Price too low and your profits decrease, and you can become a commodity that can lose business to a competitor that prices pennies less. In a financial downturn we find businesses revert to cutting prices to increase sales. It […]

 

Simple Pricing Strategy for Women Entrepreneurs | Kae Whitaker

Simple Pricing Strategy for Women Entrepreneurs | Kae Whitaker

Now if you look up pricing strategies online from some of these major universities they will give you a very outlined path of how you set up your pricing, but if you’re not a marketing professional you’re going to run into some terminology that you aren’t very familiar with, which is why I speculate so […]

 

The price is right, or Uber will raise it quickly | Livemint

The price is right, or Uber will raise it quickly | Livemint

One can’t help but admire Uber’s willingness to follow the basic logic of economics any place it happens to lead. Even to price gouging. Soaring prices after a natural disaster or during extreme weather are simply, economists would say, the market’s response to changing supply and demand, as disruptions make it harder to get some […]

 

SMUD: Time-of-use is the future of rate design | Utility Dive

SMUD: Time-of-use is the future of rate design | Utility Dive

A two-year pilot program testing time-of-use (TOU) rates has led officials at Sacramento Municipal Utility District to determine that variable pricing can help control peak loads and reduce the need for new generation. Ultimately, the utility decided, time-of-use should be made the default rate for all customers. A final evaluation of the company’s SmartPricing Options pilot […]

 

Cox Testing Usage-Based Pricing in Cleveland | Multichannel

Cox Testing Usage-Based Pricing in Cleveland | Multichannel

Cox said that the usage fees will affect less than 5% of its customer base and will offer users an alternative to stepping up to a higher-priced level of service. In addition, customers will see any additional usage fees on their bills beginning in June, but won’t actually be charged for them until the October […]

 

Peak I-10 toll price jumping to $10 | Houston Chronicle

Peak I-10 toll price jumping to $10 | Houston Chronicle

Toll rates on the Interstate 10 managed lanes will increase May 30 as officials seek to ease congestion by reducing use of the lanes during peak hours. The rates will go up by as much as $1.20 at each of the three tolling points along the 12-mile route. With the increase, the price of a […]

 

Strange Inheritances | Strategic Pricing Pays

Strange Inheritances | Strategic Pricing Pays

“How can poor pricing process impact customers?” Nobody complains about your prices being too low, correct? Maybe. However, they will question your integrity when they get different prices from your company depending on who they call. And, when quantity breaks are poorly administered, they will wonder what the real price should be. Further, if you […]

 

Pricer’s Points: Price Harmonization & Price Corridor | Rodney Gaviola, CPP, CPM

Pricer’s Points: Price Harmonization & Price Corridor | Rodney Gaviola, CPP, CPM

The bigger the customer (in terms of purchase) the lower the price (per unit). Your Sales Team will use the lowest price (from the biggest customer) to price the small customers If this is the situation that you are in, how do you manage it? Here are as few suggestions! 1st, Set a base price […]

 

Events

Webcast: How to Stop Undisciplined Discounting | SPA

When: June 3 2015 2:00 PM Eastern

Register to attend our webcast where Kevin Mero, MBA, PMP, Project Manager at Equipment Depot, will share their journey to pricing excellence and how they are leveraging science-based strategic pricing tools to stop undisciplined discounting. To implement a solution that enhanced profitability, developed pricing discipline, and removed emotion from the pricing […]

Conference: Strategic Pricing Conference | SPA

When: June 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 show is not selling, let’s raise prices!”

     – Ronda Helton

 

Pricing Resources

Explore our archives of valuable pricing resources including:

Tech Spotlight | Strategic Pricing Associates (SPA)

SPA is the leading provider of pricing analytics to 100’s of complex companies of all types: manufacturing, distribution, equipment, services, and software/technology products. Since 1993, we’ve built a strong platform of proprietary analytics to quickly and efficiently help companies convert their own invoice data into pricing architectures that maximize their pricing performance and competitive position. […]

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.

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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.

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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.

 

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