This Week in Pricing > 6/10/17

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.

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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…

 

Top Headlines

Surge pricing comes to the supermarket | The Guardian

Surge pricing comes to the supermarket | The Guardian

It also perhaps has the potential to offer a glimmer of hope for the beleaguered high street. Shops are all too aware of the habit of “showrooming”, by which customers look at products in stores before going home and browsing the best deals for them online. Electronic price-tag systems can not only track online prices, […]

 

How Economics 101 Impacts Your Firm | Kitchen Bath Design

How Economics 101 Impacts Your Firm | Kitchen Bath Design

The demand side of this law tells us that the demand for a product or service is inversely proportional to its price. Which, simply stated, means that the less something costs, the more of it people will buy and, conversely, the more something costs, the less of it people will buy. On the supply side, […]

 

Uber under fire for surge pricing following London Bridge terror attack before removing ‘automatic increase and refunding passengers’ | Mirror

Uber under fire for surge pricing following London Bridge terror attack before removing ‘automatic increase and refunding passengers’ | Mirror

Uber has been branded “absolutely disgusting” after automatic surge pricing remained in place following the London Bridge terror attack before removing it. Outraged customers accused the company of profiting from the horrifying attack that killed seven people and left 48 wounded. The firm, which allows riders to hail cabs with their smartphones, said the surge […]

 

Amazing new approach to pricing, and how to achieve immediate behavior change! | Anders Christian Hjort

Amazing new approach to pricing, and how to achieve immediate behavior change! | Anders Christian Hjort

A journalist in Nice stopped by the local Restaurant le Petite Syrah and snapped a picture of its menu board. It outlined a very specific set of rules for how coffee would be priced. Say, “Hi, a coffee, please,” and your espresso will cost about $2, a typical price in France. A customer who doesn’t […]

 

Mylan chairman: Drug pricing critics ought to go copulate with themselves | Ars Technica

Mylan chairman: Drug pricing critics ought to go copulate with themselves | Ars Technica

Some pharmaceutical companies are troubled by stratospheric drug prices. Several have vowed to limit price hikes, for instance. And the powerful drug lobbying group PhRMA is at least trying to distract consumers’ attention away from price gouging by dangling shiny advertisements about their life-saving research. But there are some companies that just don’t care. Mylan […]

 

Baltimore sues companies in alleged water treatment chemical pricing conspiracy | Baltimore Sun

Baltimore sues companies in alleged water treatment chemical pricing conspiracy | Baltimore Sun

Baltimore sued 18 chemical manufacturers in federal court Monday, alleging that the city fell victim to a conspiracy designed to drive up the cost of the water treatment chemical alum over the course of a decade and a half. The lawsuit seeks at least $5 million in compensation. The FBI and federal prosecutors have been […]

 

SPOSEA Announces the Immediate Availability of the BrightPrice DealManager Solution Suite on SAP® App Center | SPOSEA

SPOSEA Announces the Immediate Availability of the BrightPrice DealManager Solution Suite on SAP® App Center | SPOSEA

SPOSEA, a privately held company and software innovator in price optimization and management for the ERP and e-commerce software market, today announced the immediate availability of the BrightPrice DealManager solution suite on SAP® App Center through self-service, digitally enabled purchasing methods. The BrightPrice DealManager suite of price management tools achieved SAP certification as powered by […]

 

The Math, Psychology, and Technology Behind Effective Retail Prices | Vend Retail Blog

The Math, Psychology, and Technology Behind Effective Retail Prices | Vend Retail Blog

“How much does this cost?” If you work in retail, you probably hear that question several times a day. People care a great deal about product prices — and in many cases, an item’s price is a deciding factor in their purchase decisions. This is why it’s so important to get your prices right. You […]

 

Pricing innovation | Canadian Lawyer

Pricing innovation | Canadian Lawyer

For some years, I have used the analogy of building a house as to the fallacy of not providing a budget/estimate of the cost, passing along efficiencies and fixed-fee certainty over the hourly rate. However, Headon provided me with an analogy that provided even greater clarity as to the need for innovation in both pricing […]

 

More Headlines

Various Seats At Different Fare, Narayan | Fiji Sun

Various Seats At Different Fare, Narayan | Fiji Sun

I know a regular comment is about our fares and how they are structured. Why different seats on the same aircraft have different prices. And why fares for a flight coming up in two days are higher than fares on flights two months away.” “Airlines use a system of revenue management where they sell various […]

 

The Realistic Guide to Pricing Indie Game Marketing | Gamasutra

The Realistic Guide to Pricing Indie Game Marketing | Gamasutra

Pricing a Foundational Indie Game Marketing Plan All indie games do at least these 6 marketing projects prior to launch: Branding, trailer, website, social media, devblog, and PR. Pretty much in that order, too. Granted, there’s countless other game marketing tactics that could be used for your games, we’re going to stop there for the […]

 

Vattenfall plans aggressive green power pricing to woo large corporates | theenergyst.com

Vattenfall plans aggressive green power pricing to woo large corporates | theenergyst.com

Vattenfall will compete aggressively on price as it looks to take large electricity customers away from established business market energy suppliers. The firm announced plans to enter the UK business to business (B2B) market last month and is now negotiating terms with a number of large industrial and commercial power users, according to James Hunt, […]

 

11 SaaS Pricing Hacks backed by Psychology – The Startup | Medium

11 SaaS Pricing Hacks backed by Psychology – The Startup | Medium

Use Round Numbers → Round Pricing Preference Use round dollar numbers and slip in the number 9 if possible. Why? Evidence has recently built a case for people preferring to spend more on rounded dollar prices, a counter-intuitive take on the “99c” store. There’s also buzz around the magic of the number 9. Use Tiered […]

 

Aramco Raises Crude Pricing to U.S. and Asia on Increased Demand | Addiyar

Aramco Raises Crude Pricing to U.S. and Asia on Increased Demand | Addiyar

Saudi Arabia, the world’s largest oil exporter, raised pricing for July sales of all crude grades to Asia, the U.S. and Northwest Europe as it seeks to take advantage of increased demand after suppliers extended production cuts to help curb a global glut. State-owned Saudi Arabian Oil Co., known as Saudi Aramco, increased official pricing […]

 

To survive as a brick-and-mortar retailer today? Value pricing and experiences are key | REJournals.com

To survive as a brick-and-mortar retailer today? Value pricing and experiences are key | REJournals.com

Value-oriented Schrader points to The Mayfair Collection, a 62-acre mixed-use retail, restaurant and residential development that HSA Commercial developed in Wauwatosa, Wisconsin. One of the retailers thriving here is Nordstrom Rack. Schrader said that this retailer is doing well because it offers a selection of high-quality products that rotates on a regular basis. It also […]

 

Digital Home Assistants Are a ‘Terrible’ Market for Apple, Says This Bearish Stock Analyst | TheStreet

Digital Home Assistants Are a ‘Terrible’ Market for Apple, Says This Bearish Stock Analyst | TheStreet

Apple Inc.’s (APPL) new HomePod assistant, and the company’s drive into services revenue, could weaken its ability to raise iPhone prices over the longer term, according to one of the few research firms without a buy rating on the world’s biggest tech company. Apple unveiled its newest piece of hardware — the first since the […]

 

Weekend Project: Real World AirBnB Data Science and Pricing Bot | Berlin Buzzwords

Weekend Project: Real World AirBnB Data Science and Pricing Bot | Berlin Buzzwords

This tutorial is motivated by the speaker’s own experience–he has a spare apartment and a guest apartment in the Logan Square neighborhood of Chicago that he began renting on Airbnb.  Trapped indoors throughout the savage Chicago winter, he spent his time building a bot that seeks to optimize the listing price and apartment description for […]

 

EpiPen Not Overpriced, Despite New York Times Complaint | Reason.com

EpiPen Not Overpriced, Despite New York Times Complaint | Reason.com

Yet consider that for $609, or, for about 90% of people, less than $100 out of pocket, the company is offering a year’s worth of access to potentially life-saving medicine, in a reliable delivery system. Compare that to the pricing of The New York Times: $1,014 for a yearlong seven-day-a-week home delivery subscription to a […]

 

It’s back: New York City looks at congestion pricing again | New York’s PIX11

It’s back: New York City looks at congestion pricing again | New York’s PIX11

CITY HALL, Lower Manhattan — It’s a phrase that’s been in political mothballs for nearly a decade, but congestion pricing was back out in a public hearing here on Monday, and it still strikes fear into the hearts of some motorists. However, the 2017 version of the proposal that would charge motorists a toll to […]

 

How To Take The Headache Out Of Pricing Baked Goods | ShopKeep

How To Take The Headache Out Of Pricing Baked Goods | ShopKeep

For anyone new to the bakery business, figuring out how to price baked goods can be tricky. While some wedding cake bakeries might manage to charge hundreds (if not thousands) of dollars for layers of cake and frosting, most have more modest pricing. We know it might be tempting to simply compete with other local […]

 

How we used tiered pricing to quickly increase revenue 25% | Videofruit

How we used tiered pricing to quickly increase revenue 25% | Videofruit

When we first launched 10ksubs, there was not much strategy involved in pricing my program. Pricing is one of those things that you can mull over for so long that you never ship your product. It can easily turn into a fancy form of procrastination. Remember, you are setting your prices up to be used […]

 

Dhaka presses for fair prices | Independent

Dhaka presses for fair prices | Independent

Bangladesh has pressed for better prices for its readymade garment products for further improvement of the situation with regards to the rights of workers and their safety at workplaces. “When you talk about improvement, you also keep in mind the issue of the fair pricing,” Commerce Minister Tofail Ahmed said at the conclusion of the […]

 

Deposit insurance in India: Why risk-based pricing model must be introduced | The Financial Express

Deposit insurance in India: Why risk-based pricing model must be introduced | The Financial Express

The global financial crisis underscored the importance of having a robust deposit insurance system (DIS) for the banking system across the world. A 2014 IMF paper estimated that nearly 112 countries (59% of 189 countries covered in the study) had a DIS. It was in 2008, that Australia and New Zealand introduced guarantees for the […]

 

Kroger’s Columbus division drops prices on 3,000 products | Supermarket News

Kroger’s Columbus division drops prices on 3,000 products | Supermarket News

As May rolled into June, Kroger’s Columbus division announced “the largest one-year price investment in the company’s history.” A multimillion dollar campaign, the initiative is “designed to provide customers with more for their grocery dollar, including savings on high-quality, affordable Kroger-brand products,” according to a company press release. The Ohio-based store offers private label products […]

 

Build Your Brand for Premium Pricing | Psychology Driven Brand Strategist

Build Your Brand for Premium Pricing | Psychology Driven Brand Strategist

Offering an online product or service puts you on the front lines of an all-out price war… and if you’ve put in your time, you’re probably BEYOND ready to climb the ranks (and make more money). I hear ya. Increasing your pricing is an anxiety-inducing process. “Will people be willing to pay what I’m asking […]

 

De Blasio won’t back congestion pricing plan to reduce gridlock | NY Daily News

De Blasio won’t back congestion pricing plan to reduce gridlock | NY Daily News

“There’s not been any consideration of congestion pricing, so long as the current political alignment in Albany exists,” de Blasio said at an unrelated news conference in Queens. “That is a hard reality, so I’m not putting time and energy into something that’s not going to happen.” Legal wrangling aside, his transportation commissioner, Polly Trottenberg, […]

 

Best Buy Defies Retail Doldrums, Posting Higher Sales | WSJ

Best Buy Defies Retail Doldrums, Posting Higher Sales | WSJ

To fend off digital competition, Best Buy gave up efforts to charge consumers more in stores than online. It promised in 2013 to match online competitors’ prices and brought its prices in line with Amazon’s—a move that has paid dividends now that shoppers can instantly check prices on their smartphones. The price guarantee made a […]

 

‘Double’s a little outrageous’: Western Canadian Blue Jays fans decry ticket prices for Mariners series | CBC News

‘Double’s a little outrageous’: Western Canadian Blue Jays fans decry ticket prices for Mariners series | CBC News

Prices range from $30 to $600 US for each of the upcoming Mariners games against the Blue Jays this week. Compared to Mariners games against other teams, prices are, in some instances, double. “Market forces determine what the price will be,” said Mariners spokesperson Rebecca Hale. Hale is talking about “dynamic pricing,” a system most teams in the […]

 

When pricing your work, think like a customer | Sprouting Photographer

When pricing your work, think like a customer | Sprouting Photographer

How about getting gas? Some people will drive around endlessly to save a few cents per gallon or litre (depends where you live), while others are more interested in convenience and customer experience. They will stick to the same gas station regardless of price, because they have a relationship with the owner inside. Perhaps they […]

 

How to Turn Online Data into a Pricing Strategy That Works | Knowledge@Wharton

How to Turn Online Data into a Pricing Strategy That Works | Knowledge@Wharton

Knowledge@Wharton: Is there a clear indication of how companies should be playing with price based on how someone is monitoring price? Moon: Those are exactly some of the issues that we wanted to explore in this research. One of the interesting things that we found is that, even in this very informationally rich space, sometimes […]

 

Apple intros ‘HomePod’ wireless speaker – announces release date and pricing | Hidden Wires

Apple intros ‘HomePod’ wireless speaker – announces release date and pricing | Hidden Wires

When will Apple release HomePod? Apple HomePod will be available starting in December, initially in Australia, the UK and the US – potentially to be followed by other countries in 2018. Apple say it will launch at a price of $349 (roughly £270) in the US, with official pricing for Australia and the UK will […]

 

How to Better Manage Food Costs and Menu Pricing | Restaurant Engine

How to Better Manage Food Costs and Menu Pricing | Restaurant Engine

The best way to balance your menu is to know what items are more prone to price fluctuations and surround them on your menu with the more stable menu items. Know How to Price Your Menu Menu pricing is an art and to do it right, you have to know the food costs. Knowing how […]

 

CSRxP launches campaign in Colorado to hold big pharma accountable for out-of-control drug prices | Rocky Mountain Post

CSRxP launches campaign in Colorado to hold big pharma accountable for out-of-control drug prices | Rocky Mountain Post

The Campaign for Sustainable Rx Pricing (CSRxP), a broad-based coalition of leaders from every sector in healthcare, launched a campaign in Colorado and nationally as part of a multi-million-dollar effort to hold Big Pharma accountable for the rising prices of prescription drugs. Because Big Pharma blocks competition to maintain monopolies on medicines, they can set any price they […]

 

FDA Commissioner Hints at Drug Pricing-Related Initiatives | Health Law & Policy Matters

FDA Commissioner Hints at Drug Pricing-Related Initiatives | Health Law & Policy Matters

During his first appearance before Congress as FDA Commissioner on May 25, 2017, Scott Gottlieb reported that the Agency is preparing a “Drug Competition Action Plan” that it will unveil in upcoming weeks and months. This was likely welcome news to many politicians from both parties, as well as to President Trump, who has publicly shamed pharmaceutical […]

 

Time and material vs Fixed price: hot discussion of the best pricing model | Cleveroad

Time and material vs Fixed price: hot discussion of the best pricing model | Cleveroad

Giving your money to someone is always difficult, at least for me. When I open my wallet I have to be sure that I get the best quality for this money. However, the variety of services, goods and payment methods is vast, so sometimes I really get confused. The same goes for here, in the […]

 

I Spent a Week Yak Shaving Instead of Running a Pricing Test | Cory Zue

I Spent a Week Yak Shaving Instead of Running a Pricing Test | Cory Zue

Differentiating your yaks The key to differentiating your yaks involves asking one simple question: Is there any way to achieve my primary goal without doing this task? That’s it! If the answer is “yes” then don’t do the task. If the answer is “no” then do it. It’s that simple. In my case there was […]

 

Bullock vetoes health-care price transparency bill | KPAX.com

Bullock vetoes health-care price transparency bill | KPAX.com

“Obviously transparency (of prices) is part of the long-term solution to reduce costs in health care,” he said Monday. “Without doing that, we don’t have a lot of hope of reducing the cost of health care.” The bill passed by fairly wide margins in the House and Senate. Legislators will be polled to see if […]

 

Surge pricing goes universal: some effects | Nouslife

Surge pricing goes universal: some effects | Nouslife

Downsides not mentioned: this would blow a hole in rpi calculations and render difficult or impossible inflation calculations and thus problematise things like index-linked pensions or other payments relying on rpi systems (note the comment in the article “Increasingly, there is no such thing as a fixed price from which sale items deviate”). There’s an […]

 

The 3 Mindset Shifts That Will Make Your Pricing Twice As Profitable | ACCOA

The 3 Mindset Shifts That Will Make Your Pricing Twice As Profitable | ACCOA

Pricing is something that most accountants struggle with… They’re stuck using ‘old-fashioned’ models that are damaging for their profits, and their time. One of the reasons you’re stuck with your current pricing model – is because of your mindset. If you don’t change this mindset, then you’ll find yourself left behind in the ‘old way’ […]

 

Is Your Business Unknowingly Engaged in Deceptive Pricing | NCR Silver

Is Your Business Unknowingly Engaged in Deceptive Pricing | NCR Silver

Making comparisons to former prices What the guidelines say: One of the most common ways to advertise discount pricing is to offer a discount based on your own pricing. That’s legitimate, as long as you do it honestly. The former price must be one that the product was actually sold to the public for, and […]

 

 

 

Featured Content and Events

Book: 8 Keys to Price Optimization

Book: 8 Keys to Price Optimization

Summary: Price optimization enables companies to move beyond cost-plus pricing and determine the range of prices that could be charged for a variety of customers and products. Price optimization can increase current operating income by 1 to 4% of sales, which in many cases will translate into a 20 to 50% increase in operating income. The most sophisticated […]

 

 

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…

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“People want economy and they will pay any price to get it.”

     – Lee Iacocca

 

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