OnDemand WTP Pricing Research

This Week in Pricing > 6/13/15

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: 

 

 

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…

Headlines

Restaurants should eat egg price increases | CNBC

Restaurants should eat egg price increases | CNBC

Pricing strategy is a daunting managerial task in virtually every industry segment. Price your product too high and risk losing customers; price your product too low and erode your bottom line. Although competitive strategists teach techniques that can maximize profits without jeopardizing client retention, there are always external, unforeseeable forces that can affect the profitability […]

European oil majors call for carbon pricing scheme | Pipeline Magazine

European oil majors call for carbon pricing scheme | Pipeline Magazine

Six of the world’s biggest oil and gas companies, have called on governments around the world and to the United Nations Framework Convention on Climate Change (UNFCCC) to introduce carbon pricing systems. In a joint letter to the UNFCCC Monday, the chief executives of BG Group, BP, Eni, Shell, Statoil and Total said that they […]

 

What’s a Chief Value Officer and How Can It Give You a Competitive Advantage? | QuickBooks

If everyone owns something, no one does. No one has an incentive to protect and maintain the value of the asset in question. Think public facilities. Pricing is far too important to the viability of the company to be left to mediocre pricers. No other area—not cost cutting, efficiency increases or growth—can have as large […]

 

Of Course Disney Should Use Surge Pricing at Its Theme Parks | HBR

Of Course Disney Should Use Surge Pricing at Its Theme Parks | HBR

Having a lower price option – as part of a surge pricing strategy – provides a great rebuttal to potential pushback on premium prices: “Yes, we’ve raised prices on popular days, but you now have the option to visit at a much lower price on certain days.” Framing pricing options in this manner makes a […]

 

Here are 7 tips for pricing freelance work | Michael Jones

Here are 7 tips for pricing freelance work | Michael Jones

6. Use pricing factors extensively. (I’m going to do a longer post on just this topic) This comes back to the idea of a commission versus a commodity. You can’t give an appropriate price estimate without knowing what’s involved in the production. Some price factors include: Length Level of complexity The role of characters Turn […]

 

OPEC’s Pricing Leverage Is Weakening | WSJ

OPEC’s Pricing Leverage Is Weakening | WSJ

OPEC expected to leave crude oil output unchanged, showing how cartel’s power to sway prices has ebbed This week’s meeting of the world’s oil cartel will show how much its power has diminished amid sweeping changes in the global energy market. Oil prices have plummeted in the past eight months because of a half-decade surge […]

How Your Company’s Pricing Strategy Affects Your Marketing Plan | SmartBug Media

How Your Company’s Pricing Strategy Affects Your Marketing Plan | SmartBug Media

It might be safe to say that cost is a key factor when it comes to purchasing a product or service from a company. Now this naturally depends on the product or service and what it will do for someone, but it’s something in the back of everyone’s mind when going through the purchasing process. […]

 

Big data is coming for your purchase history – to charge you more money | The Guardian

Big data is coming for your purchase history – to charge you more money | The Guardian

Are you ready for a gas station to charge you more when you are running late or your tank is empty? Laws against price gouging typically apply in times of emergencies, for example after Hurricane Katrina. Most of the time there are no rules that limit price discrimination, and there are certainly no laws against […]

 

Pay as you go road pricing coming to the USA | Telegraph

Pay as you go road pricing coming to the USA | Telegraph

Millions of American motorists face being taxed according to how far they drive. Road pricing, which was considered and then ditched by the last Labour government, is being resurrected in Oregon. A pilot study involving 5,000 motorists starts next month. If successful, detailed plans will be brought before Oregon’s state legislature within two years. Volunteers […]

 

Does the Price of Your Product “Feel Right” to Consumers? | Brooks Bell

Does the Price of Your Product “Feel Right” to Consumers? | Brooks Bell

In a competitive environment, determining the optimal price for a product or service is a complex business problem—and it’s made more difficult by the reality consumers struggle to determine or remember the price of common products. This challenge has been exploited for our entertainment on The Price is Right for decades, but it can be a […]

 

Why You Suck at Charging Clients and What To Do About It | Rob Cubbon

Why You Suck at Charging Clients and What To Do About It | Rob Cubbon

What you can do Do you perform a service that can be charged out to multiple clients? If so, write down details of service packages that can be provided, similar to the “bronze”, “silver” and “gold” packages in the table above. And then think of the price it would be considering the “nightmare scenario” of […]

 

Think of Pricing as One Element of Persuasion (Video) | Inc.com

Think of Pricing as One Element of Persuasion (Video) | Inc.com

Valerie Casey, founder of The Designers Accord, talks about how data and pricing play into the equation for determining a product’s value. Read complete article here: Think of Pricing as One Element of Persuasion | Inc.com.

Jets To Implement Dynamic Pricing For Season-Tickets; Browns Also Change Pricing Model | SportsBusiness Daily | SportsBusiness Journal | SportsBusiness Daily Global

Jets To Implement Dynamic Pricing For Season-Tickets; Browns Also Change Pricing Model | SportsBusiness Daily

The NFL Jets have informed season-ticket holders that they will be “using a variable-pricing plan for home games this season,” according to Kimberley Martin of NEWSDAY. The team “utilized variable pricing for individual game tickets last season, but this is the first time they’re using it … Read complete article here: Jets To Implement Dynamic […]

 

Controversy brewing around hospital pricing legislation | Boston Business Journal

Controversy brewing around hospital pricing legislation | Boston Business Journal

One of the state’s most prominent unions is looking to upend the health care applecart with a legislative proposal that would regulate the prices negotiated between insurers and hospitals. The bill, filed in the Massachusetts Senate by State Sen. Benjamin Downing with the support of health care workers union 1199SEIU, seeks to create a range […]

 

Who pays for hospitals’ high prices? | Marketplace.org

Who pays for hospitals’ high prices? | Marketplace.org

A new Johns Hopkins University study published Monday in the journal Health Affairs says that a number of mostly for-profit hospitals are charging certain groups of patients ten times the rates paid out to Medicare for the same procedures. The key thing to understand in the realm of hospital pricing is negotiation, or rather, the […]

 

GSK responds to MSF’s plea with pricing explanation–no discount | FierceVaccines

GSK responds to MSF’s plea with pricing explanation–no discount | FierceVaccines

In countries that are eligible for pricing through the vaccine alliance GAVI, GSK said it is providing the vaccine at a “deeply discounted price,” adding that it is just covering costs with the pricing. “To discount it further would threaten our ability to supply it to these countries in the long-term,” GSK said in a […]

 

New Study Offers Drug Pricing Lessons from Abroad, Urges Changes in U.S. | California Healthline

New Study Offers Drug Pricing Lessons from Abroad, Urges Changes in U.S. | California Healthline

A new study that compares drug prices in four countries finds that “pharmaceutical prices in the United States are extraordinarily high and have contributed to an unsustainable level of spending on drugs.” The study from the Institute for Health Policy points out that other countries such as Germany, the United Kingdom and Australia, have governmental regulations […]

 

Data-based Digital Media Product Pricing | Piano Media

Data-based Digital Media Product Pricing | Piano Media

Further pricing has a direct impact on subscribers’ decisions to renew, as our analysis shows that higher prices tend to have lower retention rates, although not in all cases and not for all price rises. A price increase could well have no impact upon retention and yield positive revenue. Therefore, we strongly recommend A/B testing […]

 

Could Global Pricing Alignment Backfire?  | Business of Fashion

Could Global Pricing Alignment Backfire? | Business of Fashion

PARIS, France — Chanel’s announcement back in March that it was increasing prices in Europe by 20 percent, and decreasing them in China by a similar amount, raised many an eyebrow in the luxury industry. Ostensibly, the move was made to “align” prices in anticipation of a global e-commerce push. In the context of the euro’s […]

 

Everything You Need to Know About Pricing a New Product or Service | Invoiceberry Blog

Everything You Need to Know About Pricing a New Product or Service | Invoiceberry Blog

Whether you’re a new business launching your first ever product or service, or simply adding a new addition to your range of products or services, pricing is one of the most crucial aspects. It closely ties in with your production and marketing, which helps determine the price you need to set. The right price can […]

 

J.C. Penney Pricing Lawsuit Could Be Big Trouble For Discounters | Seeking Alpha

J.C. Penney Pricing Lawsuit Could Be Big Trouble For Discounters | Seeking Alpha

If the suit succeeds and Penney’s is forced to drop price anchoring, it could be left without a business strategy. Spann could hurt other struggling retailers by forcing them to abandon anchor pricing or to adopt more realistic prices, which could make merchandise less attractive to bargain hunters. Practice Hard to Prove To succeed, Zevin […]

 

Florida Is the Nation’s Capital for Hospitals That Price Gouge Patients | Miami New Times

Florida Is the Nation’s Capital for Hospitals That Price Gouge Patients | Miami New Times

For patients with good insurance accepted by the hospital, this means little to their out-of-pocket cost. Their insurance companies have likely already negotiated a lower price. It’s the uninsured who wind up at these hospitals that end up getting gouged. Patients who end up at these hospitals with insurance premiums that do not include these […]

 

Events

When: June 24, 2015

Where: Palo Alto, CA at the Four Seasons Hotel

We cordially invite you to our 16th Silicon Valley Pricing Forum. Simon-Kucher & Partners is “the world leader in giving advice to companies on how to price their products” (BusinessWeek). Our projects have helped clients across a wide range of industries to achieve significant improvements in profitable growth. Build connections with fellow senior leaders in […]

Webcast: Improving Margins Through a More Strategic Approach to Pricing | SPA

When: July 15 2015 2:00 PM Eastern

Register to attend our webcast where a SPA client will share their journey to pricing excellence and how they are leveraging science-based strategic pricing tools to improve margins through a more strategic approach to pricing. To implement a solution that enhanced profitability, developed pricing discipline, and removed emotion from the […]

Webcast: Increasing Prices and Margins Without Sacrificing Sales Volume | SPA

When: August 12 2015 2:00 PM Eastern

Register to attend our webcast where a SPA client will share their journey to pricing excellence and how they are leveraging science-based strategic pricing tools to increase prices and margins without sacrificing sales volume. To implement a solution that enhanced profitability, developed pricing discipline, and removed emotion from the pricing […]

Webcast: How to Change the Pricing Culture in Your Company | SPA

When: September 23 2015 2:00 PM Eastern

Register to attend our webcast where a SPA client will share their journey to pricing excellence and how they are leveraging science-based strategic pricing tools to change the pricing culture in their company. To implement a solution that enhanced profitability, developed pricing discipline, and removed emotion from the pricing […]


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

– – – – – – – – – – – –

“Pricing decisions are not easy to make; they are often inherently ‘soft’.”

     – William E. Johnson

 

Pricing Resources

Explore our archives of valuable pricing resources including:

Blog: Situational Pricing – Lessons from the Super Bowl and Uber | Strategic Pricing Solutions

Uber’s surge pricing received more attention last week with the large snow storm in the Northeast, when Uber agreed they would not “gouge” consumers.  Prices would be higher than normal, but would not be excessive.  Conversely, tickets to the Super Bowl on the secondary market were higher than ever.  This past weekend, tickets in the […]

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.

 

 

2 Comments on "This Week in Pricing > 6/13/15"

Trackback | Comments RSS Feed

Post a Comment

WP-SpamFree by Pole Position Marketing