This Week in Pricing > 6/17/17

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.

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Top Headlines

OLA cheating Customers with their different pricing strategy | PC Tablet

OLA cheating Customers with their different pricing strategy | PC Tablet

Ola and Uber are the best leading cab aggregator services in India. These not just made it easy for the people in commute, but also made it hassle free without any bargain or having to wait for a long time to get a ride. Though the pricing is quite affordable, the Surge pricing is something that comes […]

 

Broadway Tickets, for the Price of an Economics Lesson | The New York Times

Broadway Tickets, for the Price of an Economics Lesson | The New York Times

With the Tony Awards coming on Sunday night, I decided this week that I’d better bite the bullet and buy tickets to “Hello, Dolly!” in case Bette Midler wins best actress and tickets become even more scarce and expensive. I knew the tickets would be steep. Thanks to what’s known as dynamic pricing, in which […]

 

Can’t afford those pricey Broadway tickets? Dynamic pricing may be the reason why [VIDEO] | CNBC

Jim Stewart, The New York Times, talks about the dynamic pricing economy for tickets not just for sporting events and airline travel, but for Broadway shows. Read complete article here: Can’t afford those pricey Broadway tickets? Dynamic pricing may be the reason why.

 

Uber’s New Pricing Scheme Weaponizes Big Data | Inc.com

Uber’s New Pricing Scheme Weaponizes Big Data | Inc.com

While few people are likely to object to rich folk paying more than poor folk, Dave Sutton, of the public safety campaign Who’s Driving You? points out that “Uber’s new pricing scheme weaponizes its access to data against customers. It could be used to overcharge airport passengers late at night, the less-privileged in transportation deserts, […]

 

Apple allowing retailers to slash pricing on older iPhones to gain traction in India | nyoozy

Apple allowing retailers to slash pricing on older iPhones to gain traction in India | nyoozy

The business realities of India as a market have pushed Apple to allow authorized vendors to cut prices dramatically in India on older phones, dating as far back as the iPhone 5. A report on Monday morning from Bloomberg, citing market research studies, claims that the iPhone 5S, and other older iPhones, make 55 percent […]

 

Pfizer investors slam new price increases as ‘out of step’ with its Big Pharma rivals | FiercePharma

Pfizer investors slam new price increases as ‘out of step’ with its Big Pharma rivals | FiercePharma

A host of Big Pharmas have either promised to limit their price hikes or opened up info on their increases and rebates. But Pfizer isn’t one of them—and that has some investors riled. In the wake of a new round of price hikes reported by the Financial Times, investor members of the Interfaith Center on […]

 

The Only Lesson You Really Need to Learn About Pricing | Inc.com

The Only Lesson You Really Need to Learn About Pricing | Inc.com

My contract wasn’t a fixed period; it was just a simple time and materials contract. Although I thought I had done a good thing by increasing my charge rate by 25 percent, from $800 to $1000, I had completely undervalued the service that I had provided. If I had received just 1 percent of the […]

 

Surge pricing transparency: a tale of two users – Uber Screeds | Medium

Surge pricing transparency: a tale of two users – Uber Screeds | Medium

Uber’s surge pricing algorithm assesses a premium on the price that passengers pay, and the wages that drivers earn. Uber’s general policy is that if a passenger pays 2x the cost of a fare, the driver earns 2x in wages. However, a recent email conversation between an Uber driver and an Uber Customer Support Representative […]

 

“Luxury” versus “discount” pricing and the meaning of the number 9 | Sociological Images

“Luxury” versus “discount” pricing and the meaning of the number 9 | Sociological Images

I discovered a nice gem of an insight this week in an article called The 11 Ways That Consumers Are Hopeless at Math: the symbolism of the number 9. We’re all familiar with the convention of pricing items one penny below a round number: $1.99 instead of $2.00, $39.99 instead of $40.00, etc. Psychologically, marketers know […]

 

 

More Headlines

Prices of petrol, diesel to change daily from June 16 | Star of Mysore

Prices of petrol, diesel to change daily from June 16 | Star of Mysore

Mysuru: The ‘dynamic’ daily pricing of fuel that had been introduced as a pilot project in a few cities in the country from May 1, will come into effect in the whole country from June 16. The consumers throughout the country will pay a different price for petrol and diesel every day, according to the […]

 

Xbox One S prices reduced ahead of Xbox Scorpio E3 2017 reveal | Tеchnеws Spy

Xbox One S prices reduced ahead of Xbox Scorpio E3 2017 reveal | Tеchnеws Spy

Prices of the Xbox One S have been reduced by as much as $50 ahead of the Xbox Scorpio E3 2017 reveal. We are not sure if the prices of the Xbox One S have been reduced permanently or a temporary one. Considering the number of deals that are being offered with Xbox One S […]

 

 

Airfares: Government mulls analytics tool to provide price trends | The Economic Times

Airfares: Government mulls analytics tool to provide price trends | The Economic Times

NEW DELHI: The government is mulling having an analytics tool that will provide future ticket price trends for the travellers, amid lingering concerns over steep fluctuations in airfares. Historical data analysis as well as “price curves with predictive data analytics” are proposed to be utilised to have a long term picture about airfare trends in […]

 

Blue Jays fans accuse Mariners of price gouging Canadians flocking to Safeco Field | MYNorthwest

Blue Jays fans accuse Mariners of price gouging Canadians flocking to Safeco Field | MYNorthwest

“So for fans that live in Western Canada … British Columbia, Alberta, Saskatchewan, Manitoba even, [Seattle is] one of the easiest places for them to see them.” But Pawson says this year, he’s getting an earful from Canadian fans who are complaining that they found ticket prices for the series have gone way up. In […]

 

Dynamic pricing for fuel a blessing for us: Motorists | Times of India

Dynamic pricing for fuel a blessing for us: Motorists | Times of India

CHANDIGARH: When it comes to tricity, fuel prices are the cheapest in Chandigarh – all thanks to dynamic fuel pricing. The UT is among the five cities that have been selected by the Centre for the fuel pricing concept which was introduced on a pilot basis from May 1. More than a month on, consumers […]

 

Dynamic pricing: Petrol dealers to go on strike from June 15 | The Tribune

Dynamic pricing: Petrol dealers to go on strike from June 15 | The Tribune

The traders are protesting the decision of the public sector oil marketing companies (OMCs) to revise the prices of petrol and diesel on daily basis from June 15. The interim committee of the association, under the presidentship of Manjit Singh, termed the dynamic pricing as hasty and ill-planned decision at a meeting here today. The […]

 

Ecommerce Company Introduces Surprise-Free Pricing | news.sys-con.com

Ecommerce Company Introduces Surprise-Free Pricing | news.sys-con.com

Imagine the logoed pens sitting on the receptionist desk at the doctor’s office or the custom Frisbees and keychains you see at a local festival. Those are all promotional products, and the industry is another key offender continuing to hide costs from customers. Quality Logo Products is standing against this unfair pricing strategy with No […]

 

The rot in farming: on farmers agitation and sustainable pricing for their produce | The Hindu

The rot in farming: on farmers agitation and sustainable pricing for their produce | The Hindu

The problem is price discovery. In fact, there is deflation in pulse and vegetable prices. The RBI has acknowledged that already falling vegetable prices dipped more sharply because of ‘fire sales’ following demonetisation, and pulses are cheaper because of high output on top of imports. Prices for eggs, oils, cereals and milk are moderating, and […]

 

How Can Electricity from solar energy Become Even Cheaper? | Latest Solar News

How Can Electricity from solar energy Become Even Cheaper? | Latest Solar News

At the start of mass production of electricity from sunlight, discussions on solar electricity prices have never been arrested. The main focus is electricity produced from sunlight, which was generally more expensive than that supplied by the mains. Prices may be lower? If they can, how can we achieve it? falling costs One solar panels […]

 

Public cloud pricing may be a double edge sword | Computer Dealer News

Public cloud pricing may be a double edge sword | Computer Dealer News

Recently, OVH placed second overall in North American-based public cloud suppliers from the Cloud Spectator report. Cloud Spectator is a Boston-based research and consulting firm that analyzes cloud performance along with price comparing all competitors. OVH was first in the European ranking from Cloud Spectator. Combey does not see a price war with cloud because […]

 

Ghosn Says Electric Cars Still Dependent On Government Subsidies | Hybrid Cars

Ghosn Says Electric Cars Still Dependent On Government Subsidies | Hybrid Cars

Generous incentives are still needed to “jump-start” sales of electric cars, says Carlos Ghosn. In a media interview this week, the Renault-Nissan Alliance chairman and CEO gave his perspectives on the importance of government subsidies to move electric car sales forward. “It is very difficult to make the electric car an attractive buy without government […]

 

Editorial: Perils in the era of dynamic pricing | MediaNama

Editorial: Perils in the era of dynamic pricing | MediaNama

What we have right now in terms of consumer, is pricing on the basis of specific products/models (with additional limits for transparency, such as the disclosure of Maximum Retail Price), or pricing on the basis of class of consumer, like in telecom. At a regulatory discussion a couple of weeks ago, Rajan Mathews, the Director General […]

 

Falling cocoa prices threaten child labor spike in Ghana, Ivory Coast | Reuters

Falling cocoa prices threaten child labor spike in Ghana, Ivory Coast | Reuters

DAKAR (Thomson Reuters Foundation) – A drop in global cocoa prices threatens to undermine efforts to stamp out child labor in Ghana and Ivory Coast, the world’s two biggest growers, as falling incomes could force farmers to send their children to work, charities said on Monday. More than two million children are estimated to work […]

 

The 7 pricing strategies every business owner has to know | Startups

The 7 pricing strategies every business owner has to know | Startups

“How much should I charge customers?” For any new business, answering this question and deciding a price point for your product or service is no easy feat. On one hand, you want to attract your customers to purchase your product or service while on the other hand you want to price accordingly so that your business […]

 

Amazon: Marginal Pricing, Marginal Business – Amazon.com, Inc. (NASDAQ:AMZN) | Seeking Alpha

Amazon: Marginal Pricing, Marginal Business – Amazon.com, Inc. (NASDAQ:AMZN) | Seeking Alpha

For the balance 25-30% of the industry, where Amazon will compete, the company has no particular competitive advantage apart from a willingness to cut margins and sell on price. Pricing at the margins leads to creation of marginal businesses, which Amazon already is, apart from the AWS business. The company might come to provide logistical […]

 

IOC seeks to allay petrol dealers’ fears of loss from dynamic pricing | Business Standard News

IOC seeks to allay petrol dealers’ fears of loss from dynamic pricing | Business Standard News

State-run Indian oil Corp (IOC) on Tuesday sought to reassure private petroleum dealers on their concerns about inventory loss due to the daily revision of transport fuel prices to be implemented across the country from June 16, even as the Delhi Petrol Dealers Association said it will join the protest closure of pumps called by […]

 

Price War: Retail’s Latest Self-Destructive Addiction | Retail Touch Points

Price War: Retail’s Latest Self-Destructive Addiction | Retail Touch Points

Because the pricing lever is so easy to pull and generates quick results for investors, retailers are often tempted to make quick, gut decisions to generate foot traffic with low prices. But this addiction is unstainable and not an isolated incident. Major companies are buckling down for bigger investments on price in the absence of […]

 

Can Drug Price Reductions Help or Hinder Pfizer Inc. ? | Library for Smart Investors (LFSI)

Can Drug Price Reductions Help or Hinder Pfizer Inc. ? | Library for Smart Investors (LFSI)

Pfizer Inc. (NYSE:PFE) so far has not joined the price reduction party and of course this has investors of the Interfaith Center on Corporate Responsibility (ICCR) worried. The news of Pfizer Inc.’s (NYSE:PFE) recent price hack made headlines earlier this month. The company jacked up the prices of 91 drugs by about a staggering 20%. […]

 

Power to the customer in price model | The West Australian

Power to the customer in price model | The West Australian

To assist participants in their usage, Horizon Power developed an app allowing residents to track their electricity use and receive alerts and notifications to help them stay within their allowance. Based on the results of the pilot program, a pricing plan model will be implemented. Horizon Power managing director Frank Tudor said the new pricing […]

 

How Pricing Bots Could Form Cartels and Make Things More Expensive | Harvard Business Review

How Pricing Bots Could Form Cartels and Make Things More Expensive | Harvard Business Review

How competitive is our market economy? Not as much as it ought to be. And the growth of big data threatens to make things even worse. Antitrust regulators already struggle to keep markets competitive. How will they fare in a world where intelligent pricing algorithms subtly collude with one another? Before we get to how pricing algorithms might collude, […]

 

Next time you read your increased power bill, blame Tony Abbott | The Guardian

Next time you read your increased power bill, blame Tony Abbott | The Guardian

Electricity prices have jumped almost 20% in some states, with many others soon to follow. Even before these increases, electricity prices are higher now than when the carbon price was in place. This is the unfortunate price that we pay when we listen to self-interested politicians and ignore experts. You might think that this all […]

 

How To Properly Price A Luxury Home For Sale | Greater Cincinnati Luxury Real Estate

How To Properly Price A Luxury Home For Sale | Greater Cincinnati Luxury Real Estate

A majority of luxury homes do have common features like bedrooms, bathrooms and kitchens which serves as a good area to start a comparison of luxury home sales in order to determine pricing. It should be noted that there are still variables that can affect how those common features compare as the sizes and quantities […]

 

Controlling price erosion in the omnichannel shopping environment | GFK

Controlling price erosion in the omnichannel shopping environment | GFK

While eroding prices of technical consumer goods may excite the increasingly savvy and deal seeking Connected Consumer, they can be a big problem for product manufacturers and their retailers. Lower prices mean lower margins, and in today’s evolving omnichannel environment, it’s important to understand which promotions with which retailers bring back the highest ROI, as […]

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No predatory pricing by WhatsApp by not charging any subscription fee | Tax Guru

No predatory pricing by WhatsApp by not charging any subscription fee | Tax Guru

Informant Shri Vinod Kumar Gupta, Chartered Accountant has alleged that by not charging any subscription fee since January, 2016 from its users, the OP  WhatsApp Inc. is indulging in predatory pricing. In this regard, the Commission observes that there are several other applications available in the relevant market which do not charge any fee from the […]

 

As Lidl opens its US stores, discounter reveals look at its pricing strategy | Food Dive

As Lidl opens its US stores, discounter reveals look at its pricing strategy | Food Dive

As advertised, Lidl is entering the U.S. market with very low prices on an assortment of food items. This includes ten Greek yogurts for $5, olive oil for $4, and 48-ounce tubs of ice cream for $2. Customers who want to make a meal using its Italiamo line of imported sauces, pastas and cheeses can […]

 

Iron Ore Pricing 201: Spot Pricing Suggests Further Downside | Benzinga

Iron Ore Pricing 201: Spot Pricing Suggests Further Downside | Benzinga

The share prices of iron ore miner stocks are pricing in much higher iron ore prices that the market is delivering, suggesting the sector could see significant downside ahead. Axiom analyst Gordon Johnson recently derived implied iron ore prices using the current share prices of five of the world’s largest iron ore producers and now […]

 

Pricing does not equal revenue management for hotels | eHotelier

Pricing does not equal revenue management for hotels | eHotelier

When dynamic pricing was first introduced to revenue management the idea of managing transient pricing for hotels on a day to day basis was considered quite new – even radical. Even as recently as a few years ago, many hotels continued to sell at predefined rate levels, and did not manage rates dynamically. Today, however, dynamic […]

 

More Manufacturers are Adopting Minimum Advertised Pricing Policies | Pet Product News

More Manufacturers are Adopting Minimum Advertised Pricing Policies | Pet Product News

Several pet product manufacturers adopted minimum advertised pricing (MAP) policies recently, demonstrating a commitment to supporting the independent pet specialty channel. The Company of Animals, a U.K.-based manufacturer of pet behavioral and training gear products, announced this spring that it was establishing rigorous policy designed to create a level playing field for its North American […]

 

Thompson On Cotton: Reasons Not To Slip Into Panic Pricing | AgFax

Thompson On Cotton: Reasons Not To Slip Into Panic Pricing | AgFax

For days now, the funds have been hastily liquidating long positions ahead of July’s contract expiration. Until now, we have seen the trade step in, providing market support as on call sales were priced on these breaks. Finally wise to this and given another opportunity, the trade remained patient, taking advantage of further price weakening […]

 

Value-based contracts key to solving U.S. drug pricing ‘crisis’ | Modern Healthcare

Value-based contracts key to solving U.S. drug pricing ‘crisis’ | Modern Healthcare

In one of the deals between the two, Harvard Pilgrim pays Eli Lilly a lower price for its Type 2 diabetes drug Trulicity if patients do better on competing diabetes drugs. We’re “putting our money where are mouth is—not just making claims about superiority, but measuring outcomes,” Ricks explained. The two CEOs see the value-based […]

 

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 […]

 

 

Featured Content and Events

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 […]

 

 

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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“Anyone can sell a Mercedes for the price of a Hyundai.”

– Larry Best

 

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