This Week in Pricing > 6/24/17

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:value innoruption final 0612 rev

 

 

Value Innoruption Advisors

Founded by Dr. Stephan Liozu, Value Innoruption Advisors provides training and consulting resources for organizations interested in embedding value-based methodologies in their go-to-market strategies related to innovation, marketing, pricing, and sales. Value Innoruption Advisors offers two popular value and pricing management certification programs – Customer Value Modelers™ (CVM™) and Change Agent in Pricing™ (CAP™).

Click a link below to learn more…

 

Top Headlines

Nevada passes insulin drug pricing transparency bill | Business Insider

Nevada passes insulin drug pricing transparency bill | Business Insider

Nevada is one of 23 states with proposed legislation to take on the rising cost of prescription drugs. But unlike others that focus on drug prices in a general sense, the hybrid bill focuses on two specific groups of drugs that are used to treat diabetes: insulin and biguanides. It’s the latest milestone in government actions at the […]

 

Trump Administration Prepares a Drug Pricing Executive Order, Sources Say | Bloomberg

Trump Administration Prepares a Drug Pricing Executive Order, Sources Say | Bloomberg

Top health and budget officials in the administration will meet Friday to discuss the issue, according to the people, who asked not to be identified because the session is private. Trump sought recommendations from the nation’s health agencies on reducing medication costs, Health and Human Services Secretary Tom Price told senators last week. One policy […]

 

Trump’s new policy to tackle sky-high drug prices makes sense — sort of | Vox

Today, the Trump administration revealed its most comprehensive policy direction on tackling the problem of prescription drug prices — in a brief blog post by the Food and Drug Administration chief Scott Gottlieb. Gottlieb outlined the administration’s “Drug Competition Action Plan,” which will focus on increasing the competition among cheaper (off patent) generic drugs. “Innovation […]

 

Dynamic pricing fuels debate on pros and cons | The New Indian Express

Dynamic pricing fuels debate on pros and cons | The New Indian Express

In addition, there is another major challenge faced by the bunk owners. At present, there are around 4650 fuel stations in the State, of which a majority are not  automated.  Without automation, fuel stocks cannot be properly monitored, and prices can not be changed daily at 6 am. This then requires extra human resource, familiar […]

 

How airlines decide what fare you pay | CNN Travel

How airlines decide what fare you pay | CNN Travel

Customer profiling But how does the airline know who the higher-value passengers are and how much to charge them? Stuart Barwood, founder of Travercial, an airline consultancy firm, says airlines can make a number of reasonable assumptions about the profile of traffic on a certain route and then adjust their prices accordingly. “The London to […]

 

Will personalized pricing only lead to more discounting? | RetailWire

Will personalized pricing only lead to more discounting? | RetailWire

A study from Baylor University concludes the mere presence of a personalized pricing program may encourage some consumers to expect discounts all the time. The study, published in the Journal of Consumer Behavior, defined personalized pricing, or customized pricing, as “basing prices on individual consumers’ unique purchase patterns, rather than more typical bases for changing […]

 

I Don’t Offer Discount Codes or Promotional Pricing. On Purpose | SIX15

I Don’t Offer Discount Codes or Promotional Pricing. On Purpose | SIX15

When’s the last time you had a flooded basement after a storm and the emergency plumber showed up at midnight, quoted the repair to you but then said, “You know what, just buy me a beer the next time I see you.” Unless that plumber was your friend or your father, he’s doing himself no […]

 

More Headlines

Indian Oil tests protocols for implantation of dynamic pricing | Business Standard News

Indian Oil tests protocols for implantation of dynamic pricing | Business Standard News

State-run Indian Oil Corp. on Thursday said it has successfully tested all protocol systems related to dealers and customers to ensure a successful roll out of the daily dynamic pricing structure for petrol and diesel prices from June 16. Petrol and diesel prices will be revised daily from June 16 onwards by the three oil […]

 

WHAT GOES INTO PRICING A SOFTWARE ESTIMATE | RICK REA

WHAT GOES INTO PRICING A SOFTWARE ESTIMATE | RICK REA

If you have ever shopped around for development help, you probably received a wide range of estimates. Why is that? How would it cost one team $500,000 and another team $100,000 to complete the same project? I’m the founder of a JavaScript development agency in Boston, and we have been on both sides of the […]

 

Alison Douglas: Battle to introduce minimum alcohol prices almost over finishing line | The Scotsman

Alison Douglas: Battle to introduce minimum alcohol prices almost over finishing line | The Scotsman

This summer, the UK Supreme Court will hear the Scotch Whisky Association’s final appeal against minimum unit pricing for alcohol. This is the final stage in a long -running legal process which has seen minimum pricing tested in Europe and twice declared legal by Scottish courts. We hope that minimum pricing can at last be […]

 

Dynamic petrol, diesel pricing: All you need to know | Manorama

Dynamic petrol, diesel pricing: All you need to know | Manorama

Dynamic fuel pricing » Petrol and diesel prices to be revised every day at 6 am across the country » The practice was to revise it at midnight, every fortnight » Petrol pump owners had sought a change in the timings » Oil companies had been trying dynamic pricing on a pilot basis in five […]

 

Elegant Hotels Group reviews pricing strategy after fall in pound | The Times

Elegant Hotels Group reviews pricing strategy after fall in pound | The Times

Elegant Hotels Group, the Caribbean hotel operator, said it had reviewed its pricing strategy in response to the slump in the value of the pound. It said that rates had been discounted on “a targeted and tactical basis” at some of its hotels in an attempt to drive up room occupancy, although prices at The […]

 

Financial literacy, not gut feelings, key to female founders scaling past the $1m mark | Dynamic Business

Financial literacy, not gut feelings, key to female founders scaling past the $1m mark | Dynamic Business

COMMON PAIN POINT: PRICING STRATEGY Asked to name an aspect of business female founders commonly struggle with when they seek to scale, Titman said their pricing strategy: “It’s important for founders to accurately value their time, especially if their business is serviced-based, and price it correctly in their business model. If they’re basing their pricing […]

 

Aldermore pledges ‘no dual pricing’ in broker service overhaul | Mortgage Strategy

Aldermore pledges ‘no dual pricing’ in broker service overhaul | Mortgage Strategy

Aldermore has set out new broker service promises, including guarantees of no dual pricing whether customers go direct or through brokers. The lender promises brokers dedicated contacts, including assigning a specialist underwriting contact to each residential and buy-to-let case. Aldermore has also pledged transparent service, involving sharing its current underwriting process and case timescales every […]

 

Potash Prices: Will Marketing Cooperatives Rebalance the Market? | Economic Calendar

Potash Prices: Will Marketing Cooperatives Rebalance the Market? | Economic Calendar

These marketing cooperatives negotiated “fair” prices for potash and would hold out on sales until sellers would be willing to pay an adequate amount. This strategy was undertaken so potash producers could get a good price for potash, which is particularly expensive to mine. Buyers, on the other hand, said the market was a monopoly. […]

 

Enhancing The Guest Experience Through Technology | BW Hotelier

Enhancing The Guest Experience Through Technology | BW Hotelier

Sidharth Gupta, Co- founder of Treebo, believes in enhancing supply creation, quality assurance and customer experience. He is a graduate in Mechanical Engineering from IIT Roorkee and holds an MBA degree from IIM Bangalore. Working with Mc Kinsey and then with Myntra and Flipkart, Gupta with his passion decided to do something on his own. […]

 

Electricity pricing: Smart meters, dumb arguments | ejinsight

Electricity pricing: Smart meters, dumb arguments | ejinsight

Peak-load pricing is the type of price strategy that promotes efficiency while ensuring that a service provider doesn’t sell at a loss. When you pay for a restaurant visit, you pay for the food cost as well as the rent of the restaurant. If the restaurant is not so packed at dinnertime, the owner can […]

 

Seven ways PE managers can ride the current tough wave | BizCommunity

Seven ways PE managers can ride the current tough wave | BizCommunity

Managing margins Balancing pricing is a difficult business; too low and your margins are eaten away; too high and you lose market share to your competitors. A good manager knows when it would be more worthwhile to increase prices, even if it means a slight decline in volumes. Instead of only focusing on the output, […]

 

10 Tips For Retailers Looking To Expand Into Wholesale | Multi Channel Merchant

10 Tips For Retailers Looking To Expand Into Wholesale | Multi Channel Merchant

Pricing strategy It’s important to understand the differences in pricing strategy between B2C and B2B. While B2C typically utilized fixed consumer prices, B2B buyers are buying as part of their job and often expect customer-specific prices. There are a number of strategies to consider when it comes to wholesale pricing, but it’s important to ensure […]

 

International Olympic Committee tests protocols for implantation of dynamic pricing | Leicester Post

International Olympic Committee tests protocols for implantation of dynamic pricing | Leicester Post

Petroleum Minister Dharmendra Pradhan on Saturday said that daily revision of petrol and diesel prices will save people from “suffering” of the sudden price change, ANI reported. Today on June 16, the rates of petrol reduced by Re 1 and 12 paise while the rates of diesel have come down by Re 1 and 24 […]

 

“Smart meters,” demand-based parking rates eyed for downtown Lafayette | The Acadiana Advocate

“Smart meters,” demand-based parking rates eyed for downtown Lafayette | The Acadiana Advocate

The price for parking in downtown Lafayette could be linked to how prized the spot is under changes to be voted on next month by the City-Parish Council. City-parish government is considering a new system where supply and demand drives parking rates, which could vary by hour based on the location and availability of open […]

 

Drug-Pricing Regulator Wants Medical Devices Added To Price Control List | NDTV Profit

Drug-Pricing Regulator Wants Medical Devices Added To Price Control List | NDTV Profit

India’s drug-pricing regulator has asked the health ministry to add four more medical devices to a list of products eligible for price controls to reduce costs to patients, which if agreed could be another blow to the country’s $5 billion-a-year medical-technology industry. The National Pharmaceutical Pricing Authority (NPPA) had said it did not plan further […]

 

How Much Did That Zipper Cost? With Transparency Pricing, You Know Everything | The New York Times

How Much Did That Zipper Cost? With Transparency Pricing, You Know Everything | The New York Times

This practice, known as transparent pricing, has been gaining hold among a select group of retailers, who say that it appeals in particular to millennials — who often want to know not only the provenance of the goods they are buying, but also what, exactly, they are paying for. “Price transparency is crucial for clients […]

 

Yet another state moves to ban price optimization | Insurance Business America

The Missouri Department of Insurance recently sent out a notice among insurers in the state, announcing the prohibition of price optimization; this marks Missouri as the seventeenth state to ban the practice. The state regulator reasoned that price optimization infringes state law regulating property and casualty insurance. According to state legislation, insurance rates must be […]

 

The Race to Find the Next Insurance Credit Score (or How, Maybe, to Reinvent P/C Insurance Pricing) | Insurance Blog

The Race to Find the Next Insurance Credit Score (or How, Maybe, to Reinvent P/C Insurance Pricing) | Insurance Blog

The race is on to find the next insurance credit score—and the winners (if there are winners) will gain a pricing (and underwriting) edge. There are only two requirements to enter in this race. You have to forget about all the kinds of data and information that insurers have been using to price and underwrite […]

 

Changes to judicial review are pricing communities out of justice | Friends of the Earth

Changes to judicial review are pricing communities out of justice | Friends of the Earth

What has changed? Until February 2017, there was a fixed limit on the amount losing a case could cost you. For individuals, the maximum of the other side’s legal costs you could be made to pay was £5,000. For organisations like Friends of the Earth it was £10,000. This limit, although still a considerable cost, […]

 

Add this to the list of expenses pricing Hawaii families out: Preschool | Hawaii News Now

Add this to the list of expenses pricing Hawaii families out: Preschool | Hawaii News Now

HONOLULU (HawaiiNewsNow) – Melanie Joseph knows all about sticker shock when it comes to preschool costs. She’s shopping for a preschool facility for her daughter, Mehana, and says most places are charging about $1,000 a month. “I have to pay for preschool. I have to pay for care for my daughter so that I can […]

 

Nevada forces drugmakers to reveal insulin pricing, profits | Las Vegas Sun Newspaper

Nevada forces drugmakers to reveal insulin pricing, profits | Las Vegas Sun Newspaper

After a long road to passage, Senate Bill 539, which creates transparency in prescription drugs used to treat diabetes, was signed into law by Gov. Brian Sandoval on Thursday. Sandoval vetoed the original bill, in what he called a difficult decision, because of a clause that would have mandated drug makers to provide public notice […]

 

Next Steps for Gas Pricing | Energy Intelligence

Next Steps for Gas Pricing | Energy Intelligence

Long-term contracts that index LNG or international pipeline gas prices to oil for decades into the future are quickly becoming counterproductive for everyone involved. Once oil demand peaks, oil prices will probably become chronically weak and unstable. When that will be is unclear, but a growing number of forecasts show that peak arriving within a […]

 

Tim Cooks talks HomePod pricing, and why AR makes him want to ‘scream’ | Cult of Mac

Tim Cooks talks HomePod pricing, and why AR makes him want to ‘scream’ | Cult of Mac

One interesting point of discussion is Cook’s discussion of the HomePod’s $349 price point, which makes it more expensive than rival devices like the Google Home and Amazon Echo. He explains that: “If you remember when the iPod was introduced, a lot of people said, ‘Why would anybody pay $399 for an MP3 player?’ And […]

 

AMD’s Vega Frontier Edition cards now have prices, and they’re not cheap | Digital Trends

AMD’s Vega Frontier Edition cards now have prices, and they’re not cheap | Digital Trends

So far, we’re lacking details on Vega, having only seen information on the Frontier Edition cards that are intended primarily for churning through highly technical workloads like machine learning, 3D rendering, and cloud computing. The Radeon Vega Frontier Edition cards aren’t aimed at the typical gamer, which is a good thing if some recently surfaced […]

 

Daily revision of petrol, diesel prices: Here’s how India will gain | The Financial Express

Daily revision of petrol, diesel prices: Here’s how India will gain | The Financial Express

Starting June 16, 2017, the prices of transport fuels, i.e. petrol and diesel, are subject to a daily revision across the country—at almost 58,000 petrol pumps—in sync with international oil prices. With this, we have joined the select club of developed countries such as the US, Japan, Australia, Germany and Russia. It means the state […]

 

Energy Prices Forecast | Kiplinger

Energy Prices Forecast | Kiplinger

Cheaper crude oil is starting to benefit drivers at the gas station. The national average price of regular unleaded gasoline slipped four cents from a week ago, to $2.29 per gallon. And a price rebound seems unlikely for now. We look for the national average price to hover around $2.30 per gallon. Diesel, now averaging […]

 

Tips to Keep Your Ecommerce Business Competitive | CIO Review

Tips to Keep Your Ecommerce Business Competitive | CIO Review

As the market increases for online customers, it’s never been more important to understand how real-time pricing decisions can decide the fate of online retailers in what is becoming an increasingly crowded and aggressive landscape. There used to be a time when all e-commerce retailers attracted buyers with “list prices” or “official prices” and would […]

 

‘Exorbitant pricing’ of Quantum at centre of taxi strike | Fin24

‘Exorbitant pricing’ of Quantum at centre of taxi strike | Fin24

Last week Thursday Santaco threatened to shut down the whole country if the highly used Toyota Quantum manufacturer did not respond to their demands within seven days. A week later they pulled the trigger. When it was introduced, it was at a fully imported price of R220 000. It is now produced locally at a price […]

 

FCA orders Admiral to contact customers over renewal pricing blunder | Insurance Times

FCA orders Admiral to contact customers over renewal pricing blunder | Insurance Times

In a statement today the regulator said: “Admiral has agreed with the FCA to contact affected customers who renewed their policies after 1 April 2017, who may have received inaccurate information. “The FCA is currently assessing firms’ implementation of these rules to ensure that firms are giving customers clear and fair disclosure on their renewal […]

 

Embracing new pricing models in the age of disruption | The Future of Commerce

Embracing new pricing models in the age of disruption | The Future of Commerce

Digital disruption is changing how the professional services industry does business. This includes the restructuring of standard time and materials pricing models. Established companies have a hard time understanding why this model is a thing of the past. What it all comes down to is that customers have become savvy forward thinkers. They embrace the new digital […]

 

How holiday firms hike prices when they know you’ll pay up | This is Money

How holiday firms hike prices when they know you’ll pay up | This is Money

Hotels and airlines are hitting holidaymakers with huge price hikes when they know they can get away with it, Money Mail reveals today. Most larger travel companies now use sophisticated computer programs to track how many people are making bookings and browsing their deals online. When demand rises, the computer can trigger an automatic price […]

 

 

Featured Content and Events

The Most Crucial KPI: Pricing Power | CFO

The Most Crucial KPI: Pricing Power | CFO

Traditional cost optimization approaches like cost cutting and downsizing are not sufficient anymore. CFOs also have to extract more value from markets and better leverage strategic investment. Since 2012, pricing power has gained traction as one of the most powerful tactics to realize profit amidst fluctuating market conditions. Even Wall Street has taken notice. From […]

 

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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“You can determine the strength of a business over time by the amount of agony they go through in raising prices.”

     – Warren Buffett

 

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