This Week in Pricing > 6/3/17

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 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.

Click a link below to learn more…

 

Top Headlines

MAJOR Nationwide Pricing Glitch At Target – You Better Read This! | Yes We Coupon

MAJOR Nationwide Pricing Glitch At Target – You Better Read This! | Yes We Coupon

After being questioned and the news coming out Target has issued the following statement regarding the pricing errors. “Accurate pricing is important to Target, and we value the trust that our guests place in us. We researched this issue and found an error in our pricing system affecting these four products. (including Tylenol, 2 types […]

 

Pokin Around: The wacky world of Walgreens pricing | News-Leader

Pokin Around: The wacky world of Walgreens pricing | News-Leader

I often shop at the Walgreens near my house. And I almost always end up buying twice as much as I really need. You name it: vitamins, Planters cashews, Gatorade, Gummy Bears. When I stroll the aisle of I feel like I’m being celebrated in a ticker-tape parade. Just about every item has a special colorful […]

 

Six Sigma Pricing – 99% Good is Just Not Good Enough! | Strategic Pricing Associates

Six Sigma Pricing – 99% Good is Just Not Good Enough! | Strategic Pricing Associates

“Basic human processes are 4 Sigma at best … 99% good is just not good enough.” Greg Preuer – Former Pricing Director at Cooper Lighting and General Electric The Power of the Last 1% One glaring example follows about healthcare related mistakes. Using a standard process performance at 3.8 Sigma (99%) nets 200,000 wrong drug […]

 

Increasing the price of tobacco by 5% reduces consumption by 3.5% | Medical Express

Increasing the price of tobacco by 5% reduces consumption by 3.5% | Medical Express

In a 30-year-old study conducted by social medicine expert Michael Kunze into pricing policy and tobacco consumption, it was found that increasing prices by only 1 percent reduces consumption by 0.5 percent. Under the guidance of the MedUni Vienna smoking expert, diploma student Richard Felsinger has completed an analysis of pricing policy for the years […]

 

Gogoro 2 priced cheaper than iPhones | Taiwan News

Gogoro 2 priced cheaper than iPhones | Taiwan News

For non-FarEasTone clients, government subsidies will slash the cost of the electric scooter from the original retail price of NT$73,800 to NT$44,800, and the lowest price for acquiring the smartscooter for users trading in an old bike for a new one is NT$38,800. The Gogoro 2, which is positioned to meet mass market demands, has […]

 

Is your pricing primitive or purposeful? | Investment News

Is your pricing primitive or purposeful? | Investment News

Brian’s response to the first prospect asking for a fee discount was utter discomfort. He felt tense and anxious, a bit panicked, and was mentally scrambling for a way out. Why? When faced with the discount request, Brian’s primitive brain perceived a threat. The limbic system, the oldest and most primitive part of our brain, […]

 

SaaS Freemium: How to succeed and how to fail | Chargify

SaaS Freemium: How to succeed and how to fail | Chargify

“Should we go freemium?” While freemium can propel a company to success, it can also suffocate a company’s financial and labor resources. In Chargify’s early days, we got bit by the freemium dragon and learned from our mistakes – more about that in a bit. In addition to reviewing the top pros and cons, we’ll […]

 

Pricing Your Product: Part Art & Part Science | Intelligence Node

Pricing Your Product: Part Art & Part Science | Intelligence Node

Pricing. It’s that enigmatic element of any business that’s sure to keep executives up at night and constantly second-guessing themselves. Fire up a Google search or read any business advice book, and you’re bound to come across a bazillion different pricing strategies, all of which are purported to be an instant shot in the arm […]

 

Sun Pharma shares touch new lows as pricing pressure in US continues | Zee Business

Sun Pharma shares touch new lows as pricing pressure in US continues | Zee Business

Dilip Shanghvi, Managing Director of Sun Pharma said, “Our Q4 performance reflects the impact of the challenging generic pricing environment in the US. Despite we continue to invest our strong cash flows in enhancing our specialty pipeline.” Many analysts have downgraded their ratings on Sun Pharma. Here’s why: A CLSA report said, “Sun’s Q4FY17 results […]

 

The economics behind Uber’s new pricing model | Which-50

The economics behind Uber’s new pricing model | Which-50

Uber is changing the way it calculates fares, moving to a system that charges what customers are “willing to pay”, based on factors like whether you are travelling to a wealthy suburb. But while this change has been met with mild outrage, it is actually a very common practice called “price discrimination”. Price discrimination is […]

 

More Headlines

Pricer’s Points: Pricing Optimization – The business practice most managers love to hate | Gregory Grzegorzyk

Pricer’s Points: Pricing Optimization – The business practice most managers love to hate | Gregory Grzegorzyk

This is the direction of pricing optimization. It’s not that sales executives, marketing promotion managers, sales operations, and merchandising people are idiots. It’s just that the process has become so complex and the competition so smart, that it’s imperative companies apply advanced analytic science to solving the multidimensional challenge of setting the right price, for every customer […]

 

Procurement strategies & dynamic pricing | Buying Business Travel

Procurement strategies & dynamic pricing | Buying Business Travel

Is the price right? In any case, there is evidence to suggest that companies are not always getting access to their negotiated rates with hotels. Research by hotel booking specialist HRS and the Global Business Travel Association (GBTA) found that around 25 per cent of negotiated rates were listed incorrectly on systems or did not […]

 

IOC awaits Centre nod on dynamic fuel pricing across India | Canindia News

IOC awaits Centre nod on dynamic fuel pricing across India | Canindia News

New Delhi, May 25 (IANS) The ongoing dynamic fuel pricing pilot project in five cities by state-run oil marketers, whereby transport fuel prices are changed daily, would only be extended elsewhere in India on receiving the government’s green signal, a senior oil executive said on Thursday. “We started dynamic pricing in five cities in May. […]

 

Predictive Analytics: It’s Where Dealership Data Is Headed | Dealer Marketing

Predictive Analytics: It’s Where Dealership Data Is Headed | Dealer Marketing

Right price, right buyer Toward the beginning of the decade, dealer analytics came in the form of vehicle pricing tools, which allowed dealers to see vehicle pricing information within their markets and price the vehicles on their lots relative to their competition. Pricing analytics are fairly prevalent today, so we must focus on the next […]

 

Vistara looks beyond pricing strategy to build its brand | Business Standard News

Vistara looks beyond pricing strategy to build its brand | Business Standard News

In a highly commoditised market, Vistara is looking to differentiate its brand and establish its premium positioning by focusing on in-flight experience. With a new fleet that offers more comfortable seats and promises fliers a more pleasurable experience, it hopes to move away from the price and discount led differentiation policy that all Indian airline […]

 

Electronics patent of the month: Smart glasses reading dynamic price info | Electronics Weekly

Electronics patent of the month: Smart glasses reading dynamic price info | Electronics Weekly

One of the UK’s leading supermarkets, Asda positions itself as providing good value for money and pricing its branded products cheaper than its main competitors. One way it tries to achieve this is by constantly monitoring the price of products in the marketplace and adjusting its own accordingly. Other supermarkets also practise dynamic pricing. This […]

 

Cougars Change Ticket Pricing Strategy Angering Some Fans | CKPG News

Cougars Change Ticket Pricing Strategy Angering Some Fans | CKPG News

Instead of age-based pricing they have switched to a zone-based pricing. Seeing the most impact, are those seats between the blue-lines, or section red, where increases are expected to be significant for some season ticket holders. Behind both goals and along the glass, ticket prices have gone down. Some season ticket holders feel the team […]

 

How Big Data Helps Companies Sale Better | BusinessZone

How Big Data Helps Companies Sale Better | BusinessZone

In 2017, every other company looks up to big data for a more profitable and efficient business process. Here’s how it has been helping them sale better: 1. Optimized Pricing Strategy According to a research conducted by McKensey, more than 25% business revenues are generated with new and innovating pricing. It might sound untrue, but […]

 

4 Powerful Pricing Strategies That Have Nothing to Do With Discounts | HubSpot

4 Powerful Pricing Strategies That Have Nothing to Do With Discounts | HubSpot

2) Don’t Compete on Competitor Pricing Don’t compete on pricing. A separate study from Stanford found emphasizing your products are priced lower than your competitors usually backfires. The researchers asked participants to choose between three cameras: A basic, inexpensive camera; a more advanced, mid-priced camera, and an advanced, high-price camera. Far more participants “compromised” by […]

 

Product dynamics | Economic Times

Product dynamics | Economic Times

Managers must now oversee multiple bundles, pricing tiers, dynamic pricing, upsell paths and pricing strategy. Life cycles are also becoming more complex, with expectations of new features, frequent improvements and upgrades after purchase. Further, the value of the surrounding ecosystem is growing: modern products are increasingly just one element in an ecosystem of related services […]

 

Uber To Make Pricing Changes In Australia From June 9th | Points From The Pacific

Uber To Make Pricing Changes In Australia From June 9th | Points From The Pacific

Uber hasn’t always had an easy time getting onto the road in Australia. For months, the Australian Taxi counsel and even the government tried to block them being in certain states. This angered large amounts of people and petitions had to be signed to show support. Finally, it was legalised and it’s grown very well. […]

 

How do you best calculate a price for a new product? | SaaStr

How do you best calculate a price for a new product? | SaaStr

And remember, unless you are a true commodity, “cheaper” usually isn’t a pricing strategy in software. Brands matter. Trust matters when you are running your entire business on a piece of software. 90% of customers don’t want the cheapest solution — they want the best solution. Yes, some products like Twilio, Sendgrid, AWS, etc. do […]

 

Reliance Jio: Bharti Airtel, Reliance Jio spar on transparency in tariffs at TRAI event | The Economic Times

Reliance Jio: Bharti Airtel, Reliance Jio spar on transparency in tariffs at TRAI event | The Economic Times

NEW DELHI: Incumbent telcos sparred with Reliance Jio over the matter of transparency of tariff plans, with Bharti AirtelBSE 0.55 % and Idea CellularBSE 1.52 % saying that some offers, especially counter offers to retain users, need to be kept confidential to protect the competitive advantage while the newcomer batted for all plans to be […]

 

Uber, Grab to maintain current pricing system | Free Malaysia Today

Uber, Grab to maintain current pricing system | Free Malaysia Today

PETALING JAYA: If you’re a frequent user of ride-sharing app Uber, you’ll be glad to hear that Uber Malaysia will not be adopting the route-based pricing currently being tested in the United States. A recent Bloomberg report highlighted Uber’s new route-based pricing system, under which charges are based on assumptions of amounts customers are willing […]

 

Optum and Merck to Collaborate on Outcome-Based Pricing Strategy | PharmaPro

Optum and Merck to Collaborate on Outcome-Based Pricing Strategy | PharmaPro

Optum, the health services business of UnitedHealth Group, and Merck, known as MSD outside the U.S. and Canada, will collaborate to develop and simulate the performance of contractual reimbursement models in which payment for prescription drugs is aligned more closely with patient health outcomes. Through a multi-year collaboration on a shared “Learning Laboratory,” the companies […]

 

Uber Starts Charging What It Thinks You’re Willing to Pay | Bloomberg

Uber Starts Charging What It Thinks You’re Willing to Pay | Bloomberg

Uber drivers have been complaining that the gap between the fare a rider pays and what the driver receives is getting wider. After months of unsatisfying answers, Uber Technologies Inc. is providing an explanation: It’s charging some passengers more because it needs the extra cash. The company detailed for the first time in an interview with Bloomberg […]

 

The Price is Right, or is it? | Profitology

The Price is Right, or is it? | Profitology

The pricing strategy of a small business often determines the ultimate success or failure of that business. Small Business Owners commonly set prices with a view of being the cheapest in the market, with no consideration as to the total costs involved with delivering their product or service. The following factors should be considered when […]

 

Construction Pricing Strategy: Developing A Base Rate | FineHomebuilding

Construction Pricing Strategy: Developing A Base Rate | FineHomebuilding

Knowing what to charge and how to accurately and efficiently determine the numbers are the issues that cause many construction business owners to lose the battle for profitability. Charge too little and you won’t make a profit. Charge too much and you won’t get work. Both of these situations will put you out of business. […]

 

How To Price a Product (To Hit Your Goal) | StartUp Formulas

How To Price a Product (To Hit Your Goal) | StartUp Formulas

Cool thing about Pancakes? I can make as many as I WANT and she can eat as many as SHE WANTS. Well, a solid pricing strategy works exactly like that delicious stack of pancakes… Pricing methods have different tiers, just like pancakes They adjust depending on the client, just like pancakes. They have bonuses and up-sells, just like syrup and […]

 

Pricing strategy | Randall Craig

Pricing strategy | Randall Craig

If you are a service provider, how do you set your price? And if you are a buyer, how do you know whether the price that you are given is reasonable? Beyond the obvious, price itself is an indicator of a number of factors: value, credibility of the service provider, work effort on the project, […]

 

Michael Kors To Shutter Up To 125 Stores | Bisnow

Michael Kors To Shutter Up To 125 Stores | Bisnow

Same-store sales dropped 14.1%, and the company’s wholesale business, which mostly consists of  department store sales, dropped 22.8% in Q1, the company announced Wednesday. In response to these pressures, Michael Kors will shed 15% of its portfolio, a move that will counter the aggressive expansion the company pursued when its brand was hot. The upscale chain said […]

 

 

Featured Content and Events

Webcast: Six Sigma Strategic Pricing: How to Leverage Six Sigma Methodology to Drive Profitable Growth | SPA

Webcast: Six Sigma Strategic Pricing: How to Leverage Six Sigma Methodology to Drive Profitable Growth | SPA

June 15, 2017 2:00 PM Eastern This webinar will provide an overview of SPA’s Six Sigma Strategic Pricing Course. Six Sigma Master Blackbelt Greg Preuer, of SPA has created the first course designed to apply time tested Six Sigma methodology to pricing. Those who study with Greg will learn not only how to drive the […]

 

Conference: Battle for Margin > SPASIGMA Negotiation Workshop & Pricing Strategy Seminar | SPA 

Date: June 8-9, 2017

Location: Mandarin Oriental Las Vegas, Nevada

This big-picture seminar presents SPA’s unique blend of analytical and training tools to drive industry-leading profitability. The seminar provides critical insights to C-Suite Executives, Pricing Leaders, Sales Leaders, Procurement Leaders, across a broad cross-section of industries. This engaging seminar incorporates expert instruction, case studies, role-playing, and entertaining videos to present personality-type theory, negotiation skills, and analytical tools. These tools will enable any organization to maximize profitability, typically by 200 to 500 basis points, or 2 – 5% of sales. The seminar addresses the strategic and practical tools that are fundamental to maximizing shareholder value. It will help you to re-focus your organization increasing performance in their daily jobs while capturing greater economic value. With expert training, and long-term retention and analytical tools, your team can negotiate better to buy lower and sell higher, thus maximizing profits and shareholder value.

 

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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“The value of money comes from the private sector in the form of price for product, services rendered, what people are willing to pay for something they want or need. That’s where value happens.”

    – Rush Limbaugh

 

Pricing Resources

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