This Week in Pricing > 7/14/18

pricingnews-WeeklyThis Week in Pricing is a collection of pricing focused news, thought leadership , events, jobs and professional education resources for pricers.

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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

AI-Enabled Personalization: The New Frontier In Dynamic Pricing | Forbes

AI-Enabled Personalization: The New Frontier In Dynamic Pricing | Forbes

Dynamic pricing, a practice started by American Airlines, a FICO customer, in the 1980s, has now become a common marketing discipline for many corporations across industry sectors. From airlines, hotels and entertainment events to perhaps the most well-known e-retailer, Amazon, these companies have been using dynamic pricing to improve profitability relative to rapid changes in […]

 

State universities say their tuition strategy is driving away the students they hope to attract | PennLive.com

State universities say their tuition strategy is driving away the students they hope to attract | PennLive.com

Pennsylvania’s 14 state universities are pricing themselves out of reach of the students who they were designed to serve, which could lead its governing board to make some big changes in the coming years. Members of the State System of Higher Education’s governing board met on Monday to discuss the recommendations from a task group […]

 

Tesco and Carrefour say ‘strategic alliance’ will cut prices | BBC News

Tesco and Carrefour say ‘strategic alliance’ will cut prices | BBC News

Harder fight “Another price war is now looming in the UK supermarket sector,” said Laith Khalaf, senior analyst at Hargreaves Lansdown. “The latest Tesco partnership looks like a direct response to the threat posed by the proposed merger of Sainsbury’s and Asda, who will have access to the global buying power of Walmart as a […]

 

Startup’s solution lowers prices on food as expiration date approaches | Food Dive

Startup’s solution lowers prices on food as expiration date approaches | Food Dive

In the fight against food waste, a high-tech solution similar to the one Wasteless offers is one potential weapon. Lowering prices on products as they approach their sell-by dates could motivate more shoppers to make a purchase and generate revenue on products that would otherwise be tossed out. According to the U.S. Department of Agriculture, […]

 

SeaWorld’s new parking prices make absolutely no sense | Blogs

SeaWorld’s new parking prices make absolutely no sense | Blogs

During a quarterly earnings report conference call last November, Joel Manby, the CEO of SeaWorld who would leave the company just three months later, explained that SeaWorld Parks and Entertainment was looking at different pricing options. “We are committed to returning our business to growth through compelling products, enhanced pricing strategies, and new marketing and […]

 

4 Strategies for Sellers to Win Amazon Prime Day 2018 | multichannelmerchant.com

4 Strategies for Sellers to Win Amazon Prime Day 2018 | multichannelmerchant.com

Ultimately, the biggest Prime Day challenge for sellers is to determine the perfect harmony of product listings, pricing, inventory, and advertising spend, leading up to, during, and after the official holiday. Sellers cannot think about Prime Day as a singular sales day, but rather as an entire month of strategic customer acquisition. Lead-up activities — […]

 

Is Pricing Killing Your Profits? | Bain & Company

Is Pricing Killing Your Profits? | Bain & Company

Poor pricing practices are insidious—they damage a company’s economics but can go unnoticed for years. For example, a major industrial goods manufacturer struggled with low profit margins, relative both to competitors and its own historical performance. It traced much of the cause to a mismatch between its sales incentives and pricing strategy. The manufacturer was […]

 

Starbucks Price Increases: Are They Leading or Signaling? | Pragmatic Pricing

Starbucks Price Increases: Are They Leading or Signaling? | Pragmatic Pricing

Starbucks is raising prices. In my last blog post, I discussed the pros and cons of that decision. In this post, let’s look at some more advanced issues. When competitors announce a price increase, they typically do one of two things: They lead or they signal. Firms lead when they are price makers. They are […]

 

This Derby pub hikes up the price of pints when England are playing | Derbyshire Live

This Derby pub hikes up the price of pints when England are playing | Derbyshire Live

This Derby pub has been found hiking up the prices of pints when England are playing in the world cup. Walkabout in Market Place, owned by Stonegate Pubs, is increasing its prices by up to 30p per drink. However, the business says it is common practice to do this and it is using the extra […]

 

Netflix tests new price increase strategy for ‘Ultra’ plan with HDR | Mashable

Netflix price changes are always controversial. But luckily, it looks like the streaming company’s latest strategy for getting more money out of users won’t affect most of us (for now). The streaming giant confirmed to CNET that it has been testing out a new tier for its pricing models for select users in Europe: a […]

Tariffs: Fighter Pilot Strategies Businesses Can’t Afford to Ignore | Pricing Matters

Tariffs: Fighter Pilot Strategies Businesses Can’t Afford to Ignore | Pricing Matters

Modern pricing software easily simulates the margin or revenue impact of any potential price changes so that pricing managers and leadership can decide based on expected impact as opposed to hoping for the results. Manipulating multiple spreadsheets to calculate potential price impact outcomes is not only frustrating but increases the risk of inaccuracy for every […]

 

Don’t Hate on Surge Pricing From Uber and MoviePass | TheStreet

Don’t Hate on Surge Pricing From Uber and MoviePass | TheStreet

What’s worse than pulling up the Uber app to catch a ride home after a long weekend night only to be met with the surge pricing warning? No Uber at all. That could very well be the fate of a company like Uber without surge pricing. The same goes for the likes of MoviePass, the […]

 

New Paradigms in Retail with AI and Big Data | tapscape

New Paradigms in Retail with AI and Big Data | tapscape

Pricing  Strategies Here too, customer decisions, market trends and prices etc can be analyzed and better pricing decisions can be made in different segments – low price, good quality at competitive price, and premium brands and products with higher prices. There will be different segments of customers for each of these. Price optimization software can […]

 

 

 

More Headlines

How retailers and brands can avoid the race to the bottom in online pricing | Digital Commerce 360

How retailers and brands can avoid the race to the bottom in online pricing | Digital Commerce 360

An unrestrained price war on average cuts the price of goods by 3.9%. Retailers and brands can make use of technology to monitor trends, identify opportunities and take a variety of actions to stay away from such drastic price cutting. There is no denying that Amazon and online shopping as a whole have changed the […]

 

Target narrows pricing gap with Walmart | Food Dive

Target narrows pricing gap with Walmart | Food Dive

While the Clark Howard comparison is an informal look, research from data scientists backs up the consumer advocates’ work. Earlier this year, Profitero found that the most intense price competition is among Walmart, Target, Jet and Amazon. On average, the average online prices of those first three combined are just 4.5% more than Amazon, Profitero found. […]

 

Something you can’t use at a price you can’t resist | Medium

Something you can’t use at a price you can’t resist | Medium

I admit it: I own a pair of Ferragamo shoes that blister my big toes after a couple hours. They were on sale for $250. Half a size small, I rationalized that they’d break-in, despite knowing better — Ferragamo shoes justify their $1,000 price (to me) with shocking longevity and unchanging fit. I grok the allure of […]

 

Discounting new discount concepts | CSA

Discounting new discount concepts | CSA

Others, meanwhile, experiment with new value concepts. Kohl’s is opening up Amazon return centers and selling specialty Amazon products (the Echo line of electronics, for instance) at a number of locations. The early returns are positive, as Kohl’s posted strong first quarter numbers, and traffic at Kohl’s stores featuring Amazon was up 8.5%. Experimentation in […]

 

Will price tracking win the travel management war? | Business Travel iQ

Will price tracking win the travel management war? | Business Travel iQ

Business travel management is like the frontline of a battle between two very well-matched adversaries. Although many people like to portray the interaction between travel buyers and suppliers as a friendlier type of encounter, the reality is that both sides are engaged in a long-term war, with both keen to get the best deal financially. […]

Pfizer’s Logical Approach to Price Increases | Strategic Pricing Solutions

Pfizer’s Logical Approach to Price Increases | Strategic Pricing Solutions

Last week Pfizer announced increases in the list prices of more than 40 drugs for the second time within the year.  The increases average 9.4%.  Although there could be some political backlash, the pricing strategy is logical.  Pfizer is recognizing their pricing power, they are incorporating buyer psychology into their process, and they are taking […]

 

Revenue Management : From the Perspective of the Hotel Industry | Entrepreneur

Revenue Management : From the Perspective of the Hotel Industry | Entrepreneur

In the hotel and hospitality industry, it is believed that the ideal revenue management is to sell the right room to the right client at the right moment at the right price on the right distribution channel with the best commission efficiency. Before the internet came , room prices and forecasts were done through sheer […]

 

Honolulu, Hawaii Ridesharing Price Control Ordinance Vetoed | Heartland Institute

Honolulu, Hawaii Ridesharing Price Control Ordinance Vetoed | Heartland Institute

If six council members vote to override the veto, the ordinance will take effect, putting the City Department of Customer Services in charge of determining price ceilings for fares drivers may charge during high-demand periods of time, known as “surge pricing,” when picking up passengers in Honolulu. Calls for Price Flexibility Adam Smith, an associate […]

 

The Senate just released a massive report on drug pricing – here’s what you need to know | Business Insider India

The Senate just released a massive report on drug pricing – here’s what you need to know | Business Insider India

The Senate’s year-long investigation into drug pricing wrapped up in the form of a 131-page report released Wednesday. The report details the instances of four drug companies that made headlines in September 2015 – including former pharmaceutical executive Martin Shkreli’s 5,000% price hike of the anti-parasitic drug Daraprim . However, the committee was clear to […]

 

The Car Dealership As An Omnichannel Seller | PYMNTS.com

The Car Dealership As An Omnichannel Seller | PYMNTS.com

Car dealers and auto groups want to put their vehicles on the information superhighway – and for good reason: According to a report from Bain & Company, nearly half of car buyers begin their process online. And consumers may prefer car dealerships that offer eCommerce options: Seven out of 10 consumers are more likely to […]

Cut in app-cab surge pricing | Telegraph India

Cut in app-cab surge pricing | Telegraph India

Representatives of Ola and Uber declined to comment on the proposed cap on fares and whether they had agreed to restrict surge pricing to .45x. Uber said in an official statement later that the company was “committed to continue to engage with the government” towards ensuring that it works in the best interest of “riders […]

 

Price setting software could breach competition law | Business Insider

Price setting software could breach competition law | Business Insider

Businesses using high-tech optimisation tools to analyse data and prices could inadvertently end up in breach of competition laws by swapping key information with competitors, a leading lawyer has warned. Michael Dean, a partner in the competition team at the Glasgow office of global law firm Dentons , said that this increasingly popular software – […]

 

Opinion: Small changes equal big results | SBJ

Opinion: Small changes equal big results | SBJ

Simplify your pricing I run into this roadblock with some frequency: Business owners – especially contractors – make pricing jobs way too complicated. They wait to give the price until they have every screw priced out and may take days to get the proposal to the customer. You don’t need to have all the parts […]

 

CMA demands pricing action from energy company | GOV.UK

CMA demands pricing action from energy company | GOV.UK

The Competition and Markets Authority (CMA) has today issued legal directions to Daligas, a London-based company that provides energy to small businesses (SMEs) and domestic customers. A previous CMA Order had required all energy companies supplying Microbusinesses to provide an online tool so SMEs can access accurate energy quotes to compare with other firms, and […]

 

How You Can Out-Hack The Airlines | WDTN

How You Can Out-Hack The Airlines | WDTN

Often, you can’t choose a seat assignment or pay for upgrades such as a seat with extra legroom. “The best thing you can do,” advises Norcross, “is pack light and maybe expect to sit next to the bathroom.” And if it seems like ticket prices fluctuate by the minute, they can! Similar to Uber’s “Surge […]

 

Car insurance shock – How your email address could increase your premium cost | Express.co.uk

Car insurance shock – How your email address could increase your premium cost | Express.co.uk

The investigation found that several insurance companies gave different quotes depending on whether it was a Gmail, Yahoo or Hotmail address being used. Three quotes were ran on three different comparison sites, with the same details on each, with the type of email address being the only variant. The first 12 quotes received on the Confused.com and […]

 

Here’s why MoviePass is introducing surge pricing | WMUR

Here’s why MoviePass is introducing surge pricing | WMUR

In a statement Thursday, MoviePass said that it is still in a testing period with surge pricing, which will roll out to all subscribers over the next few weeks. To start, it said members can expect a fee of between $2 and $6. Members on an annual or quarterly plan won’t have to pay surge […]

 

Value Pricing in the PR Profession | ODwyer’s

Value Pricing in the PR Profession | ODwyer’s

So, what’s value pricing in the PR business, or the accounting business for that matter? I once asked the late Al Croft if he ever used value pricing when he was in the agency business. He told me he had three billing rates: administrative, tactical and strategic. This does meet the definition of value pricing; […]

 

Netflix’s Latest Price Test Could Be Bad News for Password Sharers | TheStreet

Netflix’s Latest Price Test Could Be Bad News for Password Sharers | TheStreet

Earlier this week, CordCutting.com and Italian site TuttoAndroid reported that Netflix is testing a pricing overhaul in European markets in which the company would launch an “Ultra” subscription plan that has the features of its current Premium plan, which costs €14 ($16.35) per month in a slew of European markets and $14 per month in the […]

 

Haiti suspends fuel price hike after protesters riot | Baltimore Sun

Haiti suspends fuel price hike after protesters riot | Baltimore Sun

The Haitian government suspended a fuel price hike Saturday after widespread violence broke out across the capital and in the northern city of Cap-Haitien. Prime Minister Jack Guy Lafontant had originally said the country needed to raise prices to balance the budget and gave no indication he would back down. But his administration bowed to […]

 

MoviePass launches Peak Pricing, sparks Twitter backlash (update) | Screen

MoviePass launches Peak Pricing, sparks Twitter backlash (update) | Screen

The service said that Peak Pricing did not foreshadow the end of the unlimited plan – whereby subscribers can watch one film a day for a $9.95 monthly fee – and was designed to ensure the plan remains. In mid-June MoviePass said membership had crossed three million and it has targetted five million by year’s […]

Bordeaux ’17 Pricing Causes Backlog of Wine Stocks, Liv-ex Says | Bloomberg

Bordeaux ’17 Pricing Causes Backlog of Wine Stocks, Liv-ex Says | Bloomberg

High prices for Bordeaux 2017 compared with similar prior vintages, and restrained demand from buyers focusing on a few top labels, is leading to wine stocks backing up at merchants in the French port and a squeeze on margins through the supply chain, according to London-based online wine market Liv-ex. Average 2017 prices for wines […]

 

Is Another Netflix Price Hike in the Works? | The Motley Fool

Is Another Netflix Price Hike in the Works? | The Motley Fool

Video streaming giant Netflix’s (NASDAQ:NFLX) worldwide expansion continues to progress, and one key pillar of its strategy is growing its library of original content developed specifically for various foreign markets. Populating its platform with locally produced fare should entice more subscribers in those countries, and the company plans to spend a not-insignificant fraction of its […]

 

Amazon already undercutting prices on over-the-counter pills | The Star Online

Amazon already undercutting prices on over-the-counter pills | The Star Online

NEW YORK: As pharmacy chains await Amazon.com Inc’s entry into the prescription-drug market, the online retail giant is already undercutting them for non-prescription medicine for aches, colds and allergies. Median prices for over-the-counter (OTC), private-brand medicine sold by Walgreens Boots Alliance Inc and CVS Health Corp were about 20% higher than Basic Care, the OTC […]

 

NHS Trusts buying whiteboard markers at near double the price of high street shops | The Telegraph

NHS Trusts buying whiteboard markers at near double the price of high street shops | The Telegraph

“There is no doubt that considerable variation remains in how much different parts of the NHS pay for goods and supplies,” said Siva Anandaciva, chief analyst at independent health think tank The King’s Fund. He blames some of the variation on differences in how data is collected: some organisations report only the product price while […]

 

Milk price index arrives | Gippsland Times

Milk price index arrives | Gippsland Times

DAIRY farmers will be better able to understand and interpret commodity market price signals following the launch of the new Milk Price Index. The index will provide independent and transparent market information to dairy farmers. The index will be supported by a one-year forecast of prices that will be updated quarterly, along with regular global, national and […]

 

Drug prices rise, as pharma prospers from tax law, group argues | STAT

Drug prices rise, as pharma prospers from tax law, group argues | STAT

WASHINGTON — A tax policy group here is trying to rally outrage over last year’s Republican-backed tax cut by pointing to one of its main beneficiaries: the pharmaceutical industry. Americans for Tax Fairness, a coalition of left-leaning groups that advocate for placing a heavier tax burden on corporations and the wealthy, said in a report […]

 

Pricing Manager | US FoodsPricing Manager | US Foods

Seniority Level: Mid-Senior level

Industry: Food & Beverages

Employment Type: Full-time

Job Functions: Management, Accounting/Auditing, Finance

Job Summary: Manage the execution of pricing strategies at the area level to support company margin goals and area “Go to Market” strategy. Identify opportunities to increase sales and profit in area by conducting regular analysis, consulting with sales teams, and […]

 

Pricing Manager | Infinera

Pricing Manager | InfineraSeniority Level: Mid-Senior level

Industry: Electrical/Electronic Manufacturing Computer Software Telecommunications

Employment Type: Full-time

Job Functions: Management, Manufacturing

Job Summary: The Pricing Manager will influence Infinera’s business strategy working with Sales and partnering with Product Management to set pricing structures for key strategic opportunities and prepare financial analysis that facilitate executive decisions. Role Candidate must be […]

 

 

Events and Resources

Conference: Asia Pricing & Commercial Excellence Summit 2018 | IQPC

Date: August 14-15 2018

Location: Novotel Singapore on Stevens, Singapore

With expansive global competition and today’s consumers readily disrupting traditional pricing and revenue management methods, it is vital for pricing strategists to understand changing perceptions of value, evolving customer behaviours and the new demands of an omni-channel operating environment.

How can Asia’s pricing and commercial leaders achieve commercial excellence with outstanding pricing and revenue management strategies? How can organisations harness new-age pricing tools such as pricing analytics and pricing automation to win, retain and convert customers?

Join the 4th edition of our Asia Pricing & Commercial Excellence Summit this August to gain valuable B2B and B2C insights on how Asia’s business leaders can continue to innovate and optimise their pricing strategies to drive the next phase of business growth.

 

Fall Pricing Workshops & Conference | PPS

Date: October 23-26, 2018

Location: Renaissance Dallas Addison Hotel in Addison, TX

Please make plans to join us and well over 450 of your peers for the best event anywhere. We will be in Dallas, TX,October 23-26, 2018.

Don’t miss out on the Early Bird Discount (When 2 people from the same firm register at the same time (item of equal or lesser value), the 3rd registrant can attend FREE of charge). Offer expires September 14th!

14th Annual PPS European & Global Pricing Conference & Workshops | PPS

Date: November 28-30, 2018

Location: Mövenpick Hotel Amsterdam City Centre in Amsterdam, Netherlands

The Professional Pricing Society team and I are very proud to announce that we will be returning to Amsterdam for our next great event – The 14th Annual PPS European & Global Pricing Conference & Workshops held 28-30 November.

Conference keynotes, breakout sessions, and networking opportunities highlight the conference day on 30 November; While 28-29 November will be used for workshop days to help you enhance your pricing knowledge.

 

 

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.

 

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.

 

Pricing News LinkedIn Group

Join over 5,000 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.

 

Pricing Resources

Explore our collection of valuable pricing resources including:

 

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

 

 

“The single most important decision in evaluating a business is pricing power,” Buffett told the Financial Crisis Inquiry Commission in an interview released by the panel last week. “If you’ve got the power to raise prices without losing business to a competitor, you’ve got a very good business. And if you have to have a prayer session before raising the price by 10 percent, then you’ve got a terrible business.”

     – Warren Buffett