OnDemand WTP Pricing Research

This Week in Pricing > 7/21/18

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

This Edition is brought to you by:

 

Vistaar

Vistaar is leading SaaS software provider that enables companies to optimize pricing, promotion, configuration, and rebate management.  Our solutions are powered by predictive models leveraged by machine learning that deliver profitable growth and maximize shareholder value.  Our world-class customer base spans a broad range of industries throughout the Global 2000 and includes: manufacturing, beverage alcohol, retailers, and many others.

 

Top Headlines

Caving to pressure, Pfizer delays price hikes | BenefitsPRO

Caving to pressure, Pfizer delays price hikes | BenefitsPRO

Pfizer Inc. agreed to delay implementation of planned price increases for certain drugs a day after President Donald Trump launched an attack on the company, saying it should be “ashamed” of the move. Trump said on Tuesday evening that the New York-based company would be “rolling back price hikes” after he spoke with its chief […]

 

Why putting drug prices in ads is a bad idea | STAT

Why putting drug prices in ads is a bad idea | STAT

When the Trump administration released its blueprint for lowering drug prices a couple months ago, it floated a trial balloon: What if we required manufacturers to include drug prices in direct-to-consumer advertising? It’s unclear if the intent of doing that is to make prices more transparent to consumers, to “shame” manufacturers into lowering prices, to […]

 

Drugmakers Cancel Price Hikes After California Law Takes Effect | Bloomberg

Drugmakers Cancel Price Hikes After California Law Takes Effect | Bloomberg

A handful of the world’s biggest drugmakers are canceling or reducing planned price increases in the U.S., following a new California drug pricing transparency law and continued political pressure over pharmaceutical costs. The California law, which began to take effect earlier this year, requires drugmakers to give insurers, governments and drug purchasers advance notice of […]

 

Sinemia cuts prices to counter rival MoviePass surge pricing | cleveland.com

Sinemia cuts prices to counter rival MoviePass surge pricing | cleveland.com

The MoviePass rival is slashing prices in advance of the release of potential blockbusters such as “Mission: Impossible – Fallout,” “Mamma Mia! Here We Go Again,” “Crazy Rich Asians,” and “The Meg.” The price for Sinemia’s cheapest monthly plan is now $3.99, a savings of $1. For that, subscribers get one ticket to a standard format […]

 

Colleges ask for a share of future salary in lieu of loans | The Washington Post

Colleges ask for a share of future salary in lieu of loans | The Washington Post

MONTPELIER, Vt. — As more students balk at the debt loads they face after graduation, some colleges are offering an alternative: We’ll pay your tuition if you offer us a percentage of your future salary. Norwich University announced Tuesday that it will become the latest school to offer this type of contract, known as an […]

 

Grab Fined P10 Million For Overcharging Users – Insists P2/Minute Fee Is “Legal” | Vulcan Post

Grab Fined P10 Million For Overcharging Users – Insists P2/Minute Fee Is “Legal” | Vulcan Post

Is The Php2/Minute Charge Legal? Amid allegations of charging illegal fares, Grab Philippines maintained that it has always been “transparent” about its fare scheme. Grab spokesperson Leo Gonzales said that the P2-per-minute charge was initiated “when Grab reviewed its pricing structure in June 2017,” and “was integrated to the existing per kilometer charges and is […]

 

When Cost-Plus Pricing Is a Good Idea | Harvard Business Review

When Cost-Plus Pricing Is a Good Idea | Harvard Business Review

The Strategic and Tactical Benefits of Cost-Plus Pricing Despite these limitations, there are sometimes strategic and tactical reasons to use cost-plus pricing. When implemented with forethought and prudence, cost-plus pricing can lead to powerful differentiation, greater customer trust, reduced risk of price wars, and steady, predictable profits for the company. No pricing method is easier to communicate […]

 

MoviePass will let you see Imax movies with subscription by Labor Day | Business Insider

MoviePass will let you see Imax movies with subscription by Labor Day | Business Insider

It’s sure to be a welcome sight for subscribers living in major markets like New York or Los Angeles. In New York City, seeing a movie in Imax or Real 3D ranges from $20 to $24 a ticket, so MoviePass subscribers, who generally pay $10 a month, would be saving money even with an added […]

Sprint follows AT&T, Verizon unlimited strategy by raising prices | FierceWireless

Sprint follows AT&T, Verizon unlimited strategy by raising prices | FierceWireless

Those plans largely stand as a significant price increase to Sprint’s current Unlimited Freedom offer, which provides one line of service for $60 per month and, via a promotion, four lines of service for just $100 per month. However, that promotional price is scheduled to rise in a year’s time to $160 per month for […]

 

 

More Headlines

Price caps for airlines complicated but minor issue, says CIMB Research | The Star Online

Price caps for airlines complicated but minor issue, says CIMB Research | The Star Online

CIMB Research believes that the price caps are likely to be set quite high, because 1) a low-price cap will hurt Malaysia Airlines (MAS) and Malindo more, as their airfares are typically higher than AirAsia ‘s, and 2) it is not in the interests of Mavcom to drive MAS and Malindo out of business, since […]

 

Charlie Baker trolls toll congestion pricing | Boston Herald

Charlie Baker trolls toll congestion pricing | Boston Herald

Gov. Charlie Baker signaled he’s likely to put the brakes on a Senate plan to test rush-hour congestion pricing on the state’s toll roads, saying his working constituents would see it as “incredibly punitive.” The Herald reported yesterday that a new MassDOT pilot program, included in the state budget that is now being reviewed on […]

Amazon Prime Day shopping topped $4 billion, analyst estimates | Grand Forks Herald

Amazon Prime Day shopping topped $4 billion, analyst estimates | Grand Forks Herald

Shoppers spent $4.2 billion during Amazon.com’s Prime Day sale, up 33 percent from a year ago, according to estimates from Wedbush Securities analyst Michael Pachter. The online retailer doesn’t disclose revenue from the 36-hour event that began Monday. Pachter based his estimate on information the company did release, including that it shipped more than 100 […]

 

Changing The Way Medicare Pays Doctors | Forbes

Changing The Way Medicare Pays Doctors | Forbes

Cutting the reward money But small physician practices and even larger groups with few Medicare patients may opt out of the new payment system.  CMS is also said it wants to experiment with excluding physicians in Medicare Advantage managed care plans from MIPs participation. As a result, reports the online journal Modern Healthcare, the amount […]

 

Trump’s Drug Plan Picks Up Momentum as Merck Lowers Some Prices | Bloomberg

Trump’s Drug Plan Picks Up Momentum as Merck Lowers Some Prices | Bloomberg

The Trump administration moved swiftly in the past 24 hours to implement pieces of its plan to bring down drug prices, preparing several significant steps as one of the biggest U.S. drugmakers said it would bring down the cost of some medicines. The Health and Human Services Department on Wednesday night submitted a proposal to […]

 

Hidden Uber Costs? Drivers ask company to be more transparent with fees | KSAZ

Hidden Uber Costs? Drivers ask company to be more transparent with fees | KSAZ

“There’s no transparency,” said one of the four drivers interviewed by FOX 10’s Matt Galka. “In the rider app you can’t even see the charge breakdown.” The four drivers wished to remain anonymous, in fear of retaliation from Uber. They want to keep driving, and thought if they spoke out, the company would end their ability […]

 

Rockford golf seeks benefactor to save course(s) | rrstar.com

Rockford golf seeks benefactor to save course(s) | rrstar.com

Officials spent an hour laying out the problem to the public and an hour receiving suggestions, which they posted on two boards, one on how to raise revenue, the other on how to cut costs. Many people suggested raising the price of season golf passes. Most cities don’t offer a multicourse city pass, but Rockford, […]

 

California shows Trump a thing or two about cutting drug costs | thepharmaletter

California shows Trump a thing or two about cutting drug costs | thepharmaletter

Apparently as a result of the law coming into effect, Switzerland’s Novartis (NOVN: VX) and Roche (ROG: SIX), as well as Gilead Sciences (Nasdaq: GILD) and Novo Nordisk (NOV: N), have either cancelled or reduced planned price increases for over 10 different products. … Lawyers for the industry said the proposal would dictate national healthcare […]

 

ICIS Announces Further Moves Towards Mexico Price Transparency | PR Newswire

ICIS Announces Further Moves Towards Mexico Price Transparency | PR Newswire

Price indications for notional two, three and five year contracts for potential power transactions on Mexico’s MEM wholesale power market were included in the flagship Mexico Energy Report publication on 11 July in addition to the one-year contract already included. The survey results show that a two-year contract for the Valle de Mexico Norte node, […]

 

Pricing and monetisation in private banking: New trends in revenue management | hubbis

Pricing and monetisation in private banking: New trends in revenue management | hubbis

Hubbis and co-host Simon-Kucher & Partners assembled a group of wealth management experts in a private discussion to analyse the latest trends and anticipate future developments. The premise for the discussion was that the approach to pricing, monetisation and discounts in the wealth management sector in Asia need addressing in a more professional manner, for […]

 

Trump has access to a little-used tool that could lower oil prices | Markets Insider

Trump has access to a little-used tool that could lower oil prices | Markets Insider

“REDUCE PRICING NOW!” That was President Donald Trump’s message to OPEC last week, adding that “gas prices are up & they are doing little to help.” It was just the latest in a string of tweets taking aim at the oil cartel about energy costs. And ahead of the midterm election, where rising gas prices could hurt […]

 

Exclusive: Jeff Bezos plans to charge at least $200,000 for space rides – sources | The Mighty 790 KFGO

Exclusive: Jeff Bezos plans to charge at least $200,000 for space rides – sources | The Mighty 790 KFGO

Executives at the company, started by Amazon.com Inc founder Bezos in 2000, told a business conference last month they planned test flights with passengers on the New Shepard soon, and to start selling tickets next year. The company, based about 20 miles (32 km) south of Seattle, has made public the general design of the vehicle – […]

 

MoviePass’s useful financial horror show – See it before it leaves theatres | Economist

MoviePass’s useful financial horror show – See it before it leaves theatres | Economist

EVEN by the standards of Hollywood, it sounds an unlikely pitch—an app that offers almost unlimited access to cinemas for $10 a month. The service, called MoviePass, pays cinemas full price for nearly every ticket that filmgoers use. By design, it loses more money the more people use it. The ending seems to be predictable. […]

 

‘If you tell your agency to chase price, then that’s what they’ll do’: Confessions of a former agency exec | Digiday

‘If you tell your agency to chase price, then that’s what they’ll do’: Confessions of a former agency exec | Digiday

Was it a challenge to get a client to try the test? If you tell your agency to chase price, then that’s what they’ll do. And if you measure the right thing, the actual cost of it is almost irrelevant. It’s hard to get some clients to reconcile with that, and that’s why I think […]

 

McDonald’s Says Goodbye Cashiers, Hello Kiosks | Forbes

McDonald’s Says Goodbye Cashiers, Hello Kiosks | Forbes

My concern about this is personal. Without my opportunity to start as a grill man, I would have never ended up running one of largest fast food chains in the world. I started working at McDonald’s making the minimum wage of 85 cents an hour. I worked hard and earned a promotion to restaurant manager […]

 

Cadillac’s Pricing Problem and Buick’s Potential Rebranding Opportunity with Velite 6 and Enspire | Torque News

Cadillac’s Pricing Problem and Buick’s Potential Rebranding Opportunity with Velite 6 and Enspire | Torque News

Cadillac’s Pricing Problem Unfortunately for Cadillac when they repositioned themselves against luxury German automakers like Audi, BMW, and Mercedes, their similar higher pricing followed. And they priced themselves out of the market with the Cadillac ELR PHEV, and even now the Plug-in Hybrid CT-6 is a tough sell against Model Tesla Model S and new […]

 

CMS Proposes Drug Pricing, Price Transparency Changes for Medicare | healthpayerintelligence.com

CMS Proposes Drug Pricing, Price Transparency Changes for Medicare | healthpayerintelligence.com

July 13, 2018 – CMS has proposed a series of policy changes for Medicare that would promote prescription drug affordability within Medicare, and has also requested stakeholder comments about ways to improve price transparency for Medicare services. As part of changes to the 2019 Medicare Physician Fee Schedule (PFS), CMS would adopt a new pricing model […]

 

Hidden Room, Secret Prices Give Way as Gagosian Embraces the Web | Bloomberg

Hidden Room, Secret Prices Give Way as Gagosian Embraces the Web | Bloomberg

Bucking a longtime practice of not disclosing prices, Gagosian publicly listed them for 10 artworks at its inaugural “Online Viewing Room” during Art Basel last month. Five pieces sold for a total of $2 million, with individual prices as high as 950,000 euros ($1.1 million) for a painting by Albert Oehlen. The site was viewed […]

Blueprint to Lower Drug Prices could offer a way forward in fight against mushrooming costs | TheHill

Blueprint to Lower Drug Prices could offer a way forward in fight against mushrooming costs | TheHill

At a hearing before the Senate Finance Committee last month, Sen. Sherrod Brown (D-Ohio) asked Health and Human Services Secretary Alex Azar if he agreed “that there are scenarios where pharmaceutical companies increase the list price of their product and price-gouge consumers for no reason other than to increase their profit margin?” Secretary Azar’s response […]

 

BMW launches ride-sharing service [too] | WILX

BMW launches ride-sharing service [too] | WILX

BMW is launching a new ride-sharing service in Seattle to compete with Uber and Lyft. … Drivers are full-time employees hired by third party transportation companies. Customers can hail a car immediately or schedule a ride up to a week in advance. Trips cost $2.40 per mile plus 40 cents per minute, with no surge […]

 

Amazon Prime Day’s Results Are In–and It’s a $1 Billion Win for Small Businesses | Inc.com

Amazon Prime Day’s Results Are In–and It’s a $1 Billion Win for Small Businesses | Inc.com

After a rocky start, Amazon ended its fourth Prime Day on a high note. Sales from its 36-hour shopping extravaganza surpassed those from Cyber Monday, Black Friday, and last year’s Prime Day, making it once again the biggest shopping event in Amazon’s history, the company said. Small and medium-size businesses notably crushed the day, collectively making […]

<div”>Tags: ,

 

Grocers must be mindful of price-setting software | The Grocer

Grocers must be mindful of price-setting software | The Grocer

The use of price optimisation software, often relied on by online retailers to make sure their prices are not being undercut by competitors, is coming under more scrutiny than ever. In a report released this month, an independent panel that advises the German government on competition law and policy-making called for stricter surveillance of online […]

 

Hitting its prime: why brands like Amazon chase the subscription model | The Drum

Hitting its prime: why brands like Amazon chase the subscription model | The Drum

Price Control: If the dynamics of the business change, with a subscription model, you can immediately shift your prices from the next billing for the entire user base. You can also. Improved Cash Flow: You are getting some cash every month, rather than tons of money every two years when launching a new product and […]

 

Ticket scalping bots are robbing true fans of iconic, live events | The NewDaily

Ticket scalping bots are robbing true fans of iconic, live events | The NewDaily

Automated scalping bots are snatching up Australian event tickets in bulk far more quickly than genuine fans can secure a single ticket, amid mounting pressure for a crackdown on ticket bots. Tickets to major events are increasingly selling out within minutes – and while high demand may partly contribute to this, fans have questioned why countless tickets […]

 

Ibiza Virgins’ Guide: clubbing on Ibiza on a budget | Ibiza Spotlight

Ibiza Virgins’ Guide: clubbing on Ibiza on a budget | Ibiza Spotlight

Ibiza may seem like an expensive place to the inexperienced eye and it’s easy to see why. Nightclub entry ticket prices are not exactly inexpensive. Many hotels cost more than the average monthly mortgage repayment. Thinking of buying a round of drinks in a super-club? Good one. But don’t despair. Although this magical island seems […]

 

All-Payers Claims Databases May Increase Healthcare Price Transparency | Health Payer Intelligence

All-Payers Claims Databases May Increase Healthcare Price Transparency | Health Payer Intelligence

July 18, 2018 – Leveraging the data of all-payers claims databases (APCDs) could improve healthcare price transparency for consumers, according to testimony presented at a House Energy and Commerce Committee hearing. Jamie S. King, a professor at the USC Hastings College of Law, told the committee that APCDs could address price transparency challenges if stakeholders use […]

We Define CPQ For Pricing | Professional Pricing Society

We Define CPQ For Pricing | Professional Pricing Society

What is Configure Price Quote (CPQ)? Configure price quote (CPQ) is an industry term for software solutions that help companies to streamline some of their core processes around the prices that they set for customers. CPQ software can help companies configure products or services in the most optimized way, pricing according to internal factors such as […]

 

What Does a Drug Cost? It Depends on Where You Live | The New York Times

What Does a Drug Cost? It Depends on Where You Live | The New York Times

What you pay at the pharmacy for generic drugs can vary widely based on where you live, according to a new analysis by the consumer website GoodRx. The study, which looked at 500 commonly used drugs in 30 American cities, highlights just how unpredictable drug prices can be. The cost of common drugs like the […]

 

As bitcoin values slide, high-end GPU prices drop, too | Computerworld

As bitcoin values slide, high-end GPU prices drop, too | Computerworld

The processing power of high-end gaming cards made them ideal for cryptocurrency mining rigs and they were in hot demand when Bitcoin, Ethereum and other digital token prices leaped to unprecedented heights in late 2017 and early 2018. That trend now appears to be reversing; add-in board (AIB) prices appear to be declining and supplies […]

 

Pier 1 Must Evolve or Die | RIS News

Pier 1 Must Evolve or Die | RIS News

RELAUNCHING THE PIER 1 BRAND The first key tenet of Pier 1’s new approach will be a relaunch of the Pier 1 brand, with a focus on new and exciting merchandise. The retailer is known for its varied and international assortment with mid- to high-end price points. While it is committed to maintaining its identity, […]

 

Drivers Can Get Cheap Car Insurance Quotes And Save Money | Benzinga

Drivers Can Get Cheap Car Insurance Quotes And Save Money | Benzinga

Car insurance companies have their own rules regarding clients’ classifications and costs. Furthermore, many companies use price optimization in order to slowly increase the costs over time. This means that the offer the client thought it was the best last 2-3 years ago, may now be really expensive. And other offers, much better, have appeared […]

 

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…

 

 

“People tend to be clueless about prices. Contrary to economic theory, we don’t really decide between A and B by consulting our invisible price tags and purchasing the one that yields the higher utility, he says. We make do with guesstimates and a vague recollection of what things are “supposed to cost.””

     – William Poundstone