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This Week in Pricing > 7/28/18

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: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

The 2017 pricing survey results. What pricing strategy worked? What was the pricing dynamic? | Perfect Price

The 2017 pricing survey results. What pricing strategy worked? What was the pricing dynamic? | Perfect Price

We partnered with Auto Rental News to survey the industry about pricing strategy, dynamic pricing moves, remarketing and other key concerns. Most of the answers surprised us. Read on to be surprised yourself. Pricing is the priority Respondents, who were managers or higher (0% were individual contributors, with 7% being in administrative roles), reported that […]

 

Electric car owners face extra charges for ‘peak time’ charging | The Telegraph

Electric car owners face extra charges for ‘peak time’ charging | The Telegraph

It is not yet known how the extra charge will be calculated or levied, however it could signal a move towards households being hit by energy “surge pricing”, which would see them pay more during busy times for energy. According to Ofgem analysis published today if owners use ‘flexible’ charging – where they only top […]

 

Build-A-Bear’s Pay Your Age Fiasco | STRONGBRANDS

Build-A-Bear’s Pay Your Age Fiasco | STRONGBRANDS

Three Problems Build-A-Bear now has three problems. The first is that there are thousands of angry parents and disappointment kids and Build-A-Bear has to figure out how to address their unhappiness. Look for some big discounts and grand apologies. The second problem is that the Build-A-Bear brand has taken a hit. Build-A-Bear wants to be […]

 

Top Predictions For AI, Big Data, Pricing By 2025 | Retail TouchPoints

Top Predictions For AI, Big Data, Pricing By 2025 | Retail TouchPoints

Prediction #1: AI will emerge as your new shopper. The advent of digitalization has resulted in the explosion of data available to retailers — from detailed store and online transaction logs to competitive pricing data. Companies will have more data than they have traditionally been able to handle. This is the perfect storm for Artificial […]

 

Airbnb treads carefully as regulator demands transparency | PitchBook

Airbnb treads carefully as regulator demands transparency | PitchBook

After facing off with the likes of Uber and Google, the European Commission has done it again. The Commission and EU consumer authorities have given Airbnb seven weeks to revise its terms and conditions after announcing they do not comply with current rules. The announcement includes the assertion that the second most valuable startup in […]

 

How location data is used to manipulate airfare and car rental prices | The Next Web

How location data is used to manipulate airfare and car rental prices | The Next Web

While the EU recently passed the GDPR into law to give users control of how their data is collected and used, the battle is unfortunately only half won. According to a new (and shocking!) study by TheBestVPN, you could end up paying almost double (or more) the actual cost of a product or service you […]

 

Merck’s price cuts are flashy, but no more benevolent than Pfizer’s freeze: analysts | FiercePharma

Merck’s price cuts are flashy, but no more benevolent than Pfizer’s freeze: analysts | FiercePharma

Little more than a week after Pfizer drew praise from President Donald Trump for simply delaying planned price increases on 40 drugs, Merck & Co. pledged several strategies for “responsible pricing,” including slashing the price of its hepatitis C drug Zepatier by 60% and instituting price-hike controls across its entire portfolio. At first glance, it […]

 

Amazon Enters the Pharmacy: Are You Ready? | Pricing Matters

Amazon Enters the Pharmacy: Are You Ready? | Pricing Matters

A few weeks ago, Amazon.com, Inc. announced that it will be acquiring PillPack, the full-service online pharmacy that delivers to your door. It is no secret that the Retail Pharmacy landscape is unquestionably challenging, but it is about to get even more aggressively competitive. Are you ready? Retail pharmacies will need to evaluate their current […]

 

Pricer’s Points: Making Money vs. Making Forecast | Tim Williams

Pricer’s Points: Making Money vs. Making Forecast | Tim Williams

The constant forecasting and recasting of revenue is a colossal waste of time in most professional service organizations. No doubt every firm needs a periodic estimate of expected income and expenses, and the closer the estimate is to the actuals, the better. But the time devoted by senior professionals to the relentless forecasting process in […]

 

Artificial Intelligence in Revenue Management Podcast by The Professional Pricing Society | SoundCloud

Artificial Intelligence in Revenue Management Podcast by The Professional Pricing Society | SoundCloud

Artificial Intelligence in Revenue Management In the latest #PricingPodcast by the Professional Pricing Society, Lisa Fisher, Senior Director of Marketing and Communications talks with Alex Shartsis, CEO of Perfect Price, about his presentation at the PPS 29th Annual Spring Pricing Workshop and Conference in Chicago. Alex will present a 45-minute discussion on Artificial Intelligence in […]

 

 

 

More Headlines

Truckers Looking to Haul in More Profits | WSJ

Truckers Looking to Haul in More Profits | WSJ

Trucking companies are hoping to turn the most robust freight market in a generation into stronger long-term financial footing. Carriers are raising rates and investing in new equipment as a monthslong rally in transportation demand gives them the upper hand in setting prices with shippers. Analysts expect strong results across the sector over the next […]

 

Hotel and Air Prices to Rise Sharply in 2019, Per GBTA/CWT Research: Meetings & Conventions

Hotel and Air Prices to Rise Sharply in 2019, Per GBTA/CWT Research: Meetings & Conventions

Travelers can expect steep increases in prices in 2019, with hotel room rates rising by 3.7 percent and the cost of air tickets climbing by 2.6 percent, according to the fifth annual Global Travel Forecast, published today by the Global Business Travel Association and Carlson Wagonlit Travel with the support of the Carlson Family Foundation. The report […]

 

mrbrown talks increasing fares for public transport | The Independent

mrbrown talks increasing fares for public transport | The Independent

Popular blogger mrbrown posted on his Twitter account yesterday about a suggestion he received to implement a surge pricing system for public transport. mrbrown, or Lee Kin Mun, said in his tweet that “Someone just suggested surge pricing for Public Transport”. In his tweet, he shared a screenshot of a letter to the Straits Times […]

 

Private White VC unveils transparent pricing manifesto | Drapers

Private White VC unveils transparent pricing manifesto | Drapers

British premium menswear label Private White VC has launched a transparent pricing manifesto, setting out exactly how it calculates the cost of one of its raincoats. The company said it doesn’t inflate its prices to account for middlemen, distributors or agencies, nor does it add extra margins to bolster profit during ad-hoc promotions or flash […]

Maryland health regulator expands hospital price transparency efforts | FierceHealthcare

Maryland health regulator expands hospital price transparency efforts | FierceHealthcare

The Maryland Health Care Commission is expanding its price transparency initiative with tools aimed at getting consumers pushing for information about cost and quality directly from hospitals and doctors. Launched last fall, the MHCC’s “Wear the Cost” initiative provides prices at Maryland hospitals for common nonemergent procedures including hip replacements, knee replacements, hysterectomies and vaginal births to allow residents see the differences […]

 

Reference based pricing health insurance gaining momentum | Employee Benefit News

Reference based pricing health insurance gaining momentum | Employee Benefit News

Reference-based pricing allows employers to pay for medical services based on a percentage of CMS reimbursements (i.e. Medicare + 30%), rather than a percentage discount of billable charges. This model ensures that the above-mentioned hospitalization cost an employer $3,000 rather than $25,000. “Negotiating” like Medicare Reference-based pricing is becoming increasingly popular as more organizations consider […]

 

Revealed: The billions airlines make in extra charges | NewstalkZB

Revealed: The billions airlines make in extra charges | NewstalkZB

Some airlines are making nearly half their income from ancillary revenue rather than ticket sales. One ultra-low-cost carrier in the United States makes 47 per cent out of ”dynamic pricing” of seats, bags and bundled offers, according to new research. The top 10 ancillary earners among all airlines made $29.7 billion (NZ$43b) last year, 13 […]

 

Euclid man warns concertgoers about ‘dynamic pricing’ when buying Taylor Swift and other tickets | News 5 Cleveland

Euclid man warns concertgoers about ‘dynamic pricing’ when buying Taylor Swift and other tickets | News 5 Cleveland

“It was a gut punch kind of…like the wind taken out of you…just like wow,” said Kevin Sabruno from Euclid. He bought two tickets from Ticketmaster months ago. Sabruno said the marketing pitch was hype that he bought. “These are the hottest seats in the house, so you get them at a better value,” he […]

 

Food Delivery Discount Service Increases Sales During Restaurant Off-Peak Hours | Foodable Network

Food Delivery Discount Service Increases Sales During Restaurant Off-Peak Hours | Foodable Network

Though delivery has proven to be a huge market with the likes of UberEats and Grubhub snatching up restaurant dollars, it has also proven to be extremely expensive for operators and, consequently, for consumers. According to Forbes, Restaurants could pay anywhere between 11% and 45% commission on each order if they sign up for a […]

 

Drug Manufacturers Raise Prices | Heartland Institute

Drug Manufacturers Raise Prices | Heartland Institute

Several major drug manufacturers raised list prices for many drugs in July, two months after President Donald Trump offered his blueprint to lower prescription medication costs. The announced price increases by Pfizer, Inc., Bayer, Novartis, and several other drug makers hike drug prices by an estimated 9.4 percent, with double-digit increases expected for the year […]

The 5,000% price hike that made Martin Shkreli infamous is no longer paying off | Ars Technica

The 5,000% price hike that made Martin Shkreli infamous is no longer paying off | Ars Technica

Martin Shkreli’s former pharmaceutical company lost more than $1 million in the first quarter of 2018 amid waning sales of the drug made famous by Shkreli’s more than 5,000-percent price increase. That’s according to financial documents recently reviewed by Stat. Vyera Pharmaceuticals, formerly known as Turing Pharmaceuticals, had brazenly maintained Shkreli’s despised price hike of […]

 

Maryland broadens hospital price transparency initiative | Healthcare Dive

Maryland broadens hospital price transparency initiative | Healthcare Dive

Maryland has high hopes that its all-payer model will cut costs and reduce hospital use, and this program is aimed to push consumers to help drive those costs down. The state’s pricing initiatives are worth watching. According to a recent JAMA Network report, hospitals are generally not getting better at providing price estimates for procedures, despite […]

 

Health Insurers Are Vacuuming Up Details About You | ProPublica

Health Insurers Are Vacuuming Up Details About You | ProPublica

People who downsize their homes tend to have higher health care costs, the company says. As do those whose parents didn’t finish high school. Patients who own more valuable homes are less likely to land back in the hospital within 30 days of their discharge. The company says it has validated its scores against insurance […]

 

Wireless Service Prices Are Climbing Across the Board | The Motley Fool

Wireless Service Prices Are Climbing Across the Board | The Motley Fool

Sprint (NYSE:S) recently introduced new tiered-pricing for its unlimited data plans, following in the footsteps of AT&T (NYSE:T), T-Mobile (NASDAQ:TMUS), and Verizon (NYSE:VZ). Interestingly, Sprint’s new “Unlimited Basic” plan doesn’t offer a discount off of its existing unlimited plan despite removing or decreasing some of the features of the plan. In fact, some subscribers would […]

 

Novartis Halts Planned Price Increases For Drugs Amid Scrutiny of Relationship With Trump Attorney | BioSpace

Novartis Halts Planned Price Increases For Drugs Amid Scrutiny of Relationship With Trump Attorney | BioSpace

Swiss pharma giant Novartis is halting planned price increases on its medications after President Donald Trump took Pfizer to task over price hikes earlier this month. Pfizer agreed to roll back its price increases last week. Novartis Chief Executive Officer Vas Narasimhan said the company voluntarily halted its price increases because it wants the consumer cost of […]

 

Would You Rent Your Car To A Stranger? GM’s Maven Hopes So | Forbes

Would You Rent Your Car To A Stranger? GM’s Maven Hopes So | Forbes

The concept is not new. San Francisco-based Turo offers peer-to-peer car sharing in 5,500 cities worldwide and has about seven million members and 258,000 cars up for rent. “To have a big player like GM invest in the space, gives validation to the work we are doing,” said Steve Webb, Turo’s senior director of communications. […]

 

An Accreditation Seeks to ‘Professionalize’ Law Firm Pricing Directors | The American Lawyer

An Accreditation Seeks to ‘Professionalize’ Law Firm Pricing Directors | The American Lawyer

Law firm pricing professionals have a new directory and it carries with it an accreditation that a group of industry veterans hope will “professionalize” the relatively nascent role of bringing pricing legal matters. The True Value Pricing Institute currently lists about 45 pricing pros on its site as having obtained ALPP, an accreditation acronym for […]

 

Will Patients Benefit From Pharma’s Pause on Drug Price Increases? | Center for Biosimilars

Will Patients Benefit From Pharma’s Pause on Drug Price Increases? | Center for Biosimilars

Last week, drug manufacturer Merck announced that it will be taking part in several strategies to establish “responsible pricing” going forward, joining the ranks of some of the latest companies taking similar actions, including Novartis and Pfizer. However, the question remains whether patients will be able to feel any cost savings from halts to price […]

 

How does MoviePass peak pricing work? Reddit tried to figure it out | Quartz

How does MoviePass peak pricing work? Reddit tried to figure it out | Quartz

MoviePass members have been wondering what to make of the movie-ticket subscription service’s new peak-pricing system since it was introduced earlier this month. The company said it would begin charging fees to subscribers—who typically pay $9.95 per month for access to one movie showing per day—for tickets to popular titles and showtimes. But it didn’t […]

 

When it’s Time to Change Your Prices | Business 2 Community

When it’s Time to Change Your Prices | Business 2 Community

First, a fact. Too many people at too many companies see price as a constant. They believe in the “set it and forget it” mindset when it comes to pricing. Once you have settled on a price for your product or service, you lock it in and never re-evaluate it. I hope we can all […]

 

Here’s Why Big Pharma Loves This Plan to Lower Drug Prices | The Motley Fool

Here’s Why Big Pharma Loves This Plan to Lower Drug Prices | The Motley Fool

The White House is currently mulling a proposal that could slash list prices on branded drugs. If you find that hard to believe, this next one will make your head explode: We can expect Big Pharma to put a lot of weight behind this proposal’s passage. The Health and Human Services Department (HHS) recently submitted […]

 

5 price strategies for farmers | Farm and Dairy

5 price strategies for farmers | Farm and Dairy

A price strategy can help farmers attract new customers, increase sales volume, boost revenue and gain access to new markets. The following five strategies work well in direct sales channels such as farmers’ markets, farm stands, Community Supported Agriculture, retail, restaurant and institutions. 1Penetration pricing Penetration pricing attracts customers with a low price for a […]

 

BMW launches Uber rival in the US | CarAdvice

BMW launches Uber rival in the US | CarAdvice

BMW has updated its ReachNow app to offer both car-sharing and ride-hailing, although the latter is only available in Seattle right now. In what’s claimed to be an industry first, residents of Microsoft’s home town can now hire a car or ask for a ride “from a professional driver” all within the same smartphone application. […]

 

Stomper’s idea to ease jams: Should public buses and trains use ‘dynamic pricing’ like taxis and airlines? | Stomp

Stomper’s idea to ease jams: Should public buses and trains use ‘dynamic pricing’ like taxis and airlines? | Stomp

Ask anybody who uses public transport what they dread the most in a day and many will say peak hour. It’s not uncommon to see snaking long queues at MRT stations or people spilling out of bus stops as people commute to and from work. Stomper Riddhiman, an Economics student at Singapore Institute of Management […]

 

MoviePass’ peak pricing is leaving subscribers confused, angry | cleveland.com

MoviePass’ peak pricing is leaving subscribers confused, angry | cleveland.com

CLEVELAND, Ohio — MoviePass subscribers looking to catch a flick over the weekend found the dreaded red “peak pricing” icons next to nearly every showtime of nearly every movie in Greater Cleveland. The movie subscription service recently launched surge pricing, which imposes an additional charge above their monthly fee for popular movies at busy times. […]

 

MoviePass Exec: It’s All About the Data | MandE Daily

MoviePass Exec: It’s All About the Data | MandE Daily

MoviePass Exec: It’s All About the Data NEW YORK — Although MoviePass continues to lose money with its $10-a-month movie theater subscription service, subscriber numbers keep growing and profitability keeps getting closer, thanks largely to the valuable subscriber data that it’s collecting and new growth initiatives, according to Ted Farnsworth, CEO and chairman of parent […]

 

Uber’s ‘Vomit Fraud’ Sounds Worse Than Surge Pricing | Gizmodo

Uber’s ‘Vomit Fraud’ Sounds Worse Than Surge Pricing | Gizmodo

As an Uber driver, you have to deal with low wages, an uncertain future, and the possibility of getting yelled at by the company’s billionaire founder. There’s also the more common issue of drunk people puking in your back seat. But a news report claims passengers in Miami are getting hit with fees even after […]

 

Know your audience when it comes to pricing transparency | Solar Power World

Know your audience when it comes to pricing transparency | Solar Power World

The first step for a homeowner interested in solar is usually a Google search to learn the basics, including how much it will cost. But it’s often difficult to find pricing information on residential solar installers’ websites. In many cases, it seems installers want customers to pick up the phone to get logistical information. But […]

 

Consider dynamic pricing for public transport | The Straits Times

Consider dynamic pricing for public transport | The Straits Times

Perhaps it is time the public transport sector also starts to use dynamic pricing strategies, where fares rise during peak hours, just like fares for taxis. There will always be a demand for public transport. Even if each commuter is charged a few cents extra during peak hours, people will still use public transport because […]

 

South Shields FC slash ticket prices for Hebburn friendly after fans’ backlash | Shields Gazette

South Shields FC slash ticket prices for Hebburn friendly after fans’ backlash | Shields Gazette

South Shields Football Club has bowed to fan pressure after admitting it scored an own goal over its match pricing policy. Bosses have agreed to slash entry fees into Mariners Park for tomorrow’s home friendly against Northern League neighbours Hebburn Town. They say they acted in response to online and face-to-face feedback from supporters – […]

 

 

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…

 

 

“Never, ever suggest they don’t have to pay you. What they pay for, they’ll value. What they get for free, they’ll take for granted, and then demand as a right. Hold them up for all the market will bear.”

– Lois McMaster Bujold