This Week in Pricing > 7/1/17

pricingnews-WeeklyThis Week in Pricing is a recap of the week’s best pricing focused news, strategy expert and technology leader’s thought leadership, industry news and events, and resources for pricing professionals.

This Edition is brought to you by: PPS Logo

 

 

 

Professional Pricing Society

Currently, PPS produces three major annual pricing conferences in Europe and North America. Each conference also houses a technology hall where sponsors display the latest in Pricing Solutions software. PPS also offers more than two dozen, full-day training workshops every year, taught by leaders in the pricing community. These workshops serve as the foundation for PPS’s Certified Pricing Professional (CPP) designation, our state of the art pricing certification program. Candidates may be certified after mastering a multi-stage curriculum followed by rigorous testing. Successful CPPs have acquired the core knowledge which not only places them in the top rungs of the pricing field, but also gives them the tools to enhance substantially their own careers.

Click a link below to learn more…

Top Headlines

Amazon.com, Inc. (AMZN) Stock’s Whole Foods Buyout Is Strategically Smart | InvestorPlace

Amazon.com, Inc. (AMZN) Stock’s Whole Foods Buyout Is Strategically Smart | InvestorPlace

Market Caught Off-Guard Market participants clearly did not expect the WFM stock acquisition. Target Corporation (NYSE:TGT) and The Kroger Co. (NYSE:KR) fell 5% and 9%, respectively, following the news. Amazon.com’s aggressive pricing strategy and effective online business model will add even more pressure on those companies. Still, integrating Whole Foods with Amazon.com may have some […]

 

Alarmist Algorithms: Why Pricing Bots Won’t Be the End of Society | Kelley Drye & Warren LLP | JDSupra

Alarmist Algorithms: Why Pricing Bots Won’t Be the End of Society | Kelley Drye & Warren LLP | JDSupra

Federal Trade Commission Acting Chairman Ohlhausen and Commissioner McSweeny recently gave two very different speeches on algorithmic pricing. Commissioner McSweeny’s speech seemed to express concern that algorithms would lead to price fixing, coordination and higher prices.  The Chairman seemed less concerned.  The Chairman is likely correct.  Pricing bots are not a new, sinister specter haunting […]

 

Why pricing is still the most effective marketing tool | The Pulse Australia

Why pricing is still the most effective marketing tool | The Pulse Australia

Ever wonder why you still see $99.95 items on sale when it’s obvious that it’s a marketing trick? Because it works. With marketers creating campaigns based on psychological and behavioural insights backed by data, they’re ignoring a fundamental truth in retailing: pricing is the most effective marketing tool in the kit bag. Nicolas Pontes, a […]

 

Here Comes Uber Inspired Surge Pricing in Supermarkets | TheStreet

Here Comes Uber Inspired Surge Pricing in Supermarkets | TheStreet

British shoppers may have to deal with so-called ‘surge pricing’ in the near-future as supermarkets plan to bin traditional pricing for electronic tags. Tesco plc (TSCDY)  and Wm Morrison Supermarket plc (MRWSY) are said to be among the U.K. supermarkets planning to introduce electronic tags that could result in surge-pricing of popular items, London’s Telegraph […]

 

Insulin is too expensive for many of my patients. It doesn’t have to be. | The Washington Post

Insulin is too expensive for many of my patients. It doesn’t have to be. | The Washington Post

A recent paper in the Journal of the American Medical Association found that insulin nearly tripled in cost from 2002 to 2013. A lawsuit filed in January accuses pharmaceutical companies of price collusion for allegedly raising insulin prices repeatedly and in lockstep to match their competitors. Prices have gotten so bad that the American Diabetes Association recently launched an […]

 

Outcry Over EpiPen Prices Hasn’t Made Them Lower | The New York Times

Outcry Over EpiPen Prices Hasn’t Made Them Lower | The New York Times

A few weeks ago, after some particularly incompetent parenting on my part (nuts in the dessert, a rushed trip to an emergency room after my child’s allergic reaction), I visited the local pharmacy to fill an EpiPen prescription. You might recall EpiPen as last year’s poster child for out-of-control drug prices. Though this simple medical […]

 

Amazon has a patent to keep you from comparison shopping while you’re in its stores | The Washington Post

Amazon has a patent to keep you from comparison shopping while you’re in its stores | The Washington Post

As grocery shoppers work to digest Amazon’s massive acquisition of Whole Foods for $13.7 billion, the digital storefront recently scored a victory that aims to reinforce the company’s growing investments in brick-and-mortar retail. Amazon was awarded a patent May 30 that could help it choke off a common issue faced by many physical stores: Customers’ […]

 

Use the Anchoring Effect for More Profitable Negotiating | Strategic Pricing Solutions

Use the Anchoring Effect for More Profitable Negotiating | Strategic Pricing Solutions

Consider the last time you bought or sold a home.  The home seller listed an asking price first.  How far below the asking price was the first offer?  In tight markets where not many homes are available, the first offers tend to be very close to the asking price.  In markets with more inventory, first […]

 

The Fallacy of Cost Savings | The Sales Blog

The Fallacy of Cost Savings | The Sales Blog

For most companies, a greater investment in one line on a Profit & Loss statement can massively reduce another line, generating greater cost reductions than had that supplier reduced their price. One company I know charges 3 times as much for their product than anyone else charges for what is perceived to be the same […]

 

Value-based contracts key to solving U.S. drug pricing ‘crisis’ | Modern Healthcare

Value-based contracts key to solving U.S. drug pricing ‘crisis’ | Modern Healthcare

In one of the deals between the two, Harvard Pilgrim pays Eli Lilly a lower price for its Type 2 diabetes drug Trulicity if patients do better on competing diabetes drugs. We’re “putting our money where are mouth is—not just making claims about superiority, but measuring outcomes,” Ricks explained. The two CEOs see the value-based […]

 

Amazon Didn’t Kill JC Penney And Sears Jobs, Bad Leadership Did | Forbes

Amazon Didn’t Kill JC Penney And Sears Jobs, Bad Leadership Did | Forbes

For decades, American retail icons Sears and JCPenney had one thing in common: they’d been serving the middle class working American family with quality merchandise at affordable prices; and providing thousands of jobs for cashiers and sales associates in the process. In the last decade, they developed something else in common: they both distanced themselves […]

 

 

More Headlines

Giants tickets reselling for close to Candlestick Park prices | SFGate

Giants tickets reselling for close to Candlestick Park prices | SFGate

All of those parents who have been complaining for years that it was too expensive to take the family to AT&T Park are in luck, the Giant’s failure is your boon. Assuming, of course, you don’t mind seeing a struggling team, Giants tickets are currently going for prices reminiscent of their years on Candlestick Point. Most […]

 

How Much Should You Tip Your Uber Driver? | Here & Now

How Much Should You Tip Your Uber Driver? | Here & Now

On how much to tip your Uber driver “Well the standard tip for a taxi is 15 to 20 percent. And that is my initial reaction: I would say tip 15 to 20 percent of the fare. But things get really dicey with Uber because they have dynamic pricing. What might be a $40 ride […]

 

Global Crude Prices Slip on Reports Trump Considering Sales from Strategic Petroleum Reserve | TheStreet

Global Crude Prices Slip on Reports Trump Considering Sales from Strategic Petroleum Reserve | TheStreet

WTI futures for July delivery, the new U.S. pricing benchmark, were marked 0.1% lower from their Monday close at $50.60 while Brent crude contracts for the same month were seen 0.05% lower at $53.38 per barrel. Any decision to sell SPR stocks can be made by the President under the Energy Policy and Conservation Act, […]

 

Petrol stations to adopt Uber-style surge pricing? | The Car Expert

Petrol stations to adopt Uber-style surge pricing? | The Car Expert

British petrol stations will start introducing demand-based surge pricing within months, similar to the model used by taxi company Uber, according to media reports. The move is being driven by the major supermarket chains, who control more than 1,000 petrol stations across the UK. The supermarkets are also looking at plans to apply demand-based pricing […]

 

New Pain Drug Likely To Face Price Challenges From Payers | Forbes

New Pain Drug Likely To Face Price Challenges From Payers | Forbes

In certain ways, CNTX-4975 is reminiscent of the Epi-Pen. The active component of the later is epinephrine which, like capsaicin, is a drug that’s been known for decades. It’s the injector device, however, and not the drug, that drives Mylan’s proprietary position – and price – for the Epi-Pen. Similarly, the STRATI technology is what […]

 

How Your Pricing Structure Could be Losing you Money | Digital Photography

How Your Pricing Structure Could be Losing you Money | Digital Photography

How do you make sure you are not losing money, but rather making money and running a profitable photography business? Despite what you may think, it has little to do with the number of clients your business is attracting, or how high or low your prices are. It has everything to do with your pricing structure. […]

 

Magento Pricing: $1,500–$100,000+ Why Such A Wide Range? Here’s The Answer. | AionHill

Magento Pricing: $1,500–$100,000+ Why Such A Wide Range? Here’s The Answer. | AionHill

For what reason does one choose Magento? For its extensive functionality, of course! We’re confident that no other framework comes close to Magento in this respect. However, as we’ve already mentioned before, it’s not for everybody. The main reason for this is the required budget: Magento development is not cheap, since it requires highly skilled […]

 

Amazon and Walmart are in an all-out price war that is terrifying America’s biggest brands | Recode

Last month, Walmart gathered some of America’s biggest household brands near its Arkansas headquarters for a tough talk. For years, Walmart had dominated the retail landscape on the back of its “Everyday Low Price” guarantee. But now, Walmart was too often getting beaten on price. So company executives were there, in part, to reset expectations […]

 

Mallinckrodt Acthar Express Scripts call by Wells Fargo | Business Insider

Mallinckrodt Acthar Express Scripts call by Wells Fargo | Business Insider

Who’s paying what, when, and how? There was a lot of PBM business model talk on Tuesday, at a meeting of the Senate Health, Education, Labor and Pensions. One witness, Dr. Gerard Anderson, a professor at the Johns Hopkins Schools of Public Health and Medicine, said the government should investigate the PBM rebate system, and […]

 

Don’t Wait Until Product Launch to Price Your Product! | SiriusDecisions

Don’t Wait Until Product Launch to Price Your Product! | SiriusDecisions

At SiriusDecisions Summit a few years ago, we polled the audience to gain a better understanding of when product managers begin to tackle the pricing and packaging of a new product. The options were “Early in the development process,” “As part of the business case” and “Right before launch.” More than 50 percent of respondents […]

 

Why Posted Prices Are Often Meaningless | Psychology Today

Why Posted Prices Are Often Meaningless | Psychology Today

There is one little-known but important fact about prices that every consumer should know. It is this. The prices that are posted in catalogs, websites, or store shelves or quoted to customers differ significantly from what customers actually pay for the product or service. Pricing experts call this gap between asked-for prices and realized prices […]

 

With Whole Foods Locations, Amazon’s Data and Pricing May Crush Traditional Supermarkets | Adweek

With Whole Foods Locations, Amazon’s Data and Pricing May Crush Traditional Supermarkets | Adweek

By margins, you are referring to pricing, right? It’s kind of ironic because Whole Foods’ recent stumble has to do with the fact that their prices are really high. And you can now find organic groceries almost anywhere outside of Whole Foods. One has to assume that Amazon is going to correct that and lower […]

 

What is surge pricing, how would it work for supermarket groceries and what companies already use the model? | The Sun

What is surge pricing, how would it work for supermarket groceries and what companies already use the model? | The Sun

How would surge pricing work in a supermarket? It was recently reported that supermarkets could introduce surge-pricing in a move similar to Uber’s price changes on busy nights. Chains including Tesco, Sainsbury’s and Morrisons are said to be considering the change in line with “e-prices”, which change with demand. This would involve ditching traditional paper price […]

 

Elmer Fudd Should Not Lead Your Pricing Strategy| Strategic Pricing Solutions

Elmer Fudd Should Not Lead Your Pricing Strategy| Strategic Pricing Solutions

One of the more common things we see is pricing strategies and tactics succumbing to fear, uncertainty and d-doubt (FUDD).  When that happens, companies frequently begin a cycle of value-destroying pricing decisions.  You can prevent those decisions by recognizing the symptoms and stopping Elmer Fudd from leading your pricing strategies. The fear component of Elmer […]

 

Fuel pricing: consumers happy, dealers worried | The Hindu

Fuel pricing: consumers happy, dealers worried | The Hindu

Vehicle users hope prices will keep decreasing while outlets are counting their losses Just over a week after dynamic pricing of petrol and diesel started, the prices have gone down the hill all the way for the consumer. Though the reduction in prices has been in paise, it is now over ₹3 for petrol and […]

 

After months of taunts and tantrums, Martin Shkreli’s fraud trial gets underway | ENDPOINTS NEWS

After months of taunts and tantrums, Martin Shkreli’s fraud trial gets underway | ENDPOINTS NEWS

Shkreli didn’t become infamous in biotech for starting or buying Retrophin or KaloBios, both now free of any entanglements. He owes his notoriety to Turing, a company which he started, bagging a cheap, old generic for $50 million and then hiking the price more than 5000%. In the process, he became a lightning rod for […]

 

European duty free ‘poised for big gains post Brexit’ | Travel Retail Business

European duty free ‘poised for big gains post Brexit’ | Travel Retail Business

WILL THE OPPORTUNITY TO RESTORE REAL VALUE BE TAKEN UP? He said: “This type of analysis is imperative to both suppliers and retailers as their pricing strategy at some airports in particular will need to be adjusted. The restitution of duty free sales on these UK-Europe routes may well present an unprecedented opportunity to all […]

 

Dynamic pricing: Retailers using artificial intelligence to predict top price you’ll pay | ABC News (Australian Broadcasting Corporation)

Dynamic pricing: Retailers using artificial intelligence to predict top price you’ll pay | ABC News (Australian Broadcasting Corporation)

The price tag still holds sway in our major shops and departments stores — but the retail sector is moving away from fixed prices, and online businesses are leading the way.Prices already fluctuate online for certain products and services like airline fares, hotel rooms and ride-sharing services like Uber. One day you score a great […]

 

Coca-Cola hikes fizzy drinks prices | OdishaSunTimes.com

Coca-Cola hikes fizzy drinks prices | OdishaSunTimes.com

New Delhi: Beverages major Coca-Cola India on Tuesday announced that prices of its packaged drinking water brand Kinley will be cut while aerated drinks will get slightly more expensive. The new pricing strategy has been announced with the country’s biggest indirect tax reform — the Goods and Services Tax — just around the corner. In addition, […]

 

Murray Goulburn increases milk price | Riverine Herald

Murray Goulburn increases milk price | Riverine Herald

Major milk processor Murray Goulburn has lifted its opening price for the 2017-18 season from $4.70/kg milk solids to $5.20/kg and increased its forecast range of prices for the season. The company, which has come under sustained criticism from suppliers for the low opening price, has lifted the upper end of the forecast, taking the […]

 

Why did these generic drugs’ prices jump as much as 85%? | MarketWatch

Why did these generic drugs’ prices jump as much as 85%? | MarketWatch

On June 13, as members of a Senate health panel gathered to discuss the rising cost of prescription drugs, the prices of 14 common medications were increased by some 20% to 85%. The affected drugs would appear to be unlikely candidates for price hikes. All were generic drugs, which lack patent protection and therefore tend […]

 

Netflix has increased their pricing in light of new GST rules | Ausdroid

Netflix has increased their pricing in light of new GST rules | Ausdroid

Your Australian Netflix account just got more expensive, with the US-based company increasing prices to adhere to the new so-called ‘Netflix tax’ which has been applied to imported products and services available digitally that kicks off in the new financial year. The new prices have come into effect today, with the standard definition plan jumping […]

 

How to Qualify Clients for Your New Fixed Fee Pricing Model | Hubdoc

How to Qualify Clients for Your New Fixed Fee Pricing Model | Hubdoc

Some clients want the basics and may not be interested in the higher-value advice that makes fixed fees pricing a good solution. Some are more comfortable paying an hourly rate. They like that they can see how many hours of your time they get for what they pay. Each task you complete is accounted for […]

 

Sky Sports to replace numbered channels and slash prices in revamp | The Guardian

Sky Sports to replace numbered channels and slash prices in revamp | The Guardian

A key part of the strategy is that it will let Sky entice new pay-TV subscribers reluctant to fork out up to £49.50 for its cheapest sports package. The new strategy will allow Sky to charge £18 for its cheapest package – although the whole Sky Sports bundle will remain a costly option. The cost […]

 

A Maine School District Struggles with Apple’s Notebook Pricing | The Mac Observer

A Maine School District Struggles with Apple’s Notebook Pricing | The Mac Observer

The email from Mr. Robinson filled in and substantiated the practical details. I’ll quote him, with his permission, as I go along. The first issue, as I’ve written myself, is that iPads, while less expensive than a MacBook AIr, don’t always fill the pedagogical bill. We did attempt iPads at middle and high school when […]

 

Could Welsh minimum pricing plans wipe out supermarket booze deals? | Daily Post

Could Welsh minimum pricing plans wipe out supermarket booze deals? | Daily Post

A potential 50p a unit minimum price would hit a number of cheap wines and spirits and also halt many discount deals, even for more high-value brands like Stella Artois and a Trivento Reserve Malbec wine. The First Minister revealed they were proposing legislation to make it illegal for alcohol to be sold below a […]

 

Under Pricing Your Home As A Marketing Strategy | Active Rain

Under Pricing Your Home As A Marketing Strategy | Active Rain

Under Pricing Homes Is Not A New Strategy Under pricing a home as a marketing strategy to elicit multiple offers has been around for almost two decades, even in a down market. “multiple offers are still here, due in part to a practice that first surfaced in the late 1990s” from the article Sellers underprice, hoping […]

 

Is it an accident when airlines offer bad pricing on product bundles? | Runway GirlRunway Girl

Is it an accident when airlines offer bad pricing on product bundles? | Runway GirlRunway Girl

Airlines talk a lot about how the unbundling of their products delivers choice for travelers. Upcharges for checked baggage (or even carry-on in some cases), meals, seat assignments and more are all part of the proposition that passengers must consider when shopping for flights. And, yes, it means choice, but it also typically means higher […]

 

EU tests limits of drug pricing freedom in landmark probe | Reuters

EU tests limits of drug pricing freedom in landmark probe | Reuters

The first ever EU antitrust probe into excessive drug pricing is taking the European pharmaceuticals industry into uncharted territory, unnerving some companies and lawyers worried about the reach of market intervention. It comes as drugmakers face global pressure over the high cost of prescription medicines, with particular anger focused on makers of older generic products […]

 

Featured Content and Events

Certification: Certified Pricing Professional (CPP)

Certification: Certified Pricing Professional (CPP)

The Certified Pricing Professional (CPP) designation is the standard for advanced knowledge and expertise in the field of Pricing. Since 2003, over 900 individuals have taken courses in pricing through Professional Pricing Society and pass their exam to earn the CPP designation. The CPP indicates knowledge and skill in pricing across industries. We also offer the industry standard professional pricing certification via and live Workshops hosted during our conferences around the world. We can help you develop a personal pricing education roadmap to give you the exact tools your need based on your industry and professional background.

IQPC RPO Chicago 2017 300x250 Ad

Conference: Pricing & Revenue Optimization Executive Forum 2017 | IQPC

Date: August 23-24, 2017

Location: Chicago, IL

Blending Art and Science to Spark the Next Pricing Evolution – A More Meaningful Way for Qualified Senior Pricing Leaders to Share Strategic Insights

A Series of Facilitated Executive Roundtables for the Senior Pricing Professional

Bringing together a roster of master innovators in the pricing space, the inaugural Pricing and Revenue Optimization Executive Forum offers a rare opportunity to step outside the myopia of your day-to-day.

After extensive surveys of pricing leaders across multiple industries, we’ve created a program around the imminent challenges that you’re tackling now.

It will get intense. Maybe even a bit heated. But either way you’ll walk away with a more expansive outlook on how to optimize your margins.

 

 

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…

– – – – – – – – – – – –

“There is scarcely anything in the world that some man cannot make a little worse, and sell a little more cheaply. The person who buys on price alone is this man’s lawful prey.”

     – John Ruskin

 

Pricing Resources

Pricer’s Points Blog Series

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.

Check out some recent additions…

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.

Check out some recent favorites…

Pricing News LinkedIn Group

Join 1,000’s 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.