This Week in Pricing > 7/29/17

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

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Top Headlines

Ejercito: LTFRB, Uber and Grab all have fault | Inquirer News

Ejercito: LTFRB, Uber and Grab all have fault | Inquirer News

The senator earlier chided the LTFRB for cracking down on Grab and Uber, which he said “offer far better and more convenient services than regular taxis.” Instead of banning TNVS, Ejercito said the LTFRB should take action first on the complaints against the taxi drivers. “Kung ganito kayo kaingay at kadesididong patawan ng service ban […]

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Competition Commission: Competition Commission rejects complaint against Ola | Times of India

Competition Commission: Competition Commission rejects complaint against Ola | Times of India

While rejecting the complaint after finding that ANI Technologies (Opposite Party) is not a dominant player in the relevant market, the watchdog has also delved into the pricing ways of taxi services providers. “Without going into the legitimacy of OP’s pricing strategy, suffice to say that besides statutory compulsion of non-intervention in the present case, […]

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Apple Is Losing Its Luster, by Malcolm Berko | Creators Syndicate

Apple Is Losing Its Luster, by Malcolm Berko | Creators Syndicate

I don’t think Apple (AAPL-$150) will be selling many iWatches this year. AAPL’s iPad sales are down 19 percent year over year, and iPhone sales have begun retreating. AAPL’s premium pricing strategy helps the company maintain strong margins but it limits sales growth. While first quarter revenues are up 4 percent from the same quarter […]

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J.P. Morgan: OLED iPhone 8 will arrive on time in Sept. in small quantity, ASP of $1100 | 9to5Mac

J.P. Morgan: OLED iPhone 8 will arrive on time in Sept. in small quantity, ASP of $1100 | 9to5Mac

But just how many will be available at launch? To reflect a slower start for production of the OLED iPhone model, J.P. Morgan is adjusting its forecast for the device from 9m units to ~2m units for September. It will, however, also increase its Y18 unit forecasts “by about the same amount to reflect time-shifted […]

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Who’s running the show in Auckland? | NZ Herald

Who’s running the show in Auckland? | NZ Herald

Among the recommendations were a co-ordinated “whole of portfolio” approach to staging events in Auckland, Ateed and RFA making joint bids to secure major events and agreeing a pricing policy for Ateed to use RFA facilities. RFA chief operating officer Paul Brewer says the recommendations of the July 2011 report reflected an environment where the […]

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Boots Says It’s “Truly Sorry” For How It Responded To A Campaign To Lower The Price Of The Morning-After Pill | BuzzFeed

Boots Says It’s “Truly Sorry” For How It Responded To A Campaign To Lower The Price Of The Morning-After Pill | BuzzFeed

Boots has apologised for its handling of criticism over pricing of the morning-after pill and said it will work towards bring down the price of such drugs. In a recent letter to the British Pregnancy Advisory Service (BPAS), Boots’s chief pharmacist Marc Donovan said lowering the price of emergency contraception could lead the firm “to […]

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How Amazon uses “surge pricing,” just like Uber | CBS News

How Amazon uses “surge pricing,” just like Uber | CBS News

Consumers looking for the best deals on everything from clothing to TVs have been well trained to price-check online, often starting at e-commerce behemoth Amazon (AMZN), which trumpets its aim to match “the lowest prices.” But beware. So-called “dynamic pricing” has long bedeviled travelers by jacking up the cost of air fares and hotel rooms, […]

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DoorDash is testing surge pricing for its deliveries in select US markets | Quartz

DoorDash is testing surge pricing for its deliveries in select US markets | Quartz

Everyone hated surge pricing when Uber first added it to rides. Now surge is becoming ubiquitous among food delivery startups, too. Postmates has “blitz pricing” and Sprig, before it went out of business, charged more to deliver during busy times. Uber brought surge pricing to UberEats late last year and, in recent months, DoorDash has […]

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Amazon Accused of “Surge Pricing,” Misleading Consumers During Prime Day | Dealerscope

Amazon Accused of “Surge Pricing,” Misleading Consumers During Prime Day | Dealerscope

According to a recent report, a vendor who sells direct through Amazon has stepped forward to accuse the ecommerce giant of misleading business practices. Specifically, they said that Amazon jacked up the suggested retail price of their product on Prime Day 2017 to make it seem like the discount consumers were getting was far better […]

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Value-Based Pricing: Two Easy Steps To Implement And Two Common Pitfalls To Avoid | Forbes

Value-Based Pricing: Two Easy Steps To Implement And Two Common Pitfalls To Avoid | Forbes

Value-based pricing is a technique for setting the price of a product or service based on the economic value it offers to customers. This pricing strategy allows companies to capture the maximum amount that a customer is willing to pay in order to significantly improve company profits. Product managers, especially in B2B settings such as industrial […]

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More Headlines

Personalised pricing online retailers’ newest ploy | The Austrailian

Personalised pricing online retailers’ newest ploy | The Austrailian

If the key to getting the best price is not showing the seller how keen you are, not revealing how much you can really afford and not caring if you seem like a tightwad, you’ve just lost the advantage. Online businesses don’t want you to know it, but they are using artificial intelligence to design […]

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How tech is disrupting the vacation rental market [Video] | Yahoo! Finance

How tech is disrupting the vacation rental market [Video] | Yahoo! Finance

The Portland, Oregon–based startup says its dynamic pricing system guarantees homeowners they’ll make more money with Vacasa than any other platform, including Airbnb. Johnson explains that Vacasa’s newly revamped pricing software considers hundreds of real-time data points for its 5,200 rental properties in 17 US states and 10 countries including Italy, Spain, France, Chile, Costa […]

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Why the Last Man Standing strategy of Indian ecommerce will not work | The News Minute

Why the Last Man Standing strategy of Indian ecommerce will not work | The News Minute

There’s the convenience of home delivery but the reality is that customers value the convenience of home delivery as long as it is free. In other words, the only real benefit e-commerce firms can use to attract shoppers is a price benefit. Right from the early days of e-commerce, companies like Amazon.com and Ebay.com have […]

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Report: Amazon BTS shoppers are overpaying by 15% | Retail Dive

Report: Amazon BTS shoppers are overpaying by 15% | Retail Dive

Much of Amazon’s successful disruption of the retail marketplace came from undercutting traditional retailers on price (notably books in its first retail foray). The stark price competition with brick-and-mortar retailers has largely dissipated as many now price-match (though price wars, especially in consumer products and groceries, continue). These pricing differences aren’t occurring just because legacy […]

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Taking a Look at Netflix’s Pricing Strategy | Market Realist

Taking a Look at Netflix’s Pricing Strategy | Market Realist

Netflix’s pricing plans Analysts have long speculated that it would be better over the long term for Netflix (NFLX) to raise prices. Currently, in the United States (SPY), Netflix offers three price tiers with its “basic” plan priced at $7.99 per month while its “standard” and “premium” plans are priced at $9.99 and $11.99 each […]

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You Could Win a Price War With Amazon, Pricefixer, Netflix, Walmart or Costco. Here’s How. | Entrepreneur

You Could Win a Price War With Amazon, Pricefixer, Netflix, Walmart or Costco. Here’s How. | Entrepreneur

One of the biggest problems retailers and other general businesses constantly face involves price. What should I charge? How much is too much? Which price is right? With different factors affecting price — and competitors with different prices — it can literally become a war. Needless to say, there is nothing like the perfect price. But considering the […]

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Who calls the shots? | The Hindu

Who calls the shots? | The Hindu

Now is this about the Government earning more or the producers getting less from the sale of a ticket? This is very complicated. The point of sale should be governed by the producer. Why should someone who’s spent 300 crores to make a film like ‘Bahubali’ be forced to sell tickets at the same price […]

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Here’s why Amazon selling Kenmore appliances is great news for consumers | USA Today

Here’s why Amazon selling Kenmore appliances is great news for consumers | USA Today

Where should you buy Kenmore appliances: Sears or Amazon? Kenmore confirmed that the products sold on Amazon and Sears will be identical. This differs from a strategy used by some other appliance makers, where each retailer sells slightly different variations on a product, in order to discourage price-matching. Nobody is talking prices right now, although […]

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Why Americans can’t buy the new Mercedes-Benz X-Class pickup truck | Business Insider

Why Americans can’t buy the new Mercedes-Benz X-Class pickup truck | Business Insider

For Mercedes, the profitability of bringing an all-new truck into the market is questionable. Through June, consumers have purchased only 216,000 mid-size pickups in the US with annual growth at roughly 2.4%. The full-size segment is growing at 4.8% annually. Further, Kelley Blue Book data shows the average transaction price for the segment at $32,000 […]

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Will Jio’s 4G feature phone be as disruptive as its pricing strategy? | Business Standard News

Will Jio’s 4G feature phone be as disruptive as its pricing strategy? | Business Standard News

If Reliance Jio looks at wooing 100 million customers in the next 12 months to 4G features devices, it would mean its competitors could lose at least 10 per cent of their subscribers. A large number of those migrating are expected to be the low-paying customers of the three incumbents. The incumbents could see pressure […]

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Senate inquiry sought on mass transport | The Manila Times

Senate inquiry sought on mass transport | The Manila Times

“Mobility has been a key concern of our country. We should fast-track our projects on modernizing our public transport system so that Filipinos will have a viable transportation option,” Angara said. Many senators have expressed their support to TNVS operation noting that it provides better service that the traditional taxis that have been a subject […]

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How parking lots are ruining Los Angeles | Curbed LA

In the city of Los Angeles, any new building with more than three units must have its own full-sized, dedicated parking space for each unit, adding about 375 square feet per unit to the project (the architect’s estimate includes not just the 330 square-foot space itself but access to the street). And with land costs […]

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Dynamic airfreight pricing, what it means for shippers and forwarders | Air Cargo News

Dynamic airfreight pricing, what it means for shippers and forwarders | Air Cargo News

Posted airfreight rates with promotions change about once a month, on average. When airlines make the shift to dynamic pricing, rates change constantly, driven by excess capacity and diminishing time before departure, writes Manel Galindo* of Freightos. Once the majority of airlines make this shift to dynamic pricing, our industry will witness the same kind of […]

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How Artificial Intelligence benefits companies and ups their game | Livemint

How Artificial Intelligence benefits companies and ups their game | Livemint

Predictive analytics, diagnostics and recommendations: Predictive analytics has been in the mainstream for a while, but deep learning changes and improves the whole game. Predictive analytics can be described as the ‘everywhere electricity’—it is not so much a product as it is a new capability that can be added to all the processes in a […]

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Avoid Amazon FBA Long-Term Storage Fees on August 15th | Tamebay

Avoid Amazon FBA Long-Term Storage Fees on August 15th | Tamebay

It’s that time of year again! The guys at RepricerExpress have reminded us that in just under four weeks (August the 15th to be exact), you could receive a hefty bill from Amazon for FBA long-term storage fees. FBA fees changed on 22 February 2017. If you’re an Amazon UK seller, you can learn more […]

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Low-cost demands spurring managed futures evolution | Pensions & Investments

Low-cost demands spurring managed futures evolution | Pensions & Investments

Demand for lower fees and customization is pushing the small cadre of institutional systematic trend-followers to offer more affordable versions of their flagship strategies. Competition for institutional investor assets is fierce in the managed futures market — widely accepted as the most commoditized in the hedge fund industry — with intense price competition between old-school […]

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How to rethink your pricing strategy in inflationary times | European CEO

How to rethink your pricing strategy in inflationary times | European CEO

There was a collective sigh of relief around Whitehall when official figures revealed a lower-than-expected rise of 2.6 percent in consumer prices in June. Inflation had come in below the three percent predicted by the City and the threat of an interest rate rise was, for the time being at least, averted. But input price […]

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What to Expect for Verizon’s Wireless Service Revenue in 2Q17 | Market Realist

What to Expect for Verizon’s Wireless Service Revenue in 2Q17 | Market Realist

Earlier in 1Q17, Verizon reported wireless service revenue of $15.8 billion, a 6.1% fall YoY. This decline in wireless service revenue is because of the reduction in overage revenue and pricing plan optimization, mainly from single-line subscribers after the launch of the unlimited offerings. About 71% of postpaid phone subscribers are now on an unsubsidized pricing […]

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Why Ticket Scalping Won’t Go Away | Pitchfork

Why Ticket Scalping Won’t Go Away | Pitchfork

In one of his final presidential acts, noted music fan Barack Obama made a much-needed crackdown on ticket bots. Last December, following anti-scalping efforts by Adele, Chance the Rapper, PJ Harvey, and many more musicians, Obama signed a federal ban on the use of software that lets resellers snatch up huge blocks of event tickets […]

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7 steps to unlock the value of cognitive category management | FederalNewsRadio.com

7 steps to unlock the value of cognitive category management | FederalNewsRadio.com

Cognitive category management use case How do these components integrate to provide value to the buyer and end-user? Below is a use case showing how cognitive tools could be used to enhance visibility to the process, improve the end-user experience, and enable the category strategy. 4 execs who developed, owned and managed the popular OASIS […]

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Amazon likely to come to NZ – brokerage | NZ Herald

Amazon likely to come to NZ – brokerage | NZ Herald

Forsyth Barr said the arrival in Australia of the e-commerce giant would put increasing pressure on the retail landscape through its low-price model, adding that the likelihood of the company coming to New Zealand had increased. “Amazon is expected to physically enter the Australian market in late 2018,” Forsyth Barr said. “Consequently, the likelihood of […]

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Railways suffers pricing jet lag | Business Standard News

Railways suffers pricing jet lag | Business Standard News

According to media reports, the blueprint states that 25 per cent of domestic air travel is within 500 km, a segment where the railways used to have monopoly. Though the railways had been claiming that there has been an increase in the First AC, AC-II, III and First Class, which carries more than 145 million […]

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Ask the editor: How does Uber and Lyft return affect Austin? | Community Impact Newspaper

Ask the editor: How does Uber and Lyft return affect Austin? | Community Impact Newspaper

The statewide law superseded municipal rules, such as Austin’s requirement for ride-hailing drivers to undergo fingerprint-based background checks. Uber and Lyft left Austin after the failure of a ballot proposition calling for looser regulations of the local ride-hailing industry. Under the December 2015 ordinance, an app-based ride-hailing company with dynamic pricing, also known as a […]

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Weak pound keeps foodservice price inflation high at 8.8% in June | The Caterer

Weak pound keeps foodservice price inflation high at 8.8% in June | The Caterer

In the ambient hot categories, inflation ran at 12% in June, thanks to rising coffee and tea prices. Inflation in fruit, a category particularly dependent on imports and vulnerable to exchange rates, stood at 13.6%. One bright spot was the sugars, preserves and confectionary category, where prices in June 2017 were 5.1% lower than in June 2016. […]

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Birkenstock CEO Uses All Caps to Yell at Amazon | Racked

Beating Amazon at the e-commerce game is nearly impossible at this point. The company is notorious for using its algorithm to knock down prices, which can hurt a brand’s equity. Elaine Kwon, a former Amazon employee who now runs a business that helps brands get out of Amazon wholesale partnerships, told Racked last month that […]

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Bay Area real estate: Home prices rocket to record high | The Mercury News

Bay Area real estate: Home prices rocket to record high | The Mercury News

Bay Area home prices have continued their stratospheric surge, as the low housing supply combined with intense demand last month to further heat up the market. The real estate business usually cools off in the summer, but this market is proving to be a pressure cooker. The median price of a single-family home in the region […]

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‘That’s not a revenue model’: firms stuck in factory age, says Tim Williams | Financial Review

‘That’s not a revenue model’: firms stuck in factory age, says Tim Williams | Financial Review

That costing model is driven by a Karl Marx-inspired labour theory of value, and Williams argues it’s economically unsustainable. So much so, he predicts within the next decade very few firms will price on billable hours. “Accountants would go into a factory and count the cost, and the owner would work out cost-plus pricing. That’s not pricing, […]

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Scottish firm advises Macra to prohibit misleading adverts | Malawi Nyasa Times

Scottish firm advises Macra to prohibit misleading adverts | Malawi Nyasa Times

Macra engaged Incyte Consultant, a Scottish firm, to develop cost models and pricing framework for telecoms companies for wholesale and retail telecommunication services in order to bring down tariffs and to enhance competition among operators in Malawi. Rogerson said according to results of the mobile network cost model survey that his company has been undertaking […]

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Comment: Battle of the brunches | HotelierMiddleEast.com

Comment: Battle of the brunches | HotelierMiddleEast.com

Brunch is a weekly tradition in Dubai and competition is fierce with venues slashing prices and offerings. However, at what point does the discounted offering impact on the quality of the experience? At Zero Gravity, our Saturday brunch concept — SuperNatural — is attracting record figures. Every week the queue starts at 9am and we […]

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Whole Foods (WFM) Q3 Earnings Beat, Comparable Sales Decline | Nasdaq.com

Whole Foods (WFM) Q3 Earnings Beat, Comparable Sales Decline | Nasdaq.com

However, the company witnessed a 1.9% dip in comparable-store sales (comps) during the quarter, following a 2.8% decline in the preceding quarter. This was the eighth consecutive quarter of comps decline. Analysts believe stiff competition, food price deflation, an aggressive promotional environment and waning store traffic are the primary headwinds plaguing the sector. Nevertheless, Whole […]

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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.

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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

 


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