This Week in Pricing > 7/8/17

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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Strategic Pricing Solutions

Strategic Pricing Solutions, LLC (SPS) is a management consulting firm helping clients with pricing strategies, data analytics, and pricing processes. SPS was formed by Scott Francis in 2005 with a vision of enabling B2B clients to build sustainable strategic pricing capability to significantly improve their profitability. By providing flexibility in how we serve our customers, SPS consulting enables clients to build sustainable strategic pricing capability and continuous improvement in profitability through better pricing decisions.

Click a link below to learn more…

 

Top Headlines

The Rise of These Two Ruthless German Grocery Stores Has This Influencer Terrified About Walmart | TheStreet

The Rise of These Two Ruthless German Grocery Stores Has This Influencer Terrified About Walmart | TheStreet

“Our store visits and analysis highlighted significant price compression in private-label pricing, aggressive prices in the all-important customer traffic-driving fresh food areas and even lower branded prices, too,” Mushkin and Otway wrote. Wolfe found that Walmart lowered its prices by more than 20% at certain stores in Virginia Beach and North Carolina, where Lidl now […]

 

Facebook now lets advertisers add product videos, prices to Dynamic Ad campaigns | Marketing Land

Facebook now lets advertisers add product videos, prices to Dynamic Ad campaigns | Marketing Land

Summer may have just started, but Facebook is already giving advertisers a head start on their fall shopping campaigns. Already a showcase for brands’ product catalogs, Facebook is making its shopper-retargeting Dynamic Ads format more of a showpiece. Advertisers using Dynamic Ads to retarget people who visited their sites or used their apps can now […]

 

Petrol price hiked for first time since daily revision but the amount will make you laugh | The Financial Express

Petrol price hiked for first time since daily revision but the amount will make you laugh | The Financial Express

Petrol price rose for the first time today ever since daily retail fuel price revision was implemented nationwide on June 16, after falling or remaining unchanged for 12 days in a row. However, the quantum of hike is such that many would not even bat an eyelid over it. State-run Indian Oil Corp raised the […]

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Are brands killing their market value and positioning over discounts and chaotic e-commerce rush? | Indiaretailing.com

Are brands killing their market value and positioning over discounts and chaotic e-commerce rush? | Indiaretailing.com

The online retail industry is heavily dependent on discounts to woo customers and they organize sale every few months. Many of the e-commerce companies are constantly coming up with sale periods, and have adopted an unrealistic pricing strategy repeatedly to attract a large consumer base. They believe offers and discounts are the right way to […]

 

Food waste in focus at Summer Fancy Food | Food Business News

Food waste in focus at Summer Fancy Food | Food Business News

NEW YORK — A “win-win-win” may aptly describe Wasteless, a new technology platform developed to reduce food waste and recapture $1 billion of lost grocery store revenues each week. Wasteless enables shoppers to pay less for a food product nearing its expiration date, said Tomas Pasqualini, business development director. The concept was one of several […]

 

A Former Amazon Employee Has a Warning For Brands | Racked

A report last week suggested that Nike was close to inking a wholesale partnership with Amazon, causing many to cringe just thinking about the effects such a deal would have on struggling retailers. Nike, however, would come out ahead, as it could potentially see an additional $300 to $500 million in sales. Former Amazon employee […]

 

Daily oil price tweak hits petroleum dealers | The New Indian Express

Daily oil price tweak hits petroleum dealers | The New Indian Express

VIJAYAWADA: The recently introduced dynamic pricing of fuel by Oil Marketing Companies (OMCs) has left both consumers and dealers in the State in a quandary. The exercise has made the consumers watchful, while the dealers are worried about their profit margins. However, the dealers have been incurring losses between `40,000 and `4 lakh a day since June […]

 

NZ’s petrol price differences not acceptable, minister Judith Collins says | Stuff.co.nz

NZ’s petrol price differences not acceptable, minister Judith Collins says | Stuff.co.nz

A bombshell government report into the fuel market shows people in Wellington and the South Island are paying 15 cents a litre too much for petrol, Labour says. The gross profit margin on fuel at the pump had doubled to about 30 cents a litre in Wellington and the South Island over the past four […]

 

 

More Headlines

Pricer’s Points: The Impact of Global Changes on Pricing | Jesper Hansson

Pricer’s Points: The Impact of Global Changes on Pricing | Jesper Hansson

We want to hear from you and how you see this impacting your daily activities. Dr.Stephan Liozu and Dr. Andreas Hinterhuber are conducting this short survey with PPS on the topic of global pricing. The results will be published in the Journal of Professional Pricing and the Journal of Revenue and Pricing Management. The survey […]

 

Deep Water Drillers Are Doomed Even If Oil Prices Surge – Transocean Ltd. (NYSE:RIG) | Seeking Alpha

Deep Water Drillers Are Doomed Even If Oil Prices Surge – Transocean Ltd. (NYSE:RIG) | Seeking Alpha

Summary The short-term impact of OPEC flooding the market with oil in 2014-16 was to crush oil prices. The long-term impact, when combined with impending EV penetration, was to destroy deepwater investment by the oil majors and banks. Companies levered to deepwater drilling are mostly doomed. OPEC’s decision in late 2014 to ramp up oil […]

 

Seattle Surprise: When You Raise Prices by Gov’t Diktat, People Usually Buy Less | Reason.com

Seattle Surprise: When You Raise Prices by Gov’t Diktat, People Usually Buy Less | Reason.com

All told, that’s the equivalent of 6,317 full-time jobs eliminated because of the latest hike. Over the past few years, a lot of people—including Sen. Bernie Sanders (I-Vt.)—have argued that labor costs are different than other costs and that elasticity of demand isn’t that great when it comes to low-wage workers. But many of the […]

 

Comcast and Charter Could Give Sprint an Alternative to T-Mobile — for a Price | TheStreet

Comcast and Charter Could Give Sprint an Alternative to T-Mobile — for a Price | TheStreet

Chances are that Sprint, given its network quality and recent retail pricing actions, is also undercutting Verizon’s wholesale pricing. Though Comcast’s Xfinity Mobile pricing is competitive for users who — whether due to their mobile habits or proximity to Comcast hotspots — don’t need to consume a lot of mobile data, its unlimited data pricing […]

 

At BMW India, 50% of the car’s price is just taxes, says Vikram Pawah | Business Standard News

At BMW India, 50% of the car’s price is just taxes, says Vikram Pawah | Business Standard News

Q) Should entry prices for luxury cars come down to expand the market? A) The component of pricing in India includes manufacturing cost and taxes. We have been constantly localising. Of our 16 models, eight volume products are locally produced and have an average 50 per cent localisation, including engine. Tax is a big component. […]

 

To beat scalpers, artists have to embrace capitalism | Toronto Star

To beat scalpers, artists have to embrace capitalism | Toronto Star

Hands up everybody who loves logging onto a ticket sale only to find out tickets have already sold out? Or going to a resale site to see that tickets there are going for some insane multiple of the original price? Now that nobody has raised their hand it’s easy to see why the Ontario government […]

 

R2 per megabyte is all but dead | Moneyweb

R2 per megabyte is all but dead | Moneyweb

It’s surprising that the country’s major mobile operators haven’t trumpeted the death of R2 per megabyte (MB) charges for out-of-bundle data. That pricing – a staple of the industry since Vodacom’s launch of 3G services in 2004 – has practically disappeared. Vodacom, with over 50% market share in South Africa, has reduced out-of-bundle rates on prepaid […]

 

10 ways in which GST will change the lives of individuals, businesses | Livemint

10 ways in which GST will change the lives of individuals, businesses | Livemint

New Delhi: Collapsing 17 federal and state indirect taxes into a single goods and services tax (GST) across the country from midnight of 30 June is set to change the lives of individuals and businesses in many ways, some of them in a disruptive way. 1. Transparency For the first time, consumers will get to […]

 

Why your bananas could soon cost more in the afternoon | BBC News

Why your bananas could soon cost more in the afternoon | BBC News

Technology is enabling supermarkets and other retailers to change their prices throughout the day, but why should they want to do this and what will customers think about it? Many know the dispiriting feeling when the summer holiday flight they had their eye on suddenly goes up £50, or the Uber they call on a […]

 

Volume-based charges suggested in council’s freshwater strategy | Stuff.co.nz

Volume-based charges suggested in council’s freshwater strategy | Stuff.co.nz

Pricing is high on Waikato Regional Council’s wish list for managing the region’s freshwater resources. It comes as tensions rise over water-bottling companies that look to export billions of litres at no cost for the raw product. Six political parties in Parliament want a pricing regime and the National Government is open to the idea. … “If we […]

 

Dynamic pricing: Petroleum dealers call for strike over delay in installation of automated systems | The News Minute

Dynamic pricing: Petroleum dealers call for strike over delay in installation of automated systems | The News Minute

The All India Petroleum Dealers’ Association has (AIPDA) called a nationwide petrol pump strike on July 12, protesting against the oil marketing companies’ failure to install 100 per cent automated system at the pumps and lack of transparency in the daily dynamic pricing mode. The daily dynamic pricing mode has been been started from June […]

 

10 Tips From Power Tool Masters | Hardware Retailing

10 Tips From Power Tool Masters | Hardware Retailing

Tip 2—Build a reputation for low prices. Go with low prices—that’s the reason Andrews is able to pull in such high sales numbers during his annual tool sale. He’s willing to lose margin dollars and sell his tools below big-box prices just so he can get customers in the door. “I’m selling these tools cheaper […]

 

If You Shop at Wal-Mart, You’re Going to Hate Its Latest Anti-Amazon Strategy | Money Morning

If You Shop at Wal-Mart, You’re Going to Hate Its Latest Anti-Amazon Strategy | Money Morning

Wal-Mart Stores Inc. (NYSE:WMT) is ditching its most well-known pricing strategy in an effort to compete with e-commerce leviathan Amazon.com Inc. (Nasdaq: AMZN). To encourage consumers to use Wal-Mart’s app and online store to shop for merchandise, the company has decided to eliminate its price-matching policy at over 800 of its 5,000 stores nationwide – […]

 

United’s Frequent Flier Program Just Got More Complicated | Condé Nast Traveler

United’s Frequent Flier Program Just Got More Complicated | Condé Nast Traveler

Those who know frequent flier programs well emphasize that using miles for flights like United’s Every Day Awards represent a poor value compared to premium-class redemptions and Saver-style awards. But United’s change also brings minor increases on certain routes and partner redemptions, such as a round-trip business class ticket to Europe increasing to 120,000 miles […]

 

New Transatlantic Low-Fare Airline Debuts with Cheap Flights to Europe | SmarterTravel

New Transatlantic Low-Fare Airline Debuts with Cheap Flights to Europe | SmarterTravel

The new transatlantic low-fare line, Level, has started flying from its Barcelona base to Los Angeles and Oakland. This summer, it operates three times a week from Oakland and twice from Los Angeles. Schedules follow the usual pattern: overnight to Europe, daytime return. The pricing strategy seems to be emulating Norwegian: a base fare that […]

 

Coles looms as biggest challenge for incoming Wesfarmers boss Rob Scott | afr.com

Coles looms as biggest challenge for incoming Wesfarmers boss Rob Scott | afr.com

Woolworths outscored Coles on strategic and tactical thinking and cultural issues. But the most worrying scores for Scott are around Coles’ performance in its stores. Coles couldn’t beat Woolworths on nine separate metrics around in-store execution, including on-shelf availability, overall store presentation, in-store staff calibre and value for money. The biggest gap between the giants […]

 

European Factory Activity Holds at 6-Year High; Job Creation Pace Best in Two Decades | TheStreet

“Eurozone manufacturing growth gained further momentum in June, rounding off the best quarter for just over six years. At current levels, the PMI is indicative of factory output growing at an annual rate of some 5%, which in turn indicates the goodsproducing sector will have made a strong positive contribution to second quarter economic growth,” […]

 

OnePlus 5 price too high? Here’s the best time to buy OnePlus flagship for a low price | IBT

OnePlus 5 price too high? Here’s the best time to buy OnePlus flagship for a low price | IBT

OnePlus 5 is the latest flagship in the market and probably one of the most anticipated devices of this year. The Chinese smartphone maker’s latest device managed to turn many heads across the globe for obvious reasons. Everything from a top processor to a high-end camera setup defines OnePlus 5’s worth in the price-driven flagship […]

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Daily oil price tweak hits petroleum dealers | The New Indian Express

Daily oil price tweak hits petroleum dealers | The New Indian Express

VIJAYAWADA: The recently introduced dynamic pricing of fuel by Oil Marketing Companies (OMCs) has left both consumers and dealers in the State in a quandary. The exercise has made the consumers watchful, while the dealers are worried about their profit margins. However, the dealers have been incurring losses between `40,000 and `4 lakh a day since June […]

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The rise of dynamic pricing in UK supermarkets | Dispatch Weekly

The rise of dynamic pricing in UK supermarkets | Dispatch Weekly

Supermarkets are changing their product prices depending on the day, time, season or demand. Dynamic – or surge pricing is a common practice in the hospitality, and travel industries. It now seems the trend has made its way into online grocery stores and is now looking to enter brick and mortar supermarkets. Most people experience […]

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Dynamic pricing of fuel: Dealers seek delayed payment mechanism to protect margins | Business Line

Dynamic pricing of fuel: Dealers seek delayed payment mechanism to protect margins | Business Line

“This way the dealers will be making the sale at a price decided for the day by the oil marketing companies, and the payment for the fuel sourced from the terminal will be made after sale of the product and deducting the fixed dealer margins.” Through this approach the burden of fluctuating prices will be […]

 

Jet2holidays’ January campaign ruled misleading | TTG Media

Jet2holidays’ January campaign ruled misleading | TTG Media

Jet2holidays argued that its dynamic pricing model meant that prices fluctuated during the sale period. However, the ASA ruled that ‘despite having an appreciation of these price fluctuations, in the absence of further information about the basis of any savings claims made, consumers would be unable to have an informed understanding of whether or not […]

 

Off the Record: Aparkalypse now: why parking is political hell | Whistler Question

Off the Record: Aparkalypse now: why parking is political hell | Whistler Question

Objective number one, however, is contrary to objective number two, which is to increase revenue from the day lots. If the revenue projections are based on the same amount of people parking in the day lots every day, then you will not have achieved your objective of “getting people out of their cars and onto […]

 

Get ready for gas price ups and down for the remainder of 2017 | NJ.com

Get ready for gas price ups and down for the remainder of 2017 | NJ.com

With half the year behind us and earlier predictions for close to $3 a gallon gas that went bust, experts have revised their forecasts, which still call for a mid-summer price hike. Fortunately for drivers, it won’t be as painful as what was predicted at the beginning of the year. Summer driving season traffic and demand for […]

 

 

Featured Content and Events

Book: 8 Keys to Price Optimization

Book: 8 Keys to Price Optimization

Summary: Price optimization enables companies to move beyond cost-plus pricing and determine the range of prices that could be charged for a variety of customers and products. Price optimization can increase current operating income by 1 to 4% of sales, which in many cases will translate into a 20 to 50% increase in operating income. The most sophisticated […]

 

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…

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“Perhaps the reason price is all your customers care about is because you haven’t given them anything else to care about”

     – Seth Godin

 

Pricing Resources

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