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This Week in Pricing > 8/11/18

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

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Vistaar

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

 

Top Headlines

iPhone X Sales Might Make Future High-End Smartphones More Expensive Than Ever | Inverse

iPhone X Sales Might Make Future High-End Smartphones More Expensive Than Ever | Inverse

How High Can Smartphone Prices Go? During Apple’s second-quarter earnings call, CEO Tim Cook stated that the iPhone X was the “top-selling iPhone since the launch,” putting to rest “notions that” the pricing strategy was too aggressive. The company’s current flagship iPhone was released alongside the 8 and the 8 Plus, which were around $200 […]

 

With Free Delivery and Zero Surge Pricing, What’s Swiggy Upto? | Dazeinfo

With Free Delivery and Zero Surge Pricing, What’s Swiggy Upto? | Dazeinfo

Be it fancy, hearty meals delivered at door-step or being the savior of late-night food cravings – Swiggy has got our back ! However, it won’t stop there, as Swiggy holds fast to its position – $210 Million Entrant in the Unicorn Club! Reportedly, Swiggy has switched on a subscription-driven playbook to scale the food technology market. The […]

Lyft’s Personal Plan wants to entice riders with fixed rates on frequent trips | Curbed

Lyft’s Personal Plan wants to entice riders with fixed rates on frequent trips | Curbed

While city leaders and transportation planners are taking a closer look at how ride-hailing services are impacting urban traffic, Lyft wants to make it easier for users to book trips ahead of time. The company’s new Personal Plan, which rolls out today to a select group of users, will allow riders to lock-in prices for […]

 

Missouri’s health-care exchange to see modest rate increases after years of huge hikes | St. Louis Public Radio

Missouri’s health-care exchange to see modest rate increases after years of huge hikes | St. Louis Public Radio

When Missourians go to healthcare.gov to buy health insurance, they likely won’t be shocked by double-digit increases this year, according to data filed Wednesday with the state’s insurance department. Three existing carriers — and one new entry into the market — will offer plans with smaller increases than previous years. Two insurers offering healthcare.gov plans […]

 

Some traders still fail to display price tags: JPKE | Borneo Bulletin Online

Some traders still fail to display price tags: JPKE | Borneo Bulletin Online

THE Department of Economic Planning and Development (JPKE) at the Prime Minister’s Office (PMO) through the Department of Competition and Consumer Affairs, recently conducted visits to the Jerudong Market and Gadong Market to remind traders to clearly display the price tags or signs, and to conduct business ethically. The visits, which covered 49 stalls in the […]

 

This is how airlines price tickets | CNBC

This is how airlines price tickets | CNBC

Many of us this summer will fly off on holiday for a well-deserved break. It’s more than likely that you spent hours on the internet researching flight deals, trying to figure out an airfare pricing system that seems completely random. Fees appear to fluctuate without reason and longer flights aren’t always more expensive than shorter […]

 

Eight Psychological Pricing Techniques to Test on Your E-Commerce Store | MarTechSeries

Eight Psychological Pricing Techniques to Test on Your E-Commerce Store | MarTechSeries

Psychological Pricing Is a Strategy Which Is Based on the Idea That Prices of Certain Products Create a Greater Psychological Impact in the Mind of a Consumer. Pricing Strategies Are Important Components of Growing Your E-Commerce Business and Increasing ROI Warren Buffett had quipped, “The single most important decision in evaluating a business is pricing […]

 

MoviePass slashes plan to three movies per month | engadget

MoviePass slashes plan to three movies per month | engadget

After borrowing emergency funds to keep the lights on and toying with a price increase, MoviePass is trying to stave off the Grim Reaper by limiting how many movies you can see each month. You won’t be able to see a movie every day with your plan after August 15th. Instead, you can only grab […]

 

Algorithms feeding unsustainable price cuts online | Retail Dive

Algorithms feeding unsustainable price cuts online | Retail Dive

While consumers and sellers alike may think that Amazon itself is driving price competition, it’s now often third-party marketplace sellers, on Amazon and Walmart, that initiate price-based skirmishes, according to the report. Dynamic pricing algorithms have enabled retailers to detect every online price change, including temporary promotions, and that’s, “leading to race-to-the-bottom behavior and permanent drops […]

 

MoviePass Abandons Price Hike and New Release Blackouts | Collider

MoviePass Abandons Price Hike and New Release Blackouts | Collider

The MoviePass saga continues. Last week, in the wake of serious financial troubles, the subscription service announced sweeping changes to the dismay of pretty much all of its customers. They would be increasing the price to $14.95 per month, new releases wouldn’t be available for the first two weeks of release, and surge pricing would […]

 

Good for Patients: Trump Finalizes Rule Forcing Hospitals to Reveal Prices Online | LifeZette

Good for Patients: Trump Finalizes Rule Forcing Hospitals to Reveal Prices Online | LifeZette

The CMS rule goes further than current regulations, and it requires hospitals to share prices in a bid to “encourage price transparency” and enhance “public accessibility,” notes The Hill. The Trump administration is also looking into new ways to “allow consumers to more easily access relevant health care data and compare providers.” “The agency is considering […]

 

 

More Headlines

How to Price a Construction Project | Fine Homebuilding

How to Price a Construction Project | Fine Homebuilding

STEP ONE IN PRICING A CONSTRUCTION PROJECT Estimating is the first step in pricing construction work. Estimating is the act of calculating the approximate quantities and values of the scope of work. This is where you do your takeoffs and build the scope of work. You assign your standard unit prices to the quantities in […]

 

The Bitcoin Price Is Tanking — Here’s Why | Forbes

The Bitcoin Price Is Tanking — Here’s Why | Forbes

The bitcoin price bull run over the last month, which saw it climb from around $6,300 to highs of $8,400 in a matter of weeks, could be over. Bitcoin has slumped by 5% over the last 12 hours, falling well below the psychological $8,000 mark as traders and investors fret over coming tax crackdowns and blockchain-based […]

 

Still looking for sales growth, Procter & Gamble Co. hikes prices | WCPO

Still looking for sales growth, Procter & Gamble Co. hikes prices | WCPO

CINCINNATI – Procter & Gamble Co. announced price increases on four of its biggest brands Tuesday, even as it announced weaker than expected sales growth for its final quarter of its 2018 fiscal year. P&G said it’s in the process of raising prices on Pampers diapers in the U.S. by an average of 4 percent, […]

 

Amazon’s Footprint Grows in K-12 Purchasing. Should We Be Worried? | Market Brief

Amazon’s Footprint Grows in K-12 Purchasing. Should We Be Worried? | Market Brief

Amazon could receive up to $5.5 billion over the next 11 years through a cooperative purchasing contract used by cities, counties, and school districts alike—and that’s got some people fired up. They’re concerned that if Amazon wins government and school purchases for everything from paper products to musical instruments, it will mean that other businesses […]

 

When School Districts Buy From Amazon, Are They Getting the Best Deal? Maybe Not. | EdSurge News

When School Districts Buy From Amazon, Are They Getting the Best Deal? Maybe Not. | EdSurge News

Amazon has built its reputation by claiming cheaper prices and greater convenience for consumers. But a new report questions whether schools are getting the best deals by using the company. Among the concerns raised in the report, published by the nonprofit Institute for Local Self-Reliance, are that the company uses its dynamic pricing model in […]

 

Nestle plans to boost hiring in the US, price hikes possible | Fox Business

Nestle plans to boost hiring in the US, price hikes possible | Fox Business

Steve Presley, Nestle USA CEO, said on FOX Business’ “Mornings with Maria” that job creation will include positions at the new headquarters in Arlington County as well as production facilities in the commonwealth. “We’ll have almost 2,000 employees in the state of Virginia between our corporate headquarters and our two factories,” he said. “There will […]

 

Draft E-Commerce Policy: Is It The Government’s Job To Fix Prices? | Bloomberg Quint

Draft E-Commerce Policy: Is It The Government’s Job To Fix Prices? | Bloomberg Quint

Not every stakeholder is convinced as India considers a policy that may force e-commerce companies, social-media websites and search engines to store their data locally and regulate anti-competitive policies such as deep discounts during online sales. According to the recommendations of the draft policy, a copy of which is available with BloombergQuint, such locally stored […]

 

Tire Pricing Strategy: Why You Shouldn’t Play the Match Game | Modern Tire Dealer

Tire Pricing Strategy: Why You Shouldn’t Play the Match Game | Modern Tire Dealer

Fallacies of price matching We have found that when customers mention they can find a lower price elsewhere, they are indirectly telling your salespeople, “I want to do business with you, but you have to make me feel like I am getting a better value.” Many consumers understand that if the dealership has the lowest […]

 

Why iPhone and Android phone prices will get even higher | CNET

Why iPhone and Android phone prices will get even higher | CNET

When Apple broke the $1,000 barrier for its iPhone X last September, critics scoffed at its exorbitant price. They doubted people would reach so deeply into their wallets for a phone that outpriced two other perfectly good iPhones, the iPhone 8 and iPhone 8 Plus. The critics were wrong. Apple CEO Tim Cook said in […]

 

Pricing Strategies: Value-Based Pricing (#03) [Video] | Mike Gastin

Pricing Strategies: Value-Based Pricing (#03) [Video] | Mike Gastin

This is the third in my series on pricing strategies. Value-based pricing is probably the most important aspect of pricing that any service business can implement. Done correctly, it can transform your business. Read complete article here: Pricing Strategies: Value-Based Pricing (#03) – YouTube.

 

Product Pricing Strategies to Sell and Sell and Sell | Inc.com

Product Pricing Strategies to Sell and Sell and Sell | Inc.com

Welcome to the obscure, murky, and sometimes scary world of product pricing. If you are reading this, it’s probably because I finally got a title catchy enough to draw you in… or like plenty of other entrepreneurs, you are unsure of how to price your product (most likely). Elementary, My Dear Watson. As in elementary math […]

 

The Long and Short of Pricing Strategy | tech – growth – venture

The Long and Short of Pricing Strategy | tech – growth – venture

Creating Margin with Consumption-based Pricing Consumption pricing is charging based on how much or often a consumer uses the product.  The two most obvious examples would be almost any cloud storage provider or Invision’s per workflow product. This structure is perfect if your product could be accessed by an entire group or division with one […]

 

How New Entrants Are Shaping The Future Of Retail | Forbes

How New Entrants Are Shaping The Future Of Retail | Forbes

Warby Parker, the eyeglass company that evolved a dated shopping experience, has also disrupted a category that has seen little innovation over the past few decades. The company offers quick delivery, lower costs and on-trend products. Warby Parker is now a household name and worth $1.75 billion— proving the quickly won value of disrupting the […]

 

$1,000 iPhone X just the start of rising smartphone prices | Cult of Mac

$1,000 iPhone X just the start of rising smartphone prices | Cult of Mac

Apple’s bet on a $1,000 smartphone has paid off in a big way, and that’s bad news for iPhone fans. As the iPhone X continues to be Apple’s best-selling smartphone, analysts warn that it will encourage even higher price tags year after year. You can expect this year’s iPhone lineup to be even more expensive, […]

 

Pricing Strategies for Small Government Contractors | Deltek

Pricing Strategies for Small Government Contractors | Deltek

Competitive Pricing Strategies for Government Contractors The following pricing techniques may vary based on solicitation requirements and the type of contract.  Also, contractors with a Forward Pricing Rate Agreement cannot utilize most of these techniques. FEE STRUCTURE Modifying the fee structure is the simplest way to be more competitive on the pricing while still maintaining […]

 

House prices and rent soar – Ireland’s biggest problem is the housing crisis | IrishCentral.com

House prices and rent soar – Ireland’s biggest problem is the housing crisis | IrishCentral.com

In the meantime, the lack of supply means that house prices are soaring again, putting them beyond the reach of many people (including average income earners) and forcing them to rent.  This has resulted in soaring rents, and many low-income families are finding themselves priced out of the rental market.  Even with the state-provided housing assistance […]

 

Kraft Heinz tops estimates with higher pricing, shares surge | Reuters

Kraft Heinz tops estimates with higher pricing, shares surge | Reuters

(Reuters) – Kraft Heinz Co (KHC.O) topped quarterly profit and revenue estimates on Friday as the Tater Tots maker raised product prices and posted higher-than-expected sales from the United States for the first time in several quarters. Shares in the Chicago-based company rose as much as 9.4 percent, the stock’s biggest percentage gain in 18 […]

 

Eleven lifts lid on pricing strategy for UK and Ireland | SportBusiness Group

Eleven lifts lid on pricing strategy for UK and Ireland | SportBusiness Group

International sports broadcaster Eleven Sports has today (Friday) revealed its pricing strategy as it prepares to launch in the UK and Ireland later this month. Customers will be able to subscribe to a Monthly Pass for £5.99 (€7/$8) per month in the UK or €6.99 ($8) per month in Ireland, through which they will gain […]

 

India fans may be staying away from first Test over ticket prices | The Guardian

India fans may be staying away from first Test over ticket prices | The Guardian

“The benchmark will be what the attendance is like at Lord’s, Oval and Trent Bridge. But the pricing is a lot higher than previous Pakistan Test matches so there’s an element of cashing in, perhaps, on Asian communities’ passion for cricket. “From what I understand the prices are almost double what they were for Pakistan […]

 

Impact of cost of programming on Pay-Tv pricing | Vanguard News

Impact of cost of programming on Pay-Tv pricing | Vanguard News

A little over three years ago, I was one of many Nigerians fuming at the upward price reviews made by MultiChoice, the leading Pay TV operator in the country. I believed, like many others, that the prices being charged for the service were extortionate. Explanations by the company that it had no option than to […]

 

Surgical price transparency tied to improved volume, revenue | Medical Press

Surgical price transparency tied to improved volume, revenue | Medical Press

(HealthDay)—Ambulatory surgery centers experience increases in patient volume, patient satisfaction, and revenue after adopting price transparency, according to a study published recently in The American Surgeon. Ambar Mehta, M.D., from Johns Hopkins University in Baltimore, and colleagues used data from six ambulatory surgery centers to characterize the impact of price transparency on a surgery center’s […]

 

CSX profit tops Wall St target on cost cuts, pricing power | Reuters

CSX profit tops Wall St target on cost cuts, pricing power | Reuters

(Reuters) – CSX Corp (CSX.O) on Tuesday posted quarterly profit that topped Wall Street’s target, as the No. 3 U.S. railroad operator benefited from an ongoing cost-cutting drive and rising prices for carrying freight. CSX shares gained 3.2 percent to $66.50 in extended trading after the company also raised its 2018 revenue forecast, citing strength […]

 

Discrimination based on driver bias remains a major issue for Uber, Lyft and other ridesharing services | news wise

Discrimination based on driver bias remains a major issue for Uber, Lyft and other ridesharing services | news wise

They looked at dynamic pricing and if the incentives offered by higher prices can reduce the extent of such bias. Their findings suggest that may be necessary for ridesharing platforms to adopt a dynamic fee structure that incentivizes drivers to accept rides from social groups or in specific areas of cities that are traditionally underserved. Mejia and […]

 

MoviePass had everything going for it—except economics | Quartz

MoviePass had everything going for it—except economics | Quartz

In March, MoviePass started asking members to take pictures of their ticket stubs so it knew they weren’t giving away the tickets. Members were then barred from seeing titles more than once. MoviePass introduced surge pricing next. And the app later blocked access to blockbusters altogether. Now, the company is planning to raise prices. Customers […]

 

Why MoviePass Keeps Changing Its Business Model | VICE

Why MoviePass Keeps Changing Its Business Model | VICE

When MoviePass was introduced to the world, the subscription service seemed almost too good to be true: unlimited movies, in theaters, for around $10 a month. Turns out, it was too good to be true. This summer, the company announced that it has been struggling to make ends meet, and customers have suffered the consequences. […]

 

Chinese Low-cost Airlines Eye Growth Amid Stiff Competition | Aviation International News

Chinese Low-cost Airlines Eye Growth Amid Stiff Competition | Aviation International News

Budget carriers compete with each other through pricing strategy. For instance, Spring Airlines, serving 130 routes with 80 airplanes, offers a promo fare equivalent to $15.50 for its Shanghai-Bangkok route. All of the LCCs target the growing middle class, estimated at 200 million people. Also, they face tough competition from the full-service airlines, as their […]

 

Samsung cuts prices of top-selling TVs by up to 15% | The Economic Times

Samsung cuts prices of top-selling TVs by up to 15% | The Economic Times

KOLKATA: Samsung Electronics cut prices of its top-selling television models for the second time in two months in an attempt to consolidate its leading spot and prevent loss of market share as it did in the smartphone segment, three senior industry executives said. The price reduction ranges from about 5% (Rs 1,000 to Rs 2,500) […]

 

Vodafone announces cheaper NBN plans in a bid to start a broadband price war | news.com.au

Vodafone announces cheaper NBN plans in a bid to start a broadband price war | news.com.au

VODAFONE says it wants to start a price war in the home broadband market and has released new NBN plans as a way of firing the first shot. The National Broadband Network has allowed a bunch of new players to easily enter the home broadband market, delivering services to end users via the wholesale network […]

 

SeaWorld stock soars 18% as visitors return to its parks | MarketWatch

SeaWorld stock soars 18% as visitors return to its parks | MarketWatch

“The cloud of bad PR still looms, but it’s starting to break as the park continues to invest in assets outside the whales,” said John Poelking, leisure and media analyst at Mintel. “New rides and educational experiences have repositioned SeaWorld as a fun place to go to again, and people appear to be responding to […]

 

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…

 

 

“Pricing is the only element in the marketing mix that produces revenue; the other elements produce costs.

     – Phillip Kotler