This Week in Pricing > 8/18/18

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

This Edition is brought to you by:value innoruption final 0612 rev

 

 

Value Innoruption Advisors

Founded by Dr. Stephan Liozu, Value Innoruption Advisors provides training and consulting resources for organizations interested in embedding value-based methodologies in their go-to-market strategies related to innovation, marketing, pricing, and sales. Value Innoruption Advisors offers two popular value and pricing management certification programs – Customer Value Modelers™ (CVM™) and Change Agent in Pricing™ (CAP™).

Click a link below to learn more…

 

Top Headlines

Amish Uber: Man Starts Horse and Buggy Rideshare Service in Michigan | Thrillist

Amish Uber: Man Starts Horse and Buggy Rideshare Service in Michigan | Thrillist

In America, it’s hard to build a business without millions in investment, but piggybacking off a wildly successful — if not imminently scandal-prone — company might help you carve out a niche. An Amish man in the small Michigan town of Colon has set his sights on the fertile rideshare business by offering transportation with a […]

Pricer’s Points: The Burt Lancaster School of Pricing | Mark Ritson

Pricer’s Points: The Burt Lancaster School of Pricing | Mark Ritson

So negotiations began. For six months, Puttnam tried every tactic he knew to reduce the $2 million price tag. Each time, Lancaster reconfirmed his desire to make the film and pointed to the only stumbling block: his $2 million fee. With only days left before filming began, the Local Hero production team admitted defeat and […]

 

Pricing Psychology Principles – The Numerosity Adaptation Effect | Guess the Test

Pricing Psychology Principles – The Numerosity Adaptation Effect | Guess the Test

Application To Your Pricing Strategies How can you use this knowledge to craft your own pricing strategies? One takeaway is to realize that people tend to gravitate towards smaller numbers because they’re easier to visualize and understand. Applying the Numerosity Adaptation Effect, you can test the effect of using smaller, simplified numbers to drive conversions. […]

 

How Well Does Your Pricing Organization Learn From the Field? | Pricing Matters

How Well Does Your Pricing Organization Learn From the Field? | Pricing Matters

Unlock latent potential with price experimentation With every price quote or posted price, there is an opportunity to learn about the market, and in turn, improve pricing. Yet, a tremendous amount of the information is not captured, systemized or utilized, neither by people in pricing nor the algorithms they employ. The potential in learning from […]

 

What CPI didn’t say: Prices of coffee, aspirin and golf clubs are lower over the past year | MarketWatch

What CPI didn’t say: Prices of coffee, aspirin and golf clubs are lower over the past year | MarketWatch

The cost of living for consumers may be accelerating, but it is not all bad news. Prices of some essentials, including coffee, aspirin and food from vending machines, have declined over the past year, according to a government report released Friday. Of course, prices of some other — arguably more essential — essentials, such as […]

 

Subway, Little Caesars, KFC know what you don’t: $5 is a magic price | USA Today

Subway, Little Caesars, KFC know what you don’t: $5 is a magic price | USA Today

So he heads to Taco Bell where, for a mere $5, he can load up on one of the chain’s meal deals. On a budget, his $5 haul usually serves as dinner, but occasionally, he’ll save some of the food for the following day. “Value is important; it keeps me coming back,” Jones said. In the fast-food […]

 

Pricer’s Points: Pricing market research is not always about the price | Bryan Belanger

Pricer’s Points: Pricing market research is not always about the price | Bryan Belanger

What we’ve found over the years doing this work is that pricing in the ICT space is often more art than science, and that customer anecdotes about pricing are often as valuable and instructive to pricing strategy as the market pricing data sets produced. Our approach to pricing research is rooted in interviews with representatives […]

 

BCers tell gov’t survey they want ticket resales capped, bots banned | NEWS 1130

BCers tell gov’t survey they want ticket resales capped, bots banned | NEWS 1130

‘No teeth’: experts concerned resale price caps won’t be effective At least 53 per cent like the idea of capping prices at 25 per cent above face value, something local ticket broker Kingsley Bailey says is unrealistic, even though he supports the idea. “There’s no teeth in that because there’s an unlevel playing field. They […]

 

3 Reasons MoviePass Is Flailing | Nasdaq

3 Reasons MoviePass Is Flailing | Nasdaq

Sometimes a deal can truly be too good to be true. Such is the case with Helios and Matheson Analytics Inc. ‘s (NASDAQ: HMNY) MoviePass. The attempt to bring an on-demand subscription model to movies hasn’t been working out for the company, as shares have plunged to under a dime as of this writing. Since […]

 

Avis to Provide Rental Cars to Lyft Drivers | FutureCar

Avis to Provide Rental Cars to Lyft Drivers | FutureCar

As part of the partnership, Avis will add thousands of vehicles to Lyft’s Express Drive program in North America, making it easier for people to drive for Lyft without owning a car. Lyft drivers will be able to reserve an Avis rental car right from the Lyft app. The service is rolling out in the […]

 

Lessons learned from the EU’s algorithmic price war that ripped off consumers | SmartCompany

Lessons learned from the EU’s algorithmic price war that ripped off consumers | SmartCompany

Algorithms used by the retailers In principle, a retailer or merchant could use the API provided by the platform to manage their pricing. Research at Northeastern University has shown that merchants on Amazon Marketplace that use algorithmic pricing have greater sales. However, merchants may not have algorithm design as a core skill. This was illustrated when a […]

 

 

More Headlines

The Steady Slide In The Price Of Gold — And Of Bitcoin | Forbes

The Steady Slide In The Price Of Gold — And Of Bitcoin | Forbes

You can see on this chart that the April peak was a stab higher toward the January peak and that now we’ve dropped significantly through and below the Ichimoku cloud level. The last major low was way back in December of 2016 — will that level be support since buyers showed up in large numbers […]

 

MoviePass is opting some users into its new plan even after they cancel | The Verge

MoviePass, the struggling theater subscription service, is rolling out a new plan on Wednesday, August 15th, that will limit users to three movies per month, in addition to existing restrictions on popular first-run films. It’s yet another cost-cutting measure in an attempt to combat severe revenue shortfalls to save the company. But ahead of this […]

 

Let’s re-look the advertising pricing model | BizCommunity

Let’s re-look the advertising pricing model | BizCommunity

It’s an open secret that advertising people hate timesheets, though it remains the preferred pricing model with no sign of an alternative. Our daily job is to find creative solutions for our clients, but we have done little to find a solution to our ancient pricing model that we despise so much even though our […]

 

Time For Chemicals Companies To Raise Their Pricing Game | Forbes

Time For Chemicals Companies To Raise Their Pricing Game | Forbes

Compared with other industries, chemical companies are among the least confident in their pricing decisions and the least likely to raise prices regularly (see Figure 1). Until recently, this laid-back approach to pricing hasn’t hurt their financials, thanks to low prices for many raw materials. In the years ahead, however, chemical executives will need to […]

 

2018 iPhones Could Start at $699, May Include Apple Pencil Support, 512GB Storage Option for OLED Models | Mac Rumors

2018 iPhones Could Start at $699, May Include Apple Pencil Support, 512GB Storage Option for OLED Models | Mac Rumors

As for the new OLED models, TrendForce expects the 5.8-inch device will have a lower starting price of $899 to $949, while the current-generation iPhone X, which starts at $999, will enter its “end of life” process due to the similarity in the specs of the two models. Meanwhile, the upcoming 6.5-inch device will target […]

App allows you to rent your car to earn cash | WHEC.com

App allows you to rent your car to earn cash | WHEC.com

Would you rent out your own car to a complete stranger to make cash? People are doing this with a car-sharing service called Turo. The service is available in 49 states — New York is the only place in the U.S. where it’s not allowed. Turo is the Airbnb for cars. You list your car on the […]

 

Plume is turning home Wi-Fi into a subscription service | The Verge

Now, you’ll have to subscribe to Plume’s Adaptive WiFi service before you can even buy a router. And once you own Plume routers, you’ll want to stay subscribed, or else the routers won’t work as well as they’re supposed to. (Existing Plume Pod owners will be grandfathered in.) Plume’s subscription service will cost $60 per […]

 

UNICORN BLUE BRINGS COMPETITIVE PRICING STRATEGY TO TEACHER RECRUITMENT | Digital Journal

UNICORN BLUE BRINGS COMPETITIVE PRICING STRATEGY TO TEACHER RECRUITMENT | Digital Journal

Recruitment specialists Unicorn Blue do things differently. Their alternative to the contingency method is the “fixed fee per hire” method. It applies to all teachers who are hired in non–supervisory/ management roles. While the fixed price per hire charge depends on the number of teachers being recruited at the same time for a single project, […]

 

Apple’s Angela Ahrendts: Retail is not dying, but it has to evolve | Marketing Week

Apple’s Angela Ahrendts: Retail is not dying, but it has to evolve | Marketing Week

The retail sector is not dying, but it does have to evolve and serve a bigger purpose than selling, according to Apple’s Angela Ahrendts. Describing stores as Apple’s “biggest product”, the senior vice-president for retail outlined a clear and compelling business case for physical retail during her session  the Cannes Lions Festival today (20 June). “Experts […]

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Cloud Pricing Comparison 2018 | ParkMyCloud

Cloud Pricing Comparison 2018 | ParkMyCloud

Compiling a cloud pricing comparison in 2018 is not easy. The three major cloud providers reduce their prices on a regular basis, and they also each offer unique pricing models and differing discount options, making it hard to find an “apples-for-apples” cloud pricing comparison. In addition to fluid prices, pricing models and discount options, the […]

MoviePass Now Restricted To Two Films | Dark Horizons

MoviePass Now Restricted To Two Films | Dark Horizons

Essentially it means customers trying to check in to movies for theaters that don’t offer e-ticketing options (ie. most of them) are forced to choose between only two movies. Most were given the option of either “Slender Man” or “Mission: Impossible – Fallout,” while others had “The Spy Who Dumped Me” or “Slender Man” instead. […]

 

Push For Hospital Price Transparency Continues | The National Review

Push For Hospital Price Transparency Continues | The National Review

As discussed in our previous blog, “CMS Pushes for Hospital Price Transparency in Proposed Rule”, on April 24, 2018, the Centers for Medicare & Medicaid Services (“CMS”) announced a proposed rule (CMS-1694-P) aimed at empowering patients through better access to hospital charge information. In an effort to fulfill the proposed rule’s objective, CMS suggested an […]

 

Wisconsin brings energy pricing transparency into strategic assessment | Utility Dive

Wisconsin brings energy pricing transparency into strategic assessment | Utility Dive

Dive Brief: Wisconsin Public Service Commission (PSC) included more updated data and insight into electricity costs into the final version of its 10th biennial strategic energy assessment (SEA), issued on Wednesday. The latest changes responded to stakeholder comments challenging the PSC’s lack of transparency on the state’s high electricity prices. Stakeholders said “a strategy for […]

 

Can dynamic pricing help ease Pittsburghers’ parking headaches? | PublicSource

Can dynamic pricing help ease Pittsburghers’ parking headaches? | PublicSource

Cities, including Pittsburgh, have tried to make parking more available by requiring developers to include a certain number of off-street parking spaces per unit of each new building. However, one recent study suggests that having too many parking spaces encourages driving and contributes to problems like air pollution and rising housing costs. The price of building and […]

 

Litho Printers Now Paying Higher Prices for Printing Plates Due to Tariffs on Aluminum | piworld

Litho Printers Now Paying Higher Prices for Printing Plates Due to Tariffs on Aluminum | piworld

No matter which side of the aisle you find yourself standing on from a political standpoint, the 10% tariff that the Trump administration has imposed on imported aluminum is now being passed through as a surcharge by major lithographic printing plate manufacturers to their U.S. customer bases. And, while the cost of aluminum printing plates […]

 

Getaround, the Airbnb for cars, comes to Philly | The Inquierer

Getaround, the Airbnb for cars, comes to Philly | The Inquierer

Users can rent cars on an hourly basis for as low as $5, though prices vary depending on the make, model, and year of the car and the time of day. The price includes 24/7 roadside assistance and insurance coverage of up to $1 million. A 2010 Mazda 5 in South Philly was available to […]

Zocdoc’s price change has doctors concerned | CNBC

Zocdoc’s price change has doctors concerned | CNBC

When Peter Chien opened Lumos Dermatology in New York in 2014, he turned over patient booking to Zocdoc, the website used by seemingly every doctor in the area to attract new patients. Chien spends $3,600 a year per doctor for the service so his skin care practice can be discovered by consumers who count on […]

 

Blockchain makes diamond process and price more transparent | Chepicap

Blockchain makes diamond process and price more transparent | Chepicap

Diamond’s price and provenance will be made transparent to the public by Rare Carat using blockchain technology. One of the hardest materials on earth, which considered as a woman’s best friend, diamond, has an industry value worth of approximately US$72 billion per year. Valued at a relatively high price, no one really ever knows where […]

 

IATA protests against CPC’s high jet fuel prices | Sunday Times

IATA protests against CPC’s high jet fuel prices | Sunday Times

The International Air Transport Association (IATA) this week criticised CEYPETCO’s opaque pricing for jet fuel and called for a transparent formula, warning that the soaring cost of refuelling in Sri Lanka was stifling the aviation industry. A team from the union of global airlines visited Sri Lanka and sounded caution to officials, including those of […]

 

HHS Secretary Alex Azar warns drug makers to pay full Medicaid rebate amount | MDLinx

“In fact, I am pleased to announce here, to all of you, that HHS is issuing a guidance today to drug manufacturers that will ensure they are paying the full Medicaid rebates they owe on certain prescription drugs,” HHS Secretary Alex Azar said Thursday during the 45th American Legislative Exchange Council Annual Meeting in New […]

 

Bitcoin price LIVE: $43 billion in crypto value wiped in a five day rout | Express

Bitcoin price LIVE: $43 billion in crypto value wiped in a five day rout | Express

Despite small gains in the late hours of the weekend, the cryptocurrency market suffered heavy losses last week. Prices appear to have found stability this morning, but most of the market has made a loss on the day. Bitcoin increased 0.63 percent to trade for $6,384.25, while Ethereum fell 2.67 percent to trade at $317.69. […]

 

Alnylam Announces Alignment on Value-Based Agreements with Leading Health Insurers and Launches Comprehensive Patient Support Services for ONPATTRO™ (patisiran) | Seeking Alpha

Alnylam Announces Alignment on Value-Based Agreements with Leading Health Insurers and Launches Comprehensive Patient Support Services for ONPATTRO™ (patisiran) | Seeking Alpha

“Alnylam’s proactive approach to working closely with Harvard Pilgrim far ahead of the drug approval date to develop a value-based agreement highlights its commitment to patients, patient access, and delivering meaningful outcomes to the healthcare system,” said Michael Sherman, M.D., M.B.A., Chief Medical Officer of Harvard Pilgrim Health Care. “By virtue of linking level of reimbursement […]

 

Solid Demand, Pricing Strategy Bode Well for Louisiana-Pacific | Zacks

Solid Demand, Pricing Strategy Bode Well for Louisiana-Pacific | Zacks

Strong housing market, bold pricing strategy along with efficient cost-saving plans have been conducive to Louisiana-Pacific Corporation’s (LPX – Free Report) impressive top and bottom-line growth. However, rising materials costs remain a concern. A Look at Second-Quarter 2018 Results Louisiana-Pacific, a leading manufacturer of engineered wood building materials, structural framing products as well as exterior […]

 

People in Carmarthen urged to boycott cinema over “horrendous” ticket prices | Wales Online

People in Carmarthen urged to boycott cinema over “horrendous” ticket prices | Wales Online

Reacting to news of the boycott, the cinema chain says that it offers “a number of discounted opportunities” and that customers can contact them if they want help in “understanding how to access these deals”. This response has further angered a group that has recently been set up to highlight the disparity in cost that […]

Just announced: T-Mobile is launching a cheaper unlimited wireless plan | WSOC-TV

Just announced: T-Mobile is launching a cheaper unlimited wireless plan | WSOC-TV

On its website, T-Mobile describes Essentials as a plan for people who mostly use their phone in the United States. The carrier says those who travel internationally may be better off with T-Mobile One. T-Mobile One is $70/month for a single line and $160/month for four lines, with taxes and fees included. A lot of […]

 

A New MoviePass Plan Might Be Too Late, Analysts Say | Fortune

A New MoviePass Plan Might Be Too Late, Analysts Say | Fortune

MoviePass, the embattled movie subscription service, appears to have settled on a pricing plan that the company says is “built for the mass consumer,” even as analysts argue that the plan isn’t built for profits. On Monday, MoviePass announced that it would change the terms of its existing plan, which allowed its more than 3 […]

 

Ride-Hailing Singapore Cheapest Fares – Grab vs Ryde vs Kardi vs TADA | Vucan Post

Ride-Hailing Singapore Cheapest Fares – Grab vs Ryde vs Kardi vs TADA | Vucan Post

6 PM – The Start Of The Evening Rush Grab: $27.00 Kardi: $12.00~$14.00 Ryde: $16.50 TADA: $20.00 Pang gang lo! Prices are steep, especially for Grab, as their dynamic surge pricing kicks in. What’s interesting is that Kardi’s price remained the same throughout the day. What’s The Difference? The pricing model, drivers’ commission rates, the […]

 

A New Bill Banning Banks From Charging Overdraft Fees May Have Unintended Consequences | InsideSources

A New Bill Banning Banks From Charging Overdraft Fees May Have Unintended Consequences | InsideSources

But Borné believes the bill will force the market to adapt and be more fair to consumers. It may prompt banks to nix free checking account options, but banks would at least be more transparent about the fees they charge. “What you see is a lot of banks that offer free checking with no upfront monthly […]

 

CAG raps PowerGrid for inadequacies in pricing methodology in telecom biz | Times of India

CAG raps PowerGrid for inadequacies in pricing methodology in telecom biz | Times of India

The CAG observed, “There were inadequacies in the pricing methodology followed by the Company. The multiplication factor adopted to scale up tariff for higher capacities was low, which adversely impacted revenue. Pricing of Indefeasible Right to Use (IRU) contracts was inconsistent with different methods applied for different contracts, leading to lower revenue for the business.” […]

 

 

 

Events and Resources

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…

 

 

“The moment you make a mistake in pricing, you’re eating into your reputation or your profits.”

     – Katharine Paine