This Week in Pricing > 8/19/17

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: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

Disney To Launch Disney- And ESPN-Branded Streaming Services, Changing Netflix | Deadline

Disney To Launch Disney- And ESPN-Branded Streaming Services, Changing Netflix | Deadline

Look out Netflix: Disney says today that it will end its theatrical distribution deal with Netflix beginning in 2019 to feed its releases to a new Disney-branded streaming service launching that year. The company also announced that its ESPN-branded streaming service, which it had previously discussed, will launch in early 2018. “We’re going to go […]

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How price transparency drives patients to ASCs | Becker’s ASC Review

How price transparency drives patients to ASCs | Becker’s ASC Review

Question: What sort of benefits do ASCs reap from making their procedure prices readily available? Joseph D’Agostino: The ability to educate both the surgeon and the patient on true out of pocket cost differences between choosing to have their procedure performed in a hospital outpatient department versus a freestanding ASC. Q: Are there any drawbacks to […]

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Dynamic pricing system promises less food waste | Springwise

Dynamic pricing system promises less food waste | Springwise

The Wasteless platform combines radio frequency identification (RFID), a dynamic pricing engine (which considers more than 40 separate factors when calculating price), and electronic shelf labeling. The system allows stores to automatically change prices on any item, in order to offer customers a chance to buy products close to their expiration date for a reduced […]

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Amazon India to foray into food retailing during Diwali, to launch private grocery label | The News Minute

Amazon India to foray into food retailing during Diwali, to launch private grocery label | The News Minute

After Amazon forayed into grocery, last year it launched its first private grocery label in the US which are exclusively available to Prime members. This label sells products like coffee and baby food. It is also working on opening offline Amazon Go stores that will let its customers checkout without queues with the use of […]

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Top-end handsets for half the price of an iPhone 8 | Yorkshire Post

Top-end handsets for half the price of an iPhone 8 | Yorkshire Post

A MONTH or so from now, Apple will announce to the world its latest smartphone, the iPhone 8. For the last decade, the stage management of its launch jamborees has been characterised by a level of hysteria not seen since the Paris peace accords. But this time may be different… the world is no longer […]

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Tablet Market Decline Slows | Twice

Tablet Market Decline Slows | Twice

The tablet market showed some signs of life in the second quarter despite a continued downward spiral in overall sales. According to research from IDC, worldwide shipments of tablets declined 3.4 percent year over year in Q2, reaching 37.9 million units. However, three of the top five tablet vendors managed to increase share and grow […]

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How Will Disney Price Its New Streaming Services? (NYSE: DIS) | 24/7 Wall St.

How Will Disney Price Its New Streaming Services? (NYSE: DIS) | 24/7 Wall St.

The key word here is “distribution.” By taking control of the distribution of its own content, Disney could charge consumers what it charges pay-TV operators and still make money. It could charge consumers a higher price that is still below what a pay-TV service could charge and make even more money. But that might cause […]

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3 Terrible Reasons to Sell Netflix Inc. Stock | The Motley Fool

3 Terrible Reasons to Sell Netflix Inc. Stock | The Motley Fool

1. There’s no money in streaming. At a glance, Netflix doesn’t look like a profitable business. Operating income was $380 million last year, which translates to just 4.3% of its nearly $9 billion sales base. Its pricing strategy aims to make the service as affordable as possible, after all, and its most popular plans cost […]

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Petrol, diesel pricing: Here is a way out for beleaguered Indian fuel retailers | The Financial Express

Petrol, diesel pricing: Here is a way out for beleaguered Indian fuel retailers | The Financial Express

In an earnest effort to ‘clean up’ the markets and wean them off subsidies, the government, on June 16, rolled out a dynamic pricing mechanism for petrol and diesel fuel prices across India. In an earnest effort to ‘clean up’ the markets and wean them off subsidies, the government, on June 16, rolled out a […]

 

J.C. Penney’s Buzz Is Gone For Good | Forbes

J.C. Penney’s Buzz Is Gone For Good | Forbes

What haunts J.C. Penney? Competition from on line retailers is the first thing that comes in mind, as explained in the company’s financial report. Then there are two strategic mistakes made close to six years ago. The first mistake was the company’s pricing strategy – the replacement of sales through coupons with everyday low prices. The […]

 

 

More Headlines

Why Did Verizon’s Wireless Service Revenue Fall? | Market Realist

Why Did Verizon’s Wireless Service Revenue Fall? | Market Realist

Let us look at the two important segments of Verizon’s (VZ) wireless revenue. The smaller part is the company’s wireless equipment revenue, whereas the larger part is its wireless service revenue. The declining trend in the wireless component’s service revenue continued during 2Q17. In 2Q17, Verizon reported wireless service revenue of $15.6 billion, a 6.7% […]

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Pets at Home Group PLC leaps higher as new pricing strategy helps boost top line | Proactive Investors

Pets at Home Group PLC leaps higher as new pricing strategy helps boost top line | Proactive Investors

Given that the lower pricing strategy is likely to put pressure on margins, investors will be looking for this revenue momentum to continue for a while yet. As for profits, Pets at Home said they remained on track to hit its full-year expectations. ‘Positive start’ but Pets still a ‘sell’ for Liberum “Overall, this appears […]

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A game of demand and supply | The Hindu

A game of demand and supply | The Hindu

Abirami Ramanathan, the president of the theatre owners association, adds, “We should be able to alter the ticket rates depending on the film and time of show. But this system should fall within the range fixed by the state government. Such a pricing scheme will work only for a few Tamil films and other language […]

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Disney’s Streaming Dreams: How Disruptive Is Its New Netflix-Style Strategy, Really? | Variety

Disney’s Streaming Dreams: How Disruptive Is Its New Netflix-Style Strategy, Really? | Variety

The Mouse House is moving to cut the cord: Disney plans to launch at least two direct-to-consumer streaming subscription services, for ESPN and Disney movies and TV shows, in the next two years. But right now, it’s not clear how dramatic the change will be for Disney as a whole. More than anything, it looks […]

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Dubai theme park operator reviews strategy as losses pile up | Arab News

Dubai theme park operator reviews strategy as losses pile up | Arab News

The company also revealed the departure of senior executives, including Klaus Assman, Stanford Pinto, Matt Priddy and Paul La France. Dubai Parks and Resorts attracted more than 1 million visits during the first six months of the year, with about 414,400 visits during the second quarter. DXBE said it was progressing well toward achieving a […]

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China’s ‘baijiu’ maker drinks to higher earnings | Nikkei Asian Review

China’s ‘baijiu’ maker drinks to higher earnings | Nikkei Asian Review

GUANGZHOU — Kweichow Moutai, the biggest producer of distilled Chinese liquor baijiu, is rapidly boosting earnings thanks to a strategic change toward targeting individual consumers. Kweichow, based in Guizhou Province, saw both sales and profit stagnate in 2014 and 2015 due to slower sales of baijiu, the most popular spirit in China, for entertaining bureaucrats […]

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Spring Lake Park to leave municipal liquor | ABC Newspapers

Spring Lake Park to leave municipal liquor | ABC Newspapers

With the sale of Central Park Liquor, the city will exit municipal liquor. Hy-Vee is working through processes with the city, county and watershed district to bring a grocery store and convenience store to the Central Park Liquor site and adjacent land at the 81st Avenue Northeast and Central Avenue intersection along Highway 65. “There’s […]

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Xerox turns to SMEs for growth | Economic Times

Xerox turns to SMEs for growth | Economic Times

BENGALURU: US-based Xerox, which employs over 500 people in India, will now be focusing on small-and medium-sized business (SMB) sector along with its enterprise market. Ashraf El-Arman, managing director, Xerox India, “SMB is a key sector that we are looking to cater.The market is now oriented towards value which means it is looking for service […]

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More Bang For Your Buck: Save money at local restaurants with Sp | NBC12 – WWBT

More Bang For Your Buck: Save money at local restaurants with Sp | NBC12 – WWBT

RICHMOND, VA (WWBT) – Richmond’s restaurants have put us on the map as one of the top places in the world to travel for food. There’s a new way for you try some of the RVA’s hottest spots without paying full price. It’s the age old question, where do you want to eat? Spotluck has […]

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Drawing on Big Data for Customer Insights | Marlin Business Services Corp.

Drawing on Big Data for Customer Insights | Marlin Business Services Corp.

The overall trend for retail sales volume is up, despite considerable disruption to the channels consumers use to make purchases. Total retail sales are expected to grow 3.7% to 4.2% in 2017, driven in large part by online sales, which are forecast to grow 8% to 12% this year. … Path to purchase – Both […]

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Railways should explore non-fare revenue sources for growth: Economic Survey | The Economic Times

Railways should explore non-fare revenue sources for growth: Economic Survey | The Economic Times

The survey has applauded railways for introducing dynamic pricing model which is aimed at enhancing higher passenger revenue without compromising on the passenger volume. The survey has also pointed out that during 2016-17, freight earnings at Rs 1, 04,339 crore, registered a negative growth of 4.5% over 2015-16. However, passenger earnings grew at registered an […]

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After recent cut, HP raises price of Elite x3 Windows 10 Mobile flagship by 23% in the UK | Neowin

After recent cut, HP raises price of Elite x3 Windows 10 Mobile flagship by 23% in the UK | Neowin

HP has made a confusing mess of its pricing for the Elite x3 and Desk Dock in the UK since it launched there last year, originally priced at £706.80. Every few weeks, the company has been raising or reducing its prices, to as much as £757.20, or as low as £583.20, in addition to other […]

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Natco shifts focus from US to India amidst pricing pressure and competition in former market | Moneycontrol.com

Natco shifts focus from US to India amidst pricing pressure and competition in former market | Moneycontrol.com

Natco’s move comes at a time when Indian drug makers, even mid-sized ones have expanded their R&D budgets and capital expenditure aimed at generics filings in US, the world’s largest and high margin market for generic drugs. It costs around USD 0.5 to 1 million for each ANDA filing. The cost of filing is in […]

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Do Airline Sites Track Your Habits? | Men’s Fitness

Do Airline Sites Track Your Habits? | Men’s Fitness

IT’S TRUE, SAYS Johnny Jet, of the travel site johnnyjet.com. It’s called “dynamic pricing”—firms track your online browsing, and adjust prices according to factors like your eagerness to buy, your online purchases, even where you live. Be wary, he says, of aggregator booking sites like Priceline, Kayak, and Orbitz, the last of which was found […]

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A strange hybrid | The Indian Express

A strange hybrid | The Indian Express

The challenge in the Niti Aayog hybrid model is its implementation. How do public and private managements coexist in the same physical space? A hospital is a living institution that cannot be dismembered. Salary streams, motivation levels, working methods, prescription practices, monitoring and accountability systems, work expectations, all vary. Everyday, there are instances of patients […]

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Optimization Beyond Prediction: Prescriptive Price Optimization | NEC

Optimization Beyond Prediction: Prescriptive Price Optimization | NEC

This paper addresses a novel data science problem, prescriptive price optimization, which derives the optimal price strategy to maximize future profit/revenue on the basis of massive predictive formulas produced by machine learning. The prescriptive price optimization first builds sales forecast formulas of multiple products, on the basis of historical data, which reveal complex relationships between […]

 

3M Company Seeks Growth, But at What Price? | The Motley Fool

3M Company Seeks Growth, But at What Price? | The Motley Fool

3M Company (NYSE:MMM) needs sales growth. Just like peer Illinois Tool Works (NYSE:ITW), its stock price is starting to look heady — both companies are trading in excess of their pre-recession valuations — and it needs growth now in order to justify its rating. Moreover, with 3M’s CFO Nick Gangestad claiming dividend growth would “be […]

 

Time of day pricing strategy of electricity | Free Press Journal

Time of day pricing strategy of electricity | Free Press Journal

We have essentially lost our economic sovereignty in the 70 years since Independence. We have become dependent on imports for phosphate fertilizers, and sources of energy—fuel oil, coal and uranium. All three are required for the generation of electricity. It is necessary that we generate electricity for meeting our requirements with our own sources if […]

 

How Pricing Figures in FireEye’s Transformational Strategy | Market Realist

How Pricing Figures in FireEye’s Transformational Strategy | Market Realist

FireEye’s “holistic pricing” strategy Earlier in this series, we discussed FireEye’s (FEYE) transformational strategy and the Helix platform’s role in it. Let’s discuss what role pricing and packaging could play in FireEye’s strategy. FireEye aims to simplify its pricing strategy as the company shifts from hardware-based offerings to subscription-based offerings. FireEye noted that it aims […]

 

Waste not, want not | The Kingston Whig-Standard

Waste not, want not | The Kingston Whig-Standard

One of the things I’ve been railing against lately is the growing number of “multi-buy” pricing strategies being used by Canadian supermarkets. These strategies include reduced prices when you buy two or more items, instead of offering discounts on single items. Nobody should be penalized for the “privilege” of purchasing one item. Multi-buy pricing puts […]

 

Agrium’s Margins See Expansion despite Weak Prices in 2Q17 | Market Realist

Agrium’s Margins See Expansion despite Weak Prices in 2Q17 | Market Realist

Sustaining margins Despite a sales decline and lower year-over-year price realization, Agrium’s (AGU) margins saw an improvement during 2Q17. Companies such as Agrium, PotashCorp (POT), Mosaic (MOS), and Intrepid Potash (IPI) have been working to lower their cost of production amid lower price realization. Lowering costs has benefitted these companies and ensured a higher sustainability rate […]

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New-look Complan on shelves | Telegraph India

New-look Complan on shelves | Telegraph India

Kraft Heinz officials today said through a focussed pricing strategy, the company had been able to improve its market share at a time the industry was affected by the GST. “We did a study to understand the elasticity of different packs – how the prices move and impact the volume. Some of the learning from […]

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How rising energy costs became our problem, not the government’s | The Sydney Morning Herald

How rising energy costs became our problem, not the government’s | The Sydney Morning Herald

We talk a lot about rising energy prices. They have doubled in the past decade. We know that increasing numbers of households are being disconnected because they cannot pay energy bills. But throughout the Victorian community, many households are determinedly finding ways to pay the energy bills. What we don’t talk enough about is the […]

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Big pharma pricing out of control: Letters to the editor | DelawareOnline

Big pharma pricing out of control: Letters to the editor | DelawareOnline

Our politicians seem helpless against the abusive pricing activities of pharmaceutical companies.  We’ve seen crazy levels of price increases both in patented drugs and in life saving generic products that have no legitimate reason for 1,000 percent increases just because they are near monopolies for the companies who have seized control of their manufacture and distribution. […]

 

Paradox: Pricing is difficult “when the world is constantly changing” | GamesIndustry.biz

Paradox: Pricing is difficult “when the world is constantly changing” | GamesIndustry.biz

Back in June, Paradox Interactive found itself set upon by frustrated consumers after eagle-eyed fans realised the publisher had raised its prices in certain regions around the world. The cost for select games rose by as much as 40%, with the firm later explaining that adjustments had been made to “create a more equal price […]

 

5 Features Your Retail App Is Missing | Twice

5 Features Your Retail App Is Missing | Twice

Personalized content and offers: Nearly nine in 10 consumers say that personalization has some impact on their purchasing decisions. By personalizing content, retailers can help present shoppers with the products and/or deals that are most relevant to them, and that they are most likely to take advantage of. By recommending products based on previous shopping history or […]

 

PETER FORBES, Quincy: City must take big steps to improve its walkability | Wicked Local

PETER FORBES, Quincy: City must take big steps to improve its walkability | Wicked Local

The more we allow the automobile and parking to determine what can be built, where it can be built, and how it can be built, the lower the quality of life for Quincy residents and the more pressing our problems of automobile congestion, affordable housing and city finance. Many options are available to help reverse […]

 

How ‘Gaming’ the System Helped This Business Get Thousands More Customers | Entrepreneur

How ‘Gaming’ the System Helped This Business Get Thousands More Customers | Entrepreneur

Sometimes it’s busy, sometimes it’s slow. Such is the nature of running nearly any kind of business. Off-season lulls seem to drag on forever, and bad weather causes customers to change their plans and spend their dollars elsewhere. Simply offering a coupon, sale, matinee price or happy hour doesn’t always cut it. Even dynamic, demand-based […]

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Meet Toronto’s ticket scalpers: An undying breed against all odds | Toronto Star

Meet Toronto’s ticket scalpers: An undying breed against all odds | Toronto Star

Some teams and markets have clamped down on these season seat monopolists. In 2015, StubHub sued the Golden State Warriors for mandating all resale be done through its Ticketmaster platform. Other teams have required season seat holders live in the state or province of their team, forcing license owners to return their tickets or launch […]

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Featured Content and Events

Book: Dollarizing Differentiation Value – A Practical Guide for the Quantification and the Capture of Customer Value

Book: Dollarizing Differentiation Value – A Practical Guide for the Quantification and the Capture of Customer Value

Summary: Now is the time to answer that “value” question so well and so completely that your organization thrives. The biggest winners in the 21st century will have value-based strategies, value-based innovation, value-based marketing, and value-based pricing. There has never been a more exciting and lucrative time to pay attention to value and turn a […]

 

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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“Price is what you pay. Value is what you get.”

     – Warren Buffett

 


 

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