This Week in Pricing > 8/5/17

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.

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Top Headlines

Uber drivers gang up to cause surge pricing, research says | The Telegraph

Uber drivers gang up to cause surge pricing, research says | The Telegraph

Uber drivers team up in gangs to force higher prices before they pick up passengers, research has revealed. Researchers at the University of Warwick found Uber drivers in London and New York have been tricking the app into thinking there is a shortage of cars in order to raise surge prices. According to the study. drivers manipulate Uber’s algorithm […]

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‘Single-Payer’ Healthcare Isn’t Necessary — But Single Pricing Is | Forbes

‘Single-Payer’ Healthcare Isn’t Necessary — But Single Pricing Is | Forbes

Once again, our healthcare reform is mired in muck. That means we’re also knee-deep and grinding away at our circular healthcare debate, but it’s really a big distraction because it’s the wrong debate. We keep debating the math of coverage and cost as if they’re independent of system design–and they aren’t. As Senate Majority Leader Mitch McConnell […]

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Verizon CFO: Customers Will Pay Up For Our Unlimited Plans; Stock Jumps | Investor’s Business Daily

Verizon CFO: Customers Will Pay Up For Our Unlimited Plans; Stock Jumps | Investor’s Business Daily

ow component Verizon Communications (VZ) stock jumped Thursday on better-than-expected wireless subscriber additions during the second quarter as its chief financial officer extolled its premium pricing strategy on the earnings call. This ad will end in 10 seconds. Autoplay: On | OffShares in the broadband and wireless services provider were up 7.7% to 47.84 on […]

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Sempre Health uses discounts to encourage timely prescription refills | MobiHealthNews

Sempre Health uses discounts to encourage timely prescription refills | MobiHealthNews

Sempre Health, a San Francisco-based company that uses monetary incentives to encourage timely prescription refills, officially launched last week with $2.5 million in funding from Social Capital Partnership, quietly raised last year. Using SMS, Sempre works with pharmacy benefit managers to inform patients about discounts on their prescriptions — and then those discounts change to […]

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Chuck E. Cheese’s: Where a Kid Can Learn Price Theory | Freakonomics

Chuck E. Cheese’s: Where a Kid Can Learn Price Theory | Freakonomics

We ask: what’s price got to do with it? CORROY: I mean, I think it certainly could be. And we hear Steve Levitt’s brilliant idea for testing this theory: LEVITT: Maybe I could dress up as a child, you could be the adult. And then we can see how many other parents, if I monopolize […]

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Strategic pricing brings in 11 offers for updated midtown house | The Globe and Mail

Strategic pricing brings in 11 offers for updated midtown house | The Globe and Mail

The Action: In late June, this three-bedroom house with private parking was strategically priced under $1.4-million to draw attention away from other midtown options and incite a bidding war. “The key to doing that is you have to be very aggressive in the asking price,” says agent Andre Kutyan, who ultimately juggled 11 offers. “[Plus,] […]

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Internet pricing 101: Why costs are all over the map | The San Diego Union-Tribune

Internet pricing 101: Why costs are all over the map | The San Diego Union-Tribune

There are 95 million American households with fixed — as in, not wireless — internet access, but few of us really understand why we pay what we pay, especially when we hear about a neighbor or relative with a cheaper rate and faster speed. The answer isn’t especially enlightening or comforting. In fact, we know […]

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Could congestion pricing save the subway? | City & State New York

Could congestion pricing save the subway? | City & State New York

The million-dollar question is: How can it all be fixed? For years, transit advocates have pointed to congestion pricing as a two-for-one solution: Motorists, including taxi and Uber passengers, would pay more to drive in the congested heart of Manhattan. The money would be used to improve and expand the city’s mass transit system, so […]

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Amazon’s Whole Foods purchase may mean more brick-and-mortar retail options | AZ Big Media

Amazon’s Whole Foods purchase may mean more brick-and-mortar retail options | AZ Big Media

Amazon has been dabbling with food services for some time now, before its purchase of Whole Foods. The e-commerce giant has been experimenting with cashier-less grocery stores across the country, and plans to continue to do so in the wake of its Whole Foods purchase. Amazon also launched a meal kit delivery service, which caused […]

 

People will shop at Amazon whether they have the best prices or not | Mashable

As millions of American families look to get a jumpstart on back-to-school shopping, many of them will turn to Amazon. The company’s use of steep discounting and price-matching to gain market dominance has led many shoppers to almost reflexively expect to pay less for their notebooks and calculators on the site. Sales prices in blaring […]

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More Headlines

Is Your Health System Prepared for Consumerism? | Healthcare Informatics

Is Your Health System Prepared for Consumerism? | Healthcare Informatics

A Kaufman Hall report on the state of consumerism in healthcare, which was based on an online survey of more than 100 hospital and health system executives, found that 70 percent of leaders said consumer-related insights is an above-average priority, but less than one-quarter said they have advanced capabilities in place, referring to the capabil­ity […]

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Southwest Airlines – Business Review | Seeking Alpha

Southwest Airlines – Business Review | Seeking Alpha

Business Drivers: Price of oil and labor costs heavily influence profit margins. Demand markets: leisure travel, business travel, freight transportation Ancillary services unmatched by other airlines such as WiFi on the plane, transportation of pets, and EarlyBird Check-In. The company sells services unavailable through most other airlines, yet includes checked bags in the price of […]

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Obtaining Higher Profitability in the PR Industry | O’Dwyer’s

Obtaining Higher Profitability in the PR Industry | O’Dwyer’s

The building block to profitability The most basic principle of profitability is to know what it will cost your agency to service a client. PR principals ask this question for many purposes, including formulating overall strategies, service emphasis, and meeting reporting obligations. The PR agency needs to understand the basic principles of job costing. When […]

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BBVA Compass posts 29 percent jump in profits | Birmingham Business Journal

BBVA Compass posts 29 percent jump in profits | Birmingham Business Journal

Net interest income totaled $585 million, an increase of $82 million, or 16 percent, from the second quarter of 2016. Company officials said the increases in net interest income is reflective of higher short-term interest rates anda disciplined deposit pricing strategy. Read complete article here: BBVA Compass posts 29 percent jump in profits – Birmingham […]

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UK Government’s New Appointment Offers Inside Track on Pricing and Procurement | Pharmaceutical Executive

UK Government’s New Appointment Offers Inside Track on Pricing and Procurement | Pharmaceutical Executive

The UK is entering into unchartered waters between Brexit – offering the opportunity to potentially change approaches to procurement – and negotiating a successor to the main pricing scheme for branded medicines, the Pharmaceutical Price Regulation Scheme (PPRS). To get the inside track, the government has recruited Steve Oldfield as Chief Commercial Officer. Prepping for […]

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Video: Bill Moses On Starting, Growing, Disrupting and Selling KeVita | BevNET.com

Video: Bill Moses On Starting, Growing, Disrupting and Selling KeVita | BevNET.com

In the years he spent building KeVita into a category leader in sparkling probiotic beverages and kombucha, Bill Moses has seen it all. From humble beginnings to gaining national broadline distribution and securing strategic partnerships to support growth, the co-founder and former CEO has guided KeVita’s evolution as a brand, which culminated last November when […]

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Careem and Uber’s price surcharge is here to stay | DAWN.COM

Careem and Uber’s price surcharge is here to stay | DAWN.COM

Over the past month, there has been a barrage of criticism by users of ride-hailing services like Uber and Careem. The reason behind this criticism has been the higher than usual fares due to price surcharges. So why are we seeing this peak or surge pricing model come in to play? The short answer is […]

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China fines domestic medicine companies for monopoly pricing | Post Online Media

China fines domestic medicine companies for monopoly pricing | Post Online Media

The two companies have since restored regular pricing and revived market competition. Monopoly practices in the pharmaceutical sector have been a focus of China’s anti-monopoly supervision for some time. The case will help regulate active pharmaceutical ingredient pricing and ensure a fair environment for medicine purchases and sales, according to the NDRC. The NDRC has […]

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De Blasio Talks Faith, Congestion Pricing Gets New Look: 5 Campaign Headlines for July 31 | City Limits

De Blasio Talks Faith, Congestion Pricing Gets New Look: 5 Campaign Headlines for July 31 | City Limits

Congestion Pricing, Where Are You Now? City & State To many of its supporters, congestion pricing is such an obvious solution that they describe it as inevitable. But since Cuomo and de Blasio took office, the rancorous pair have been united in their disinterest, even as the subway falls apart on a near-daily basis. “It’s […]

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Oxera – Leading economic thinking in Oxera’s Agenda articles | Oxera

Oxera – Leading economic thinking in Oxera’s Agenda articles | Oxera

Competition authorities have historically pursued very few cases against excessive pricing. This seems to be changing. In the past 12 months, the rules on abuse of dominance have been invoked to tackle high prices in a range of markets, including pharmaceuticals, musical works, and patents. Together with increased political calls for fairness to consumers, does […]

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Why ‘price creep’ is always a flawed new business strategy – and what to do instead | The Drum

Why ‘price creep’ is always a flawed new business strategy – and what to do instead | The Drum

The new business pitch is imminent. Having spent time considering the needs of the prospective client, you believe that price will be one of their key decision criteria. So where do you nail your price? Trim your rates to secure the business or stick to your guns with the higher rate you actually think you’re […]

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Captain Cook to set sail for Rottnest Island | Business News

Captain Cook to set sail for Rottnest Island | Business News

“Capacity has been an issue for the island – with more competition comes greater capacity, and with greater capacity and competition comes a downward pressure on pricing, which is also an issue. “Rottnest is an iconic tourism destination; the ‘selfie with a quokka’ is going mad at the moment and we can add to that.” […]

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AMD senior man spills the beans on Threadripper | Fudzilla

AMD senior man spills the beans on Threadripper | Fudzilla

Obliterates the Intel HEDT and Core i9 Jim Andreson, a senior vice president and the general manager of computing and graphics at AMD has given us an update on the Thradripper and this 16 core HEDT bomb looks awesome. Jim pointed out that the  Ryzen 7 launch caused Intel to change its HEDT pricing strategy. […]

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Tesla Is Pulling an Apple-esque Marketing Move With Model 3 | Madison.com

Tesla Is Pulling an Apple-esque Marketing Move With Model 3 | Madison.com

Making it simpler for the customer There’s another aspect to consider. Tesla has received criticism over the true kWh capacity and usable portion of its battery packs, especially when it comes to the controversial pricing strategy associated with software-limited packs. By obfuscating the true capacity of Model 3 battery packs (though Tesla tinkerers like Jason […]

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Government still in discussions on how to improve current fuel pricing mechanism | KPDNKK

Government still in discussions on how to improve current fuel pricing mechanism | KPDNKK

The domestic trade, co-operatives and consumerism ministry (KPDNKK) is still in discussions with the ministry of finance (MoF) on how to improve the current method of setting weekly petrol and diesel retail prices, Bernama reports. Speaking at the Dewan Rakyat earlier today, its minister Datuk Seri Hamzah Zainuddin said the ministries were discussing the issue […]

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Tesla stock falls after delivering Model 3 electric car | USA Today

Tesla stock falls after delivering Model 3 electric car | USA Today

Tesla announced that initial versions of the Model 3 would carry a starting price of $44,000 before the $35,000 base model is available later this fall. A version loaded with all available options would cost $59,500, according to Barclays. It’s “one of the oldest car dealer advertising ‘tricks’” to promote “a low price of a base […]

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Total Wine wins legal case against state regulator The Drinks Business

Total Wine wins legal case against state regulator The Drinks Business

The Maryland-based alcohol retailer, which sells wine in 20 states and has ambitious plans to grow its estate from 162 shops now to around 200 by 2018, was given several day-license suspensions by the Alcoholic Beverages Control Commission in January for allegedly selling spirits below cost price. State regulators maintained the practise is prohibited in Massachusetts, […]

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Theater chain AMC’s stock plummets 25% as weak Hollywood box office weighs on earnings | LA Times

Theater chain AMC’s stock plummets 25% as weak Hollywood box office weighs on earnings | LA Times

AMC’s net loss included a $202.6-million impairment charge tied to an investment in cinema advertising company National CineMedia. The third quarter is expected to give little relief to theater owners, with AMC calling it “very challenging.” AMC said in a statement it expects to achieve $30 million in “cost savings and revenue enhancements” through the […]

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powerlines

Homeowners could see Hydro-Québec rates jump by up to $2.95 a month | Montreal Gazette

On a conference call with reporters, David Murray, the president of Hydro-Québec Distribution, said the increase is below the rate of inflation and hydro rates will remain the lowest in North America. Consumers in Toronto pay more than twice as much as Montrealers for electricity, while New Yorkers pay more than four times as much, […]

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Bhopal: Not GST, dynamic pricing pain in the neck, say air travellers | Free Press Journal

Bhopal: Not GST, dynamic pricing pain in the neck, say air travellers | Free Press Journal

Bhopal: Business class passengers travelling to Delhi, Mumbai or Lucknow from Bhopal by air will have to shell out more money for their tickets after the implementation of Goods and Services Tax (GST). However, economy class travel has become cheaper. However, air passengers say it is not the GST but dynamic pricing that is the […]

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Humm Kombucha CEO Talks Conventional Path to Mainstream Success [Video] | BevNET.com

Humm Kombucha CEO Talks Conventional Path to Mainstream Success [Video] | BevNET.com

Watch this video for Danek’s full presentation, which also includes a detailed look at Humm’s innovative sampling program and pricing strategy and an analysis of why DSD distribution was critical to the brand’s growth in mainstream retail channels. Danek also discussed Humm’s partnership with the NFL’s Seattle Seahawks and what’s next for the company following […]

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Events platform Hapz raises $500,000 seed funding | Tech in Asia

Events platform Hapz raises $500,000 seed funding | Tech in Asia

The company says that event goers can potentially make significant savings on tickets and admission fees using its service, as compared to buying them from outlets where prices are set. Its platform allows users to put in a bid at the price that they’d be willing to pay. It’s similar to the surge pricing model […]

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Uber drivers work together to create price surge and charge customers more, researchers find | The Independent

Uber drivers work together to create price surge and charge customers more, researchers find | The Independent

Uber drivers are deliberately going offline in unison so that prices surge and they can charge customers more when they log back into the app, according to new research. Uber’s so-called dynamic pricing model means that it responds to supply and demand, increasing the cost of a trip at busy times such as when bars […]

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Is Dynamic Pricing the Silver Bullet for C-stores? | Convenience Store News

Is Dynamic Pricing the Silver Bullet for C-stores? | Convenience Store News

The retail environment for convenience stores has never been more challenging and the list of influences that can negatively impact profitability is growing. Although convenience stores are known for providing speed and convenience, today’s shoppers are more price-sensitive, have complete price transparency, and are becoming more resistant to paying a premium price. According to Nielsen, […]

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Will new iPhones make Apple Inc the first $1 trillion company? | Financial Post

Will new iPhones make Apple Inc the first $1 trillion company? | Financial Post

Even though an iPhone ‘super cycle’ has attracted a lot of attention, Hall believes that analysts’ forecasts still fail to capture the size of the likely replacement cycle – assuming Apple delivers a compelling product this year. His revised price target of US$176 per share (up from US$165) reflect both higher volumes and a materially […]

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Burning Man hiring help to facilitate raising big bucks | San Francisco Chronicle

Burning Man hiring help to facilitate raising big bucks | San Francisco Chronicle

A GoFundMe campaign seeking contributions raised $500,000 in one day, a much higher amount than was foreseen, reports the Poynter Institute. Snopes managing editor Brooke Binkowski was “stunned and humbled” by the response. Tickets for Giants games may be going for a song, but parking is still going for an aria. Gary Tobin noticed that […]

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Spirit Airlines’ Return to Unit Revenue Growth Looks Short-Lived | The Motley Fool

Spirit Airlines’ Return to Unit Revenue Growth Looks Short-Lived | The Motley Fool

The long-awaited return to unit revenue growth won’t last The revenue story for the quarter mostly played out as expected, as Spirit continued to make progress with revenue-boosting initiatives including dynamic pricing of seats, and benefited from trends in fare pricing. Fornaro noted that this was the first time in two-and-a-half years that either passenger […]

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Selling Your Home? Strategies for Estimating Its Value | ZING Blog by Quicken Loans

Selling Your Home? Strategies for Estimating Its Value | ZING Blog by Quicken Loans

If you’re looking at selling your home, it’s a really good time to do so. We’re on an upward swing in terms of property value. Home value is definitely a key consideration, though. If you price your home too high, buyers who are looking at a lot of homes won’t bite. If you price too […]

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Business Toolbox: Setting a Price | Tire Review Magazine

Business Toolbox: Setting a Price | Tire Review Magazine

Establishing price is based on three things: 1) Your costs 2) The profit you hope to make 3) The price your customers are willing to pay Assessing that final component can be daunting, but you should try to gather clues about how customers perceive your products and services – and your dealership as a whole. […]

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FireEye Looks To Revamp Pricing, Go-To-Market Strategy With Partners – Page: 1 | CRN

FireEye Looks To Revamp Pricing, Go-To-Market Strategy With Partners – Page: 1 | CRN

FireEye is entering the second phase of its company transformation, looking to revamp its pricing and go-to-market strategy to appeal to a broader set of customers. … Mandia said FireEye would be looking to undergo a holistic pricing review over the next 11 to 12 weeks, working both with external consultants and inside employees. He […]

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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 […]

 

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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

 


The following is a daily-dose of pricing cartoons and quotes, enjoy…

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“Pricing strategy always has been more of a poker game than a science.”

     – William T. Moran

 

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