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This Week in Pricing > 8/9/14

TWIP 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 Sponsored by:

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™).

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The Week’s Top Headlines

When Setting Prices, Set It and Forget It Should Be Outlawed | Inc.com

“A lot of the sellers are using one or another form of repricing, basically a software that scans the Amazon marketplace to see if they are seling at the lowest price, and if not they will automatically update the price for you,” says Andy Kim, founder and owner of Sunnyvale Wheels, and online retailer of […]

Strategies for Increasing Pricing Power | Modern Distribution Management

It’s no secret that the biggest players in a given market wield a lot of power when it comes to pricing. They can lower prices and leave other players scrambling. But at the same time, they have the power to raise prices without much fear of losing business. As Warren Buffett has often said: “The […]

When My Price is Too High, Should I Lower It? 5 Situations to Consider! | The Sales Hunter

First off, the idea your price is too high is strictly that — an idea. But like a lot of ideas, it likely doesn’t have merit. Your price is based on the value the customer perceives they are going to receive. It comes down to the sales process you use and how the customer responds […]

What Your Price Says About Your Quality | The Sales Hunter

When someone leads with price as their key “benefit” — and, by the way, price is anything but a benefit — you’re proclaiming to everyone you don’t have anything else to offer. Price is only going to be seen as a “benefit” by a small segment of any market and that alone creates another problem. […]

YRC Worldwide CFO – How Truckers Are Using Big Data to Overhaul Pricing | WSJ

Trucking companies including YRC Worldwide Inc.YRCW -2.23% are using big data to completely renovate their basic pricing structure. Jamie Pierson, who took up the chief financial officer post at the company in 2011, spoke to CFO Journal’s Emily Chasan about how his company is taking advantage of new technology. Q: Has there been a shift in […]

Dealing in Data | Columbia Business School Ideas at Work

In many industries, it’s common for a firm’s headquarters to create a price list but grant local salespeople the ability to negotiate prices for individual transactions. For instance, when a consumer buys a car, the salesperson typically has room to negotiate the price, within limits set by the dealer. In theory, negotiations enable salespeople to […]

B2B Disruption – Pricing, Segmentation, and Technology | Innovation Excellence

The tidal wave of price transparency and pricing pressure is coming to B2B, and it will be disruptive. A wait-and-see position for B2B and industrial companies is not acceptable. B2B companies have a unique opportunity to learn now how brick-and-mortar retail chains are responding to the price transparency challenge created by online competitors, comparison shopping […]

Pricing’s Three-Legged Stool | Patrick on Pricing

For most of us, our daily pricing goal is to find the number(s) that will win work. That’s a great business development goal, but it cheapens the mission of Pricing to say its goal is a number. Our nacent profession has been so focused on the detail and the tasks of pricing — driven by […]

Why prices ending in 9 sell best – MIT study | AGBeat

Pricing your product or services may be one of the most stressful parts of owning a business. You know your service is valuable. You know there is an audience out there that understands that value. But finding the right price to attach to a product or service is an art. If you price something too […]


Pros and Cons of a Public Price List | Rimi Designs

Freelancers can be very flexible on pricing. They can charge by the project, charge by the hour, increase their rates for rush jobs, decrease them for charities or work completely for free for friends and family if they choose. However, some freelancers choose to publicly disclose their prices on their website or brochures, eliminating some […]

Should You Try Two-Part Pricing? | Pragmatic Pricing

Two part pricing can also be used as a technique for price segmentation while building loyalty and increased demand. Amazon Prime is an upfront fee that gives you free shipping as you buy goods from them. But you don’t have to use Prime to buy from Amazon. Amazon gives you a choice. Infrequent buyers or […]

Electronic Arts testing new pricing model for XBox One gamers | The Fields of Green

The service, called EA Access, allows Xbox One gamers to play FIFA 14, Madden NFL 25, Peggle 2 and Battlefield 4 with more titles to be added in the future. Subscriptions are priced at $4.99 monthly or $29.99 annually. By comparison, those four titles would cost approximately $100 purchased individually. EA has entered into a number […]

Virgin Mobile’s New Wireless Plan Is Like Netflix for Your Phone | WIRED

The wireless industry, like the TV industry before it, is about to come unbundled. On Wednesday, Virgin Mobile and Sprint announced a new mobile-phone data plan called Custom, a prepaid family plan that lets users grab as much data as they want from either Facebook, Twitter, Instagram, or Pinterest for just $12 a month. For […]

How a manufacturer gets a better grasp on retail pricing | Internet Retailer

The privately held company has spent decades building up its brand of multipurpose pocket tools and establishing strong selling relationships with well-known retailers like L.L. Bean Inc. and Dick’s Sporting Goods. But a few years ago it got a wake-up call: “We realized we didn’t have control over how our brand was being positioned,” says […]

RetailWire Discussion – The price is right (right?) | RetailWire

“It’s almost like a drug,” says study author and managing partner Paula Rosenblum. Retailers need a sales boost, so they run a promo. Citing a race to the bottom that can only have one winner, Ms. Rosenblum writes, “Sooner or later, the industry must shift to fewer, more strategic price changes.” The vehicle driving that […]

The price is right—then it’s not | Internet Retailer

Not many online retailers can survive on sub-1% profit margins. And that’s leading e-retailers to come up with new strategies that minimize the hit to their profits from their competitors’ dynamic pricing. They are choosing which products to compete aggressively on when it comes to price, offering consumers other lures beyond price, and in some […]

Why price points matter | Inside Retail

The definition of price points varies, but it is generally accepted that suggested retail price points are determined in such a way as to compete with prices of the same product or other products. This is inextricably linked with competitive pricing and ultimately with profitability. There is no right or wrong answer as to how […]

What Amazon’s e-book numbers are and aren’t telling you | LA Times

How much should an e-book cost? Publishers set the retail price for a current e-book, like James Patterson’s “Invisible,” at $14.99. That’s a lot less than a hardcover copy of the book ($25.50), but it’s still more than Amazon thinks a reader should be paying for an e-book; Amazon says the price tag should be […]

Amazon Wants Cheaper E-Books. But Should It Get to Enforce Prices? | NYTimes.com

But when you compare the market for e-books with other thriving digital markets, a larger question emerges: Why should the price of books be contractually enforced at all? Amazon says its data shows that e-books are “price elastic” goods — meaning that sales are sensitive to changes in price. Lower-priced e-books sell vastly more copies […]

Tip – Re-Evaluate Pricing for Small Customers for Big Results | Modern Distribution Management

Raising prices is often viewed as a way to scare smaller customers away, but the reality is that small and midsize customers are often less price sensitive than their large counterparts. Don’t be afraid to re-evaluate your pricing strategy for smaller customers, says Jonathan Bein in Making Money with Small Customers. Read complete article here: Tip […]

Whole Foods Market – Victim of success | The Economist

The problem is that at Whole Foods, shoppers have been paying way over the cost of regular produce, and its success in getting them to do so has now attracted a lot of competitors, from rival organics chains like Sprouts and Trader Joe’s to mass-market retailers like Walmart and Costco. As a result, the price […]

Apple’s iPhone 6 Faces A Big Pricing Problem Around The World | Business Insider

If you’re an Apple user, you can say one good thing about Android: It sure helped bring down the average selling price of an iPhone, if only briefly. Average iPhone prices have gone beneath $US550 since Apple began selling the iPhone 4 and iPhone 4S as entry-level models at discount prices in places like India. […]

Trendy Chipotle burritos show how pricing power belongs to the hip | Financial Express

Corporate America can learn a lot from a chicken burrito. As many companies struggle to boost prices without alienating consumers, they may want to study Mexican-food chain Chipotle, which has managed to do both. Companies including Chipotle Mexican Grill Inc, Apple Inc and PepsiCo have shown they’re able to take advantage of quality, trendiness, and, […]

Norwegian Cruise’s New All-Inclusive Fares Include Unlimited Booze | Businessweek

For decades, cruise lines have promoted themselves as a comprehensive vacation: lodging, abundant dining options, port stops, and on-board entertainment—all in the fare. What’s left? Plenty, according to Norwegian Cruise Lines (NCLH), which is introducing “all-inclusive” pricing for 2015 cruises it sells this month. The package is priced according to the length of the cruise, […]

Collapse Of T-Mobile-Sprint Deal Could Spark A Price War | Business Insider

“We are talking about billions of dollars of capital spending in front of this company before the network is ready,” MoffettNathanson analyst Craig Moffett said, noting that Sprint likely has to cut prices to compete with the industry’s top players. “Unfortunately raising capital spending and cutting prices at same time is recipe for a very […]

How Much Does One Lego Piece Cost? | WIRED

Lego Price Data It’s not too difficult to find data for Lego prices and number of pieces. If you just look on the Lego online store. There you can find both the price and the number of pieces for each set. You can even sort them by “themes” – like “Star Wars” or “friends” Even […]

Recommended Resources


Webcast: Learn How Strategic Pricing Tools Can Help You Improve Sales Reps’ Confidence in Prices | SPA

Tuesday, August 19, 2014 2:00 PM Eastern Register to attend our webcast that starts at 2:00 PM EST where SPA Client Livingston & Haven will share their journey to pricing excellence and how they are leveraging science-based strategic pricing tools to increase prices and margins without losing sales. Bob Decker, Vice-President of Product & Technology, […]

Webcast: 3rd Annual Pricing Conference | Asia Pricing Professionals

When: August 11-12, 2014 Where: Shangri-La Hotel Kuala Lumpur, Malaysia Asia Pricing Professionals (APP) was established in 2011 by a few pricing practitioners. Since then a huge number of companies in Asia has started focusing on pricing and today it is a well known profession, just as marketing and sales. APP has grown as well and developed […]

Pricer’s Points Blogs

Pricer’s Points: A is for Attribute-based pricing | Ben Blaney

In attributes-based pricing, we’re trying to key in on essential pieces of meta-data – attributes – that will tell us something about the customer, the product, the geography, or the deal (or a whole bunch of other things) to help us price correctly. (you’ll notice I said “correctly”, not “ludicrously high”) First, let’s think about […]

Pricer’s Points: Why the Message of Pricing Hasn’t Spread Wider | David Mok

Pricing as a profession has come a long way – from a role that has evolved out of someone’s part-time job (marketing, finance, contracting, etc.), and that wasn’t long ago, to a full-time profession accompanied by a title having the word PRICING in it. I happen to be one of those fellows who has been a part of […]

Pricer’s Points: The curious case of doing value based pricing for “commodities” | Jesper Hansson – CPP

I hear people use sentences like: “That is a commodity, so the market dictates the price” and “You will only sell commodities if you have the same or lowest price in the market compared to your competitors”. It’s great to get these arguments thrown at you because I like to discuss pricing and it is […]

Pricer’s Points: Why the Amazon Fire Phone price isn’t cheap. | Matt Burnett

It’s been about three-weeks since Amazon unveiled its first smartphone to the world: the Fire Phone. Now the dust has settled it’s possible to try and understand exactly what Amazon is trying to achieve with the Fire Phone pricing. Some commentators have criticised the company for not doing what it’s done in the past with the […]

Top Discussions

Discussion: So can we talk about the pricing strategy for the Surface Pro 3?

Eye on Windows Article NO KEYBOARD BUNDLED? REALLY? At those prices above, the devices don’t even come with a keyboard bundled. THAT. IS. CRAZY. No more needs to be said there. I see this so clearly but bloggers tend to have blind spots so I thought it might be fun to take some time and […]

Discussion: It’s Time to Embrace Congestion Pricing

Gizmodo Article An ambitious new transportation plan for DC announced last week includes a massive public transit expansion, additional subway line, and beefed up network of bike lanes. But the proposal that’s getting the most attention is the introduction of congestion pricing. Yes, DC wants to charge cars to enter its downtown. And more cities […]

Discussion: Most Pricing Problems Aren’t Pricing Problems

Pricing News LinkedIn Group Discussion You see, most supposed “pricing problems” are usually just symptoms of problems in other areas. Pricing is the point of the spear, where the decisions, actions, and inactions of a bunch of different groups all come together and are made manifest as a price in the market. So, while pricing […]

Discussion: SaaS Free Trial – Requiring a Credit Card is Shortsighted

SaaS Growth Strategies Blog That said, why do you offer a Free Trial in the first place? So prospective customers can get to know your offering before paying for it… … remember, they don’t already know, like, or trust your company or product yet. And we know in B2B especially, trust is huge… trust that […]


Estimation of Willingness-to-Pay – Theory, Measurement, Application

Summary: With the Price Estimation scene (PE scene) Christoph Breidert introduces a new method to estimate willingness-to-pay. It works as an additional interview scene appended to conjoint analysis and offers the respondents a dynamically generated sequence of product choices with assigned prices. The customers indicate whether they would actually purchase the presented product profiles. Authors: […]

Getting Started with Conjoint Analysis – Strategies for Product Design & Pricing Research

Summary: Ask people what they want, and they say, “the best of everything.” Ask them what they would like to spend, and they say, “as little as possible.” Assessing consumer preferences and willingness to pay through direct rating scales, with separate questions about product features and prices, often fails to capture trade-offs that underlie consumer […]

Guide to Contract Pricing – Cost &Price Analysis for Contractors, Subcontractors, & Government Agencies (5th edition)

Summary: This master reference in its fifth edition contains everything you need to know about government pricing rules and regulations in one easy-to-use volume. Guide to Contract Pricing: Cost and Price Analysis for Contractors, Subcontractors, and Government Agencies, 5th Edition, explains how the government conducts business and walks you through every step of the contracting […]


One should always take a little time out to enjoy the lighter side of their profession. Enjoy the following samples from our collection of our favorite pricing related cartoons.

Price Transparency

Pricing Language


One should always take a little time out to enjoy the lighter side of their profession. Enjoy the following sample from our collection of our favorite pricing related quotes.

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

     – Warren Buffett

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

     – Seth Godin

Other Resources

Paper: Pricing Myopia – Do leading companies capture the full value of their pricing strategies? | Manu Carricano

Manu Carricano, PhD Title: Pricing myopia: do leading companies capture the full value of their pricing strategies? Author(s): Manu Carricano, (EADA Business School, Barcelona, Spain) Citation: Manu Carricano, (2014) “Pricing myopia: do leading companies capture the full value of their pricing strategies?”, Management Decision, Vol. 52 Iss: 1, pp.159 – 178 Keywords: Performance, Pricing, Strategy Article […]

Training: Online Courses | Stephan Liozu

Please find below the links to several online courses prepared for Professional Pricing Society as well as free-of-charge webinars on the themes of value and pricing. SAMA: Value Quantification in Strategic Account Management (Registration Required) – 2013 SAMA: Value Quantification – Working on Economic Value Estimation (Registration Required) – 2013 Pros Pricing: is it Time […]

Certification: Change Agent in Pricing (CAP™)

The CAP™ certification is a one-day or two-day formal certification program on the change management and the change leadership processes related to value and pricing projects. During this program, participants will learn: To recognize the need for change leadership in pricing projects. To design a powerful change management toolbox for their pricing projects. To select […]

Pricing News LinkedIn Group

Join 1,000’s 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.

The PricingBrew Journal

Whether you’re in sales, marketing, product management or a pricing professional, it’s important to stay up-to-date on the latest practices and research in B2B pricing—and get fresh perspectives and ideas that can help make your business (and career) more profitable.

The PricingBrew Journal is the only publication of its kind, providing a regular dose of real-world experience and insight from the PricingBrew research team and a global network of seasoned B2B pricing professionals and consultants. Every two weeks, subscribers get access to in-depth articles, training, research, best practices, case studies, expert interviews and educational webinars.

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About Pricing News

Pricing News is a sponsor supported organization dedicated to providing free high-value resources to pricing professionals. It is the source for daily and weekly digests of pricing strategy and industry newsevents, thought leadership articlesblogsreportsacademic research, and other resources and special offers. We also share highlights from top pricing discussions and publish articles from pricing practitioners in our Pricer’s Points blog series.

Join the Pricing News LinkedIn group and learn from your pricing peers and industry thought leaders or get your Pricing News on Twitter or Google+.

Until next week,

Matt Balfour

Founder & Managing Director of Pricing News

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