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This Week in Pricing > 9/22/18

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

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Vistaar

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

 

Top Headlines

Why consumers find the iPhone irresistible despite its premium price | Marketing Interactive

Why consumers find the iPhone irresistible despite its premium price | Marketing Interactive

Apple recently unveiled three new iPhone models – iPhone XR, iPhone XS and iPhone XS Max, with all three steeply priced at US$749, US$999 and US$1,099 respectively. The news no doubt rattled consumers with some vowing not to switch iPhones unless malfunction occurs. Others pledged allegiance to Android phones, and some mocked Apple for jacking up […]

 

Amazon prices for cases of water fluctuate ahead of Hurricane Florence | Business Insider

Amazon prices for cases of water fluctuate ahead of Hurricane Florence | Business Insider

Amazon is being criticized for appearing to inflate prices as residents of North and South Carolina prepare for Hurricane Florence to make landfall. Many local grocery and warehouse stores have sold out of basics like cases of water, so some locals have turned online to buy goods to prepare for the storm. What they’ve found […]

 

Trump Eyeing ‘Disruptive’ Changes to Drug Pricing, Azar Says | Bloomberg

Trump Eyeing ‘Disruptive’ Changes to Drug Pricing, Azar Says | Bloomberg

The Trump administration is looking to make “disruptive” changes to U.S. drug pricing to bring down costs for patients, Health and Human Services Secretary Alex Azar said. “Every player in the system has their share of blame,” Azar said in an interview at Bloomberg headquarters in New York on Wednesday, adding that he’s working on […]

 

iPhone XR, XS, XS Max: Apple’s three new iPhones start at $749, $999, $1,099 | CNET

iPhone XR, XS, XS Max: Apple’s three new iPhones start at $749, $999, $1,099 | CNET

Yesterday, Apple announced the iPhone XS, iPhone XS Max and iPhone XR. These three new iPhones for 2018 officially replace the iPhone X, which Apple pulled from its store after the announcement. So if you’re looking for a new “IPhone X” this year, one of these three will have to be it. While the iPhone XS […]

 

How Apple got us to pay so much for the iPhone | CNN Money

How Apple got us to pay so much for the iPhone | CNN Money

The iPhone is getting more expensive, and Apple is betting faithful customers will barely blink an eye. Apple has slowly increased the average price of an iPhone since 2007, but with the $999 iPhone X release last year, it made a bigger leap than usual. A year later, after the shock value of a thousand […]

 

HHS sued over delay in drug pricing transparency regulations | Beckers Hospital Review

HHS sued over delay in drug pricing transparency regulations | Beckers Hospital Review

The American Hospital Association and six other health organizations  have sued HHS for delaying the implementation of rules that would force drug companies to be open about their pricing and punish them for overcharging participants in a federal drug discount program. Six things to know: 1. The 340B drug pricing program, enacted nearly three decades […]

 

RIP: Subway’s $5 foot-long sandwich deal is no more | The Washington Post

RIP: Subway’s $5 foot-long sandwich deal is no more | The Washington Post

Fast-forward to today: The $5 foot-long as the world knows it is no more. In an interview with USA Today, Subway CEO Trevor Haynes revealed that the company will no longer require franchisees to run the special. In recent years, the promotion had become a contentious point among store owners, some of whom felt the deal did […]

 

Lawmakers Halt Push for Drug Prices in TV Ads | RAPS

Lawmakers Halt Push for Drug Prices in TV Ads | RAPS

In an effort to get the first set of FY 2019 appropriations bills to the President’s desk, US House leaders scrapped a bipartisan amendment that would have required drugmakers to include list prices in direct-to-consumer (DTC) television ads. The amendment—sponsored by Sens. Dick Durbin (D-IL) and Chuck Grassley (R-IA)—was offered and subsequently withdrawn during a […]

 

Price of a Whole Foods basket of groceries has barely budged since Amazon took over | MarketWatch

Price of a Whole Foods basket of groceries has barely budged since Amazon took over | MarketWatch

Whole Foods had a high-priced reputation before retailing giant Amazon stepped in. Why hasn’t that changed? Even with the discounts offered to Amazon.com Inc.’s Prime members, the cost of a $400-plus broad basket of items purchased at Amazon-owned Whole Foods Market only yields $1.50 in savings over prices one year ago, Gordon Haskett Research Advisors […]

 

 

More Headlines

Paying at the pump: the causes and consequences of soaring fuel prices | The Hindu

Paying at the pump: the causes and consequences of soaring fuel prices | The Hindu

Why are petrol and diesel prices continuing to rise? In June 2017, India’s state-run oil marketing companies switched to a dynamic pricing approach to set pump prices of petrol and diesel on a daily basis. The move was aimed at helping ensure a market-driven approach to fuel pricing by enabling oil firms to factor in […]

 

Milwaukee could raise Parking Meter Rates, use Surge Pricing | TMJ4 Milwaukee, WI

Milwaukee could raise Parking Meter Rates, use Surge Pricing | TMJ4 Milwaukee, WI

Milwaukee could soon raise parking rates around the city, and move to a demand-based pricing model. The legislation passed the Public Safety and Health Committee four to zero Thursday. Estimates say the changes would add $1.9 million to the city’s parking budget. The proposal would raise the top hourly parking meter rate $0.50 to $2 per hour. […]

 

To lure back riders, Railways set to scrap dynamic pricing on 40 trains | Business Standard News

To lure back riders, Railways set to scrap dynamic pricing on 40 trains | Business Standard News

Your next ride on the Rajdhani Express might be a little light on your pocket as the Indian Railways is set to scrap the flexi-fare — also called dynamic pricing — on 40 trains, according to a report in ‘The Times of India’. The flexi-fare scheme is reportedly being scrapped for trains that have shown […]

 

Pricing models will have an impact on adoption of AI in medical imaging | Health Data Management

Pricing models will have an impact on adoption of AI in medical imaging | Health Data Management

To maximize their market reach, vendors should consider offering both perpetual license and SaaS options, ideally with a strategy to convert perpetual license customers to a SaaS model over time, to take advantage of the more sticky and predictable business. Vendors who adopt a subscription model then need to set a pricing strategy that is […]

 

How Nashville Changed Health Care for the Nation | Nashville Scene

How Nashville Changed Health Care for the Nation | Nashville Scene

There’s a long-told tale among folks in Nashville health care circles. According to the story, as the industry was blossoming in Nashville in the early ’70s, an executive at one of the larger health care companies was asked how much it cost to keep a patient in one of his hospitals. His response? “Doesn’t matter.” […]

 

Lexus Complete Lease Program | Digital Trends

Lexus Complete Lease Program | Digital Trends

“We talked about starting it nationwide but we wanted to get a sense of how this would play out. Our plan is to test it [in urban areas], and if we’re successful we will look at rolling it out nationally,” Cynthia Tenhouse, Lexus’ general manager of product and consumer marketing, explained. Lexus designed Complete Lease […]

 

Apple’s new pricing strategy: Is it good news or bad news for Android? | Android Authority

Apple’s new pricing strategy: Is it good news or bad news for Android? | Android Authority

Earlier this week, Apple launched three new iPhones: the iPhone XS, the direct follow-up to last year’s iPhone X; the iPhone XS Max, a larger version of the iPhone XS; and the iPhone XR, a cheaper model that is larger than the iPhone XS but with lower-end hardware. Apple revealed that the pricing for the […]

 

Is United Airlines’ Bag-Fee Increase Sustainable? | The Motley Fool

Is United Airlines’ Bag-Fee Increase Sustainable? | The Motley Fool

Raising baggage fees may seem like an attractive way to drive further unit revenue growth, as long as most airlines join the fee increase. Unlike fares — which can fluctuate wildly based on supply, demand, and airlines’ pricing strategies — fee revenue tends to be quite stable. American and Delta haven’t joined in After United […]

 

Dynamic Ticket Pricing doesn’t help fans, says AFLFA | Sports Radio

Dynamic Ticket Pricing doesn’t help fans, says AFLFA | Sports Radio

The AFL Fan’s Association has found prices went up for low-demand games more times than they went down in 2018. A review was conducted into dynamic ticket pricing, which was introduced by the AFL at the start of the 2017 season. Initially controlled by the AFL, it has since been handed over to the clubs. […]

 

Renting a Porsche is about to get easier | Quartz

Renting a Porsche is about to get easier | Quartz

You don’t have to own a Porsche to drive one. Since 2012, Porsches have been available to rent on Turo, a company that helps regular car owners arrange rentals of their vehicles, usually for several days. There, Porsches are one of the top-searched cars. This year alone, more than 1,600 Porsches have been added to […]

 

How are prescription drug prices determined? | AMA Wire

How are prescription drug prices determined? | AMA Wire

The U.S. spends nearly $330 billion a year on prescription drugs. In 1990, the share the nation spent for pharmaceuticals accounted for 5.6 percent of total health care spending, but grew to nearly 10 percent in 2016. Prescription drug price increases can lead some patients to not be able to afford critical medicine, causing them […]

 

State warned against pharmacy middlemen’s Whack-a-Mole | Record Courier

State warned against pharmacy middlemen’s Whack-a-Mole | Record Courier

As Ohio seeks to reduce costs and bring more transparency to Medicaid’s $3 billion-plus prescription drug program, experts warn: Don’t solve one problem by creating others. Pharmacy benefits managers, who are the middlemen in the process of pricing and paying for prescription drugs through various insurance programs, are the focus of the state’s attention. “They […]

 

AI Setting A New Battlefield For Indian E commerce-Harshita Agrawal | BW Businessworld

AI Setting A New Battlefield For Indian E commerce-Harshita Agrawal | BW Businessworld

How AI will facilitate future growth of etailers: Currently, we see basic applications of AI in Indian e-commerce space. However, etailers need to take it to the next level to counter the competition from Amazon, allegedly their biggest rival. They can take inspiration from the developed markets, but the key will be to give global […]

 

MediXall.com Announces Expansion into Prescription Discounts with Upcoming Launch of MediXallRx | NASDAQ

MediXall.com Announces Expansion into Prescription Discounts with Upcoming Launch of MediXallRx | NASDAQ

Fort Lauderdale, FL, Sept. 13, 2018 (GLOBE NEWSWIRE) — via NEWMEDIAWIRE — MediXall Group Inc., (OTCQB:MDXL), creator of MediXall.com, a new generation healthcare marketplace platform designed to address the growing need of self-pay and high deductible consumers for greater transparency and price competition in their healthcare costs, is pleased to announce that it has entered into […]

 

Best Practices to Improve Your Truckload Service and Price | Logistics Viewpoints

Best Practices to Improve Your Truckload Service and Price | Logistics Viewpoints

While shippers face the difficult market conditions of tight capacity and increased consumer demands, they are also being challenged to find transportation cost savings and improve customer satisfaction. As shippers compete for capacity, many are asking what they could be doing to secure the best truckload performance and rates. Why do some shippers receive better […]

 

Bitcoin: Widespread Adoption Could Drive Prices Much Higher | Seeking Alpha

Bitcoin: Widespread Adoption Could Drive Prices Much Higher | Seeking Alpha

Bitcoin’s Path To Widespread Adoption The world is a big place, unfortunately there are not that many Bitcoin (BTC-USD) to go around. Last winter we saw a prelude to what can happen when people in mass want to acquire Bitcoin, the price skyrockets. However, since then Bitcoin’s price has corrected by approximately 70%, and now […]

 

As opioid crisis rages, cost of overdose antidote spikes | WYMT

As opioid crisis rages, cost of overdose antidote spikes | WYMT

As the opioid epidemic continues to kill tens of thousands of Americans each year, the drug naloxone has proved invaluable in preventing overdose-related deaths. Yet a spike in its cost in recent years has constrained access to naloxone, potentially depriving health care professionals, emergency responders and families of a critical treatment than can save lives. […]

 

Analyst: Pricing power could help Apple combat the cost of tariffs | CNBC

Analyst: Pricing power could help Apple combat the cost of tariffs | CNBC

Apple’s brand power can help the technology giant cope with some of the pain of the trade war, D.A. Davidson senior research analyst Tom Forte told CNBC on Friday. “To the extent that the tariffs increase the price of their products to consumers … I would argue they could offset that to the extent they’ve […]

 

Why Dynamic Pricing is Important for E-commerce Retailers | The Inscribe Mag

Why Dynamic Pricing is Important for E-commerce Retailers | The Inscribe Mag

Want your pricing system to adjust to market conditions in real time? Want to keep up with your competitors 100 percent of the time? Dynamic pricing might just be your savvy solution! Also known as demand pricing or time-based pricing, dynamic pricing is a variable pricing strategy which changes in response to real-time demand and […]

 

The Secret Drug Pricing System Middlemen Use to Rake in Millions | Bloomberg

The Secret Drug Pricing System Middlemen Use to Rake in Millions | Bloomberg

How Spread Pricing Works In an analysis of pharmacy and middleman markups in Medicaid plans around the country, Bloomberg found big spreads on dozens of drugs, and evidence that the spreads are growing. For many widely used generic drugs, state insurance plans are collectively paying millions of dollars in fees to private companies. CVS is […]

 

Trickle-Down Economics: Pricing H2O [Podcast] | Planet Money – NPR

Trickle-Down Economics: Pricing H2O [Podcast] | Planet Money – NPR

When demand for a commodity is high and supply is low, providers usually just raise the price. That pushes demand down. But when that commodity is water – an essential for human life – those pricing rules don’t apply. Or do they? Read complete article here: Trickle-Down Economics: Pricing H2O : Planet Money : NPR.

 

Peloton CEO John Foley: Sales increased after we raised prices [Video] | Yahoo Finance

Peloton CEO John Foley: Sales increased after we raised prices [Video] | Yahoo Finance

Peloton CEO John Foley tells Yahoo Finance the profitable fitness startup saw sales of its in-home exercise bike actually increase after it raised the price to $2,245. “It was interesting psychology that we teased out,” Foley recalls. “In the very, very early days, we charged $1,200 for the Peloton bike for the first couple of […]

 

The Curious Case Of Gleevec Pricing | Forbes

The Curious Case Of Gleevec Pricing | Forbes

Several years ago, a group of oncologists penned an editorial on drug prices, with Gleevec (imatinib mesylate), the  groundbreaking tyrosine kinase inhibitor, as their illustration of egregious pricing practices. This sparked a nationwide conversation on cancer drug prices and value. When first approved, Gleevec ushered in a new era of targeted oncology drugs. At its […]

 

House Rejects Senate Bill Provision to Require Disclosure of Drug Prices in Television Commercials | BioSpace

House Rejects Senate Bill Provision to Require Disclosure of Drug Prices in Television Commercials | BioSpace

The U.S. House of Representatives has split with the Senate over requiring pharmaceutical companies to disclose the list price of their prescription medications in television advertisements. The notion of including the cost of medications was a key provision of the White House’s healthcare proposal. In August the Senate approved a measure to disclose drug prices […]

 

New downloads of MoviePass have plummeted as the service has introduced unpopular features | Connecticut Post

New downloads of MoviePass have plummeted as the service has introduced unpopular features | Connecticut Post

Sharp declines corresponded with changes to the service (seen above). Downloads dropped from 330,000 in June to about 240,000 in July after MoviePass announced its unpopular surge pricing feature, in which users would have to pay extra for popular movies during busy showtimes. Downloads then dropped to 80,000 in August after MoviePass announced it would […]

 

Recondo Technology’s Chief Product Officer to Speak about Price Transparency and Payor/Provider Challenges at Becker’s 4th Annual Health IT + Revenue Cycle Conference | Markets Insider

Recondo Technology’s Chief Product Officer to Speak about Price Transparency and Payor/Provider Challenges at Becker’s 4th Annual Health IT + Revenue Cycle Conference | Markets Insider

DENVER, Sept. 18, 2018 /PRNewswire/ — In response to the recent IPPS Final Rule issued by CMS requiring hospitals to post their standard charges online, Recondo Technology is embarking on an educational initiative to inform providers how to provide authentic price transparency to patients. As part of this effort, the company’s Chief Product Officer, Heather […]

 

Ticketmaster Just Got Exposed For Using Secret Tactics To Trick Canadians Into Overpaying For Concert Tickets | Narcity

Ticketmaster Just Got Exposed For Using Secret Tactics To Trick Canadians Into Overpaying For Concert Tickets | Narcity

A CBC News and Toronto Star investigation has revealed something a lot of us have already suspected – Ticketmaster is ripping customers off huge. The two news outlets did some digging into ticket sales for Bruno Mars shows in Toronto over the last seven months and uncovered the shocking ways that the company has been […]

 

Got tickets to Saturday’s Bruno Mars show? The guy sitting beside you may have paid hundreds of dollars less | The Star

Got tickets to Saturday’s Bruno Mars show? The guy sitting beside you may have paid hundreds of dollars less | The Star

A seven-month Toronto Star/CBC analysis of box office sales for the show, part of Mars’s 24K Magic world tour, reveals the hidden tricks of the ticketing trade that allow manipulation of seat prices, create the appearance of scarcity and maximize revenues. The effect: fans pay more — or get left out entirely. The mysterious world […]

 

Sinemia’s $30 unlimited plan tries to fill a MoviePass-shaped hole | Engadget

Sinemia’s $30 unlimited plan tries to fill a MoviePass-shaped hole | Engadget

MoviePass attracted a lot of users with its $10 one-movie-per-day subscription plan, but as the last few months have shown, that price point was rather unsustainable. As its money troubles mounted, the company hit its subscribers with a number of sudden plan changes including surge pricing, limited film selections and, recently, a reduction to just […]

 

High drug prices: America’s migraine (and how to fix it) | The Philadelphia Tribune

High drug prices: America’s migraine (and how to fix it) | The Philadelphia Tribune

Americans go to the pharmacy a lot. We fill an average 12.6 prescriptions per year, and more than half of us regularly take medications—four, on average. Like covering rent or filling the gas tank, taking and paying for medicine has become part of our everyday lives. It’s not a stretch to suggest that the average […]

 

Hilton Bumps Up Award Night Costs | Simple Flying

Hilton Bumps Up Award Night Costs | Simple Flying

Hilton has made it a little more difficult to do so, through dynamic pricing (which means that the number of points you need to book a room is relative to the cash price for that particular room, which as we all know can change from minute to minute based on how many people are looking […]

 

 

Events and Resources

Webinar: Machine Learning & Data: The Latest Pricing Opportunity | PPS and Vistaar

Date: September 27, 2018

Time: 12:00 pm Eastern

In today’s ever-evolving world, data and software driven strategies are imperative to creating sustained commercial success. Good processes and experienced personnel are no longer enough. It is nearly impossible to rely on spreadsheets, custom software tools, and anecdotal experiences to properly manage the complexity of becoming a “data-driven business.” The good news?

Computers are more adept than humans at sorting through data with complex variables such as frequently fluctuating costs, rapidly evolving pricing models, and shifting customer priorities. Modern pricing software solutions, powered by advanced algorithms and machine learning techniques, enable businesses to constantly analyze data on an unparalleled scale and drive decision making based on data.

Please join Vistaar’s Director of Product Management, Dushyant Zutshi, in a new #PricingWebinar titled, “Machine Learning & Data: The Latest Pricing Opportunity” for a sneak peek of PPS Fall 2018 session content. Dushyant will discuss how advanced algorithms and machine learning techniques drive intelligent pricing and sales strategies for success in the data-driven world.

 

Fall Pricing Workshops & Conference | PPS

Date: October 23-26, 2018

Location: Renaissance Dallas Addison Hotel in Addison, TX

Please make plans to join us and well over 450 of your peers for the best event anywhere. We will be in Dallas, TX,October 23-26, 2018.

Don’t miss out on the Early Bird Discount (When 2 people from the same firm register at the same time (item of equal or lesser value), the 3rd registrant can attend FREE of charge). Offer expires September 14th!

 

14th Annual PPS European & Global Pricing Conference & Workshops | PPS

Date: November 28-30, 2018

Location: Mövenpick Hotel Amsterdam City Centre in Amsterdam, Netherlands

The Professional Pricing Society team and I are very proud to announce that we will be returning to Amsterdam for our next great event – The 14th Annual PPS European & Global Pricing Conference & Workshops held 28-30 November.

Conference keynotes, breakout sessions, and networking opportunities highlight the conference day on 30 November; While 28-29 November will be used for workshop days to help you enhance your pricing knowledge.

 

This blog series provides a forum for pricing professionals to share their insights and experience. Our guest bloggers share their knowledge about specific product or industry challenges, geographic complexities, strategies, tactics, and technologies.

 

Top Discussions

This blog category offers a collection of top pricing related conversations on LinkedIn or in the comments section of pricing related blogs and articles.

 

Pricing News LinkedIn Group

Join over 5,000 of your peers in the our LinkedIn discussion group. The group offers a place to share the latest pricing strategy and technology, news, events, resources, thought leadership, and discuss the latest pricing related successes and failures in the news.

 

Pricing Resources

Explore our collection of valuable pricing resources including:

 

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

 

 

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

     – Phillip Kotler