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This Week in Pricing > 9/29/18

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

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

 

 

Value Innoruption Advisors

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

Click a link below to learn more…

 

Top Headlines

Sales Leaders Don’t Discount Their Price | Mark Hunter

Sales Leaders Don’t Discount Their Price | Mark Hunter

After speaking at a conference recently, a sales manager approached me to say how his company is seen as the premier company in their industry for their quality and service.  He went on to say how everyone loved them, and then he dropped the bombshell.  He said the big reason they were the leader was because […]

 

Does Pharmaceutical Reference Pricing Have a Future in the U.S.? | Commonwealth Fund

Does Pharmaceutical Reference Pricing Have a Future in the U.S.? | Commonwealth Fund

In the U.S. health care system, the prices charged for similar goods and services typically are high and vary widely. Such price variation reflects weak cost-consciousness on the part of purchasers and weak competition on the part of producers. Reference pricing is an emerging structure of benefit design under which the insurer or employer establishes […]

 

The Toronto Star Went ‘Undercover’ to Investigate Ticketmaster, But Did They Find Anything New? | Amplify

The Toronto Star Went ‘Undercover’ to Investigate Ticketmaster, But Did They Find Anything New? | Amplify

The Toronto Star has been hammering Ticketmaster this week in a series of investigative reports with the CBC on ticket pricing and Ticketmaster’s relationship with the secondary market. The report has some new information about how the company prices concert tickets, narrowing in on two Bruno Mars concerts at Scotiabank Centre this weekend, showing how […]

 

Tariffs: What they mean for your pricing strategy | Canadian Manufacturing

Tariffs: What they mean for your pricing strategy | Canadian Manufacturing

While there is great uncertainty at this stage as to what, how large, and where tariffs will be imposed, one thing is certain: price adjustments will likely result. To make pricing changes that best respond to this new environment, you need to take into account four factors: 1. Impact on Costs As a first step, […]

 

Airbnb promises more transparency on prices, conditions | The Brussels Times

Airbnb promises more transparency on prices, conditions | The Brussels Times

The online platform Airbnb plans to improve the way it presents rental prices for the rooms and homes it advertises,as well as their conditions of use, in keeping with European consumer laws, the European Commission said. The Commission, which had already rapped the U.S. business on its fingers in July, said Airbnb had until the […]

 

Airlines make big money by making you miserable | Minnesota Public Radio News

Airlines make big money by making you miserable | Minnesota Public Radio News

The airlines continue to market the fees by heralding the “choice” that passengers have. “It really amounts to being able to allow a booking to happen and then offer amenities that customers want and want to pay for as we go forward,” American Airlines president Robert Isom said yesterday. Eventually, the legacy carriers will charge […]

 

7-Eleven $3 coffee cup trick exposed | news.com.au

7-Eleven $3 coffee cup trick exposed | news.com.au

A 7-Eleven spokesman said the convenience chain’s coffee was “outstanding value for customers and the simple $1, $2, $3 price points are based around industry standard cup sizes”. “Depending on the product the customer selects, there are different ratios of coffee, hot milk, and milk foam — proportionately more for each cup size — and […]

 

5 Don’t-Miss Angles for Pricing a New Software Product | DevPro Journal

5 Don’t-Miss Angles for Pricing a New Software Product | DevPro Journal

You saw a need in the market. You developed a brilliant application to solve the problem. Now, what do you charge for it? Pricing a new software product can be a tricky thing — especially if you’re a normal, red-blooded entrepreneur and you want to maximize your income from it. You’ve probably heard that you […]

 

To Include Or Not Include Drug Prices In DTC Ads | Forbes

To Include Or Not Include Drug Prices In DTC Ads | Forbes

For quite some time, consumer groups, patient advocates, and even several medical professional societies have called for direct-to-consumer (DTC) advertisements to include information on drug pricing. In June 2017 the American Medical Association put out a statement explicitly arguing in favor of inclusion of drug prices in DTC advertisements. And in late August this year, the […]

 

Uber is overhauling the way it responds to emergencies and natural disasters | The Verge

Uber is overhauling the way it responds to emergencies and natural disasters | The Verge

Uber is overhauling its disaster response procedures so it doesn’t get caught flat-footed during major events like a hurricane or terrorist attack. In the past, Uber’s response to disasters was largely piecemeal, relying on local teams to make all the decisions about capping surge pricing or suspending service. Now, the ride-hail company’s new Global Security […]

 

96 prescription drug price increases for every cut, AP finds | OregonLive

96 prescription drug price increases for every cut, AP finds | OregonLive

NEW YORK — President Donald Trump made reducing drug prices a key promise during his election campaign, repeatedly accusing drugmakers of “getting away with murder.” At the end of May, he promised that drug companies would be announcing “massive” voluntary drug price cuts within two weeks. That hasn’t happened, and an Associated Press analysis of […]

 

 

More Headlines

The Old-School Pricing Technique That Still Works | Kopitiam Bot

The Old-School Pricing Technique That Still Works | Kopitiam Bot

According to some source, Amazon is slowly phasing out list prices because they’re arbitrarily high. In most cases, the “discount” price is the real price, so why bother pretending otherwise? It’s hard to believe that Amazon would take such a radical step unless they were fairly certain that across-the-board discounting was no longer driving higher sales. […]

 

Learning Market Dynamics for Optimal Pricing – Airbnb Engineering & Data Science | Medium

Learning Market Dynamics for Optimal Pricing – Airbnb Engineering & Data Science | Medium

In this post, we describe a framework used to model lead time dynamics in order to help hosts price their homes more competitively and improve their earnings potential. We embrace both machine learning (ML) and structural modeling to achieve improved predictive performance and model interpretability. A Primer on Lead Time Dynamics The lead time for a […]

 

Are You Making these 5 Pricing Mistakes in Your Marketing? | JustPositionIt!

Are You Making these 5 Pricing Mistakes in Your Marketing? | JustPositionIt!

Are You Making these 5 Pricing Mistakes in Your Marketing? Pricing is just as much a marketing consideration as the colors in your brand. Price is a perception of value—period. Let’s look at a few pricing mistakes below. Pricing Mistake #1. Thinking price is the customer’s most important buying factor. Ok, pricing IS important, but […]

 

How to Re-balance the Price Versus Value Conversation | Sales Gravy Articles

How to Re-balance the Price Versus Value Conversation | Sales Gravy Articles

Buyers often seem to be on a different wavelength. Their decision making criteria have changed. For the price obsessed buyer you must calculate your value before you can communicate it. If you can’t communicate your value – all your value – price is where you are going to get stuck. The Value Equation Communicating your […]

 

The Warehouse boss says sale-driven shopping is on the way out | Stuff

The Warehouse boss says sale-driven shopping is on the way out | Stuff

Chief executive Nick Grayston said the company had seen tangible improvements in the second half after implementing its “everyday low price” strategy. “Our customers told us because we changed our prices so often they were never sure that they were correct and if they bought something today, would it be cheaper tomorrow? “We wanted to take that uncertainty out […]

 

When Clients Push Back on Pricing: 5 Strategies for Advisors | ThinkAdvisor

When Clients Push Back on Pricing: 5 Strategies for Advisors | ThinkAdvisor

Most of the securities business seems to be priced based on assets under management. You can make a good case, explaining how everyone benefits. Online trading and robo-advisors are getting warmed up in the opposite corner. It would appear clients can get everything for nothing. What now? … Strategy Three — Discounting The client insists […]

 

Crypto Prices Mixed as ASIC Steps Up Scrutiny on “Misleading” ICOs | Investing.com

Crypto Prices Mixed as ASIC Steps Up Scrutiny on “Misleading” ICOs | Investing.com

Investing.com – Cryptocurrency prices were mixed on Thursday as the Australian Securities & Investments Commission (ASIC) said in a statement that it is stepping up scrutiny on “misleading” initial coin offerings (ICOs). Bitcoin traded 0.7% higher to $6,400 at 11:39PM ET (03:39 GMT) on the Bitifinex exchange. Ethereum fell 1.6% to $210.41 in the previous 24 hours. XRP slid […]

 

BCD Travel forecasts global price rises | Buying Business Travel

BCD Travel forecasts global price rises | Buying Business Travel

B CD Travel says it expects global hotel rates and air fares to increase in 2019, with demand driving trends across the globe. The TMC’s 2019 Industry Forecast provides price projections, which it says helps travel buyers prepare for supplier negotiations and budgeting for the year ahead. The report was previously published by BCD Travel’s […]

 

Hong Kong airfares tipped to rise as airlines regain right to add fuel surcharges to ticket prices | South China Morning Post

Hong Kong airfares tipped to rise as airlines regain right to add fuel surcharges to ticket prices | South China Morning Post

With the deregulation of fuel surcharges, long-haul fares are expected to increase by several hundred dollars with crude oil closing in on US$80 a barrel. The last time oil was around that price four years ago, airlines slapped an extra HK$623 (US$79.80) on long-haul ticket prices and HK$143 for regional trips. Announcing the changes on […]

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Nvidia’s Turing pricing strategy has been ‘poorly received,’ says Instinet | MarketWatch

Nvidia’s Turing pricing strategy has been ‘poorly received,’ says Instinet | MarketWatch

Shah said that the 2080 TI offers roughly 20% better performance than the 1080 TI, but “it’s a tough sell” to say that the performance boost warrants a price increase of more than 60%. “Nvidia’s pricing strategy remains poorly received by users,” he added. Shah maintained a neutral rating and $250 price target on Nvidia’s […]

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A Bugatti hypercar’s oil change costs as much as buying another car | CNBC

A Bugatti hypercar’s oil change costs as much as buying another car | CNBC

The cost of a Bugatti, a French luxury car with only three models — Veyron, Chiron and Divo — typically ranges from $1.7 million to $3 million, and its newest Divo hypercar model, which sold out in one day, has a ticket price of $5.8 million. But getting a Bugatti serviced costs a pretty penny […]

 

Unmasking the Secret Pricing Strategies of 755 Successful SaaS Businesses | BrandMentions

Unmasking the Secret Pricing Strategies of 755 Successful SaaS Businesses | BrandMentions

Half of every business is creating something that people need. The other half is convincing people to buy it. We’re pretty sure you have plenty of ideas for the first part, so we tried to help you figure out the second one. This year, we took the task of seeing how several hundred startups approached […]

 

Trump Attacks OPEC Again, Demanding Cash for Military Protection | Bloomberg

Trump Attacks OPEC Again, Demanding Cash for Military Protection | Bloomberg

President Donald Trump resumed his attacks on OPEC, saying the cartel is pushing oil prices too high and demanding that some members start paying the U.S. for military protection. “OPEC nations are, as usual, ripping off the rest of the world and I don’t like it,” Trump said in a speech to the United Nations […]

 

Thalbert McGinness’s answer to Adjusted for inflation, does a gallon of gas cost more or less than it did in the 1970s (50 cents/gallon)? | Quora

Thalbert McGinness’s answer to Adjusted for inflation, does a gallon of gas cost more or less than it did in the 1970s (50 cents/gallon)? | Quora

It says here that the average low end inflation adjusted for the 1970’s was $2.04 a gallon. Your 1970’s 50 cents is worth a nickel today. That said, the historical inflation adjusted average over the last century is quite close to today’s numbers – $2.64/gal. In January of 2016, it was almost 20 cents cheaper […]

 

Walt Disney World Ticket Price Changes: How Much You Pay Now | Money

Walt Disney World Ticket Price Changes: How Much You Pay Now | Money

Walt Disney World introduced a new ticket pricing structure this week that the theme park giant says is “designed to simplify the booking experience” and “deliver the best experience possible for our guests.” The initial reaction to the changes among potential Disney guests, however, has largely been confusion — and annoyance. On Monday, Disney introduced […]

 

Pricing Strategies Should Endure, Individual Prices Should Not | Strategic Pricing Solutions

Pricing Strategies Should Endure, Individual Prices Should Not | Strategic Pricing Solutions

Five, five, five-dollar footlong.  Who doesn’t remember that jingle?  During the last recession, Subway announced their promotion for footlong subs priced at $5.00.  Now, nearly 10 years after they introduced it, Subway has ended $5.00 pricing on the big sandwiches.  It is about time!  It is also a good reminder that although we want pricing […]

 

Newly proposed Albania PPP raises concerns over transparency, oil price hike | Tirana Times

Newly proposed Albania PPP raises concerns over transparency, oil price hike | Tirana Times

Fuel prices rising Albania’s fuel prices have registered a hike this year, fuelled by a rise in international prices, lower domestic refining and an increase in the tax burden. Diesel and petrol in Albania currently trade at 180 lek (€1.42)/liter, reflecting international oil prices hitting a three and a half-year high of $80 a barrel, […]

 

AP: For Each Drug Price Cut, There Were 96 Price Hikes This Year So Far | AJMC

AP: For Each Drug Price Cut, There Were 96 Price Hikes This Year So Far | AJMC

Over the first 7 months of 2018, there were 96 price hikes for every price cut, an Associated Press (AP) analysis reported, although there were fewer and smaller price hikes than in years past. The AP analyzed 26,176 list price changes for brand-name prescription drugs from January 1 through July 31 in the years 2015 […]

 

Diabetic runs 142 miles to protest cost of insulin: Valley Views | Cleveland

Diabetic runs 142 miles to protest cost of insulin: Valley Views | Cleveland

He said several states have passed drug price transparency laws, and he plans to make it his legislative priority if he wins a seat in November. “I’m calling this little trek the road to affordable health care,” he recently told members of the Geauga County Democratic Party. Kennedy will carry hundreds of Ohio citizen signatures […]

 

Lawmakers Deny Proposal to Require Drug Pricing in Television Ads | Pharmacy Times

Lawmakers Deny Proposal to Require Drug Pricing in Television Ads | Pharmacy Times

Industry officials did indeed take issue with the amendment; the Pharmaceutical Research and Manufacturers of America (PhRMA) spoke out against the proposal in its July comments to HHS on the administration’s drug pricing blueprint, saying “FDA should not pursue any required disclose of list prices in direct-to-consumer pharmaceutical advertising. Such a requirement could confuse patients since […]

 

Predictive Analytics: Optimizing Pricing And Promotions In E-Commerce Means Combining Tools | Retail TouchPoints

Predictive Analytics: Optimizing Pricing And Promotions In E-Commerce Means Combining Tools | Retail TouchPoints

Most retailers are already engaged in data analytics and predictive modeling. Today, using data to predict more successful outcomes — ultimately leading to increased sales — is not as mystifying a concept as it was even a year ago. But with a market being upended by an omnichannel imperative and consumer demand for instant gratification, […]

 

The Morality Of Prescription Drug Pricing In America | Forbes

The Morality Of Prescription Drug Pricing In America | Forbes

While walking through the duty-free at Dulles International Airport in Washington, D.C., I happened upon the price tag of an imported French purse. Looking around, I wondered how many travelers could afford a $2,000 handbag. At the gate, I found a seat and logged on to the internet, where I happened upon a story about […]

 

New measures protect Grab users against ‘excessive’ surge prices, but no restoring of discounts expected | Channel NewsAsia

New measures protect Grab users against ‘excessive’ surge prices, but no restoring of discounts expected | Channel NewsAsia

SINGAPORE: As part of measures imposed by the Competition and Consumer Commission of Singapore (CCCS) to level the playing field in the ride-hailing industry, Grab will now be required to maintain its pre-merger pricing algorithm. According to the CCCS, this is to protect the interests of passengers by ensuring that base fares remain at the same level as before Grab’s acquisition […]

 

Smart parking: transforming the experience of parking | Government EUROPA

Smart parking: transforming the experience of parking | Government EUROPA

Benefits to citizens and businesses A BPA study of 2,000 drivers found 44% consider parking a stressful experience; we spend an average of four days a year looking for spaces to park. The combination of sophisticated parking apps, intelligent parking management and data integration is set to reduce this frustrating experience. Smart parking offers numerous […]

 

Apple Alienates the World’s Second-Largest Smartphone Market | The Motley Fool

Apple Alienates the World’s Second-Largest Smartphone Market | The Motley Fool

Incredibly costly The iPhone X was a really expensive product in India. It launched at a base price of around $1,400 in India last year, way higher than the U.S. retail price of $999. In fact, India was the second most expensive country in which to buy an iPhone X, thanks to import duties and a weak […]

 

Disney World is Changing Their Ticket Prices | PEOPLE

Disney World is Changing Their Ticket Prices | PEOPLE

Disney World is making major changes to the way they price their theme park tickets. Beginning October 16, customers booking theme park tickets to the Walt Disney World Resort in Orlando will see prices based on the dates they’re looking to visit rather than prices that vary by park, as has been the case in the past, […]

 

Get Ready For A Price Surge in Senior Housing | GlobeSt

Get Ready For A Price Surge in Senior Housing | GlobeSt

BOSTON–The senior housing sector has its challenges: like many asset classes it is sensitive to rising interest rates and it comes with a unique set of operational challenges. Yet investor interest in the sector is very strong — strong enough that CBRE is predicting new highs for transaction pricing in certain categories within this sector […]

 

The MSP Guide to Building Your Managed Security Services: Pricing Strategies | Avast Business

The MSP Guide to Building Your Managed Security Services: Pricing Strategies | Avast Business

If you are thinking of reshaping your business into an MSP (managed service provider) that offers managed security services to SMB clients, your timing could not be better. Small to medium-sized businesses are in dire need of cybersecurity, and they are looking for MSPs that understand their unique needs and can offer the protection they […]

 

Uber Tasks Centralized Response Team With Monitoring Prices During Disasters | The Drive

Uber Tasks Centralized Response Team With Monitoring Prices During Disasters | The Drive

Uber is overhauling the way it responds to emergencies and natural disasters. In a blog post, the ride-hailing company said it now has a centralized command center that will direct responses to disasters, including instituting temporary price caps and suspending service. Uber’s new Global Security Center will monitor situations that may affect the company’s business […]

 

AMC Stubs A-List Is Seriously Boosting Attendance | Cinema Blend

AMC Stubs A-List Is Seriously Boosting Attendance | Cinema Blend

While MoviePass has seen a 76% decline in new app downloads since June, AMC’s competing service is riding high with a successful start of its own movie ticket subscription. Just three months in, AMC Stubs A-List has just announced it has over 380,000 members of the service, which has particularly gained traction at the end […]

 

Should I Put My Prices On My Website? | Forbes

Should I Put My Prices On My Website? | Forbes

The debate on whether or not you should put your prices on your website garners some strong opinions (and I’m no exception!). Some believe it is downright stupid to show your prices. They believe that if you show a price before you’ve had a chance to demonstrate the value of what you’re offering, many people […]

 

 

Events and Resources

Fall Pricing Workshops & Conference | PPS

Date: October 23-26, 2018

Location: Renaissance Dallas Addison Hotel in Addison, TX

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

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

 

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

Date: November 28-30, 2018

Location: Mövenpick Hotel Amsterdam City Centre in Amsterdam, Netherlands

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

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

 

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

 

Top Discussions

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

 

Pricing News LinkedIn Group

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

 

Pricing Resources

Explore our collection of valuable pricing resources including:

 

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

 

 

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

     – Katharine Paine