Guest Blog - Daraprim, Sovaldi, and thoughts about pricing fairness

Posted by Steve Haggett on Sep 3, 2019 1:30:44 PM

A recent article on pricing power referenced the example of Martin Shkreli’s Turing Pharmaceutical decision to raise the price of Daraprim by 5000%. Shkreli famously purchased the rights to an older off-patent drug used to treat infection in AIDS patients and dramatically raised the price – a demonstration of pricing power. The following controversy caught up with Shkreli, who gloated that he didn’t raise the price enough. Investigators couldn’t jail him for the Daraprim price, but digging found other dirt and he was sentenced to seven years for fraud related to his former hedge fund.

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Topics: Pricing with Confidence, Setting Price

On Pricing Power and Fairness

Posted by Reed Holden on Sep 3, 2019 1:30:09 PM

The following article is my reaction to a blog from a friend, Steve Haggett at Iron Mountain.  He responded to an article from our Patrick McCullough about some of the pricing abuses in the pharmaceutical industry. 

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Topics: Pricing with Confidence, Setting Price

Do You Really Have Pricing Power?

Posted by Patrick McCullough on Mar 19, 2019 11:42:58 AM

Investors have long heralded pricing power as one of the best predictors of a company’s long-term financial success. Warren Buffett’s famous quote from 2010 captures the sentiment.

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Topics: Pricing with Confidence

The Next Lesson From Amazon: Push Your Customer’s Cart

Posted by Erin Cihak on Mar 7, 2019 7:00:00 AM

In what has become a common occurrence over the past 15 years or so, Amazon announced it was entering a new business last week – retail grocery stores. Well, yes, they technically are in this business already with their purchase of Whole Foods in 2017, but they see an opportunity to extend their reach beyond the more upscale customer. Then there’s Amazon Go – the cashier-less stores that are being rolled out in urban areas. They also have the food delivery business, which is a combination of Whole Foods products and others, although it has had mixed results so far. The grocery business isn’t really a new business at all.

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Topics: Pricing with Confidence

Resist the urge to "stick it" to the competition

Posted by Adele Mclean on Jan 25, 2019 11:23:11 AM

When facing low-priced competition, think twice before "sticking it to the competition" by going in with a low, low price. Watch the video to learn why:

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Topics: Pricing with Confidence

Nice Job, Netflix: Lessons from the price increase

Posted by Pete Morelli on Jan 24, 2019 11:54:19 AM

Hear Pete Morelli talk about what we can learn from the price increase that Netflix rolled out last week.

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Topics: Negotiating with Backbone, Pricing with Confidence, Uncovering your Value

A Curious Case of Christmas Tree Pricing

Posted by Adele Mclean on Dec 27, 2018 6:30:00 AM

O Tannenbaum, O Tannenbaum how lovely are your branches.

O Tannenbaum, O Tannenbaum how can you price stay stable.
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Topics: Pricing with Confidence

Dynamic Pricing – Do Your Customers Own Your Pricing Strategy?

Posted by Richard Harrington on Dec 18, 2018 3:41:38 PM

Dynamic pricing is a hot topic right now. With the advent of big data and IT quoting systems, many businesses are excited at the prospect of charging each customer at their willingness to pay for their product, rather than a flat or segmented price. As Bob Crandall, former CEO of American Airlines once put it “If I have 2,000 customers on a given route and 400 prices, I’m obviously short 1,600 prices." Think of all that money you’ve been leaving on the table with regular segmentation; if you could grab that, your profits would go through the roof!

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Topics: Pricing with Confidence

How To: Stakeholder Assessment

Posted by Travis Umpleby on Dec 18, 2018 3:41:22 PM

Are you planning a price increase? Learn from Travis Umpleby via his video below on how to use one simple tool to conduct a stakeholder assessment and help your increase stick.

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Topics: Pricing with Confidence

News from the Field: Key Questions to Address Price Leakage

Posted by Pete Morelli on Sep 18, 2018 10:13:26 AM

One of our top goals in any client engagement is uncovering revenue and profit growth opportunities.  Recently, we worked with a global technology manufacturer to answer four key questions:

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Topics: Pricing with Confidence