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A Secret To Global Market Profits: Psychological Pricing

How to Profit in Global Markets with Psychological Pricing

Pricing products or services in new geographic markets may seem risky, but conducting research on psychological pricing can ease the challenge significantly. In fact, the right psychologica pricing strategies can make all the difference in the pricing successes of new offerings. Often, companies scaling for growth continue with their traditional pricing strategies in spite of expanding to new markets. However, consumers in different locations around the world respond differently and every pricing strategy must be customized to ensure the best results.

Price Perceptions Change by Location

In Roger M. Heelers paper ‘High-Low Context Culture and Pricing-Ending Practice’, he outlines a simplified way to break down international market psychological pricing. The concept revolves around High- and Low- Contexts, and how much a particular culture draws meaning from their context, or just takes numbers at face value. • In High-Context Cultures, there is strong attention to implicit and non-verbal cues from routine communication (such as prices). Many things are left unsaid but are never-the-less understood. • In contrast, Low-Context Cultures can be simply understood as “what is said is what is meant”. Verbal cues are not used extensively to communicate.

Read the full article from our friends at Pricing Solutions HERE.

Join the industry's pricing leaders from around the globe in Chicago, IL for our 29th Annual Spring Pricing Workshops and Conference event! from Pricing Solutions will present:

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2017 European Pricing Workshops & Conference in Barcelona Recap

The PPS 13th Annual European and Global Pricing Workshops and Conference was a huge success! Our conference was the highest-attended European Conference to date! Over 200 professionals from over 30 countries, representing 80 companies, making #PPSBCN17 one of the largest Conference events to date. Our agenda included 7 full-day workshops covering important topics such as Core Pricing Skills, Behavioral Economics, Pricing Into Channels, Accelerating Towards AI-Based Pricing and 5 Steps To Running A Price Improvement Project for Practical Superior Results. We kicked off the first day of the Pricing Conference with compelling keynotes from Stephan M. Liozu, Ph. D., CPP, Bettina Kallenbach, Ignacio Gómez and Just Schürmann. Also joining us were senior pricing practitioners from Philips, RELX Group, ING Retail and Miquel Group. As the only organization exclusively committed to growing the pricing profession and disseminating pricing expertise throughout the business world, PPS is proud to offer a conference that is concentrated on your connection, growth, and success in the pricing industry. [caption id="attachment_6918" align="aligncenter" width="660"] The Professional Pricing Society Team[/caption]

Enjoy the photos in our Facebook Album #PPSBCN17 by clicking the image below (directed to PPS Facebook Page)

We're already booked for 2018! Learn more about our Fall Pricing Workshops and Conference event in Dallas, TX - #PPSDALLAS18!

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The San Diego Pricing Conference Recap #PPSSD17

An incredible time was had in San Diego during the 28th Annual Fall Pricing Workshops and Conference event! The standard two full-day Workshop series was an exciting time in pricing education, many first-time attendees raved about the lineup. Attendees filled Conference rooms throughout the day for interactive learning and were eligible to take a Workshop quiz that if passed will count towards a CPP Designation Credit. While there was no Workshop Reception this year, attendees soaked up the sights, tastes, and delights of San Diego and the Bayfront area! The perfect weather made for a great backdrop to socialize and explore the offerings of the city. We opened our Pricing Conference with amazing Keynote Speeches from pricing leaders at Fortune 500 companies including Laura Preslan of Microsoft (Paypal) Nancy Lucas (Cargill) The Sponsor Hall was busy for several days allowing attendees to mingle and interact with the leading vendors in the industry. The Giveaways weren't too bad either... attendees left with new iPads, Apple Watches, Amazon Gift cards and more!

View all of the #PPSD17 video clips by clicking the image below:

There were a few new initiatives launched during the Fall Conference as well. We held the first gathering of INFUSION: a pricing initiative committed to supporting diversity and inclusion for women & minorities in the pricing industry.

Click the image below to read the INFUSION blog post

A featured luncheon with a panel discussion was organized by executives and Infusion Group Leaders Nolwenn Godard (Paypal), Hillary Gretton (BD) and Susana Lopez (Medtronic). Attendees were engaged and open, sharing their professional experiences and personal hurdles. The event was a great success!

To take a look at the #PPSSD17 Infusion Video clips, click HERE!

 

We also hosted a Town Hall event - granting attendees a direct interaction with several of our Keynote Speakers.

The pricing experts spoke to specific strategy questions in (four) areas: Digital Transformation, The Role of Senior Executives, and Building Resources In Pricing.

View the full (and growing) Photo Album on our Facebook Page:

For an interesting spin on the Pricing Conference, we compiled Tweets into a story!

An extra special THANK YOU goes out to our excellent Team members, event staff, the outstanding staff at the Hilton San Diego Bayfront, and all of our Workshop Presenters and Keynote Speakers. We could not have pulled off such an event without your professionalism, dedication, and hospitality. Did you attend #PPSSD17? We want to hear from you! Leave your feedback below or visit our Facebook Page to share your feedback! Did you miss out and ready to plan for 2018? Here's a peek at where we're traveling next year. Click the image below to sign up for the Pricing Workshops and Conference Email List for our event notifications! Continue reading

Announcing: Miguel Serrano Kieckebusch New PPS Board Member

The Professional Pricing Society is proud to announce that Miguel Serrano Kieckebusch, Corporate Senior Director of Global Pricing Strategy, Contracting and Tendering at Medtronic, the world’s largest stand-alone medical technology company, has been appointed to its Board of Advisors. Serrano is responsible for Medtronic’s pricing strategy and revenue management across the globe. This includes chairing the strategy, contracting, tendering and operations sub-functions across the company. He brings more than 15 years of global experience in pricing leadership, commercial operations and business strategy to the PPS board. Serrano is a thought-leader on the topic of value-based pricing as a strategic lever to profitable growth and his work at Medtronic is centered on driving healthcare’s sustainability through its transformation to patient-centric systems. His experience covers a diverse range of business areas, including finance, Quality-Lean Sigma, pricing strategy, sales operations and business operations. He has developed his functional expertise across various verticals including healthcare, manufacturing, energy, automotive and fast-moving consumer goods.
“I’m thrilled and excited to join the PPS Board and counsel an organization with which Medtronic has enjoyed a great, long-standing relationship. Medtronic and PPS share a common vision of developing talent and functional expertise on pricing strategy and revenue management, positioning the functional space as a valued business partner in the center of the organization, and driving profitable growth at the crossroad of business strategy and finance. More than 40 Medtronic employees are active PPS Members and over 20 have earned the Certified Pricing Professional designation. PPS is forward-looking and respected organization for pricing and revenue management. Its mission reflects on training and networking to inspire individuals to fulfill their professional dreams while helping companies to enhance functional excellence. PPS works to ensure that the overall profession gains respect and credibility in the marketplace” -Miguel Serrano Kieckebusch
“The Professional Pricing Society Board of Advisors includes the industry’s preeminent experts in global pricing disciplines and management,” said PPS President Kevin Mitchell. “Miguel, as a global leader in healthcare, has been along the way a consistent contributor, speaker, and a wonderful resource. His experience and strategic perspectives provide us additional visionary capabilities, and we look forward to his leadership as a member of the Board”. We're excited to welcome Miguel and will announce his appointment again during the Fall Pricing Workshops and Conference in San Diego, CA. To learn more, click the image above or visit pricingsociety.com About the Professional Pricing Society Founded in 1984, the Professional Pricing Society (PPS) serves thousands of members, representing leading industries all over the world. The Society’s mission is to nurture a growing community of professionals committed to disseminating pricing expertise through the business world. PPS offers its Certified Pricing Professional (CPP) program via online and live event workshops. Publications distributed to members include an eight-page monthly newsletter and a 36-page quarterly journal. Further, the PPS website (www.pricingsociety.com) is a central resource for state-of-the-art pricing knowledge and hosts a job site where professionals can post or review new opportunities in the industry. PPS also maintains a Pricing Blog at and Pricing Group on LinkedIn. PPS also has created a LinkedIn Group focused in Asia-Pacific aimed to support the growth of the pricing profession in that thriving region of the world.

Media Contact:

Lisa Miles-Fisher Lisa@pricingsociety.com +1.770.509.9933 Continue reading

We Celebrate 1000 CPP Alumni

We're excited to announce that we've awarded 1000 members their CPP Designations! We proudly celebrate the 1,000th CPP Alumni, Marianne Gynde, of Medtronic! The Professional Pricing Society (PPS) is pleased to announce our 1,000th Certified Pricing Professional (CPP). Marianne Gynde is a Senior Manager, Pricing of Contracting & Tender Management for Nordics, Baltics & Poland at Medtronic, and has earned the designation of CPP through her hard work and diligence. Based in Denmark, Marianne has been with Medtronic since 2004 and has joined the ranks of the best and brightest in Pricing.
“The CPP experience has been great. The program was professionally setup, and gave me new knowledge, new tools, and inspiration for how to do my daily job even better.The face-to-face training I was lucky to participate in has given me a broader network within my own country, and I now have peers in different industries that I can share ideas with, and get further inspiration.” - Marianne Gynde, Medtronic
Since 2003, individuals like Marianne have joined the elite designation of the Certified Pricing Professional and used their knowledge to impact the field of Pricing. The CPP certification program is the standard for advanced knowledge and expertise in the field of Pricing. Carrying this designation indicates knowledge and skills in pricing across industries, and is achieved through any combination of online courses and live workshops at our yearly conferences. The certification is maintained by completing 2 credits every 2 years after the initial certification. The re-certification helps PPS maintain the integrity of the program and keeps each alumni informed on current trends and best practices. About The Professional Pricing Society: The Professional Pricing Society (PPS) is a member association of professionals committed to distributing pricing expertise throughout the business world. We provide leading-edge pricing and revenue management best practices. PPS produces up to five major annual pricing conferences in Europe, North America, South America, and Asia. PPS also offers more than two dozen, full-day training workshops every year, taught by leaders in the pricing community. These workshops serve as the foundation for PPS’s Certified Pricing Professional (CPP) designation. For more information about the CPP Certification Program, please contact: Michael Tatonetti +1-770-509-9933 michael@pricingsociety.com Continue reading

Crapido: A New Responsibility Assignment Matrix

Why is there a need for CRAPIDO? Discover why one pricing professional strongly believes the industry can use another Responsibility Assignment Matrix. Businesses must clearly define roles, especially within pricing, and without organization, they become inefficient, ineffective, underperforming and a drain. CRAPIDO is a way to impart a bit of discipline into the current system. Learn more by clicking the article image below: What are your thoughts? Continue reading

A Laugh: Pricing Comics

Are you ready to laugh? Take a look at the PricingComics series from Stephan Liozu, CPP. Click the link below to check out more Pricing Comics from Stephan Liozu, CPP on his frequently updated site! http://stephanliozu.com/category/comics/ Continue reading

Infusion: A New Initiative For Diversity In Pricing

PPS proudly rolled out a new initiative in Fall 2017 focused on diversity in the pricing industry, Infusion. We heard the strong request from our Professional Pricing Society Members to create a more inclusive space to discuss initiatives and issues surrounding diversity in the growing pricing industry. Infusion was created to foster diversity and inclusion in Pricing and help women and minorities develop fulfilling careers in Pricing. We held an inaugural Infusion Luncheon during the 28th Annual Fall Pricing Workshops & Conference event in San Diego. Organized by pricing industry leaders and executives at their perspective companies, Hillary Gretton (BD), Susanna Lopez (Medtronic), and Nolwenn Godard (Paypal), the women led a panel discussion around the need for the Infusion space within the pricing industry to further encourage professionals to achieve no matter their unique challenges.

CLICK to View Infusion video clips in the playlist on our Facebook Page

As this new initiative forms, we are depending on the feedback of our pricing community to make it the best and most valuable to members it can be. Interested in learning more or participating in fresh Infusion initiatives next year?

CLICK HERE to join the PPS Newsletter List for more information.

For additional questions about the formulation of Infusion, please contact our Director of Education and Certification Michael Tattonetti:

Michael@Pricingsociety.com

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The Chicago Spring Pricing Conference Town Hall Event

During the Spring Pricing Workshops and Conference event, attendees can connect with the Keynote Speakers like never before in the #PPSCHI18 Town Hall! You asked, and we delivered! For years, the Pricing Workshops and Conference attendees have requested to better connect with the Keynote speakers. We're providing the chance to deep dive into the topics that concern your business during the Town Hall Forum! This year, we're delivering two days, Thursday, May 3 and Friday, May 4th, of Town Hall opportunities. Speak with one of eight Keynotes from (4) Pricing Tracks of your choice and ensure takeaways to implement back at the office.

Tools & Techniques

Data Science

Pricing Experts

Pricing Practitioners

View the Facebook Live video below about our new Town Hall Forum!

Click the image to learn more & register your team:

We'll see you in Chicago!

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Unlock Six Sigma Pricing

UNLOCK THE HIDDEN PRICING FACTORY

Companies have the power to implement pricing capabilities needed for sustained profitable growth - Six Sigma Pricing. Navdeep Sodhi, Managing Director of Sodhi Pricing, is our featured guest blogger sharing expert advice on how to unlock potential in your business.
The State of Pricing Within every company exists a hidden pricing factory that holds the key to shore up customer trust, employee confidence, competitiveness as well as the pricing capabilities needed for sustained profitable growth. It is remarkable how far a little pricing discipline goes to make this happen. Instead, most companies seem to manage Pricing as a fixer-upper house where, somehow, external appeal take precedence over ongoing house-keeping and maintenance. For instance, exterior painting adds nothing to the dwellers’ comfort or to the value of the house if the water pipes inside are leaky or the electrical systems are out of code. Every company, much like the fixer-upper, needs external as well as internally- focused improvements, but one without the other or in the wrong order is simply wasted effort. The Hidden Cost Factory Thirty-plus years ago, manufacturers discovered a hidden factory for controlling overhead costs. Historically, overheads had been taken for granted in conjunction with labor costs. But when decades of increased automation shrank labor costs so much that overhead costs were exposed as a glaring 100-200% of labor costs. Companies decided that such a huge burden (ratio of overhead and labor costs) for maintaining waste was too large to be affordable or acceptable. This unleashed a wave of waste-elimination and continuous improvement efforts using quality tools like Lean, and Six Sigma which were adopted in non-manufacturing environments as well. The Hidden Pricing Factory Overhead costs are brought under control by reducing scrap, overtime, rework, overproduction, excessive inventory and such. The notion of higher quality at lower costs gets enthusiastic support from any organization. Interestingly, price execution also relies on repetitive operational steps or processes that need to work in tandem — efficiently and effectively. Pricing processes are prone to getting out of control because of all sorts of internal and external changes, such as changing customer needs, competitive moves, or regulation. Irrespective of industry, the hidden pricing factory is built upon ad hoc and short-focused pricing decisions, gut feel rather than analysis, and unclear roles and responsibilities which adversely impact customer loyalty and the company bottom-line. Therefore, continuous improvement tools used as cost control measures can also improve pricing execution. Pricing processes are prone to getting out of control because of all sorts of internal and external changes, such as changing customer needs, competitive moves, or regulation. Irrespective of industry, the hidden pricing factory is built upon ad hoc and short-focused pricing decisions, gut feel rather than analysis, and unclear roles and responsibilities which adversely impact customer loyalty and the company bottom-line. Therefore, continuous improvement tools used as cost control measures can also improve pricing execution. The Cause For Poor Price Execution Ironically, internal stakeholders on the revenue side seem to harbor divergent views regarding the hidden pricing factory. Whether minding the “invisible hand” of the market or self-serving agendas, they arrive at sub-optimal decisions that often sidestep company’s interests. Therefore, even when pricing strategy is sound, pricing execution fails to deliver to its full potential. For instance, offering one-off terms to customers which require manual intervention in every transaction make invoices error-prone and the customers upset. Since senior executives often approve such deals but get rarely involved in the execution, they remain unaware of such problems. This may explain the adoption of radical changes in strategy or organizational structure as their obvious choice when it comes to fixing pricing problems. Larry Bossidy, as President International at Honeywell and later its Chairman and CEO, recognized this in his book, Execution:
“My job at Honeywell International these days is to restore the discipline of execution to a company that had lost it. Many people regard execution as detail work that’s beneath the dignity of a business leader. That’s wrong. To the contrary, it’s a leader’s most important job.”
Why Six Sigma Pricing Given the added organizational complexity for pricing, continuous improvement tools, such as Six Sigma and Lean, need to be adapted accordingly. While the five phases of Six Sigma–Define, Measure, Analyze, Improve, and Control – remain as such, the definitions and scope can change. For instance, the definition of customer needs to reflect the goals of an internal business leader who champions process improvement. Hence, the name Six Sigma Pricing. As illustrated in my co-authored book and Harvard Business Review article, Six Sigma Pricing is not designed simply to be a statistical solution. It is more relevant as a framework for creating alignment between people, processes, and systems and to draw in leadership support. Whether a company has existing Lean or Six Sigma capabilities or not, there are tools for identifying root causes for prevailing problems and for prioritizing improvement actions. It is more relevant as a framework for creating alignment between people, processes, and systems and to draw in leadership support. Whether a company has existing Lean or Six Sigma capabilities or not, there are tools for identifying root causes for prevailing problems and for prioritizing improvement actions. Roadmap for Profitable Growth Companies can start by picking low hanging fruit rather than chasing impossible goals at the get-go. Cross-functional stakeholders team up to review evidence that supports setting shared goals and collaborating on execution. Thus illuminated, the once hidden pricing factory is now accessible through prioritized set steps on a roadmap. With careful consideration of failure modes, that is, pre-empting possible missteps, agreement on metrics for tracking and control, smart companies can achieve sustained profitable growth within weeks and months. Click to view the original post by Navdeep Sodhi. For more pricing education and to learn in-person at our Workshops and Conference, join us in Dallas, Texas this Fall for #PPSDALLAS18! Click the image below to learn more. Continue reading
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