Thursday, August 27, 2009

PPS President talks about 20th Annual Fall Pricing Conference in Orlando FL, Oct 21-23 2009

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Kevin Mitchell, President of the Professional Pricing Society is proud to introduce the 20th Annual Fall Pricing Workshops & Conference to be held in Orlando Florida from October 21-23 2009.

This year, PPS announces the Innaugural Pricing for Executives Summit and after the succes of the first year, PPS is bringing back the 2nd Annual Pricing for Latin America Symposium.

PPS is offering outstanding discounts and incentives for early registrants... please CLICK HERE to find out more.

Wednesday, August 19, 2009

No Pricing Power in this Economy?

I read an interesting comment in an Associated Press story this morning:
Inflation a no-show in July, likely to stay muted
By MARTIN CRUTSINGER (AP) – 18 hours ago

WASHINGTON — Inflation was a no-show in July and likely will stay away for months to come, giving the Federal Reserve room to keep invigorating the economy with record-low interest rates.

That was the message economists took from a report Tuesday that wholesale prices fell over the past 12 months by the sharpest amount in 62 years of record-keeping — the latest sign that inflation is posing no threat.

"In this economy, there really is no pricing power at all," said Brian Bethune, chief U.S. financial economist at IHS Global Insight.

These sentiments were echoed in Bloomberg:
U.S. Consumer Prices Unchanged, Matching Forecasts
By Timothy R. Homan

Aug. 14 (Bloomberg) -- The cost of living in the U.S. was unchanged in July, and dropped by the most since 1950 from a year ago, as the recession sapped companies’ pricing power.

Do companies truly have no pricing power in the current economy? Perhaps not in the traditional sense, as the ability to increase prices is at present severely limited by both a reduction of consumer expendible income as well as a general consumer spending anxiety. But that does not mean pricers have no control over their destinies or bottom lines when it comes to pricing strategy. (The upcoming Q3 PPS Journal presents a timely, in-depth article from Hermann Simon, chairman emeritus of Simon-Kucher & Partners, which highlights several strategies pricers can implement to mute the effects of the current economy. I know you will enjoy it!)

Many companies are turning to price reductions and steep discounting as tactics for attracting penny pinching consumers. Rumor has it that Sony is finally letting go and dropping the price of the Play Station 3 to $299.00, making it a more accessible purchase to a wider audience than before. recently stated: "Wal-Mart has won market share during the recession by relentlessly lowering prices -- a strategy echoed in its advertising slogan, "Save Money. Live Better." Obviously companies as large as Wal Mart have an increased ability to withstand economic downturn than others. However, pricing is one of the most powerful tools companies can employ - especially in a down economy - to maintain liquidity, profitability and long-term sustainability.

Some companies still aren't afraid to raise their prices, as the Wall Street Journal recently highlighted:
"NEW YORK (Dow Jones)--Walt Disney Co. (DIS) raised admission prices between 2.5% and 5.3% at its largest theme park in Orlando, Fla., over the weekend, even as it offers other deals to spur demand from consumers cutting back spending on vacations amid the recession.

The uptick in admissions prices at Walt Disney World was smaller than similar increases the company has made in recent years, but the move still reflects confidence that Americans will continue to come to Florida in search of Disney magic even as job losses mount."

Disney's brand power is strong enough to give the company flexibility to price as they need. In response, Universal has raised their daily ticket prices as well. Pricing power? Seems a yes to me. What do other pricers think? Warmly, EM

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Wednesday, August 5, 2009

What's New for the Annual Fall Pricing Conference in Orlando

This year has been challenging for pricers.

At PPS, it is our job to bring you the most up to date and applicable knowledge available to help you thrive in your career, especially in these challenging economic times. That is just what we have designed for Orlando this year!

We are bringing together the largest gathering of pricing experts, leaders and professionals ever assembled. Whether you are active in pricing or are just beginning your career in the exciting pricing industry, we are offering multiple, specialized education programs to give you the pricing knowledge you need to take your career to the next level, no matter what your pricing proficiency.

This year, we have more than fifteen (15) different and specialized sessions divided into three proficiency tracks: the Pricing Practitioners Track, the Pricing Experts Track and the Tools and Techniques Track.

And that's just the start:
  • We have designed a special program for Executives who need to be more in-tune with new and complex pricing trends and methods - the Inaugural Pricing for Executives Summit

  • After the successful inaugural event, we have the 2nd Annual Pricing for Latin America Symposium for those with pricing responsibilities in this thriving and unique region of the world

  • Plus 35 speakers and sessions, including the world's top pricing experts delivering our General Sessions.

Get all of the conference information and itineraries here or click here to register. Can't wait to see you in Orlando! Warmly, EM

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