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jerryking : price_hikes   8

Netflix Canada hikes prices as streaming competition heats up - The Globe and Mail
DAVID FRIEND
TORONTO — The Canadian Press
Published Thursday, Aug. 10, 2017

The popular video streaming service is hiking prices for new members effective immediately. It will do the same for existing users after notifying them by e-mail in the coming weeks.

Netflix’s standard plan will now cost a dollar more – or $10.99 a month – to watch content on two screens at a time.

The basic plan, which does not offer high definition video and only permits one streaming screen at a time, also goes up a dollar to $8.99 a month.

Premium plan subscribers will pay $2 more for up to four simultaneous streams and ultra high-definition 4K content. It will now cost $13.99 monthly.

It’s the first price increase in nearly two years that affects subscribers in Canada.
price_hikes  Netflix  streaming  subscriptions 
august 2017 by jerryking
The High Cost of Raising Prices - WSJ
By Andy Kessler
July 30, 2017

The more prices rise, the more customers bolt. It’s like running up a down escalator and never getting to the top. With the stock market hitting highs just about every day, investors need to be wary of companies that raise prices to make their numbers. These stocks make for spectacular sell-offs on even the slightest earnings miss......I had a friend who worked at General Electric for decades. He told me that in strategy sessions with his management, Jack Welch would constantly berate them, saying, “Any idiot can raise prices.” Except he used a stronger word than idiot to coax them into squeezing out costs, adding features, improving services and generally delighting customers. Contrast this with Berkshire Hathaway . Vice Chairman Charlie Munger found that with See’s Candies “we could raise prices 10% a year and no one cared. Learning that changed Berkshire.” .........There’s a long list of price bumpers. Walk down any supermarket aisle. Kellogg’s prices constantly snap, crackle and mostly pop. Procter & Gamble toothpaste sizes shrink faster than my cavity count, always less for the same price. Now private-equity firms are circling P&G. Same for Nestlé . Expect rising beer and liquor prices soon....Empires are lost on rising prices. Until recently, rather than innovate in mobile or cloud computing, Microsoft kept raising the price of its Windows operating system to computer manufacturers. Tablets and phones ate their lunch. Fees rose at eBay until Amazon took its growth away. .........Increasing prices attracts others to attack your market. Amazon’s Jeff Bezos warns: “Your margin is my opportunity.”....Competition solves much of this problem. Investors love protected businesses, but eventually relentless price increases kill them all. Consumers are the kangaroo at the bar in the old cartoon: The bartender says, “Say, we don’t get a lot of kangaroos in here.” The kangaroo replies, “No, and with these prices, I can see why!” Call me a kangaroo, but I prefer to invest in companies that lower prices and offer more.
Andy_Kessler  pricing  price_hikes  drawbacks  margins  Charlie_Munger  CPG  shareholder_activism  P&G  Nestlé  Kellogg  Jack_Welch  GE  large_companies  cost-cutting  Amazon  Jeff_Bezos  staying_hungry  delighting_customers  high-cost 
july 2017 by jerryking
From Diaper to Soda Makers, Big Brands Feel the Pinch of a Consumer Pullback - WSJ
By Sharon Terlep, Jennifer Maloney and Annie Gasparro
April 26, 2017

Some blamed the weak start of the year on higher gas prices, bad weather and other external factors, while other executives pointed to shifting consumer tastes. Analysts say some big brands, such as Gillette and Yoplait, are losing ground to upstarts. Overall purchases of consumer packaged goods in the U.S. declined 2.5% in unit terms in the first quarter, according to Nielsen.....consumers are cutting back purchases, aggressively seeking deals and drawing down supplies at home. At the same time, he said, a growing affinity for beards has played a big part in driving down razor sales, which contributed to a 6% organic sales decline for P&G’s grooming unit....PepsiCo, like big food rivals Kraft Heinz Co. and Nestlé, is struggling as consumers shift away from diet sodas and processed foods to fresher and healthier options. It has launched new products, such as a premium bottled water brand, to adjust to the shift.....For food and nonfood staples, big brands are struggling more than the overall industry. The 20 largest consumer packaged goods companies last year had flat sales while smaller ones posted sales growth of 2.4%, according to Nielsen.

Wal-Mart Stores Inc., meantime, has been reducing inventories and slashing prices as it fights to compete with Amazon.com Inc. and European discounters moving into the U.S. Those cuts are eating into its own profit and, in turn, leading the world’s biggest retailer to put pressure on its vendors.........The dynamics are driving tough choices for companies as they are forced to decide between reducing prices and ceding market share. PepsiCo and Coca-Cola Co. have been shrinking packages and raising prices.
brands  hard_choices  large_companies  volatility  P&G  Gillette  Yoplait  CPG  PepsiCo  healthy_lifestyles  Kraft_Heinz  Nestlé  Wal-Mart  Coca-Cola  price-cutting  price_hikes  Fortune_500  upstarts  supply_chain_squeeze  shifting_tastes  Amazon  Big_Food 
april 2017 by jerryking
Instead of blocking progress, Toronto should encourage Uber - The Globe and Mail
MARCUS GEE
The Globe and Mail
Published Wednesday, Nov. 19 2014

Rather than stand in the way, cities should find ways to let these services thrive while protecting consumers and being fair to established providers like cab companies. In California, birthplace of Uber, regulators have brought in rules that permit the car-summoning companies to operate as long as they take steps such as meeting insurance requirements and having background checks for drivers. Officials are still jousting with the companies over how it will work, but it is a start.

It will be a tricky business, no doubt. To suffocate the new services in regulation would be a mistake. Strict standards on car maintenance, equipment and driver training don’t make sense for an informal exchange such as this. Competition and the lash of consumer reviews should help keep the new companies from using clunkers or sketchy drivers.

Authorities shouldn’t over-regulate pricing, either. The practice of “surge pricing” – hiking the cost of rides at busy times – is a legitimate and promising way to get the supply of cars and drivers to meet the demand from passengers.
Uber  Marcus_Gee  Toronto  John_Tory  regulation  taxis  sharing_economy  surge_pricing  price_hikes 
november 2014 by jerryking
Gas deal with Russia a ‘drop in the bucket’ for China
May. 24 2014 | The Globe and Mail | Campbell Clark.

Why? Nearly all growth in demand for energy will come from emerging economies, but especially China. Its needs will shape global prices. If it suffers shortages, or supplies are at risk, it will send price shocks through world markets.

That would hit the U.S. economy – because “we pay global prices,” Mr. Pascual said. And a U.S. slowdown would hurt Canada, even if energy exporters benefit from price spikes.

There are also critical questions of how energy affects geopolitics, made sharper in the Ukraine-Russia crisis. Moscow has used energy as a political lever, shutting pipelines to Ukraine, while Europe’s dependence on Russian gas has cooled drives to tougher economic sanctions.

Mr. Pascual, however, believes Europe’s example offers hope in preventing a nation from using energy as a political lever in Asia.

Europeans invested in infrastructure so natural gas can flow in different directions, rather than just westward from Russia. They banned “destination clauses” so Russia’s Gazprom can no longer bar customers from re-exporting gas. That promotes competition, and allows Ukraine to get gas through Poland, Hungary and Slovakia, Mr. Pascual said. Europe is also building infrastructure for liquid natural gas, shipped from places like Qatar.
natural_gas  Russia  China  geopolitics  energy  energy_security  LNG  Asian  price_hikes  Gazprom  optionality  petro-politics 
may 2014 by jerryking
How branding should boost your bottom line
December 5, 2012 |Toronto Caribbean | JG Francoeur.

“The single most important decision in evaluating a business is pricing power. If you’ve got the power to raise prices without losing business to a competitor, you’ve got a very good business. And if you have to have a prayer session before raising the price by 10 percent. then you’ve got a terrible business.” says Warren Buffet. If you employ solid branding techniques you can do the same with your business. raise your prices and boost your income!
To build a good brand you must focus on the 5 P5 of branding. Start by answering this questions and building your branding plan.
* First is purpose: When someone hears your name. what do you want them to think?
* Second is proposition: Your proposition is your core competency. You've got to know yourself to grow yourself!
* Third is packaging: 55 percent of how people perceive you is visual and most small business owners look small, unprofessional and unreliable. You must convey an image that will inspire confidence for your prospects.
* Fourth are people: It’s simple but powerful, your net worth is equal to your network of people. Big brands are surrounded by other big brands and you can do the same if you employ a partnership model.
* Fifth is perseverance: Many business owners think clients will fall from the sky. They try one venture or one marketing initiative and because it’s not successful they quit. You must never quit because your dream is important not only to you but to others who you will inspire along the way.
branding  howto  brands  brand_purpose  packaging  perseverance  purpose  value_propositions  human_capital  the_single_most_important  pricing  Warren_Buffett  price_hikes 
december 2012 by jerryking
Life on the food chain
May 14, 2004 | CNN/Money | By Mark Gongloff, senior writer.

Though economists often ignore food prices when talking about inflation, consumers can't, and investors shouldn't, since higher prices can be a boon for some companies and a headache for others.
pricing  supply_chains  farming  agribusiness  grocery  restaurants  price_hikes 
july 2012 by jerryking
Food companies eye more price hike opportunities - The Globe and Mail
Mar. 01, 2012 | Globe and Mail | marina strauss

Still, food producers and grocers haven’t yet passed on to consumers all the effects of their commodity price hikes, said Kevin Grier, senior market analyst at the George Morris Centre, an agri-business researcher in Guelph, Ont.

“We as consumers still haven’t felt the full brunt of price increases.”

As a consumer, a price hike will force him to stick more to necessities – bread rather than pies or cakes; chicken legs instead of pricier chicken breasts. “I’ll buy less of the discretionary things,” Mr. Grier said.
food  pricing  Marina_Strauss  George_Weston  baked_goods  Maple_Leaf_Foods  price_hikes 
march 2012 by jerryking

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