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Tag: Pricing

  • Pricing Insights: Analyzing quote data across global credit markets | Insights | Bloomberg Professional Services

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    Measuring quote and trade reference differences

    To address this, we looked at 4 markets – U.S. Investment Grade, U.S. High Yield, EUR Investment Grade, and GBP Investment Grade, as they are among the most liquid credit markets in the world.

    For the U.S. markets, we used TRACE as our trade source. For EUR and GBP markets, we used Bloomberg data as our source. We considered trades that are >250,000 (local currency) from August 2025, and after applying certain other filters and simplifying assumptions to keep the analysis succinct and viable, the remaining trades served as our collective “ground truth” for benchmarking.

    Next, we calculated the difference between three benchmarks that were observable just prior to each trade, and the trade level itself:

    • IBVAL – pricing source available on the Bloomberg Terminal via PCS (IBVL) and for delivery through Bloomberg’s real-time market data feed, B-PIPE. It makes use of both quote and recent trade data to produce a trade level reference price and to help answer the question: If this bond were to trade right now, where would it most likely trade? It is explicitly targeting trade expectations.
    • CBBT – rules-based composite price which filters available executable quote levels in real-time to produce context for trading. It does not take trade information into account. 
    • Median quote –  a simple quote-based composite that reflects the median of available quote levels, without applying additional filters or weighting.

    At charts presented below (Charts 1-4) those differences are aggregated and displayed as distributions (boxplots) by market. The Y-Axis is a measure of that difference in price. Positive results (the upper half of the chart) suggest that a trade was tighter than (inside, or better than) the benchmark level, or conversely, the benchmark level was wider than the trade level.

    Negative numbers (the lower half of the chart) suggest that the trade was wider than (outside, or worse than) the benchmark, or conversely, the benchmark level was tighter than the trade level. The 0 line means that a trade level and benchmark level were the same.

    The boxplot itself captures the distribution of differences, shown as the 25th and 75th percentiles (box), as well as the 10th and 90th percentiles (whiskers). The 50th percentile (median) is shown as a light gray line through the box.

    U.S. High Yield - August 2025

    EUR Investment Grade - August 2025

    GBP Investment Grade - August 2025

    How quote and trade benchmarks perform across global credit markets

    Based on the U.S. Investment Grade results shown in Chart 1, we can observe how each benchmark performs versus traded levels. We can see IBVAL’s 50th percentile difference falls almost exactly on the 0 line, suggesting that its performance is tightly coupled with trade levels. This is by design, as IBVAL is intended to be a trade reference price for pre-trade workflows. Analogous values for CBBT (13.5 cents) and Median Quote (9 cents) are consistent with expectations for quote composites, which are away from traded levels.

    Viewed slightly differently, since IBVAL’s light blue box is right on top of the 0 line, it is considered centered on the traded market; trades are as likely to be slightly too tight as too wide. For CBBT, its dark blue box is fully above the 0 line and we see 92% of trades occur inside (tighter than) this benchmark’s bid/ask. For the Median Quote, its purple box is also fully above the 0 line and we see 82% of trades occur inside (tighter than) this benchmark’s bid/ask.

    Chart 2 (U.S. High Yield), Chart 3 (EUR Investment Grade), and Chart 4 (GBP Investment Grade) tell similar stories. Though the specifics match their respective market dynamics, in each case, we see IBVAL centered on the traded market and quote composites shifted away from traded levels.

    How Bloomberg solutions can help with price discovery

    Quote data and reference prices remain critical tools for traders to access real-time information on far more bonds than might trade in any period of time. The availability of a trade reference price such as IBVAL helps strengthen the pre-trade process, even if local dynamics might vary across markets. This enables traders to make use of a consistent set of tools across their global credit portfolio.

    Interested to learn more about using IBVAL for your pricing needs? Click here.

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    Bloomberg

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  • How Elastic Are Your Prices? The More You Know, the More Power You Have

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    It’s no secret that this year has been tough for everyone, but the hair styling industry is particularly sensitive to economic downturns. During tough times, consumers often spend less on luxury services like hair styling. Tariffs and inflation have also hampered consumer sentiment, further complicating the landscape for demand.  Just ask David Thurston, who has seen the slump firsthand, and has leveraged his brand’s price elasticity to counteract some of the effects.

    Alongside his wife, Alexis Thurston, David has started two Los Angeles-based beauty brands in the past decade. In 2018, the couple sold their two-year-old professional hair color company, Pulp Riot, to L’Oreal. By 2023, they were back at it, launching Danger Jones, which sells a wider range of products to hair stylists in 43 countries.

    To “better support stylists amidst rising inflation and salon costs felt widely by the industry,” David says that Danger Jones made a strategic pricing change by lowering the price of Danger Jones Premium Powder Lightener (bleach) from about $30 to $23.

    Bleach is the bread and butter for stylists, Thurston says: “They can’t sell it, but they have to use it. And we thought that’s a good spot to lower our prices and come out looking like the good guys.” When it comes to product pricing, he adds, “I think it’s important that it lines up with how you’re trying to make people feel.”

    Since lowering the price of bleach, sales have increased 67 percent across all categories, reflecting how sensitive consumers are to Danger Jones’s price changes—also known as price elasticity.

    As Inc. 5000 CEO and strategic business coach Bruce Eckfeldt has written for Inc. in 8 Key Metrics for Growth-Minded CEOs to Track, “Pricing changes can have profound effects on customer retention and lifetime value, beyond short-term conversion rates. By testing different pricing strategies, businesses can determine what resonates most with their audience.” 

    There are several key factors to consider when building a strong pricing strategy, such as customer segmentation, competition, differentiation, product mix, sales channels, and cost structure, according to Paresh Khatwani, director at business consultancy Portage Point Partners. 

    But one of the most important factors to focus on as a founder is the perceived value of your products. You must ensure that the price communicates that perceived value clearly, and make adjustments as needed—pricing is never “set it and forget it,” Khatwani says.  

    “Pricing should evolve with shifts in customer behavior, competitive dynamics, and macroeconomic factors like tariffs or supply chain disruptions. Use intuitive models—tiers, bundles, usage-based pricing—that grow with your customer and reflect value delivered,” Khatwani says. “Run A/B tests on pricing models. Validate assumptions with real customer behavior, not just internal opinions. Segment and prioritize your customers. Reward them and drive loyalty.”  

    Keeping a strategy simple and nimble is at the core of all pricing best practices. Among the red flags, Khatwani says, are ignoring data, getting into price wars, not segmenting enough, and using cost-plus pricing only—which basically means that you start with the total cost to produce a product or service and then add a fixed markup percentage to determine the selling price.

    “You do not need to figure it all out at once. Test early and test often,” he adds.   

    Follow the data

    Kenneth Ogalo can speak to the importance of data-backed pricing. He started New York-based publication the Roaring Economist in 2022 as a written forum for founders to gain exposure in their early growth stages. He eventually determined that there was a greater need for a networking and entrepreneurial events company than a content-only publication, prompting him to pivot. He rebranded the Roaring Economist as Seed Five in September 2025.  Seed Five, which earns money via membership subscriptions, is not cash-flow positive yet, and has just under 40 members currently. 

    “Initially our pricing was based on a sensitivity analysis performed, data taken from a survey, and observing other market comps,” Ogalo explains. 

    Based on the data, Seed Five landed on a $3 standard subscription and $5 premium subscription price. Ogalo, however, wanted to position the brand as a luxury option with growth in mind, so he decided to charge $10 for standard and $20 for premium.  

    After two months, demand was extremely low due to three key issues: Seed 5 hadn’t communicated its value properly, it didn’t have the content to charge the intended price, and pricing was based on the assumption that a member would want all the benefits included.  

    From experimenting with pricing and membership benefits, Ogalo did learn that Seed Five had three different groups of customers with mutually exclusive interests—networking, written material, and community events. Rather than slice and dice a package, he decided to consolidate the options into a $5 monthly or $50 annual subscription. Still in the brand’s early days, there’s a lot left to learn from price testing. “Although the situation isn’t ideal, you have to play on the field the market decides,” he says. 

    Be selective, yet competitive 

    Along with finding a price point that converts, it’s equally important to identify a price point that’s competitive, says Mike Lombardo, co-founder of Philadelphia-based better-for-you tea company Halfday. When he launched the business in 2021 with co-founder Kayvon Jahanbakhsh, Lombardo wanted Halfday’s products to appear as a premium alternative to traditional iced teas, similar to prebiotic beverages. In its early days, Halfday—which has raised a $3 million seed round in 2022 according to Crunchbase—tracked conversion rates and monitored reviews to land on its $2.49 – $2.99 everyday price point.  

    Once the business was up and running, Lombardo began experimenting with promotional events and bulk discounts. Customers who purchased more than two cases of tea received a 20 percent discount, which helped the brand assess its unit economics—the direct revenue and costs associated with a single “unit” of tea. At first, the company priced its 12-pack cases at $35.99, and has since lowered the deal to $29.88 on both its retail and e-commerce channels, which made its premium tea accessible to a wider net of customers.  

    Halfday now runs calendar discounting events to test pricing and the effectiveness of promotions. Among its retail channels, Halfday will run promo events to see how velocity is impacted by variance and suggested retail prices. Meanwhile, e-commerce promotions run during seasonal holiday events, including Memorial Day, Labor Day, Black Friday, and Amazon Prime Days.  

    Another layer to pricing is being mindful of competition in specific categories and sets, Lombardo explains. “We’ve found that it’s better to follow a value-based pricing strategy as opposed to a cost-plus model,” Lombardo says. Value-based pricing involves pricing a product based on the customer’s perceived value. 

    Signs of a healthy price point would be consistent sales growth and sustained lift, with sales growing after a promotional period, Lombardo adds. “Finding this right price won’t happen overnight—just make sure you continue listening to customers, sales data, and other key partners or stakeholders and act accordingly.” 

    Don’t get too elastic

    Sometimes prices are not elastic. Wylie Robinson learned that the hard way. The founder and creative director of outdoor blankets brand Rumpl founded his Portland, Oregon-based company in 2013, and determined soon after launch that $99 was the sweet-spot between price and profit for its entry-level product—the Original Puffy Blanket. 

    The product itself combines the synthetic fill insulation of a sleeping bag with the design and end-use of a regular blanket, which typically serves campers, nature buffs, and roadtrippers. Though the company added other products at different price points, including a two-person size option, the price for its Original blanket stayed at that sweet spot for a long time, which makes sense. The $99 price point, common for consumer good brands, psychologically attracts customers and sits nicely in the “Under $100” filter on shopping pages. 

    Then in 2023 Robinson learned that sweet-spot should not be messed with.  

    When the Covid pandemic hit, consumers became more interested in van-life and showed a general desire to be outdoors more, according to Robinson. This meant Rumpl experienced 500 percent growth between 2020 and 2022. Greater demand prompted the brand to conduct a consumer research study on its price point, which found that customers felt very positive about the value they were getting after purchasing.

    Figuring that there seemed to be an appetite to pay more, Rumpl raised its prices roughly 20 percent in the spring of 2023, and at the same time split its pricing tear into print and solids, since patterns cost more to make.  The company was already offering different price points based on size (one person or two)—collectively making four price tiers. 

    “It was a really, really big mistake,” Robinson says. “What it ended up doing is it created this really confusing process for the customer that we just didn’t think enough about.” 

    By introducing new pricing tiers, the price box on its Amazon product page effectively populated a different price for each color option tile, creating a nightmare-ish shopping experience for their Amazon customers, he explains. It then had nearly 12 prices for two sizes of blankets, which included past inventory with original prices, new solid products at a higher price, and new, more expensive print blankets.  

    “It just tanked our conversion.… We created this huge bottleneck for our consumers and inhibited them adding to cart,” Robinson says.  

    The original thesis was that if prices rise 20 percent and conversion drops by 10 percent, Rumpl will make slightly less revenue but considerably more profit. But when conversion dropped more than 20 percent, Robinson knew he’d made a mistake.  

    “People are not as willing to pay above 100 bucks,” Robinson says of Rumpl’s entry-level product. “It just depends on the demand for your product and the scarcity of it—that is usually the big determining factor on how elastic or inelastic your pricing is.”

    Given Rumpl’s omnichannel method of selling, it took roughly 18 months to unwind the pricing decision, which saddled the brand with the negative downstream effects of low conversion, 150 days of discounting, and price confusion until spring 2025, he adds.

    The brand has been able to weather the storm because it had cash reserves at the expense of revenue and growth margins staying flat this year and last. Though Rumpl declined to share specific revenue numbers, Robinson says the brand sells about 200,000 blankets per year.

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    Sydney Sladovnik

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  • GameStop Shares Are Rising Again. Here’s the Lesson for Every Leader

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    GameStop‘s share price is rising again. It’s up more than 6 percent since Friday, and up over 22 percent from six months ago. You may remember GameStop (GME on the New York Stock Exchange) as the meme stock that rose from less than $20 to more than $460 per share in less than three weeks back in 2021 before falling back to more reasonable levels. It had a similar but even briefer rally last summer.

    As of this writing, it’s trading at a less stratospheric $27.28. But with the share price going up despite falling sales and a downgraded rating, the last sell-side analyst to rate GameStop has thrown in the towel. Alicia Reese of Wedbush Securities, who most recently set the company’s target price at a lowly $13.50, announced she will no longer rate GameStop due to “reallocation of analyst resources.”

    It’s a stark admission of something every smart entrepreneur knows. The correct price for anything—from a sandwich to a house to an equity—is always whatever a buyer is willing to pay for it. You might think that in a data-driven business such as investing, buying decisions would result from careful calculations. They usually don’t. They usually result from emotion, sometimes rationalized with data after the fact. Whatever you may tell yourself about how you decide what to buy, emotion is almost always part of the equation.

    The reverse is also true. Win over a customer’s emotions and they will be likely to buy what you’re selling, whatever the data might say.

    A Reddit group changes everything.

    There is certainly a lot of emotion around GameStop. Its price surge in 2021 was caused by the Reddit group r/wallstreetbets, whose members embraced the stock at the behest of investor and financial analyst Keith Gill. These small-time investors drove the stock price up quickly. Elon Musk stepped into the fray with a couple of tweets to his 41 million followers, sending GameStop’s share price dramatically higher.

    The result was a “short squeeze.” Hedge funds that had shorted GameStop, betting big that its price would fall, wound up losing billions. That likely pleased Musk, who’d had his own run-in with hedge funds short selling Tesla.

    Unfortunately, many small investors who bought GameStop near its peak lost a lot of their savings. There were lawsuits, in particular against the trading platform Robin Hood, which temporarily suspended trading in GameStop and helped precipitate its rapid fall toward pre-meme prices. There was also a congressional investigation and then a couple of movies about the whole affair.

    GameStop has nostalgia appeal.

    Of course, most of this had little to do with GameStop’s underlying value or its business outlook. The company is perfectly positioned to capture people’s emotions. It comes from a simpler time, before digital downloads. Back then, shopping in a physical store for video games was a normal thing to do.

    In addition to GameStop’s nostalgic appeal, there was the short squeeze. Most of the time in the markets, small investors operate at a disadvantage, and hedge fund managers often profit off their losses. But GameStop investors flipped that narrative on its head. People were enchanted by the David and Goliath quality of that event. More recently, GameStop captured people’s imaginations again by announcing a big investment in bitcoin, though the details aren’t known.

    Meanwhile, though, there was a stock analyst making thoughtful buy or sell recommendations that no one listened to, after carefully parsing data no one seemed to care about. The finance site seeking Alpha put it tactfully: Since the short squeeze, “GME has always been a tricky proposition for traditional Wall Street analysis,” writes news editor Kim Khan. “The stock just does not trade on any fundamentals.” No wonder Wedbush decided to reallocate Reese’s time to other work where investors might actually listen to her opinion.

    The price of everything will always be whatever people are willing to pay for it at any given moment. It’s more obvious with GameStop, since its share price has deviated mightily from what conventional wisdom would suggest. But it’s true of every product and service, including yours.

    The opinions expressed here by Inc.com columnists are their own, not those of Inc.com.

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    Minda Zetlin

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  • How Complex Pricing Destroys Customer Trust | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    A potential customer reaches out to your account or customer service team to inquire about your product or service. After discussing the features and benefits, the conversation often shifts to pricing. Your sales team prefers the term “cost” because it sounds more appealing and justifies the impressive features and benefits highlighted on your website and in your sales literature.

    However, complex and convoluted pricing structures can often deter customers. They want clarity from the beginning. How much will they spend, and what value will they receive in return? I have never sold or offered the “cheapest” or “lowest priced” service or product, nor do I intend to. I am motivated by delivering value, which I believe results in a higher quality customer experience.

    As a seasoned entrepreneur, I recognize that pricing products and services is not always straightforward. Customers may be uncertain about which options best meet their needs. That’s why having an educated and easily accessible sales and customer service team is crucial. By asking the right questions, our reps can guide customers to the most suitable options while highlighting the associated benefits, a strategy that all successful sales trainers advocate.

    In this article, I will outline some ideas and steps our company has implemented, such as our new instant pricing calculator, designed to enhance customer satisfaction and improve our bottom line. Additionally, I will discuss a frustrating situation that negatively affects the customer experience.

    Related: An Entrepreneur’s Guide to Startup Pricing Strategies

    Why pricing complexity kills trust

    One of the best examples of pricing complexity can be found with cable TV providers. While the industry is easy to pick on, many people over 30 have likely experienced the frustrating runaround associated with cable TV pricing.

    Fifteen years ago, when I moved into a new house, contacting my local cable TV provider to inquire about their packages was at the top of my to-do list. I also needed reliable internet service, and if the same company offered both, that would be ideal.

    The customer service representative (CSR) who answered my call was friendly and seemed knowledgeable. They informed me that it was my lucky day because they were running a “special.” If I signed up for the day’s deal, I would receive a landline, a premium cable package (which included hundreds of channels I had never heard of) and internet service for around $300 per month. Essentially, I could save money by bundling these services.

    I definitely needed internet service and figured I might as well try the extra movie channels. I wasn’t particularly interested in the landline, but my grandmother was thrilled that I would have “reliable phone service.” However, there was a catch: The introductory offer would expire after 24 months. But I thought I could deal with that issue later, so I signed up.

    All good deals must end

    A couple of years later, my monthly cable bill increased by about 30%. After navigating through a complicated phone tree, I finally reached a sympathetic CSR. After I shared my frustration about the outrageous pricing, complete with a veiled threat to cancel everything, they agreed to reinstate my previous pricing plan. I lost the HBO and Showtime channels that I had forgotten were included, though, and if I wanted to keep them, it was going to cost me about $30 per month.

    Fast forward to a few years later: After a challenging workday, I hit the roof when I saw my new $400 cable bill. It was time to change my cable TV plan.

    After going through the phone tree again, Tony answered my call. He was nice, easy to understand and seemed knowledgeable about the company’s offerings. I informed Tony that I wanted to make a few simple changes. The good news was that he had a solution.

    First off, I didn’t need a landline telephone. The rare times I used my home phone were only to locate my misplaced mobile phone. Otherwise, it never rang, not even for a call from my grandmother. Since I only watch a few sports, news and rerun channels, I could do without the dozen or so channels featuring UFO discoveries and home shopping options. However, I did want to increase my internet speed.

    You might think my requests were straightforward, and that with a few keystrokes, my monthly bill could be reduced while getting stronger Wi-Fi. I wasn’t surprised to learn that the introductory offer I had benefited from twice before was no longer available. Darn.

    Tony found a new deal. I could drop the landline, keep my cable channels, switch to a mid-tier internet package and save about $40 per month. There was one catch: Tony offered me a mobile phone line, along with a free flip phone, to replace the landline.

    “Thanks, Tony, but I already have a mobile phone plan, complete with all the bells and whistles of a cellular contract, and I don’t need another phone.” In fact, this cable provider doesn’t even sell mobile phone services to the general public, only to existing customers. I suppose that’s one way to boost their market share.

    Agreeing to the “deal of the day” was the easy way to lower my bill. However, no new cellular line meant no price reduction.

    A follow-up call days later resulted in an internet service quote of $195 per month, which seemed high to me. Tony also informed me that an unlimited internet package was required since I would be streaming additional services. Me streaming other services was one thing Tony got right.

    I understand the bundling offer. The same goes for auto insurance companies running ads during my favorite shows. What I don’t understand is why a company would want to sell me services that I don’t need or want, and never will. However, I don’t want to pay for market share in areas where the company doesn’t specialize.

    Most of us prefer à la carte services and pricing. Show me the options for cable channels and their prices, as well as the costs of various internet packages. Feel free to display the landline and mobile phone packages as well; if I’m interested, I may choose one. But today, I only need a reliable, high-speed internet package with fewer channels and a smaller monthly bill.

    Related: 10 Pricing Strategies That Can Drastically Improve Sales

    Pricing calculators will empower your customers

    My desire for à la carte services motivated me to develop an online pricing calculator for our website. When a new customer contacts us, they are often unsure about the services they need. To address this, we developed an instant online pricing calculator, which also shows our pricing compared to our competitors’ pricing. This tool allows both new and existing clients to select the types of services they require, choose from a few add-on options and view our rates. Here’s an example:

    Our transcription company serves a variety of industries, including medical, legal, law enforcement, corporate and education. The pricing for a single speaker with good audio quality for a duration of 30 minutes is easy to calculate.

    In contrast, transcribing a legal deposition involving 10 speakers, two of whom speak different languages and talk over each other in challenging audio conditions, presents greater difficulties. Attorneys and legal clients typically require verbatim transcripts, capturing every sound and syllable. As a result, the cost for producing these transcripts is higher due to the time and expertise involved.

    Our updated pricing calculator also helps clients understand our services and the reasons behind the costs of select add-ons, which we hope will increase their comfort and confidence in our offerings.

    In cases where a customer is unsure about what they need or our available service options, we see this as an opportunity to explain our different transcription services and establish a personal relationship with them.

    Related: Why Entrepreneurs Should Explain the Cost of Their Product to Customers

    Upselling works when customers benefit

    As a student of sales and marketing strategies, I recognize the advantages of upselling, which involves offering additional services to clients. Often, customers are not aware of all the services available to them. In many cases, bundling services can create benefits for both parties.

    However, when presenting special deals, it’s essential to provide options and solutions that truly benefit the customer. Forcing a square peg into a round hole does not help anyone, and resentment usually follows.

    If you haven’t already, consider using a pricing calculator for your business. This tool may encourage further interaction between your company and valued customers.

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    Ben Walker

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  • 5 Sales Secrets Your Competitors Don’t Want You to Know | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Poor pricing always comes with a profit margin, whatever the category or product you have. In 2024, returns in ecommerce reached $743 billion, almost 15% of all retail sales in the US. A significant part of these returns would not have happened if priced right.

    Such errors are not only responsible for lost revenue but also come with missed customers, eroded market share and shattered brand trust.

    The good news? I’m about to share five proven ways that you can use to help your sales grow.

    Related: An Entrepreneur’s Guide to Startup Pricing Strategies

    1. Dynamic pricing

    The retail landscape in 2025 is more tense than ever. Real-time competitor activity, demand shifts, stock levels monitoring and scraping, all while using AI-driven tools, make it now easier than ever to adjust prices within a few seconds. This allows ecommerce brands to remain agile and competitive without manually updating listings.

    Take Airbnb as an example. Their ‘Smart Pricing’ tool fine-tunes nightly rates based on seasonality, local events and demand spikes. Hosts using Smart Pricing are nearly four times more likely to receive bookings and report a 12% increase in revenue, on average.

    By automating price decisions, you can react instantly to the market, run A/B tests to identify price sensitivity and keep your margins healthy even in crowded categories.

    2. Competitive pricing

    The US e‑commerce market, worth $1.19 trillion in 2024, is projected to hit $1.29 trillion by the end of 2025. Such growth always comes with fierce competition, requiring competitive pricing, which is named as a top priority when making a purchase by 46.8% of online shoppers.

    Competitive pricing means strategically changing your prices, depending on other players on the market and your value proposition. It’s often used by businesses selling similar products with little differentiation, where everyone is fighting for the same customer.

    Walmart and Amazon are stuck in a constant pricing battle. Walmart uses competitive pricing backed by dynamic algorithms, closing its price gap with Amazon by 3% and even reducing prices by 4% on Amazon’s top‑selling products. This approach has helped Walmart remain a strong competitor in fast‑moving categories like grocery and packaged goods.

    If you’re in a competitive niche, monitor competitor pricing regularly and use dynamic or AI‑powered tools to adjust in real time.

    Related: A Marketer’s Guide To Successfully Navigating A Price War

    3. Value-based pricing

    Value-based pricing focuses on what customers are willing to pay based on perceived value, not just production cost. This approach positions you for better margins and long-term loyalty.

    Apple is the gold standard here, with its customers staying loyal despite being in quite a premium segment with high prices. People see how a company invests in innovation, user experience and brand prestige and that’s when they’re willing to pay more. As of Q1 2025, Apple held a 19% share of global smartphone shipments, up from 16% the year before.

    Start by understanding what value means to your audience. Gather feedback, analyze market perception and position your brand clearly.

    4. AI-driven pricing

    In 2025, over 60% of enterprise SaaS products embed AI features, many of which are used for pricing optimisation and personalisation.

    AI-driven pricing uses machine learning to analyse customer behaviour, competitor prices, supply levels and market trends in real time. Then, the system determines the ideal price point to maximise both conversions and profitability.

    Google Workspace recently raised prices by 17–22% after integrating AI features into every business plan. By bundling AI capabilities directly into its offering, Google increased perceived value and reduced churn, even with a higher price tag.

    For ecommerce businesses, the takeaway is clear: invest in AI tools that integrate with your existing platforms (ERP, BI, CRM). Make sure to monitor the financial impact, avoid abrupt price shifts and allocate resources to maintain and update your AI models for continued accuracy.

    Related: AI’s Role Is Up to You — These 4 Rules Make the Difference

    5. Promotional pricing

    Temporary discounts with urgency are one of the simplest ways to attract new customers and boost sales. It can come in many forms: percentage discounts, flash sales, coupon codes or free shipping. A 2024 Statista study found that 62% of online shoppers are motivated to buy when offered a promo code, especially via email or social media.

    McDonald’s changed its McValue platform in the US to add popular options like the $5 Meal Deal and ‘Buy One, Add One for $1’. These promotions are forecasted to drive revenue growth to $27.4 billion in 2025 – a 5.1% year‑on‑year increase.

    Incorporate promotions into your broader marketing and financial strategy to drive short‑term sales, clear inventory or launch new products.

    Pricing is a living, evolving part of your business that can influence your profits and, what’s more, customers’ trust. Data-driven strategies can help you course-correct quickly. The best way to increase sales is to adapt your strategies as markets change and combine dynamic, competitive, value‑based, AI‑driven and promotional pricing.

    Poor pricing always comes with a profit margin, whatever the category or product you have. In 2024, returns in ecommerce reached $743 billion, almost 15% of all retail sales in the US. A significant part of these returns would not have happened if priced right.

    Such errors are not only responsible for lost revenue but also come with missed customers, eroded market share and shattered brand trust.

    The good news? I’m about to share five proven ways that you can use to help your sales grow.

    The rest of this article is locked.

    Join Entrepreneur+ today for access.

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    Slava Bogdan

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  • Unbelievable facts

    Unbelievable facts

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    Arizona Iced Tea’s 99¢ price has remained unchanged for over 30 years.

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  • A Year Later, Unity Cancels Controversial Runtime Fees Completely

    A Year Later, Unity Cancels Controversial Runtime Fees Completely

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    Unity is canceling its controversial Runtime Fee and returning to a more traditional subscription model for its popular video game engine used by small and big developers worldwide. However, the price of some subscription plans will increase next year.

    The Boys Star Karen Fukuhara On Kimiko’s Character Arc, Karate, And More

    A year ago, in September 2023, Unity announced a seismic change to how it charged developers to use its engine. Once a game was downloaded a certain number of times and had made a specific amount of money, Unity would start charging developers a Runtime Fee every single time someone installed any game developed using Unity, like Pokémon GO or Cuphead. Many smaller devs and creators criticized the decision and claimed it would lead to developers abandoning the engine to avoid paying thousands of dollars in install fees. This could have led to game delays and there was even fear that some devs might remove older games from sale, preventing players from re-installing them in order to avoid the Runtime Fees.

    All of this was a giant mess that eventually led to Unity partially walking back some of these decisions a week later. It also led to Unity’s CEO retiring and another exec resigning. And now, after all that, the company is fully ditching the install fees completely.

    On Thursday, in a blog post on Unity’s website, CEO Matthew Bromberg announced the news that “effective immediately” the company was removing all Runtime Fees from the engine.

    “I’ve been able to connect with many of you over the last three months, and I’ve heard time and time again that you want a strong Unity, and understand that price increases are a necessary part of what enables us to invest in moving gaming forward. But those increases needn’t come in a novel and controversial new form,” said Bromberg.

    Unity reveals price increases for some plans

    So Runtime Fees are gone and Unity will return to a subscription model. Bromberg confirmed that Unity Personal licenses will remain free until a game brings in over $200,00 in revenue or funding. Meanwhile, starting in January 2025, Unity Pro subscriptions will increase by 8% and cost $2,200 a year. Unity Enterprise will also see a price increase of 25%.

    Unity Personal will remain free, with the revenue and funding ceiling increased from $100,000 to $200,000, giving developers more flexibility before being subjected to Unity’s fees. The Made with Unity splash screen will be optional for games developed with Unity 6, set to launch later this year.

    Starting January 1, 2025, Unity Pro will see an 8% price increase, raising the annual subscription fee to $2,200 per seat. Unity Enterprise will experience a 25% increase, with new minimum subscription requirements for customers generating over $25 million in annual revenue. These changes will apply to all new and existing subscriptions from that date. (Because these licenses involve major companies, the prices can vary based on different packages.)

    Bromberg stressed in his blog post that Unity will continue to increase prices as it needs to, but will only do so annually via subscription fees going up. It won’t try to squeeze pennies out of every developer using the engine based on how many times people install your game.

    “Canceling the Runtime Fee for games and instituting these pricing changes will allow us to continue investing to improve game development for everyone while also being better partners,” said Bromberg.

    “Thank you all for your trust and continued support. We look forward to many more years of making great games together.”

    .

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    Zack Zwiezen

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  • Common Pitfalls in Cannabis Brand License Agreements – Cannabis Business Executive – Cannabis and Marijuana industry news

    Common Pitfalls in Cannabis Brand License Agreements – Cannabis Business Executive – Cannabis and Marijuana industry news

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    Common Pitfalls in Cannabis Brand License Agreements – Cannabis Business Executive – Cannabis and Marijuana industry news





























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  • Are You Underpricing Your Products? Here’s How to Find Out | Entrepreneur

    Are You Underpricing Your Products? Here’s How to Find Out | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Do your customers know what your products are worth? That may seem like a bizarre question at first, but in reality, many businesses routinely fail to convey the actual value of their products. Unsurprisingly, this miscommunication is seldom in a business’s favor.

    More than 20 years ago, experts at McKinsey & Company found that between 80% and 90% of mispriced products are priced too low — and that remains true today. That’s potential revenue lost right out of the gate, and more than you might think. A 1% increase in price without a change in the volume of products sold equates to an 11.1% increase in operating profits, according to this comprehensive study by Harvard Business Review published in 1992 and still widely cited today.

    Related: 10 Questions to Ask When Pricing Your Product

    Where does value go?

    Your products and services inherently create a certain amount of value for your customers. We’ll call this the “actual value.” In the ideal world, everything you sell would be priced based on the actual value. However, we don’t live in the ideal world. Actual value is monstrously difficult to calculate and can fluctuate per customer.

    Not all of your customers will be able to see, or frankly even benefit from, the total potential of any given product. Smartwatches, for example, can track hundreds of unique exercises, but if all you do is run, then the value of those additional features would be difficult to see. Marketing has an impact as well. Sticking with the smartwatch example, if you fail to effectively communicate a useful feature — leaving your potential customers unaware — then that can have a negative impact on this “perceived value.”

    Now, your customers may agree that your product produces a certain amount of value for them, but that doesn’t mean they’re willing to pay for it. Dozens of factors can impact how much a particular customer is willing to pay: urgency, income, brand loyalty, advertising, social impact, etc. Finding this number is tricky, yet highly rewarding. If you can identify the maximum amount your customers are willing to pay, you can maximize your profits while capturing as much value as possible.

    Many companies are unable to determine exactly how much their customers are willing to pay. What that means is that the price your customers typically expect to pay is instead the “target price.” This is the value that you and your team hopefully determined is as close to the actual willingness-to-pay value as possible.

    Finally, if you work in a sales-heavy field you may find additional value being lost to concessions and discounts. In this situation, the final price paid would be known as the “realized price.” How much value was lost between all of these steps? Many think quite a bit. Bain and Company found after interviewing dozens of CEOs, CMOs and other executives at more than 1,700 companies that roughly 85% of those who responded believed they could be doing a better job making pricing decisions.

    How can I capture more value?

    Let’s begin by trying to understand how much our customers are actually willing to pay for our products or services. We can do this by surveying our customers, assembling focus groups, experimenting with pricing or even hosting an auction.

    If we’re not happy with how much our customers are willing to pay, we may need to take a step back and instead focus on their perceived value of your product or service. When we help our customers see more value through activities like branding, outreach and communication we directly increase how much they’re willing to pay.

    Alternatively, we can choose to adopt a different pricing structure entirely. More and more service-based businesses are looking towards metric-based pricing to offer an adaptive structure that better aligns with the perceived value of each unique customer. Some examples of metric-based pricing are usage-based like gym punch passes and cellular minutes, or user-based pricing, which is a popular choice in the SaaS realm. There are great examples of metric-based pricing all around us. Mechanics often charge per hour while bowling alleys frequently charge per game. These metrics work because they’re reasonable, predictable and fair.

    Related: How to Get the Price Your Product or Service Deserves

    Don’t miss out on potential profit

    Let’s look at the math together. Imagine with me for a moment that you own a coffee shop selling lattes for $5 each. These lattes cost you $1 to make, earning you $4 in profit. If you sold 100 lattes, unsurprisingly you would make $400 in profit.

    However, unbeknownst to you, your customers are willing to pay $7 for that same latte. That’s a more generous $6 in profit, netting you an additional $200 per 100 lattes sold — a 150% increase. In fact, even if you wound up selling fewer lattes — let’s say 90 instead of 100, that’s still a 135% increase in profits.

    In short, don’t leave any money lying on the table. If your customers are willing to pay more, now is the time to find out.

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    Itai Sadan

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  • Tesla’s Price War Could Hit Its Profits

    Tesla’s Price War Could Hit Its Profits

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    Electric vehicle leader


    Tesla


    is expected to report lower earnings on higher sales Wednesday evening after the electric vehicle maker slashed prices to draw in buyers.

    The EV war, with traditional auto makers spending billions to catch


    Tesla


    (ticker: TSLA), has morphed into a price war. The car maker’s quarterly earnings will help investors figure out who is winning.

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  • The surprise OPEC+ oil production cuts will increase gas prices — here’s how much

    The surprise OPEC+ oil production cuts will increase gas prices — here’s how much

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    Surprise crude oil production cuts from Saudi Arabia and other oil-rich countries shouldn’t produce worries of skyrocketing gas costs for U.S. drivers still smarting from last year’s pump price shocks, according to fuel industry experts.

    At a time when gas prices are already increasing because of rising seasonal demand, the slashed crude oil output that Saudi Arabia announced Sunday will translate into higher prices, they say. But compared to last year — when energy markets were absorbing the initial impact of Russia’s invasion of Ukraine — the altitude on those gas price increases may not feel so steep.

    On Monday, the national average for a gallon of gas was $3.50, according to AAA. That’s around 10 cents more than a month ago, but almost 70 cents less than the $4.19 average cost one year ago.

    The effects of decreased oil production could translate into initial price increases of up to 15 cents per gallon, according to two different energy sector watchers.

    There’s Patrick De Haan, head of petroleum analysis at GasBuddy.

    At OPIS, an outlet focused on energy sector news and analytics, Chief Oil Analyst Denton Cinquegrana said he was previously expecting summer gas prices to average around $3.60.

    “This move probably boosts that by about 10 – 15 cents to about $3.70-3.75/gal.” Cinquegrana told MarketWatch.

    OPIS is owned by Dow Jones, which also owns MarketWatch.

    It’s possible for gas price averages to hit around $3.60 in the next week or so, he said. The other 10 to 15 cents might filter into retail pump prices later this month or in early May, according to Cinquegrana.

    The surprise move came from Saudi Arabia and other members of OPEC+, the Organization of the Petroleum Exporting Countries and allies, including Russia. In Saudi Arabia, officials were reportedly “irritated” by recent remarks from U.S. Energy Secretary Jennifer Granholm.

    After the Biden administration tapped the country’s strategic petroleum reserve to combat last year’s high gas costs, Granholm said it will difficult to restock the reserve.

    By May, more than 1 million barrels of oil a day will be slashed from output in the global energy markets. That’s in addition to OPEC+ production cuts announced last fall.

    In cost breakdowns for a gallon of gas, the price of crude oil is responsible for more than half the price tag, according to the U.S. Energy Information Administration.

    In Monday morning trading, the price of West Texas Intermediate crude for May delivery jumped 6% to just over $80 on the New York Mercantile Exchange.

    For context, when gas prices were breaking records last year, the costs of West Texas Intermediate crude were in the triple digits. While retail prices surged in early March 2022, West Texas Intermediate crude briefly traded for more than $130 during the trading day on March 7, 2022.

    The national average for a gallon of gas hit a record $5.01 in mid-June, according to AAA. In the current context, Cinquegrana doesn’t see a return to $5 gas averages, he said. Gas prices vary across the nation. California drivers are paying $4.80 on average while Mississippi drivers are paying $3.02 per gallon. 

    Even if price increases are not as sharp as last year, hot inflation is retreating slowly. So any extra costs are unwelcome to millions of American drivers who are living their lives and more frequently commuting to the office.

    Like last year, oil prices are poised to increase, said AAA spokesman Devin Gladden.

    But the economy’s background noise right now could dampen the impact as downturn worries keep sticking around, he added. Furthermore, there can be discrepancies in the announced production reductions and the amounts that are actually reduced, Gladden said.

    “If recessionary concerns persist in the market, oil price increases may be limited due to the market believing lower oil demand will lead to lower prices this year,” he said.

    On Monday, energy sector stocks and related exchange traded funds were climbing after the production cut news. In early afternoon trading, the Dow Jones Industrial Average
    DJIA,
    +0.81%
    was up more than 200 points, or 0.7%, while the S&P 500
    SPX,
    -0.03%
    is little changed and the Nasdaq Composite
    COMP,
    -0.98%
    dropped 100 points, or 0.8%.

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  • Inflation softens in February, PCE finds, and takes some pressure off Fed

    Inflation softens in February, PCE finds, and takes some pressure off Fed

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    The numbers: The cost of U.S. goods and services rose by a milder 0.3% in February, perhaps a sign the Federal Reserve’s fight against high inflation is showing grudging progress.

    Prices had risen by a sharp 0.6% in January, based on the so-called PCE index.

    The yearly increase in prices declined to 5% from 5.3% in the prior month, the government said Friday, marking the lowest level in more than a year and a half.

    That’s still about three times the rate of inflation before the pandemic, however.

    Senior Federal Reserve officials have signaled they plan to raise interest rates just once more before pausing to determine how much a sharp increase in borrowing costs brings down inflation. The Fed has jacked up its key short-term U.S. rate to a top end of 5%, a remarkably fast acceleration from nearly zero one year ago.

    Higher interest rates temper inflation by slowing the economy, but the effects can sometimes take up to a year or more to be fully felt. The Fed wants to avoid going too far or cause any more stress on the U.S. financial system after the failure of Silicon Valley Bank.

    After the PCE report, Boston Federal Reserve President Susan Collins said the central bank “has more work to do” to get inflation lower in an interview with Bloomberg.

    Key details: The more closely followed core index also increased 0.3% last month, matching Wall Street’s forecast.

    The core rate of inflation in the past 12 months slipped to 4.6% from 4.7%.

    The PCE is viewed by the Fed as the best predictor of future inflation trends. It is formally known as the personal consumption expenditures price index.

    The central bank pays especially close attention to the core gauge that strips out volatile food and energy costs.

    Unlike it’s better-known cousin, the consumer price index, the PCE gauge takes into account how consumers change their buying habits due to rising prices.

    They might substitute cheaper goods such as chicken thighs for more expensive ones like boneless breasts to keep costs down. Or buy generic medicines instead of brand names.

    The CPI showed inflation rising at a 6% yearly rate in February.

    Big picture: The Fed is trying to straddle a fine line: Bring inflation back down to its 2% target, but without causing a severe economic reaction.

    Whether the Fed will be able to hold the line on just one more rate hike is far from certain.

    If inflation stays high, the central bank would have to end its pause on rate hikes and risk a recession. A slim majority of economists, in fact, already believe a downturn is imminent.

    Steadily falling inflation, on the other hand, could allow the Fed to pull a rabbit out of the proverbial hat.

    Looking ahead: “For an economy looking to avoid recession, this was a good report,” said Robert Frick, corporate economist at Navy Federal Credit Union.

    “For the Fed, it could be one and done in May,” said senior economist Sal Guatieri of BMO Capital Markets.

    Market reaction: The Dow Jones Industrial Average
    DJIA,
    +0.50%
    and S&P 500
    SPX,
    +0.57%
    rose in Friday trades. The yield on the 10-year Treasury note
    TMUBMUSD10Y,
    3.535%
    declined several basis points to 3.53%.

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  • U.S. economy speeds up in March, S&P finds, but so does inflation

    U.S. economy speeds up in March, S&P finds, but so does inflation

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    The numbers: The U.S. economy accelerated in March, S&P Global surveys showed, but so did inflation as companies raised selling prices.

    The S&P Global Flash U.S. services-sector index rose to an 11-month high of 53.8 from 50.5 in the prior month. Most Americans are employed on the service side of the economy.

    The S&P Global U.S. manufacturing sector index, meanwhile, increased to 49.3 from 47.3. That’s a five-month high.

    Any number above 50 points to expansion. Figures below that signal contraction.

    The S&P Global surveys are among the first indicators each month to assess the health of the economy.

    Key details: New orders, a sign of future sales, rose for the first time since last September at service-oriented companies.

    Booking at manufacturers fell again, but at the slowest pace in six months. More positively, production increased for the first time since last September.

    Employment rose across the economy as both service companies and manufacturers said they added new workers.

    On the downside, the increase in demand allowed companies to raise prices at the fastest pace in five months.

    Business leaders said rising costs, especially labor, contributed to their decision to raise prices.

    That’s not good news for Federal Reserve officials who worry that rising wages could make it harder to get high inflation under control.

    Big picture: The service and industrial sides of the economies are following different trajectories.

    Americans are spending relatively more money on services such as travel and eating out and spending less on goods. As a result, service companies are still hiring and growing at a faster clip.

    Manufacturers are basically treading water due to the shift in consumer spending patterns as well as the depressive effects of higher inflation and interest rates.

    Adding it all up, though, the S&P reports paint the picture of a expanding economy that is not on the doorstep of recession.

    What remains to be seen is how much the recent stress in the banking sector hurts lending and makes it harder for businesses to borrow and invest.

    Looking ahead: “March has so far witnessed an encouraging resurgence of economic growth,” said Chris Williamson, chief business economist at S&P Global.

    “There is also some concern regarding inflation,” he said. “The inflationary upturn is now being led by stronger service sector price increases, linked largely to faster wage growth.”

    Market reaction: The Dow Jones Industrial Average
    DJIA,
    -0.17%
    and S&P 500
    SPX,
    -0.13%
    fell in Friday trades.

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  • How Offering Discounts Hinders Your Business’s Growth

    How Offering Discounts Hinders Your Business’s Growth

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    Opinions expressed by Entrepreneur contributors are their own.

    In the subscription arena, and in the B2C environment in general, discounts seem to be the norm. The assumption is that discounts help incentivize purchases that wouldn’t typically happen, leading to new customers.

    The reality is completely different. Discounts, when used incorrectly, can greatly hinder growth and decrease your chances of attracting long-term, brand loyalists. Here’s why:

    Related: Don’t Offer Customers Discounts If You Want to Be Successful

    Discounts attract the wrong types of customers

    One of the fundamental issues with using discounts is that they attract the wrong type of customers to your brand. Customers who join a subscription service due to a discount are often shopping for price instead of unique and exclusive brand offerings. They’ll leave the minute they find a better deal.

    This lack of customer loyalty has far-reaching implications. Data shows that only 52% of consumers who sign up for a new retail subscription will actually keep it. Higher discounts have been linked to decreased willingness to pay renewal fees. Plus, data from QPilot found that the more discounts you offer, the more churn you’ll have.

    Instead, engage customers in long-term commitment opportunities. Research from Attest found that customers see more value in a 12-month commitment with two months free than with a shorter commitment coupled with larger monetary savings.

    Discounts devalue your brand

    The strength of the subscription-based model is in its ability to create belonging. As Jay Myers of Bold Commerce said at SubSummit, “People want to be a member of a brand, like a member of a sports team.”

    Promo codes and discounts negate this approach. According to Nancy Harhut at HBT Marketing, coupon codes lead to distracted customers, with studies showing 27% of potential buyers abandoning their carts in search of coupon codes.

    Coupon codes can also cause consumers to have post-purchase regret. When a customer pays full price for a product and later sees a promo code spot offering the same item or service for a discount, they begin to question the value of their previous purchase.

    Discounts train a consumer to think they can get your product somewhere else for less money. This ultimately makes your product or service appear replaceable.

    Instead, look to attract those who are shopping for experience and community. The strongest brands put an emphasis on the value they can provide in a customer’s journey.

    Related: 6 Good Reasons to Ditch Offering Discounts

    Discounts directly impact perceived customer value

    Offering a discount puts your name in the marketplace, but it doesn’t set you apart. In fact, the vast majority of subscription-based cancellations stem from voluntary churn, according to SUBTA’s State of Subscription Annual Report. Factors include price, perceived value and poor customer service.

    That’s why the best brands focus on identifying what their target customer wants and delivering on that value. This involves shifting to a lifecycle journey, where brands consider the experiences a customer faces as they go through life. Then, they perfect a core offering that helps in that lifecycle.

    This in-depth understanding of a customer allows you to stay engaged in a way no discount can. Rather than offering a promo code, brands with a central understanding of client value can identify value-add opportunities to engage their ideal customer on a regular basis, instigating belonging and inclusion.

    What to offer instead

    Discounts are not the only way to gain customers or increase value. Rather, consider some of these tactics in the new year:

    • Get creative with product-sourcing partnerships: Look for ways to incorporate unique, boutique items from up-and-coming brands who want exposure.

    • Clearly communicate the value of your price point: Furniture subscription company, Fernish, does just this by comparing the actual price a customer will pay for a piece with the value of the subscription.

    • Embrace the cancellation: Haroon Mokhtarzada of RocketMoney (formerly Truebill) encourages making the cancellation process as easy as possible and then surveying those cancellations to impact customer loyalty. In fact, the likelihood of re-subscription has been found to go up when it’s easy to cancel.

    • Utilize Subscribe & Save options: If your brand is a replenishment business, utilize the subscribe and save feature to upsell for a longer-term commitment and an increase in perceived value. More than 60% of consumers report that Subscribe & Save programs make their lives easier.

    Discounts downplay the power of your brand. Instead of jumping on the promo value bandwagon, look for ways to utilize customer data to drive meaningful subscriber experiences. Creating value add-ons that promote long-term commitment and a loyal customer base will ultimately impact your bottom line and make for a more confident brand.

    Related: Reasons Why Heavy Discounting Cannot Lead to Sustainable Growth

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    Chris George

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  • Chinese EV maker Xpeng cuts prices after Tesla move

    Chinese EV maker Xpeng cuts prices after Tesla move

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    Chinese electric car maker Xpeng Inc. has cut prices for most of its vehicles by around 10%, joining other auto makers in lowering prices as competition heats up in the country’s fast-expanding electric-vehicle market.

    The company said in a statement on Tuesday that it will slash prices for multiple versions of its P7, P5 and G3i models by 20,000 yuan (US$2,970) to CNY36,000 yuan, representing about a 10% drop from current prices. In particular, the starting price for Xpeng’s
    XPEV,
    -1.19%
    best-selling P7 sedan will be reduced by 12.5%.

    The price cuts will take effect from Tuesday afternoon, the company said. Xpeng has kept prices unchanged for its new G9 model.

    For car owners who purchased Xpeng automobiles before the price cut, Xpeng said it will extend maintenance services for free as compensation.

    Xpeng’s move came after Tesla Inc.
    TSLA,
    -0.94%
    lowered its China selling prices earlier this month. EV makers have been increasingly seeking to fend off rising competition from emerging rivals and traditional car makers’ stepped-up push into the EV industry, where previously soaring sales growth is expected to cool down amid higher market saturation.

    Write to Yifan Wang at yifan.wang@wsj.com

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  • U.S. home prices fall for fourth month in October as high mortgage rates bite

    U.S. home prices fall for fourth month in October as high mortgage rates bite

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    The numbers: The S&P CoreLogic Case-Shiller 20-city house price index fell 0.5% in October, its fourth monthly decline. 

    Year-over-year prices rose rose 8.6%, slowing from 10.4% in the previous month.

    A broader measure of home prices, the national index, fell a seasonally adjusted 0.3% in October from September.

    A separate report from the Federal Housing Finance Agency showed home prices remaining flat in October, down from a 0.1% gain the prior month. 

    And over the last year, the FHFA index was up 9.8%.

    Key details: Miami, Tampa, and Charlotte reported the highest year-over-year gains among the 20 cities in October. All 20 cities reported lower price increases.

    San Francisco and Seattle reported the lowest year-over-year gains, which have seen prices fall by more than 10% from a peak in May.

    Big picture: Housing is in a slowdown, but affordability hasn’t returned. Homes are still expensive, as mortgage rates remain above 6%, and inventory of homes available for sale remains low.

    What S&P said: “As the Federal Reserve continues to move interest rates higher, mortgage financing continues to be a headwind for home prices,” Craig J. Lazzara, managing director at S&P DJI, said.

    “Given the continuing prospects for a challenging macroeconomic environment, prices may well continue to weaken,” he added.

    Market reaction: The Dow Jones Industrial Average
    DJIA,
    -0.22%
    and the S&P 500
    SPX,
    -0.63%
    were up in early trading on Tuesday. The yield on the 10-year Treasury note
    TMUBMUSD10Y,
    3.807%
    rose above 3.81%.

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  • Tesla Doubles Discounts on Model 3 and Model Y Vehicles

    Tesla Doubles Discounts on Model 3 and Model Y Vehicles

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    Tesla Doubles Discounts on Model 3 and Model Y Vehicles

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  • Canada Producer Prices Slip in November

    Canada Producer Prices Slip in November

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    By Robb M. Stewart

    OTTAWA–Producer prices in Canada eased in November, led by energy products, and Canadian companies paid slightly less for raw materials.
    

    Statistics Canada’s industrial product price index fell 0.4% in November from the month before, when the index advanced 2.4%. On a 12-month basis, the producer-price index increased 9.7%.
    

    

    Excluding energy products, producer prices were unchanged on-month in November, the data agency said.
    

    Energy and petroleum products prices fell 2.7% from the month before, with prices for finished motor gasoline and diesel fuel both lower. Market data show that the downward trend continued into the first half of December, Statistics Canada said.
    

    The price of softwood lumber was down for a fourth consecutive month in November, in part a reflection of a cooling housing market in Canada and the U.S., and prices for motorized and recreational vehicles also slipped from October, the agency said. Prices rose for primary non-ferrous metal products, in part due to the appreciation of the Canadian currency against the U.S. dollar.
    

    The industrial product price index measures the prices that manufacturers in Canada receive once their goods leave the plant. It doesn’t reflect the final prices consumers pay for goods on store shelves.
    

    The raw materials price index, which tracks prices paid by manufacturers, was down 0.8% from October, driven by a fall in crude energy products that more than offset the largest month-over-month increase in prices for natural gas since the agency began measuring the index in 1980. Compared with a year earlier, prices for raw materials were up 8.0% in November.
    

    Annual consumer inflation held steady in October after peaking in June, Statistics Canada said last month. The agency will release November’s consumer-price index on Wednesday.
    

    The Bank of Canada, like the Federal Reserve, has aggressively raised interest rates this year to tackle inflation but recently signaled the rate cycle may be coming to an end. The central bank this month again lifted its monetary policy rate, bringing the cumulative increase this year to 4 percentage points for a key rate of 4.25%, the highest level in almost 15 years.
    

    Write to Robb M. Stewart at robb.stewart@wsj.com
    

    

    

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  • 
		
		
    
			
    The PC boom has gone bust, and we are about to see the results ahead of Black Friday
    
			
    The PC boom has gone bust, and we are about to see the results ahead of Black Friday
    
			
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    The pandemic-fueled personal-computer boom has ended, so how will that affect demand and pricing for PCs and the retailers that sell them this holiday season?
    

    A sense of the fallout will be provided in the week ahead with results due from PC makers Dell Technologies Inc.
    
        DELL,
    
        +0.67%
    
      and HP Inc.
    
        HPQ,
    
        +0.17%    ,
    
       along with videoconferencing platform Zoom Video Communications Inc.
    
        ZM,
    
        -1.15%
    
      and electronics chain Best Buy Co Inc.
    
        BBY,
    
        +2.88%    
      
    

    

    All of those companies will report amid signs of deep holiday discounting for products such as clothing and electronics, after many customers — stuck at home in 2020 and 2021 — loaded up on laptops and other goods and turned Zoom into a digital conference room. But this year, decades-high inflation, and a return to prepandemic spending on travel and hanging out in person, have forced retailers and electronics makers to adjust to a world where more people are spending on essentials.
    

    PC shipments have fallen at rates not seen since at least the 1990s. Adobe
    
        ADBE,
    
        -2.06%
    
      has said online holiday discounts for electronics have been as steep as 17%. For computers, they’ve run for as much as 10% less. TVs are also being sold for cheaper. Holiday-season forecasts have generally called for sales increases, helped by price increases and enduring demand despite those price increases. 
    

    In-depth: The pandemic PC boom is over, but its legacy will live on
    

    However, results from Target
    
        TGT,
    
        +0.54%
    
       on Wednesday missed big on third-quarter earnings, and the big-box retailer said it was bracing for a possible decline in fourth-quarter same-store sales, citing “softening sales and profit trends that emerged late in the third quarter and persisted into November.” Results from Walmart
    
        WMT,
    
        +1.51%
    
       were almost the opposite, however, detailing earnings that beat by a wide margin and a raised full-year outlook. 
    

    Among smaller retailers, discounter Ross Stores Inc.
    
        ROST,
    
        +9.86%
    
       hiked its full-year profit forecast, citing sales momentum but easier year-over-year comparisons up ahead. But Williams-Sonoma Inc.
    
        WSM,
    
        -6.15%
    
       noted “macro uncertainty” and “increasingly inconsistent” demand. 
    

    This week in earnings
    

    The companies report during a shortened, quieter week — thanks to Thanksgiving — and after concerns about a recession have hung over much of the year. With 94% of S&P 500
    
        SPX,
    
        +0.48%
    
      companies having already reported third-quarter results, only a dozen are set to release earnings in the week ahead. 
    

    But among those 94%, there are signs that preoccupations with a downturn might be easing, after the economy grew during the third quarter and reversed after two quarters of declines. 
    

    FactSet senior analyst John Butters, in a report on Thursday, said 179 companies have mentioned the term “recession,” during earnings calls in the third quarter. That’s still above the average over 10 years, but it’s below the 242 companies that mentioned a recession in the second quarter. 
    

    Previously: Executives seem pretty convinced a recession is coming
    

    Elsewhere on Monday, J.M. Smucker Co.
    
        SJM,
    
        +1.11%
    
       — best known for Folgers and Jif — reports results, following concerns about higher food prices and how much higher they might go. Life-sciences electronics maker Agilent Tecnologies Inc.
    
        A,
    
        +1.21%
    
       report results on Monday as well. Fast-food chain Jack in the Box Inc.
    
        JACK,
    
        
    
       reports Tuesday. Tractor and construction-vehicle Deere & Co.
    
        DE,
    
        +0.31%
    
       reports Wednesday, following production and supply-chain snarls but steady demand. 
    

    The calls to put on your calendar
    

    Clothing demand, discount demand: Urban Outfitters Inc.
    
        URBN,
    
        +2.44%
    
       reports Monday, while Burlington Stores Inc.
    
        BURL,
    
        +4.63%    ,
    
       Nordstrom Inc.
    
        JWN,
    
        +1.71%
    
       and dollar-store chain Dollar Tree Inc.
    
        DLTR,
    
        -0.21%
    
       report on Tuesday. 
    

    The discounting wave across clothing retailers, an effort to clear inventories, might attract more consumers, but it’s worried Wall Street analysts focused on margins and the bottom line. Still, some analysts have said that more younger shoppers feel like their wardrobes are getting stale, and they say Nordstrom, whose customers tend to have more money, is best geared for “an upcoming wardrobe refresh.”
    

    Off-price clothing and home-goods retailer Burlington, meanwhile, will report after rival discounters Ross and TJX received a lift from investors this week. 
    

    See also: The holiday-shopping season has a different problem this year than last — and it could lead to some deals
    

    Ross’ chief executive, Barbara Rentler, noted that rising prices had hurt its lower-income consumers. But Jefferies analysts said that Burlington and other discounters, which often buy up goods that other retailers don’t want, stood to benefit from the inventory purge. 
    

    Dollar Tree, meanwhile, reports as more shoppers seek cheaper grocery options, but as food prices rise nonetheless. But Bank of America analysts, in a note last month, said traffic data implied a “slowdown” heading into the results. 
    

    The numbers to watch
    

    Demand trends for PCs, electronics: Dell and HP report in the wake of deeper job cuts across the tech industry, while Zoom tries to tack on more features — such as calendar and email functions — to appeal to small business and adapt to a hybrid-work world. 
    

    The PC boom’s demise hit home at Dell during its prior quarter, reported in August, after personal-computer sales at the company came in below estimates. Executives, at that time, said PC demand had fallen and that “customers are taking a more cautious view of their needs given the uncertainty.” 
    

    Opinion: Tech earnings are about to dive, and there’s no life preserver in sight
    

    Some analysts, however, signaled that some degree of investor pessimism was already baked into the stock prices.   
    

    “We recognize the deteriorating industry fundamentals in relation to PCs as well as incremental slowdown in IT Infrastructure. That said, we believe the magnitude of the cuts last quarter set up Dell to be less exposed to another round of material earnings revisions,” JPMorgan analysts said in a note. And even as HP feels similar pain, analysts there said share buybacks could be “a bright spot.”
    

    Results from HP and Dell could also have implications for Best Buy, which sells laptops, TVs, phones and other electronic devices. 
    

    “Recall that initial expectations for the year were that BBY would face pressure as it lapped stimulus-fueled spending and broad-based demand for technology products and services,” Wedbush analysts said in a note on Friday. 
    

    “However, the macro has been more volatile than expected with consumers facing significant inflationary pressures and lower-income households are making decisions to trade down in some categories such as televisions.”
    

    

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    Black Friday surprise: Jeff Bezos tells people NOT to buy cars, refrigerators and other big-ticket items. Critics call him out.
    
			
    Black Friday surprise: Jeff Bezos tells people NOT to buy cars, refrigerators and other big-ticket items. Critics call him out.
    
			
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    Billionaire Jeff Bezos, who founded the e-retail behemoth Amazon, has some spending tips as Americans gear up for a holiday shopping season — amid four-decade high inflation and recession worries.
    

    Here’s what he said:
    

    

    

    
        “‘If you’re an individual and you’re thinking about buying a large-screen TV, maybe slow that down, keep that cash, see what happens. Same thing with a refrigerator, a new car, whatever. Just take some risk off the table.’”
      
    

    

    

    Bezos made the comments in a CNN
    
        WBD,
    
        +0.46%
    
       interview that aired this week, the same interview where he pledged to give away most of his fortune in his lifetime.
    

    

    Why did Bezos offer the tip for consumers and small business to go easy on big-ticket items? He gave one big reason.
    

    “If we’re not in a recession right now, we’re likely to be in one very soon,” he said in the interview, picking up on his cautionary tweet last month that “the probabilities in this economy tell you to batten down the hatches.”
    

    Bezos is currently executive chair at Amazon
    
        AMZN,
    
        -2.34%    ,
    
       transitioning to the role last year as Andy Jassy took the reins as CEO. 
    

    Later this week, Amazon confirmed it was laying off some of its staff in its device and services business — joining a growing list of tech companies, including Facebook parent Meta
    
        META,
    
        -1.57%
    
       — that is laying people off. Amazon’s job cuts could number around 10,000, according to the Wall Street Journal. 
    

    

    

    
        “Critics have taken aim at these words of thrift coming from a man — now worth approximately $120 billion — who built Amazon into the online shopping bonanza.”
      
    

    

    

    To be sure, Bezos is not alone is his worries about a potential recession as the Federal Reserve and other central banks fight higher costs by hiking interest rates.
    

    But his advice prompted some guffaws on social media. In a nutshell, critics say these are words of thrift coming from a man — now worth approximately $120 billion — who built Amazon into the online shopping bonanza that lets consumers seamlessly spend money.
    

    As Joshua Becker, a proponent of minimalism wrote on Twitter: “I didn’t hear him mention refraining from Amazon’s Prime Day deals or Black Friday offers, but I recommend adding those items to your list as well.”
    

    Regardless of how anyone feels about hearing spending advice, particularly from one of the world’s richest people, there are some things to consider as events like Black Friday and Cyber Monday approach.
    

    For one thing, maybe there are discretionary expenses where people can cut back. Many Americans are still spending briskly, as Walmart
    
        WMT,
    
        -0.34%
    
       third-quarter earnings and October’s retail-sales numbers recently affirmed. Holiday-spending projections paint the same picture.
    

    Americans will spend between $942.6 billion and $960.4 billion on holiday-season sales this year, according to projections from the National Retail Federation. Last year’s holiday sales totaled $889.3 billion, the trade association said.
    

    

    

    
        “During the third quarter, Americans’ credit-card balances climbed to $930 billion, the biggest annual increase in more than 20 years, according to the National Retail Federation.”
      
    

    

    

    But Americans are planning for the holidays while credit-card balances are increasing — likely because credit cards are helping them keep up with rising costs.
    

    During the third quarter, Americans’ credit-card balances climbed to $930 billion, the biggest annual increase in more than 20 years, according to Federal Reserve Bank of New York data.
    

    While balances grow, so do credit-card interest rates. The annual percentage rate (APR) on new credit-card offers averaged 19.14% in mid-November, according to Bankrate.com. That beats the old record on APRs for new cards, set at 19% three decades ago.
    

    The holiday shopping season is typically when Americans accumulate credit-card debt, pay the debts in the early part of the coming year and repeat the holiday-season debt the following year.
    

    This year, the stakes could be higher if high credit-card bills arrive and a recession-induced job loss follows.
    

    “It’s not the time to overspend and have a problem with paying your bills later,” Michele Raneri, vice president of financial services research and consulting at TransUnion
    
        TRU,
    
        -4.94%    ,
    
       one of the country’s three major credit bureaus, previously told MarketWatch. “We know the economy is sending mixed messages.”
    

    

    

    

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