Co-operation between TP and ePP

Transfer pricing (TP) and European Pricing Platform (ePP) are working together as co-operating partners in the future. So if we can support you and your company in determining (ePP) or verifying (TP) of your prices, let us know.

Transfer Pricing is a discussion board in the fields of Global Transfer Pricing and international taxation. Here you will find information as well as support in complying with legal requirements for MNE’s as well as in structuring transactions in a manner to optimize the global tax rate of the group. This forum aims at sharing information and knowledge on Transfer Pricing related issues. Furthermore, this forum should also serve as a common meeting place for global Transfer Pricing consultants to share/obtain new contacts. We also talk about International Payroll and Global Tax in general.

The ePP offers your company to have the right pricing tactics in place to guarantee customer loyalty and deliver sustained margin growth to your business. Enhance your pricing know-how and be successful in it by joining this dynamic and yet resourceful pricing platform.

Be a part and join our communities!

More information: Ulrike Wehlmann www.xing.com / group “Transfer Pricing” or ulrike.wehlmann@googlemail.com

Britt Dejager www.pricingplatform.eu or Britt Dejager@pricingplatform.eu

Large price differences between EU banks

Brussels, Sept. 24th. In Italy you pay 253 euro’s per year to ‘costs’ for an ordinary bank account. In France is that 154 euro’s, in The Netherlands 46 and in Bulgaria 27. Research done by the European Commission von 224 banks in the European Union shows this. The Commission calls these differences “unacceptable”.

The researchers also conclude that the banks are being vague about the costs. According to the European law, banks must be transparent on the costs of standard services like depreciation and money withdrawals. But in 66 percent of the cases, the researchers had to call the banks because websites gave unclear or incomplete information. With one in ten banks there was even nothing on it. And also by telephone the researchers didn’t receive some data. Some banks only gave oral information about rates and refused to put them on paper. The banks that were investigated represent 81 percent of the market.

The researchers also looked at the rates for specialised services like closing a personal loan. Banks in Italy and Spain are by far the most expensive, followed by France and Austria. The cheapest countries are Bulgaria, The Netherlands, Belgium and Portugal. In the cheapest countries, the banks seemed less vague about the costs.

The report shows that 9 percent of the customers changed banks over the last two years. According to European Consumer Organisation BEUC this number would be higher if there were clearer price lists. The BEUC receives many complaints about unclear pricing and calls it “exploitation”. The Commission wants national banking supervisors to ensure that existing consumer rights are better respected.

Brussel, 24 sept. In Italië betaal je 253 euro per jaar aan ‘kosten’ voor een doodgewone bankrekening. In Frankrijk is dat 154 euro, in Nederland 46 en in Bulgarije 27. Dat blijkt uit onderzoek dat de Europese Commissie heeft laten doen onder 224 banken in de Europese Unie. De Commissie noemt de verschillen „onaanvaardbaar”.

W De onderzoekers concluderen ook dat banken vaag doen over de kosten. Volgens de Europese wetgeving moeten banken transparant zijn over de kosten van standaarddienstverlening als afschrijvingen en geldopnames. Maar in 66 procent van de gevallen moesten de onderzoekers banken bellen omdat websites onduidelijke of onvolledige informatie gaven. Bij één op de tien banken stond er zelfs niets op. En ook telefonisch kregen de onderzoekers bepaalde gegevens niet. Sommige banken gaven alleen mondeling informatie over tarieven en weigerden die op papier te zetten. De onderzochte banken vertegenwoordigen 81 procent van de markt.

De onderzoekers bekeken ook tarieven voor gespecialiseerder diensten als het afsluiten van een persoonlijke lening. Banken in Italië en Spanje zijn verreweg het duurst, gevolgd door Frankrijk en Oostenrijk. De goedkoopste landen zijn Bulgarije, Nederland, België en Portugal. In goedkopere landen bleken banken minder vaag over de kosten.

Uit het rapport blijkt dat 9 procent van de klanten de afgelopen twee jaar van bank wisselde. Volgens de Europese consumentenorganisatie BEUC zou dit aantal hoger zijn als er heldere prijslijsten waren. De BEUC krijgt veel klachten over onduidelijke prijsbeleid, en noemt het „uitbuiting”. De Commissie wil nationale banktoezichthouders vragen er op te letten dat bestaande consumentenrechten beter worden nageleefd.

Starbucks’ New Pricing Strategy: The Beginning of the End?

Starbucks recently announced a revamped pricing structure. Prices for many of its popular (read: lower-end) products such as brewed coffees and lattes are headed downwards. A spokesperson claims that this is the first time in Starbucks’ history that prices have been reduced. According to an article written by Claire Cain Miller in the New York Times, the coffee purveyor is also redesigning its menu to feature lower priced brewed coffees, as well as offering promotions on iced drinks. This strategy makes sense: the struggling economy dictates discounts and McDonald’s brewed coffees and lattes are stealing price sensitive customers.

Paradoxically, Starbucks is also increasing the prices of its higher-end more complex drinks including Frappuccinos and caramel macchiatos, of which there is less competition from rivals. In some cases, prices are rising by 30 cents (8%). There is some justification for this price increase. In Starbucks recent quarterly earnings release (third quarter ending June 28), same store sales in the U.S. were down by 6%. Broken down, 4% of this decline was due to fewer transactions (customers defecting to McDonald’s, for instance) and the remaining 2% from a decrease in average value per transaction. Thus, for the most part, customers who continued to patronize Starbucks spent the same amount on each visit.

So why raise prices right now when demand is waning? Some speculate that Starbucks is trying to make the most profit from its devoted customers who are hooked on its products. In other words, its specialty drinks are in the cash cow phase of the Boston Consulting Group’s Growth Share Matrix. For products in this cash cow phase, the general recommendation is to reduce investments and simply harvest profits from current demand. All successful products have their heyday of strong growth and then eventually reach a point where demand remains constant or decreases. After all, remember when CB radios and radar detectors were the rage? When a product reaches the cash cow stage of its lifecycle, the general strategy is to take the money and run. What are the chances that macchiatos will experience a growth surge in the future?

With rivals (including McDonald’s and Dunkin Donuts) stealing share from Starbucks’ lower-end products and concerns about the growth of its highly differentiated premium coffee drinks, what’s the growth driver that justifies Starbucks’ current price to earnings ratio of 59? This high p/e ratio indicates that investors feel the company has higher potential growth opportunities than the average company (in contrast, GE’s p/e ratio is 10.5 and Wal-Mart’s is 15).

A company’s pricing strategy can be a good indicator of its future growth potential

Tour operators go online with flex prices

More and more tour oper ators remove the price annexes from the paper travel guide. With fluid pricing, the right prices are determined online per day. Printed copies are too static and also dated when they come out.

The first tour operator worldwide with flex prices, was Thomas Cook. They launched the movement six months ago. In The Netherlands the OAD is having a test run. “At this time we look at how it runs with the Barcelona guide. We want to see the responses from the retail when they don’t have a paper attachment”, said Louis Frankenhuis, CEO of OAD Group. The expectations are positive. Though it will take ‘getting some used to’, thinks Frankenhuis : “ You break with a century-old phenomenon. The front desk employee at a travel agency likes having something to do. “Even market leader TUI has banned all paper price annexes. They now communicate with minimum and maximum prices in the paper guides. The current overview is online.

Traditional

When OAD announced their plans, there came mixed reactions from the travel agencies. The question is whether travel agencies aren’t afraid that with the online price annex, the consumer will also immediately make a booking online. “We understand the fear, but you still have that risk.

Dated

With an online price annex the travel agency is able to show the most recent prices. “In the previous situation, when the annex was printed, you often had a dated version. That was a static whole. “With fluid pricing the prices are determined per day, based on demand and supply, depending on a favourable or unfavourable procurement. Before there were already summer bookings in January or February. Partly under pressure of the economic conditions, and the online opportunities that the consumer has, that changed. Bookings keep coming in later. The paper price annexes needed more updates per season. Frankenhuis: “The customer books later, based on availability. With paper, this was hard to keep up. In time, the other guides of OAD will also get an online price annex. “But will continue communicating price levels. The print catalogue will get a more magazine-look, rather than a product-price character.

Touroperators gaan online met flexprijzen

Steeds meer touroperators schaffen de prijsbijlagen uit de papieren reisgids af. Met fluid pricing, worden online de juiste prijzen per dag bepaald. Papieren versies zijn te statisch en bovendien gedateerd wanneer ze uitkomen.

De eerste touroperator wereldwijd met flexprijzen, was Thomas Cook. Zij zetten de beweging een half jaar geleden in gang. In Nederland heeft OAD een test lopen. "Op dit moment kijken we hoe dat loopt bij de Barcelona-gids. We willen zien hoe er gereageerd wordt vanuit de retail wanneer ze geen papieren bijlage in de hand hebben", aldus Louis Frankenhuis, CEO van OAD Groep. De verwachtingen zijn positief. Al zal ‘het even wennen zijn', denkt Frankenhuis: "Je breekt met een eeuwenoud fenomeen. De baliemedewerker bij een reisbureau heeft toch graag iets in handen."Ook marktleider TUI heeft alle papieren prijsbijlagen verbannen. Zij communiceren nu met minimale en maximale prijzen in de papieren gidsen. Het actuele overzicht staat online.

Traditioneel

Toen OAD de plannen aankondigde kwamen er vanuit de reisbureaus gemengde reacties. "In die zin zijn we vooruitstrevend bezig in een traditionele omgeving. Ik zie dat onze collega's ook volgen." De vraag is of reisbureaus niet bang zijn dat er met de online prijsbijlage door de consument ook meteen online een boeking wordt gedaan. Hiermee zou de retail overgeslagen worden. "We begrijpen de angst, maar dat risico heb je toch.

Gedateerd

Met een online prijsbijlage is het reisbureau nu wel in staat de meest actuele prijzen te laten zien. "In de situatie hiervoor, had je, wanneer de bijlage was gedrukt, vaak meteen een gedateerde versie in handen. Dat was een statisch geheel." Met fluid pricing worden de prijzen per dag bepaald, op basis van vraag en aanbod, afhankelijk van een gunstige, of ongunstige inkoop. Voorheen waren de zomerboekingen misschien al in januari of februari binnen. Mede onder druk van de economische omstandigheden en de online mogelijkheden die de consument heeft, is dat veranderd. De boekingen komen steeds later binnen. De papieren prijsbijlagen hadden per seizoen meerdere updates nodig. Frankenhuis: "De klant boekt later, op basis van beschikbaarheid. Met papier was dat niet bij te houden." Op termijn zullen ook de andere gidsen van OAD een online prijsbijlage krijgen. "Maar we blijven wel prijsniveaus communiceren. De ‘van en tot-prijs'", laat de CEO weten. Zo krijgt de print cataloog meer een magazine-uitstraling krijgen, in plaats van een product-prijs karakter

Questions about pricing policy mobile navigation

Manufacturers of mobile navigation-applications for the iPhone, such as TomTom, still try different things with the type of pricing policy that they need to implement on the phones. Some count entry prices of a few dollars, others just become popular with prices up to 100 euros.

Since Apple released the new operating system of the iPhone last month, the price of mobile navigation software increased significantly. This is shown by a new report from the Utrecht Start-up Distimo, specialised in mobile analytics.

Vincent Hoogsteder: “The new operation system is like TomTom route planning, ‘turn by turn navigation’”. A number of parties subsequently issued their navigation software. We see that among the producers there is still no clarity about the price model to use. Some sell a total of between 25 and 75 dollars, others just for a few dollars. With the last category you have to pay extra for new cards or monthly subscriptions.

According to Hoogstreder, MobileNavigator Europa seemed to touch a good cord, despite the high price. “ They were in the top 10 of most downloaded applications worldwide, while with a price tag of 100 dollars.

Vraagtekens bij prijsbeleid mobiele navigatie

Fabrikanten van mobiele navigatie-applicaties voor de iPhone, zoals TomTom, stoeien nog met het type prijsbeleid dat ze op telefoons moeten voeren. Sommige rekenen instapprijsjes van een paar dollar, anderen worden juist populair met prijzen tot 100 euro.

Sinds Apple vorige maand het nieuwe besturingssysteem van de iPhone uitbracht is het prijspeil van mobiele navigatiesofware aanmerkelijk gestegen. Dat toont een nieuwe rapportage van de Utrechtse start-up Distimo, gespecialiseerd in mobiele analytics, aan.

Vincent Hoogsteder: “Het nieuwe besturingssysteem staat TomTom-achtige routeplanning toe, ‘turn by turn navigation’”. Een aantal partijen bracht vervolgens zijn navigatiesoftware uit. We zien dat er onder de producenten nog geen duidelijkheid is over het te gebruiken prijsmodel. Sommigen verkopen een totaalpakket voor tussen de 25 en 75 dollar, anderen juist voor een paar dollar. Bij die laatste categorie moet je extra betalen voor nieuwe kaarten of voor maandabonnementen”.

MobileNavigator Europe bleek, volgens Hoogsteder, ondanks de hoge prijs een goede snaar te raken. “Die stond met een prijskaartje van 100 dollar toch een tijdje in de top 10 van meest gedownloade applicaties wereldwijd”.