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This is an Impact Pricing Blog published on October 17, 2024, turned into an audio podcast so you can listen on the go.
Read Full Article Here: https://impactpricing.com/blog/profit-vs-market-share-which-should-your-business-prioritize/
If you have any feedback, definitely send it. You can reach us at [email protected].
Now, go make an impact.
Connect with Mark Stiving:
Email: [email protected] LinkedIn: https://www.linkedin.com/in/stiving/ -
Mike Wilkinson is referred to as The Value Sales Expert whose focus is on value and value selling.
In this episode, Mike shares what is involved in a successful value-based selling to enable tailored solutions that address specific challenges of your customers. He emphasizes the importance of measuring and reinforcing delivered value while developing ongoing relationships to uncover new opportunities and ensure long-term success.
Why you have to check out today’s podcast:
Learn about a five-step value-based selling framework to help you master value-based selling and deepen customer relationships. Gain Insights from real-world perspectives, practical advice, and candid reflections on overcoming common sales challenges. Discover how to shift from a product-first to a customer-first mindset and transform your sales approach."The most important thing from a seller's point of view is be confident in your price. And the way to be confident in your pricing is to make sure that you know, you're absolutely certain, that the value that you are delivering is more than a match for the price you're going to be charging."
- Mike Wilkinson
Topics Covered:
02:21 - Mike describing what he does
02:52 - Elaborating on the concept of value
07:33 - Highlighting the 'Value Triad' as it relates to the value drivers
11:08 - Mike's approach to teaching value-based selling
14:46 - Outdated sales practices that focus on pushing products rather than solving customer problems
16:48 - Thoughts on Zig Ziglar's sales principles and the importance of value discovery in the sales process
21:48 - How to ask impact-driven questions
24:07 - Detailing an effective value discovery and value demonstration to ensure a successful conclusion
26:51 - What value delivery means
28:07 - Value development and what it encompasses and the importance of regular reviews
29:33 - Mike's best pricing advice
Key Takeaways:
“Until we understand how our customers are defining value for them, then to all intents and purposes, value is a mystery. And as sellers in particular, our job is to solve that value mystery.” - Mike Wilkinson
“It’s your customer that defines value, not you.” - Mike Wilkinson
“Until you've understood what the issues are from the customer's point of view, you do not have a solution.” - Mike Wilkinson
People/Resources Mentioned:
McKinsey: https://www.mckinsey.com Zig Ziglar: https://en.wikipedia.org/wiki/Zig_Ziglar Seth Godin: https://www.sethgodin.comConnect with Mike Wilkinson:
Website: https://axiavalue.com/ LinkedIn: https://www.linkedin.com/in/mikewilkinson-thevalueexpert/ Email: [email protected]Connect with Mark Stiving:
LinkedIn: https://www.linkedin.com/in/stiving/ Email: [email protected] -
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This is an Impact Pricing Blog published on October 10, 2024, turned into an audio podcast so you can listen on the go.
Read Full Article Here: https://impactpricing.com/blog/what-every-team-should-learn-from-pricing-experts-focus-on-value/
If you have any feedback, definitely send it. You can reach us at [email protected].
Now, go make an impact.
Connect with Mark Stiving:
Email: [email protected] LinkedIn: https://www.linkedin.com/in/stiving/ -
Daniel Cho has over 29 years of experience in the healthcare industry, currently serving as the Senior Director of Global Pricing at Philips Healthcare. With a background in sales, product management, and pricing strategy, Daniel has a unique perspective on how to effectively communicate value to customers and drive profitability.
In this episode, Daniel shares his journey into pricing and the critical importance of understanding the value your product delivers to customers. He emphasizes that pricing should not just be about features but about the economic, operational, emotional, clinical, and societal value that resonates with different stakeholders. Through real-world examples, Daniel illustrates how a well-structured pricing strategy can lead to stronger, more profitable relationships.
Why you have to check out today’s podcast:
Discover the five key value drivers that can transform your pricing strategy and enhance customer relationships. Learn how to effectively communicate value to different stakeholders within a healthcare organization, from CFOs to clinical staff. Gain insights into structuring contracts and pricing metrics that align with customer needs and perceptions of value.“Resist on the discount as much as possible. Look for every other ways to solve it rather than the discount. The discount should always be a last resort and not the first thing you want to deliver or give.”
– Daniel Cho
Topics Covered:
02:33 - Daniel's journey into pricing
03:23 - The power of pricing strategy, using segmentation and perceived value to differentiate identical products for distinct markets
06:58 - How two identical products can be integrated differently with existing pricing ecosystems
07:57 - Leveraging his expertise in data analysis to establish Philips' first pricing department
12:11 - Initiating a value-based approach at Philips to create, price, and articulate value
14:22 - Defining value and discussing the 5 key value drivers in a health organization
18:03 - Tailoring value propositions and demonstrating how those four other value streams ultimately lead to financial and strategic benefits
25:22 - An effective sales training Daniel created that teaches salespeople to tailor value-based pitches to different stakeholders’ priorities
31:27 - Daniel's best pricing advice
Key Takeaways:
“We cannot continue to sell features and benefits, we have to go and sell value.” - Daniel Cho
“If the product is not value-based, you can't ask the salespeople to sell value because you have to start from the product that actually deliver and generate value. So, we started from the product managers.” - Daniel Cho
“The first one is economic value. Very simple. Help me to make more revenue or help me to save costs so I have an economic benefit.” - Daniel Cho
“The next value is the emotional value. How can we create a better experience for the patients and also their own staff so the staff don't get burnout.” - Daniel Cho
“Financial value, although as strong as it is, doesn't resonate with everyone.” - Daniel Cho
“Stop giving discounts for free. Always get something back from the customer.” - Daniel Cho
People/Resources Mentioned:
Philips Healthcare: https://www.philips.com/ Apple Watch Launch: https://www.apple.com/ Bausch and Lomb Contact Lens Case: https://www.bausch.com/Connect with Daniel Cho:
LinkedIn: https://www.linkedin.com/in/danielkkcho/Connect with Mark Stiving:
LinkedIn: https://www.linkedin.com/in/stiving/ Email: [email protected] -
This is an Impact Pricing Blog published on October 3, 2024, turned into an audio podcast so you can listen on the go.
Read Full Article Here: https://impactpricing.com/blog/for-b2b-value-is-incremental-profit/
If you have any feedback, definitely send it. You can reach us at [email protected].
Now, go make an impact.
Connect with Mark Stiving:
Email: [email protected] LinkedIn: https://www.linkedin.com/in/stiving/ -
Lisa Thompson has corporate experience that spans software/SaaS, industrial manufacturing, life sciences/healthcare, medtech, fintech, and B2B services. Together with clients, she delivers unique, actionable solutions tailored to their organizational needs and realities leading to profitable, sustainable revenue and growth.
In this episode, Lisa shares the importance of deeply understanding the economic value your product delivers to customers and aligning it with their buying processes, highlighting that many companies fall short in these areas. Through real-world examples, Lisa shows how uncovering the true drivers of customer satisfaction can transform pricing strategies and lead to stronger, more profitable relationships.
Why you have to check out today’s podcast:
Deep dive into the critical importance of understanding and quantifying the economic value your product delivers to customers so you gain actionable insights to refine your approach. Gain valuable guidance on structuring contracts, from incorporating escalators to aligning terms with customer needs, ensuring profitability and flexibility in volatile markets. Learn how to evaluate and select pricing metrics that truly reflect the value customers derive, unlocking hidden revenue opportunities."In the metric, understand how you currently charge customers. Not the price level, but the price metric. Double check to see if that aligns with whether they get high value or low value. If it doesn't, we don't necessarily have the right metric. There can be magic and a lot of money in getting the metric right."
- Lisa Thompson
Topics Covered:
01:43 - How she ended up in pricing
03:44 - Why value-based pricing is not simply charging higher prices for more value
05:32 - Highlighting the nuances in pricing strategies, explaining ways to leverage value other than higher prices
11:39 - Sharing a lighthearted story about Tom Nagle's amusing moments
13:37 - Emphasizing what many companies struggle to do with deal structuring
16:50 - Explaining why understanding the economic value of a product must come hand in hand with a deep knowledge of the customer's buying process
23:02 - The need for long-term contracts to include appropriate escalators and de-escalators
26:54 - Why contract structures should align with how customers perceive and experience value
30:59 - Lisa's best pricing advice
Key Takeaways:
"Just because value's high, it doesn't mean I can always get a high price for it." - Lisa Thompson
"One of the things I want people to understand in our work is that getting a price premium or charging more than you used to charge isn't the only way to get paid for adding more value." - Lisa Thompson
"We know the value, but that's not the same thing as knowing the buying process." - Lisa Thompson
People/Resources Mentioned:
Tom Nagle: https://impactpricing.com/podcast/604-insights-into-value-based-pricing-strategies-for-b2b-with-tom-nagle/ Reed Holden: https://impactpricing.com/podcast/ep97-pricing-in-the-new-normal-with-reed-holden/ Gilette: https://gillette.comConnect with Lisa Thompson:
LinkedIn: https://www.linkedin.com/in/lisa-spadafora-thompson/ Email: [email protected]Connect with Mark Stiving:
LinkedIn: https://www.linkedin.com/in/stiving/ Email: [email protected] -
This is an Impact Pricing Blog published on September 23, 2024, turned into an audio podcast so you can listen on the go.
Read Full Article Here: https://impactpricing.com/blog/pricing-new-products-myth-1/
If you have any feedback, definitely send it. You can reach us at [email protected].
Now, go make an impact.
Connect with Mark Stiving:
Email: [email protected] LinkedIn: https://www.linkedin.com/in/stiving/ -
Every decision can make or break profitability, and pricing remains one of the most powerful yet underutilized levers. There is fear that often holds companies back from taking bold steps in pricing. How about getting a proven playbook to guide you?
Get to have a peek at Mark Stiving's groundbreaking new book, Instant Profits: How to Raise Prices Without Losing Customers.
In this episode, together with Mark and guest-host, Rebecca Kalogeris, we explore how this concise, impactful guide empowers executives and decision-makers to conquer pricing fears, implement value-based strategies, and unlock untapped revenue potential—all in under an hour of reading. Let's bring your pricing game to a whole new level and make a lasting impact.
Why you have to check out today’s podcast:
Gain access to the behind-the-scenes of the making of Instant Profits book and how it showcases a concise, actionable guide that can help executives make meaningful changes in their companies. Delve into the common fear of raising prices and gain actionable strategies to address it and boost your revenue confidently. Learn how to price based on the value delivered rather than arbitrary metrics in order to optimize profitability."If you are an executive, this book is awesome because it gives you a chance to read about what you could or should be doing in pricing, and you can do it in less than an hour. Come up with at least one or two ideas of things you can go do, and it's going to make the company money."
- Mark Stiving
Topics Covered:
01:43 - The reason why Mark wrote the book, Instant Profits: How to Raise Prices Without Losing Customers
03:18 - Mark highlighting how fear of raising prices can hinder action
04:47 - How his new book, Instant Profits: How to Raise Prices Without Losing Customers differ from the previous one
06:05 - Why you should go and buy this book for $100 and who should purchase and read it
08:05 - Rebecca explaining Amazon's royalty system and the real reason why the book is priced at $100
10:40 - Kindle version available for now and why the hardcover is still to be released
13:30 - Mark emphasizing what makes this book an invaluable and concise resource for executives
Key Takeaways:
“If you are an executive, this book is awesome because it gives you a chance to read about what you could or should be doing in pricing. And you can do it in less than an hour. Come up with at least one or two ideas of things you can do and it's going to make the company money.” - Mark Stiving
“The reason I'm charging a hundred dollars isn't because I need the 30 bucks or the 70 bucks or something like that. The reason we're charging a hundred dollars is because I want buyers to know that it's worth a hundred dollars. That's it.” - Mark Stiving
People/ Resources Mentioned:
Instant Profits: How to Raise Prices Without Losing Customers by Mark Stiving: https://impactpricing.com/instant-profits-book/
Connect with Mark Stiving:
LinkedIn: https://www.linkedin.com/in/stiving/ Email: [email protected] -
This is an Impact Pricing Blog published on September 19, 2024, turned into an audio podcast so you can listen on the go.
Read Full Article Here: https://impactpricing.com/blog/how-you-reduced-prices-without-you-or-customers-realizing-it/
If you have any feedback, definitely send it. You can reach us at [email protected].
Now, go make an impact.
Connect with Mark Stiving:
Email: [email protected] LinkedIn: https://www.linkedin.com/in/stiving/ -
Mike Danford is a Growth Optimizer - CSO, UX Strategist and Product Management Consultant at Adverio.io
In this podcast, Mike shares valuable insights on optimizing pricing strategies for businesses, emphasizing the importance of testing and adjusting prices regularly to stay competitive. He discusses the complexities of Amazon's Buy Box. He also provides practical advice for businesses with tight margins, highlighting how small pricing adjustments can lead to significant improvements in profitability, especially when using dynamic pricing strategies.
Why you have to check out today’s podcast:
Gain actionable strategies for optimizing pricing in competitive markets with concrete examples of how small pricing changes can impact profits. Learn about the complexities of Amazon’s Buy Box, including how pricing, seller ratings, and competition affect your visibility and sales potential. Discover how to leverage dynamic and intraday pricing strategies to stay competitive, including tips on when and how to make real-time price adjustments."If you haven't tested pricing, do it today. Don't wait. There's no better time than right now."
- Mike Danford
Topics Covered:
01:36 - What paved his entry into pricing
02:21 - Explaining how in B2C dynamic pricing is critical to staying competitive across platforms like Amazon and Walmart, where frequent promotions and price changes impact rank and visibility
03:27 - Defining 'Omnichannel'
03:59 - How brands sell through these omni channels and how brick-and-mortar sales data can be integrated with online data to enhance omnichannel strategies
05:03 - 'Omnichannel pricing' and the challenges that comes with it
07:20 - A strategy used to avoid direct price comparison
07:45 - Strategies for effective omnichannel pricing to maximize sales
12:00 - Describing how price adjustments are often small, typically starting below 3% to gauge elasticity
13:52 - The three main buckets of categorizing pricing strategy
16:15 - Explaining Amazon's automated pricing tools and third-party repricing software that generally adjust prices dynamically
18:55 - How the Amazon buy box has been a competitive issue since the platform’s early days
21:20 - Hourly changes being typically unnecessary unless there’s exceptionally high product turnover
23:25 - How geolocation-based pricing isn’t possible on major marketplaces
25:08 - Maintaining control over the buy box on Amazon
26:27 - Mike's best pricing advice
Key Takeaways:
“If you haven't tested pricing, do it today. Don't wait. There's no better time than right now. If you tested it a year ago and you haven't touched it, or you did it six months ago, do it again. The market is constantly changing. Be willing to make those small changes.” - Mike Danford
People/Resources Mentioned:
Amazon: https://www.amazon.com Home Depot: https://en.wikipedia.org/wiki/Home Walmart: https://www.walmart.com Best Buy: https://www.bestbuy.com Target: https://www.target.comConnect with Mike Danford:
Linked: https://www.linkedin.com/in/danfordmike/ Website: https://www.adverio.io/Connect with Mark Stiving:
LinkedIn: https://www.linkedin.com/in/stiving/ Email: [email protected] -
This is an Impact Pricing Blog published on September 12, 2024, turned into an audio podcast so you can listen on the go.
Read Full Article Here: https://impactpricing.com/blog/mastering-the-good-better-best-strategy-a-guide-to-increasing-win-rates-and-revenue/
If you have any feedback, definitely send it. You can reach us at [email protected].
Now, go make an impact.
Connect with Mark Stiving:
Email: [email protected] LinkedIn: https://www.linkedin.com/in/stiving/ -
Mark Boundy is a business builder, sales leader, author, coach, consultant, teacher…and Chief Clarity Officer…he has grown businesses in a variety of industries using a relentless focus on customer-perceived value.
In this episode, Mark discusses the importance of aligning every employee's actions with customer value, emphasizing that every touchpoint with a customer either creates or destroys value. He shares stories from his experience, including a manufacturing operator and a receptionist, to illustrate how seemingly small ideas can have significant impacts on customer satisfaction and business outcomes. Boundy underscores that value creation is about helping customers achieve desired outcomes, and this focus can drive growth, profitability, and employee fulfillment across all levels of an organization.
Why you have to check out today’s podcast:
Discover real-life stories about how employees at every level, from operators to receptionists, can innovate to drive customer satisfaction and business results, making it relatable and motivating. Gain actionable strategies to ensure every team member understands how their role impacts customer value, helping you foster a culture focused on positive customer experiences. Learn how traditional metrics can sometimes hinder value creation, providing tips on aligning KPIs with customer-centric goals to achieve greater long-term success."Customer value comes from two things, one, your differentiation, and two, the outcome that customer achieves because of your differentiation."
- Mark Boundy
Topics Covered:
01:25 - Sharing the experience that gave rise to using the word 'antipreneurial' in his book
04:08 - The importance of flexibility within processes, contrasting rigid corporate guidelines with adaptable checklists
07:41 - Stressing the importance of a value-oriented organization not just sales around delivering customer outcomes
09:14 - Highlighting the importance of aligning sales and implementation teams to ensure realistic promises are made to customers
12:39 - What it requires to create a value-driven organization
16:09 - Emphasizing the need to prioritize customer-focused KPIs over purely efficiency-driven ones with real-life illustrations
20:12 - How focusing on customer satisfaction and adding value leads to substantial growth, high profitability, and employee satisfaction
21:35 - Stressing a point that employees feel more fulfilled and engaged when they understand how their work directly impacts customers’ lives
22:51 - Defining value and illustrating how value was created by understanding customer outcomes deeply
26:51 - Mark sharing how anyone in the company, even janitors and receptionists can add value
Key Takeaways:
"If the most important process in your company is your customer's buying journey, and your KPI has nothing to do with that buying journey, that's a yellow light." - Mark Boundy
"If maximizing that KPI inhibits the customer journey, I call that a masking KPI. You're measuring something that makes you worse by making yourself good at stopping the customer from complaining. You get bad at turning customers into joyous partners." - Mark Boundy
People/Resources Mentioned:
The Infinity Effect How Elite Growth Companies Abolish Antipreneurial Patterns and Create More Profitable, Happy, Lifetime Customers by Mark Boundy: https://www.amazon.com/Infinity-Effect-Summary-Antipreneurial-Profitable-ebook/dp/B0D1NNLWRH Lucent technologies: https://lucenttek.com/index.html Cisco: https://www.cisco.com/#tabs-35d568e0ff-item-194f491212-tab Miller Heiman Group: https://www.kornferry.com/about-us/our-story/miller-heiman-group Zappos: https://www.zappos.com Barefoot Wines: https://www.barefootwine.comConnect with Mark Boundy:
LinkedIn: https://www.linkedin.com/in/markboundy/ Website: www.boundyconsulting.com Email: [email protected]Connect with Mark Stiving:
LinkedIn: https://www.linkedin.com/in/stiving/ Email: [email protected] -
This is an Impact Pricing Blog published on September 5, 2024, turned into an audio podcast so you can listen on the go.
Read Full Article Here: https://impactpricing.com/blog/uncover-hidden-profits-with-our-opportunity-signals-worksheet/
If you have any feedback, definitely send it. You can reach us at [email protected].
Now, go make an impact.
Connect with Mark Stiving:
Email: [email protected] LinkedIn: https://www.linkedin.com/in/stiving/ -
Steven Forth is Ibbaka’s Co-Founder, CEO, and Partner. Ibbaka is a strategic pricing advisory firm. He was CEO of LeveragePoint Innovations Inc., a SaaS business.
In this episode, Steven emphasizes the importance of shaping willingness to pay by understanding and communicating real value to customers. He also highlights the role of AI and context-driven pricing in adapting to customer needs dynamically, stressing that consistent delivery and documentation of promised value are crucial for long-term retention.
Why you have to check out today’s podcast:
Explore the nuances of pricing strategies, distinguishing between perceived, real, and proven value and how each impacts customer retention and willingness to pay. Learn why documenting value delivered to customers can significantly reduce churn, with actionable steps to demonstrate value in B2B sales. Gain insights on Context-Driven Pricing, offering a fresh approach to optimize pricing in real time."You need to make sure that the value you promise in sales is the value that you deliver and that you can document that value. Because if you don't do that, you're going to struggle with renewals."
- Steven Forth
Topics Covered:
02:09 - Why Steven believes that value-based pricing and willingness to pay are distinct, with value coming first shaping willingness to pay
06:19 - How techniques from behavioral economics, like anchoring, actually impact value perception rather than solely increasing willingness to pay
07:12 - Acknowledging Mark's example of using "good-better-best" as a framing strategy but argues that it’s more than just a "trick"
10:40 - Introducing his concept of generative pricing, which leverages generative AI to dynamically adjust product configurations and prices based on each buyer’s context
12:35 - Steven emphasizes the need for a clear value model rather than solely relying on AI-driven willingness-to-pay estimates
14:49 - Highlights how value is not only unique to each customer but also varies over time for the same customer
17:05 - Underscoring that willingness to pay is actively shaped by how a company communicates and delivers value
18:34 - Emphasizes the need for a value model in pricing, contrasting it with software approaches like revenue management that estimate willingness to pay without actively shaping it
20:37 - Explaining why B2B pricing cannot rely on traditional price elasticity curves
21:36 - Steven's best pricing advice
Key Takeaways:
"Willingness to pay is an outcome that you shape. It's not something that is given to you by something outside of your product and how you sell it, and that you play a huge role in defining the context." - Steven Forth
"We want people to pay a fair amount of money. If I can trick someone into paying more than something's valuable, greater than its actual value, and value in this case means the economic return they're going to get, I don't think I've done myself a service in the long term." - Steven Forth
People/Resources Mentioned:
Pros: https://pros.com Pricefx: https://www.pricefx.com Zilliant: https://zilliant.com Vendavo: https://www.vendavo.com Tom Nagle: https://impactpricing.com/podcast/604-insights-into-value-based-pricing-strategies-for-b2b-with-tom-nagle/ Barret Thompson: https://impactpricing.com/?s=barrett+thompson B.F. Skinner: https://en.wikipedia.org/wiki/B._F._SkinnerConnect with Steven Forth:
LinkedIn: https://www.linkedin.com/in/stevenforth/ Email: [email protected]Connect with Mark Stiving:
LinkedIn: https://www.linkedin.com/in/stiving/ Email: [email protected] -
This is an Impact Pricing Blog published on August 29, 2024, turned into an audio podcast so you can listen on the go.
Read Full Article Here: https://impactpricing.com/blog/better-stories-better-pricing/
If you have any feedback, definitely send it. You can reach us at [email protected].
Now, go make an impact.
Connect with Mark Stiving:
Email: [email protected] LinkedIn: https://www.linkedin.com/in/stiving/ -
George Boretos has over 25 years of professional experience in leadership positions in the enterprise software market, a deep understanding of AI technologies, and a successful journey as an entrepreneur launching three startups and raising $9mn in Seed & Series A funding, working with Fortune 500 and other customers worldwide. His most recent endeavor, FutureUP, brings in this experience to help enterprises make data-driven decisions to optimize pricing, improve profitability, and accelerate growth.
In this episode, George shares about using AI for price optimization, particularly in SaaS and manufacturing industries. He explains how his company, FutureUP, helps businesses analyze customer and macroeconomic data to determine optimal pricing strategies, focusing on standardized products. He also discusses AI’s role in predicting pricing for new markets and the importance of taking the first step to review and adjust prices regularly.
Why you have to check out today’s podcast:
Learn how AI is revolutionizing pricing strategies, particularly in SaaS and manufacturing sectors. Gain a deeper understanding of the key differences between pricing in B2B and B2C markets, including negotiation tactics, price variance, and strategic vs. deal-based pricing. Discover practical advice on how to approach pricing in your business, including why regular pricing reviews and value-based pricing can make a big impact."Just start doing something. Even if this something is, okay, reexamine your prices. Not once per two years or per year, examine them every quarter of a year, at least. Not just your cost plus your margin, do something a bit more sophisticated. Ask your customers, for instance, or your partners to establish some other benchmarks and interesting price points."
- George Boretos
Topics Covered:
01:32 - How he got started in pricing and how he initially got into AI before pricing
03:39 - The differences between AI when he started versus today’s advanced tools
05:57 - Describing his AI model and how it integrates various parameters at multiple levels
08:06 - Clarifying the common perception of AI being synonymous with neural networks as a misconception
11:04 - Explaining that for his particular model, the formulas are pre-existing and universal
12:31 - Agreeing that AI today can incorporate both internal company data and external factors
14:07 - What his company FutureUP is built out for
17:42 - How extrapolating data from one country to another can be challenging if the data sample is small
19:10 - Explaining how his company, FutureUP’s model can handle both B2B and B2C markets
20:15 - Key differences between B2B and B2C pricing strategies
22:47 - How price variance is more common in B2B though in B2C there can still be significant price differences between list and actual price
23:35 - What company size does FutureUP typically targets
24:32 - George's best pricing advice
26:18 - Two main reasons companies don't often prioritize or experiment with pricing
27:55 - Why change management is crucial in pricing decisions
Key Takeaways:
"I do believe, and I do agree that the negotiation part and the discounting part is more complex and more interesting and more important for the B2B environment. The list prices are almost irrelevant." - George Boretos
People/Resources Mentioned:
FutureUP: https://www.futureup.io
Connect with George Boretos:
LinkedIn: https://www.linkedin.com/in/georgeboretos/overlay/contact-info/
Connect with Mark Stiving:
LinkedIn: https://www.linkedin.com/in/stiving/ Email: [email protected] -
This is an Impact Pricing Blog published on August 22, 2024, turned into an audio podcast so you can listen on the go.
Read Full Article Here: https://impactpricing.com/blog/evils-of-behavioral-economics/
If you have any feedback, definitely send it. You can reach us at [email protected].
Now, go make an impact.
Connect with Mark Stiving:
Email: [email protected] LinkedIn: https://www.linkedin.com/in/stiving/ -
Stephen Plume has more than 20 years of success in venture, executive leadership, and consulting. He is a General Partner of an early-stage venture fund since 2019, driving business strategy and coaching executives in the portfolio.
In this episode, Stephen discusses how AI is shifting pricing models from human-based to consumption-based metrics. He emphasizes the importance of identifying the right value metric that resonates with customers encouraging businesses to experiment with pricing to uncover hidden revenue and margin opportunities.
Why you have to check out today’s podcast:
Gain insights into the cutting-edge pricing strategies for AI companies and how these differ from traditional user-based models to get a glimpse of the future of tech pricing. Learn about actionable strategies like identifying the right value metric and conducting low-risk pricing experiments, which can help businesses capture hidden revenue and improve margins. Deep dive into how venture capitalists think about returns, risk, and value, which can benefit entrepreneurs and business owners seeking to understand how to attract investment."There is so much opportunity to learn from low-risk pricing experiments, and people worry so much about their reputation. Get over that feeling, go out and experiment, and learn from it."
- Stephen Plume
Topics Covered:
01:54 - A funny thing about Stephen not related to pricing
02:46 - How he found his way into pricing
04:21 - Reflecting on his first pricing project with Sybase
05:57 - Contrasting enterprise-level pricing with startup pricing, highlighting the complexity of pricing for larger companies
09:12 - The importance of focusing on the Ideal Customer Profile (ICP) for early-stage companies
10:39 - Explaining how companies often face pricing erosion as they grow and introducing the concept of 'layering' and 'fencing'
16:38 - Discussing how companies, like HubSpot and Salesforce, often start by solving a specific problem with a focused solution but later expand by adding numerous features and add-ons
17:27 - Delving into the concept of competitive positioning
21:40 - The importance of delivering significant value to customers to motivate a decision to switch from a competitor or the status quo
25:09 - Sharing insights about pricing for AI companies and broader trends in AI adoption
29:14 - Discussing the concept of pricing metrics in the context of AI and SaaS
30:32 - Stephen's best pricing advice
Key Takeaways:
"When I'm working with early stage companies my drumbeat is, don't worry about anybody else right now, worry about your ideal customer profile. Because they are the ones who, by definition because math is a thing, will pay you more money faster than anyone else." - Stephen Plume
"In the venture world what I tell the early companies I work with is, for someone to take a bet on you, they're expecting venture returns. They need to be getting 10X their money out. That's not just the investors. That's the customers need to be getting 10X their cost out, or they're not going to adopt you." - Stephen Plume
"The advantage of a platform growing to solutions is, if you do it right, your margins improve rather dramatically." - Stephen Plume
People/Resources Mentioned:
Sybase: https://en.wikipedia.org/wiki/Sybase Salesforce: https://www.salesforce.com/ap/?ir=1 Cisco: https://www.cisco.com/#tabs-35d568e0ff-item-194f491212-tab Regis McKenna: https://en.wikipedia.org/wiki/Regis_McKenna Geoffrey Moore: http://geoffreyamoore.com Steve Blank: https://steveblank.com HubSpot: https://www.hubspot.com Zoom: https://zoom.us LinkedIn: https://www.linkedin.com Siebel: https://www.oracle.com/ph/cx/siebel/ Zendesk: https://www.zendesk.com Intercom: https://www.intercom.com Clayton Christensen: https://en.wikipedia.org/wiki/Clayton_ChristensenConnect with Stephen Plume:
LinkedIn: https://www.linkedin.com/in/stephenplume/
Connect with Mark Stiving:
LinkedIn: https://www.linkedin.com/in/stiving/ Email: [email protected] -
This is an Impact Pricing Blog published on August 15, 2024, turned into an audio podcast so you can listen on the go.
Read Full Article Here: https://impactpricing.com/blog/value-based-pricing-a-simple-definition/
If you have any feedback, definitely send it. You can reach us at [email protected].
Now, go make an impact.
Connect with Mark Stiving:
Email: [email protected] LinkedIn: https://www.linkedin.com/in/stiving/ -
Barrett Thompson is a firm believer that applied advanced math and data science can significantly improve customer lifetime value. For more than 25 years, he has helped Fortune 500 companies improve profitability and grow revenues by delivering science-based, optimized decision models. He has found that relying on the accuracy and objectivity of predictive models to guide daily decisions, rather than more subjective methods, yields superior financial results for B2B companies.
In this episode, Barrett shares AI's role in pricing, how it enhances pricing strategies, identifies trends, and improves pricing decisions. He also highlights the value of understanding customer-specific needs and using data to create more tailored and effective pricing models.
Why you have to check out today’s podcast:
Deep dive into how AI, particularly tools like ChatGPT, can revolutionize pricing strategies, making it more efficient, transparent, and data-driven. Gain valuable advice on how B2B companies can simplify and modernize their pricing processes, avoiding the pitfalls of outdated methods when adopting new pricing systems. Have a clear understanding of how to effectively implement purpose-built pricing tools to enhance profitability and competitiveness."If they undertake an automation of their pricing process into these modern purpose-built pricing tools, they should look very closely and critically at how to simplify their pricing process as they put that onto a superior platform."
- Barrett Thompson
Topics Covered:
01:14 - Touching a bit on the topic of the Boy Scouts program and how it is a valuable tool for character development and citizenship
01:51 - How he found a path into pricing
03:26 - Discussing the qualitative and not just the quantitative aspect to pricing
05:17 - How automated pricing systems can balance efficiency and personalization
09:14 - Explaining how AI holds great potential in generating "smart prices"
11:36 - Reflecting on the rise of generative AI and how AI in general has already influenced pricing systems
13:50 - Exploring the potential of generative AI to enhance negotiation and communication in B2B sales
15:35 - Discussing how understanding a customer's specific use case or application can directly influence pricing decisions
16:33 - Talking about how understanding a customer's specific use case or application can directly influence pricing decisions
17:57 - Highlighting how AI, like ChatGPT, can enhance tools used by pricing professionals by streamlining the process of analyzing pricing data
20:41 - Addressing the "black box" problem in pricing systems and expanding on the idea of using AI to explain its own decisions
24:14 - The importance of deepening the understanding of customer needs, particularly as the push for touchless and self-service channels grows
28:43 - Barrett's best pricing advice
Key Takeaways:
"An important part of setting up any price guidance, price recommendation or price automation system is to ensure that you've identified the factors that were really important in driving price outcomes in the market." - Barrett Thompson
"Pricing becomes a consequence of having agreed on the value and why it matters." - Barrett Thompson
"We gather data to enrich the relationship and define places to add more value to the customer. Yes, the seller should be compensated for fair value, but not to be exploitative." - Barrett Thompson
People/Resources Mentioned:
ChatGPT: https://chatgpt.com
Connect with Barret Thompson:
LinkedIn: https://www.linkedin.com/in/barrettthompson/
Connect with Mark Stiving:
LinkedIn: https://www.linkedin.com/in/stiving/ Email: [email protected] - Daha fazla göster
