Impact Pricing

Dan Foster is a Chief Operating/Revenue Officer, who built and transformed profitable businesses across technology and telecom start-ups as well as industry powerhouses. Companies turn to him to revive struggling businesses by redefining sales, marketing and customer service strategy, scaling infrastructure, and promoting product innovation. In this episode, Dan shares how bundled solutions increase value and close rates. He discusses AI's growing role in B2B sales and procurement. And stresses using data to understand customer needs and justify pricing. Why you have to check out today's podcast: Learn how bundling products and services can enhance perceived value, increase close rates, and prevent price-sensitive buyers from deconstructing your offerings. Gain insights into how AI is transforming the sales landscape, from optimizing product recommendations to procurement teams using AI to negotiate better prices. Understand why pricing should be tied to the customer's business outcomes and how to communicate the true value of your solutions effectively. "You take the data around a pricing example and you really understand the value from the end user's perspective, so you got to have that empathy back in to say what moves their business. And when we understand what moves their business with a few numbers, then you start to give the underpinning for why value pricing matters." - Dan Foster Topics Covered: 02:01 - How his early consulting work made him think about value and led him to pricing 03:23 - Asking about typical reactions to pricing presentations 04:24 - Explaining that selling value starts with understanding product-market fit 07:03 - Highlighting the importance of teaching distribution partners how to sell value, using the Home Depot-SolarCity partnership as an example 10:43 - How can ROI calculators be convincing 14:07 - Explaining that while they don't track proven value directly due to lack of data, anecdotal feedback and supplier insights indicate improved close rates for partners 15:09 - How AI is reshaping product offerings, expanding technology advisors' roles, and influencing cost-cutting for innovation 19:10 - Highlighting that while AI may drive procurement efficiencies complex digital transformation solutions still rely on expertise 20:27 - How bundling simplifies purchasing and reinforce the value of an all-in-one solution 24:27 - Dan's best pricing advice Key Takeaways: "If you want to buy a ton of storage and it's a commodity, we get that. That could go through the marketplace earlier than not. If you want a digital transformation, if you want to change your customer experience, if you want to make your business run faster, if you want business process automation and robotic process automation, that's not going through a dynamic pricing model on a marketplace near-term. Now, can I go out and look at, like, UiPath Licensing versus Automation Anywhere versus whoever Microsoft scooped up next and look at pricing models? The procurement folks are probably smart to do that." - Dan Foster "But the bundled solution specifically is, I think, fundamental because otherwise, when you offer them the menu-based pricing, oftentimes they don't see the full value." - Dan Foster "It [selling value] starts with that product-market fit. We do a lot of enablement of our partners or downstream almost like a two-tier distributor. And in doing that we provide the ability for them to see a higher close rate when they use tools and resources. It alleviates that conversation and it's inherent that there's value pricing there." - Dan Foster "It's critical to think through in a subscription-based model what that value is, because that customer acquisition cost versus the long-term value of a customer, it's a critical ratio to understand when you're thinking through pricing." - Dan Foster People/Resources Mentioned: Cummins Engine Company: https://www.cumminsenginepart.com/ Unilever: https://www.unilever.com Alcoa: https://www.alcoa.com/global/en/home/ Amazon: https://www.amazon.com/Selling-Value-Deals-Higher-Prices/product-reviews/1737655217/ref=cm_cr_dp_d_show_all_btm?ie=UTF8&reviewerType=all_reviews& SolarCity: https://en.wikipedia.org/wiki/SolarCity Home Depot: https://www.homedepot.com Azure: https://azure.microsoft.com/ Google: https://www.google.com/?client=safari Lowe's: https://www.lowes.com Sun Power: https://us.sunpower.com Sunrun: https://www.sunrun.com TD Synnex: https://www.tdsynnex.com/na/us/ Ingram Micro: https://www.ingrammicro.com Five9: https://www.five9.com Genesys: https://www.genesys.com/en-sg/ NICE inContact: https://www.nice.com/ Zoom: https://zoom.us Dialpad: incontact.com/content/home.htm ChatGPT: https://chatgpt.com Wall Street Journal: https://www.wsj.com/ Automation Anywhere: https://www.automationanywhere.com Microsoft: https://www.microsoft.com/en-ph/ UiPath Licensing: https://licensing.uipath.com/ Hulu: https://www.hulu.com/welcome?orig_referrer=https%3A%2F%2Fwww.google.com%2F Roku

This is an Impact Pricing Blog published on January 6, 2025, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/understanding-context-4-key-factors-that-influence-customer-willingness-to-pay/ 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/

Rich Mironov provides product management leadership and coaching to large and small tech companies, with more than 150 clients since 2001. His focus includes: Coaching VPs of Product and CPOs, Organizing the product organization, and Stepping in (occasionally) as a 'smokejumper' VP of Product Management. In this episode, Rich shares that product managers must define economic value before development. He believes sales teams should communicate, not calculate, value using simple tools. And he advises focusing on broad market data instead of over-relying on top accounts. Why you have to check out today's podcast: Learn how to define and communicate economic value effectively. Understand how sales teams and product managers can align for better pricing decisions. Gain actionable tips on framing value in sales conversations without overwhelming buyers. "You want to look for an aggregate set of data about what's happening in your marketplace as opposed to attaching a lot of overweight to your two largest accounts." - Rich Mironov Topics Covered: 01:22 - Describing his journey into product management and an overview of his role here 03:40 - Differentiating B2C pricing versus B2B pricing as it relates to product management 09:33 - Discussing the balance between standardized pricing for most customers and the reality of frequent one-off deals in B2B 11:28 - How to systematize B2B pricing to reduce one-off deals and encourage standardization 16:59 - Aligning sales compensation with margin to protect long-term profitability 18:39 - Highlighting how enterprise sales teams generalize individual client demands as market-wide needs 20:26 - Why product teams must define economic value before development 25:00 - Agreeing that product teams must define value early but debates how to present it, with Mark favoring customer-driven insights and Rich emphasizing the need for quantifiable justification to close deals 26:25 - Acknowledging that while ROI calculators aren't inherently trusted, they're valuable as a conversational tool 28:37 - Rich's best pricing advice Key Takeaways: "I believe a fundamental obligation of product management if we're building something that needs this kind of discussion [communicate economic value], is to do the economic math before we start the development. Not after." - Rich Mironov "Expecting my sales team to be economists is unrealistic. And so, on the product side, I feel like I owe my sales team some narrative that they can read off the page, yes, fill in the numbers, fill in the values, or fill in the quantities. But the value story has to be baked into the product." - Rich Mironov "We lead with benefits, we lead with stories, we lead with vignettes, we lead with problems. But the last two paragraphs of that have to justify somebody actually signing a contract." - Rich Mironov People/Resources Mentioned: JPMorganChase: https://www.jpmorganchase.com New York Stock Exchange: https://www.nyse.com/index Connect with Rich Mironov: LinkedIn: https://www.linkedin.com/in/richmironov/ Website: mironov.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 December 23, 2024, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/dynamic-vs-stable-context-a-framework-for-smarter-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/

Ed Arnold works with B2B companies to develop their value-based pricing strategies. His specialty is translating a company's competitive advantage into a viable customer value pricing strategy, as well as advising on commercial execution. In this episode, Ed shares when value conversations are most effective. He highlights the need to tailor value models to each prospect through open-ended questions that uncover key business drivers. Because when value is clearly demonstrated, price becomes a secondary concern, resulting in smoother sales and fewer pricing objections. Why you have to check out today's podcast: Learn why guiding customers to do their own value math is more persuasive than presenting a pre-made ROI model. Discover how value conversations shift the focus from cost to impact, making price negotiations smoother. Understand why dumping numbers on customers backfires and how to engage them in a way that builds trust and buy-in. "As customers, we have a good sense of what a great deal is. But as sellers, we're much less certain about what that value is. You need to have value conversations to get at that." - Ed Arnold Topics Covered: 00:57 - How he accidentally got into, left, and keeps returning to pricing 03:25 - Explaining how pricing challenges often signal deeper business issues 08:46 - Why customers distrust ROI calculators 11:05 - What value conversation is all about and how to effectively go through it 14:00 - Emphasizing that trust is built through reliability and honest engagement 16:57 - How many good salespeople are there and what make good salespeople 19:17 - The importance of market focus and playbooks in sales 20:49 - Showing the most effective value conversation to have 25:03 - How he trains salespeople on value conversations 29:53 - Noting that while he focuses on larger customers, the same value-based principles apply to marketing lower-ACV products 30:24 - Ed's best pricing advice Key Takeaways: "You cannot solve any pricing issue without tackling the strategy. And if the strategy is flawed, then the pricing isn't going to help you." - Ed Arnold "...and this is the thing that I think about value stories. It's not about the product. It's about the customer. The customer is the star of the story." - Ed Arnold People/Resources Mentioned: Steven Forth: https://www.linkedin.com/in/stevenforth/ Forrester: https://www.forrester.com/bold/ Monitor Deloitte: https://www.deloitte.com/global/en/services/consulting/services/monitor-deloitte.html Leverage Point: https://www.leveragepoint.com/ Connect with Ed Arnold: LinkedIn: https://www.linkedin.com/in/edarnold1/ Connect with Mark Stiving: LinkedIn: https://www.linkedin.com/in/stiving/ Email: [email protected]

This is an Impact Pricing Blog published on December 16, 2024, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/value-drivers-vs-value-tables-when-to-go-broad-and-when-to-be-specific/ 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. In this episode, Steven shares the potential commoditization of AI pricing agents, explaining how their replication and standardization could drive down differentiation and value. He explores the interplay between AI-driven sales and buying processes, emphasizing that businesses must consider how AI will influence purchasing decisions. He also touches on the potential of AI to simplify legal tasks. Why you have to check out today's podcast: Learn how AI-powered pricing agents compare to SaaS models and why they might face rapid commoditization in the evolving AI landscape. Discover why AI-driven buying decisions are just as important as AI-powered selling strategies—and what that means for the future of pricing. Find out how DeepSeek's approach to AI training and pricing could shake up the industry, with potential implications for OpenAI and other major players. "I think that they need to put themselves in the buyer's shoes and ask themselves, how would I be using AI to make a buying decision?" - Steven Forth Topics Covered: 01:23 - Explaining the four types of AI products and how they impact pricing, automation, and value creation 09:51 - Exploring whether AI agents will become commoditized 12:46 - How complex pricing workflows require multiple AI agents working together as a service, rather than a single standalone pricing agent 14:17 - Explaining that differentiated AI agents with better performance will still command higher prices 19:20 - Highlighting how DeepSeek's advancements in post-training optimization and lower pricing could drive broader AI adoption 21:20 - What makes AI agents more prone to commoditization 23:22 - How SaaS solutions are less prone to commoditization than AI agents 26:32 - Suggesting that tasks like real estate conveyance could be automated by AI agents 29:02 - Steven's best pricing advice Key Takeaways: "A lot of the use cases for outcome-based pricing or results-based pricing really only become relevant when an action is taken on your behalf. And you can evaluate the value of that action and the success of that action." - Steven Forth "Are all agents by nature more subject to commoditization than other parts of the ecology, like copilots or service as software or generators? My gut feeling is that there are going to be agents that are highly differentiated because they rely on highly customized underlying language models and highly tuned prompt sequences that would not be easy for someone else to recreate. And that they'll be able to make better decisions." - Steven Forth "Apart from very specific and narrow cases, I don't think pricing is going to be done by agents. Pricing will be service as software." - Steven Forth People/Resources Mentioned: Grammarly: https://www.grammarly.com Copilot: https://copilot.microsoft.com/onboarding ChatGPT: https://chatgpt.com/ Hugging Face: https://huggingface.co Hubspot: https://www.hubspot.com FinnAI: https://www.finnai.io/en LegalZoom: https://www.legalzoom.com Zendesk: https://www.zendesk.com Microsoft: https://www.microsoft.com/ Pros: https://pros.com Vendavo: https://www.vendavo.com Zilliant: https://zilliant.com Pricefx: https://www.pricefx.com Maxio: https://www.maxio.com DeepSeek: https://en.wikipedia.org/wiki/DeepSeek Connect 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 December 9, 2024, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/unlocking-portfolio-value-through-strategic-price-increases/ 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/

Joshua Lowe is a solution-focused pricing professional with a proven track record in pricing (10 years) and pricing transformation (3+ years). He also has an expertise in implementing and utilizing PriceFX, a cloud-native pricing management software. In this episode, Joshua discusses the evolution of pricing in the auto parts industry, explaining how his company is transitioning from traditional cost-plus pricing to more market-based and value-driven strategies. He highlights the role of data analytics and predictive modeling in optimizing pricing decisions while maintaining fairness and customer retention. Why you have to check out today's podcast: Learn how a major industry player is shifting from cost-plus pricing to market-based and value-based approaches. Discover how analytics and data science shape pricing strategies, ensuring competitiveness and profitability. Understand why leaving some value on the table fosters long-term customer relationships and repeat business. "You've got more pricing power than you might realize." - Joshua Lowe Topics Covered: 01:31 - Joshua describing his journey into pricing 02:55 - Clarifying that Napa Auto Parts is a wholly owned subsidiary of Genuine Parts Company and sharing why he has stayed with Napa Auto Parts 04:27 - How his pricing strategies not only capture value but also reinvest in growth and detailing his role in setting nationwide retail, wholesale, and resale pricing frameworks 06:37 - The evolution of market segmentation in pricing, highlighting shifts between regional and nationwide pricing models and the factors influencing those changes 08:53 - Explaining customer segmentation in pricing, emphasizing the importance of transaction data, value drivers, and willingness to pay 11:27 - Pricing strategies based on delivery distance, emphasizing relationship-based pricing over cost-to-serve 13:09 - Explaining product segmentation and how Napa Auto parts sources products 15:56 - How cost increases from suppliers generally flow through their own pricing 17:03 - The role of cost-plus pricing in the industry and its gradual shift toward market-based and value-based pricing 21:31 - How Napa Auto Parts structures pricing 24:59 - Joshua's best pricing advice Key Takeaways: "There's a lot of price moves that you use in pricing to extract value, but a lot of times too, you're trying to figure out ways to reinvest those wins back into sales so that you can grow." - Joshua Lowe "You never try to extract a hundred percent of the value of any single transaction because you might actually start losing customer retention over time. You want to leave 10, 20% on the table. I've always kind of kept that in the back of my mind as we do certain activities of how we keep the fairness in play as we make pricing actions." - Joshua Lowe People/Resources Mentioned: Gates Corporation: https://www.gates.com/us/en.html Genuine Parts Company: https://www.genpt.com/ Napa Auto Parts: https://www.napaonline.com/ Connect with Joshua Lowe: LinkedIn: https://www.linkedin.com/in/joshua-lowe-42034746/ Connect with Mark Stiving: LinkedIn: https://www.linkedin.com/in/stiving/ Email: [email protected]

This is an Impact Pricing Blog published on December 2, 2024, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/what-is-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/

Dave Brown is a CEO / Founder of QiiQ Healthcare which is developing an AI assistant for healthcare workers, to invigorate the deep sense of fulfillment in delivering high quality care - frictionlessly. In this episode, Dave shares how AI can improve healthcare by providing clinicians with actionable insights from patient data, making consultations more efficient. He highlights the challenge of adopting new technologies in healthcare due to risks and the complexity of changing established systems. Brown also shares insights on the economic impact of healthcare innovations and stresses the importance of doing thorough homework when entering the healthcare market. Why you have to check out today's podcast: Explore the impact of AI in healthcare and how it can improve healthcare outcomes and reduce doctor-patient interaction. Gain insights on healthcare pricing challenges and how understanding stakeholder decisions can lead to more effective solutions. Learn to navigate the massive, evolving healthcare industry and the challenges of making a meaningful impact through technology and pricing strategies. "Do your homework. You cannot wander into this [healthcare] with youthful vigor and expect to change the world easily. And it's certainly not easy to come up with a pricing model that everybody understands and likes." - Dave Brown Topics Covered: 01:46 - How he got interested in pricing and why it mattered to him 03:13 - Detailing how QiiQ Healthcare technology works and what makes pricing for it complicated 10:58 - Sharing how QiiQ is driven by a social mission, as well as mentioning the real challenge in healthcare technology 13:49 - How QiiQ Healthcare technology is demonstrating its value in a leading Parkinson's clinic 15:29 - Addressing patient willingness to pay and the impact of chronic diseases on society 18:34 - How QiiQ technology streamline doctor-patient interactions and save time 21:06 - Using the trolley problem to illustrate the complexity of decision-making in change management 23:31 - Highlighting the challenge of adopting new technology despite its potential, due to uncertainty and mental workload 25:34 - Discussing the challenges of accepting AI in healthcare, drawing analogies to self-driving cars and the risks involved 28:40 - Explaining how the relationship between cost reduction and profits in healthcare is complex and not solely driven by cynicism 29:45 - Dave's best pricing advice Key Takeaways: "Everybody that's working with me is driven by a social need or a social urge. It's extremely common in the healthcare industry. But part of what you're hearing [challenges] is motivated by a deeper grasp of the challenge in adoption. Without adoption, you generate no value." - Dave Brown Connect with Dave Brown: Website: https://www.qiiq.health/ LinkedIn: https://www.linkedin.com/in/davecbrown/ Connect with Mark Stiving: LinkedIn: https://www.linkedin.com/in/stiving/ Email: [email protected]

This is an Impact Pricing Blog published on November 24, 2024, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/confused-buyers-dont-buy-a-case-study-in-how-to-align-saas-pricing-with-customer-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/

Mark Peacock helps B2B Tech & Consulting firms expand margin & revenue growth with tailored pricing solutions & sales enablement. In this episode, Mark shares practical strategies for implementing price increases effectively, including a two-stage communication process to manage customer expectations and reduce resistance. He emphasizes the importance of segmenting clients by price sensitivity and value to tailor pricing strategies and build confidence. Mark also highlighted the need to treat price increases for existing customers with the same care as new business pricing to maximize business impact. Why you have to check out today's podcast: Learn proven strategies to implement price changes confidently without losing customer trust or loyalty. Discover an innovative approach to preparing customers for price increases minimizing resistance, and maximizing acceptance. Explore techniques for segmenting clients, leveraging value-based pricing, and fostering long-term relationships. "Treat price increases for existing customers with the same importance that you do pricing for new business, because it can have such a profound impact on your business and it's nothing to be scared of." - Mark Peacock Topics Covered: 01:48 - Describing his pricing journey 02:58 - The transformative power of smart pricing strategies 06:13 - Check out Mark's article in LinkedIn, 'Raise Prices Without Raising Eyebrows' 06:52 - The importance of putting as much effort into planning and communicating price increases with existing customers as devoting to winning new business 09:21 - The two-stage process to make price increase more acceptable to your customers 12:34 - The third step to communicating your price increase 14:49 - Explaining the value reasons why customers should stick with you [the fourth step] 16:55 - Communicate your 'investment story' [fifth step] 18:44 - Give your customers the options and do away with hard sell [sixth step] 21:53 - Talking about frictionless approach to price increase [seventh step] 23:22 - Important thoughts on the 'do something nice' strategy 26:45 - One top tip to help you segment customers based on price sensitivity and stop churn 27:59 - More techniques for customer segmentation 28:59 - Mark's best pricing advice Key Takeaways: "Communicating a price increase is a sales task, and you would never use negative language in a sales activity." - Mark Peacock "The most important thing about a price increase communication is that there is no hard sell." - Mark Peacock "You need to provide them with some ways to come back to you however they want, either to approve it, to reject it, to discuss it, or if you've got upgrade or downgrade paths as well." - Mark Peacock "Be as open and transparent as possible so that the buyer has total agency and control over that decision, and you are making it entirely their decision because that's how you build trust." - Mark Peacock Connect with Mark Peacock: LinkedIn: https://www.linkedin.com/in/mark-peacock-pricemaker/ Connect with Mark Stiving: LinkedIn: https://www.linkedin.com/in/stiving/ Email: [email protected]

This is an Impact Pricing Blog published on November 18, 2024, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/perfect-pricing-is-impossible-and-thats-ok/ 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 Gilham is an experienced senior executive with a proven track record in finance, strategy, and consulting. He brings deep expertise in driving commercial success, improving operational efficiencies, and influencing industry best practices. In this episode, Mark shares the transformative power of rebates as tools for driving both customer behavior and operational efficiency, rather than just cost-cutting mechanisms. He highlights the importance of designing rebates that align with business goals, such as incentivizing desirable customer actions, improving operational processes, and fostering long-term loyalty. Why you have to check out today's podcast: Learn how rebates can go beyond simple cost-cutting to solve operational challenges, enhance customer loyalty, and drive profitability for your business. Gain insights into how rebates can incentivize customer behaviors that benefit both parties, creating a more collaborative and sustainable business relationship. Discover innovative ways to use rebates to optimize your operations, create efficiencies, and stronger partnerships with customers. "Get out from behind your desk; get away from the spreadsheet and understand your business. Understand what makes your business tick." - Mark Gilham Topics Covered: 01:11 - How he transitioned from accountancy to pricing 02:24 - Explaining why accountants' focus on cost-plus pricing 03:52 - Highlighting how understanding pricing enables finance professionals to interpret data more effectively and influence business outcomes 05:35 - Strategic role of rebates in B2B, their challenges, and how they differ from traditional incentives and discounts 08:18 - Importance of structuring rebates and balancing discounts and rebates in B2B to maintain margins 11:11 - Dynamics of incentivizing end consumers versus channel partners 14:59 - Optimizing rebate structures 20:40 - Sharing how rebates can incentivize operational efficiency 25:55 - Advocating for pricing teams to lead rebate strategies to create lasting customer relationships and reduce reliance on discounting 28:11 - Highlighting the potential of rebates to address operational inefficiencies Key Takeaways: "Immature pricing practices tend to be that cost-plus. And when I say immature, it's not that it's bad, it's just they don't know what good looks like or what's better." - Mark Gilham "A good rebate is a rebate that a manufacturer or supplier wants to pay out." - Mark Gilham "I believe pricing have the tools and the skillset to, and it should be on the sell side, to equip salespeople to go out, not to win an order, but to kind of win a relationship. And make that relationship sticky so that discounting actually is not, it's always going to be important, but hopefully you can take a little bit of that pressure off the table." - Mark Gilham "If you want a better deal from your supplier, think about all the things you could do to make their life easier and ask them, 'What's that worth to you?' And that's a far better way of getting a bit of extra money out of the contract than just saying, 'I want my product for less.'" - Mark Gilham People/Resources Mentioned: Enable: https://www.enable.com Connect with Mark Gilham: LinkedIn: https://www.linkedin.com/in/markgilham/ 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 November 11, 2024, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/you-influence-your-customers-willingness-to-pay/ 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/

Vance Morris is a former Disney Leader turned entrepreneur, coach, speaker and author. He helps businesses deliver extraordinary customer experiences through workshops, boot camps, and training at Disney. In this episode, Vance shares practical strategies for implementing premium pricing by presenting options and building value through transparency and trust. He emphasizes the importance of creating emotional connections with customers to enhance loyalty and retention, even in B2B environments. Additionally, he advocates for confident implementation of price increases, highlighting that many pricing challenges stem from business owners' mindset rather than market resistance. Why you have to check out today's podcast: Learn how to confidently set premium prices and create packages that differentiate your business from competitors. Discover how emotional connections, rather than just logic, can drive customer loyalty and enhance sales, even in B2B settings. Get tips on overcoming common pricing hurdles and improving customer retention through simple yet effective strategies. "People have enough information, they don't have enough implementation; just go do it. You could go out right now, raise your prices 10% and nobody's going to bat an eyelash." - Vance Morris Topics Covered: 01:45 - How he found himself in pricing 02:31 - Sustaining a cycle of value and profitability as inspired by Disney's pricing strategies 05:20 - How he justifies premium pricing in his upholstery cleaning business 08:46 - Demonstrating expertise and showcasing value 11:32 - Emphasizing the value of positioning as a premium service rather than competing on being the second cheapest 13:00 - Maintaining pricing integrity 14:21 - Adapting Disney-inspired strategies to differentiate your business making it incomparable to competitors 16:37 - How to differentiate your products or services, even in competitive markets like B2B software 17:57 - How to foster loyalty, enhance customer retention, and make price increases more acceptable 21:09 - Highlighting the value of small, thoughtful gestures to build a positive reputation and stand out in competition 22:42 - Offering premium pricing tiers in clear, non-salesy manner 24:57 - Vance's best pricing advice Key Takeaways: "Not so much to justify [premium pricing], as it is being able to offer a better experience, which then allows me to charge a higher price, which puts more money in my pocket." - Vance Morris "It's about creating a connection. It's people doing business with people. It's not people doing business with business and creating some kind of emotional connection with the purchasing manager, with whoever's doing the buying. And it just makes selling so much easier." - Vance Morris "When you have that connection, a price increase may not be overlooked, but is a lot more palatable than just hard excel spreadsheets flying around." - Vance Morris "There is no competitive advantage to being second cheapest; if you're not going to be the cheapest, you might as well go the other direction." - Vance Morris People/Resources Mentioned: Disney: https://www.disney.com/ Ritz-Carlton: https://www.ritzcarlton.com/ Dunkin Donuts: https://www.dunkindonuts.com/en Connect with Vance Morris: LinkedIn: https://www.linkedin.com/in/vancemorris/ Website: https://deliverservicenow.com/ Connect with Mark Stiving: LinkedIn: https://www.linkedin.com/in/stiving/ Email: [email protected]

This is an Impact Pricing Blog published on November 4, 2024, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/the-fluid-nature-of-willingness-to-pay-how-context-shapes-your-pricing-strategy/ 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/

Stephan Liozu is a business executive with deep knowledge in pricing strategy, value-based pricing, monetization, and transformations. He speaks the language of sales, pricing, finance, and the C-suite. In this episode, Stephan highlights the need to combine value-based pricing with strong change management for successful transformations. He shares practical segmentation strategies tailored to diverse business needs. Reflecting on his move into pricing software, he explores its potential and the challenges of gaining C-suite support. Why you have to check out today's podcast: Delve into the nuances of value-based pricing and its implementation and practical advice for businesses aiming to maximize profitability while addressing internal and external challenges. Learn about a methodology for effective customer segmentation, practical steps, and real-world applications for targeted strategies. Discover the critical role of change management in successfully implementing pricing strategies and have a deeper understanding of organizational dynamics and leadership in pricing transformations. "You cannot do advanced pricing without advanced change management and change leadership." - Stephan Liozu Topics Covered: 01:10 - Significance of the Chief Value Officer (CVO) title 01:58 - The complexity of defining value within companies 02:52 - Contrasting his roles as a Chief Value Officer at Thales and Zilliant 04:35 - Reflecting on the challenges and uncertain future of the pricing profession with his article on LinkedIn 06:27 - Discussing the challenges of B2B pricing which hinders value-based pricing and the scalability of pricing strategies 12:11 - Advocating for internal pricing centers of excellence as cost-effective 14:01 - Explaining his approach to segmentation 17:26 - Stephan expressing excitement about his Zilliant role, exploring pricing software's potential and questioning its limited market growth 19:07 - The challenges of convincing the C-suite to invest in pricing solutions, suggesting on reframing pricing discussions under a new term 22:31 - Stephan's best pricing advice Key Takeaways: "If you want to industrialize your processes in pricing and value, you have to use an engine, the heart of this engine is software. And be able to touch all the business if possible, at least a large amount of the business." - Stephan Liozu "Pricing professionals should become certified change managers, it should not be an option." - Stephan Liozu People/Resources Mentioned: Thales: https://cpl.thalesgroup.com/software-monetization/software-packaging-pricing Zilliant: https://zilliant.com McKinsey: https://www.mckinsey.com Connect with Stephan Liozu: LinkedIn: https://www.linkedin.com/in/stephanliozu/ Website: https://www.stephanliozu.com/ Connect with Mark Stiving: LinkedIn: https://www.linkedin.com/in/stiving/ Email: [email protected]

Steven Forth is Ibbaka's Co-Founder, CEO, and Partner. Ibbaka is a strategic pricing advisory firm. In this episode, Steven discusses how AI, particularly transformer models, is revolutionizing business strategies by automating complex tasks like value modeling and scenario planning, making them more efficient. He emphasizes the importance of leveraging AI to explore frameworks and generate innovative solutions, such as using AI to better understand industry problems. Steven also highlights the ongoing development of prompt orchestration tools, which will soon become essential for managing AI workflows and optimizing the use of multiple models. Why you have to check out today's podcast: Discover how AI is transforming traditional frameworks like value modeling, scenario planning, and pricing, making complex processes faster and more efficient. Gain insights on how AI can help you better understand problems and create innovative solutions, ultimately improving your decision-making process. Dive into emerging concepts like prompt orchestration and how AI is evolving, giving you the tools to enhance your AI workflows for maximum effectiveness. "Create a series of prompts, create a series of context documents that you can reuse and explore the framework in ways that you never could before and find ways of applying it." - Steven Forth Topics Covered: 02:10 - How no single AI model can meet all needs, thus, advocating for multiple model for diverse perspectives and specialized capabilities 03:11 - Distinguishing between diffusion models and transformer models 05:46 - How does a transformer model work 07:28 - Understanding the [LQMs] Large Quantitative Models, [RAG] Retrieval Augmented Generation and challenges faced by companies like Pros in leveraging customer-owned data 11:39 - How Wolfram/Alpha uses mathematical reasoning to validate and simplify equations and highlighting the emergence of reasoning models for complex problem-solving 15:34 - Steven reflecting on his increasing reliance on AI tools, how they are transforming his thinking, and the need to embrace these technologies as vital partners in enhancing exploration, communication, and decision-making 17:17 - How generative AI enables more dynamic and efficient approaches to scenario planning 23:29 - Emphasizing how leveraging AI with established frameworks accelerates complex tasks like building value models 25:13 - Learning 'prompt orchestration' to optimize prompt sequences and responses 26:52 - Explaining Perplexity's limitations in generating complete outputs Key Takeaways: "It used to take Ibbaka between 40 and 60 hours of work by a highly trained person to build a value model. It now takes us less than two hours to build a better value model than we could have done before." - Steven Forth People / Resources Mentioned: Geoffrey Hinton: https://en.wikipedia.org/wiki/Geoffrey_Hinton Bloomberg: https://www.bloomberg.com/asia Attention is All You Need paper: https://en.wikipedia.org/wiki/Attention_Is_All_You_Need Sam Altman: https://en.wikipedia.org/wiki/Sam_Altman Karen Chiang: https://impactpricing.com/podcast/467-minimize-churn-and-boost-your-net-dollar-retention-with-karen-chiang/ Porter's 5 Forces: https://en.wikipedia.org/wiki/Porter%27s_five_forces_analysis Clayton Christensen: https://en.wikipedia.org/wiki/Clayton_Christensen William Gibson: https://en.wikipedia.org/wiki/William_Gibson Perplexity AI: https://www.perplexity.ai ChatGPT: https://chatgpt.com You.com: https://you.com Hugging Face: https://huggingface.co Connect 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 October 24, 2024, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/context-driven-pricing-the-ultimate-pricing-strategy/ 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/

Russ Winer is a William H. Joyce Professor of Marketing, Stern School of Business, New York University. His specialties include pricing, new technologies, consumer choice models, and advertising. In this podcast, Russ discusses the critical role of understanding consumer behavior in pricing decisions, emphasizing the importance of considering how customers will react to price changes. He explains the difference between academic theories and practical applications in marketing and also highlights the growing shift of research from academia to industry, particularly in data-driven fields like marketing, and stresses the need for businesses to stay competitive while balancing consumer protection and profitability. Why you have to check out today's podcast: Gain practical advice on how businesses can align their pricing strategies with consumer behavior for maximum impact. Discover the unique perspectives on how academic research shapes real-world marketing practices and why general theories can be a game-changer for business strategies. Learn about the challenges and opportunities in both B2B and B2C markets, including data availability, decision-making processes, and competitive pressures. "Don't forget the consumer, or customer, if it's B2B, when you're thinking about the price. How is the customer or consumer going to react when you take this particular action?" - Russ Winer Topics Covered: 01:48 - One accomplishment that brings Russ great pride 02:13 - Describing his entry into pricing 03:56 - Clarifying that he did not introduce the concept of reference price, though he was the first to incorporate it into empirical models 04:45 - Distinguishing reference pricing from behavioral economics 06:40 - How context influences reference prices, highlighting the relevance of acquisition and transaction utility in pricing 08:08 - Explaining the psychology behind 99-cent pricing 09:50 - Discussing deceptive pricing, highlighting practices like false markdowns in both brick-and-mortar stores and online retail 11:59 - Comparing deceptive pricing to deceptive advertising 14:33 - Differentiating between academics and practice in marketing 17:23 - The data availability challenges between B2C and B2B research 20:20 - Reflecting on the shift of research dominance from academia to industry 25:44 - How marketers' strategies to influence reference prices are not inherently harmful to consumers 28:14 - Russ's one best pricing advice Key Takeaways: "It's not just the firm side that's important when we think about pricing, it's also the consumer side, how they react to the prices that we're putting in the marketplace." - Russ Winer People/Resources Mentioned: Bob Lucas: https://en.wikipedia.org/wiki/Robert_Lucas_Jr. Richard Thaler: https://en.wikipedia.org/wiki/Richard_Thaler Dan Kahneman: https://en.wikipedia.org/wiki/Daniel_Kahneman Amos Tversky: https://en.wikipedia.org/wiki/Amos_Tversky Facebook: https://www.facebook.com Airbnb: https://www.airbnb.com Google: https://www.google.com/ Campbells: https://www.campbells.com/ Connect with Russ Winer: LinkedIn: https://www.linkedin.com/in/russ-winer-4b69b7/ 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 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.com Connect 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]

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.com Connect 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.com Connect 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.com Connect 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._Skinner Connect 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_Christensen Connect 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]

This is an Impact Pricing Blog published on August 8, 2024, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/value-is-created-twice/ 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/

Claire Wang helps startup founders and solopreneurs pick a pricing model that ensures their long-term success. In this episode, Claire shares her journey of transitioning into her own consulting practice after her corporate job. She talks on the misconceptions about pricing, how people mistakenly equate pricing with just setting a price point when it's all about understanding customer value. She emphasizes the importance of integrating pricing early on in product development, not as an afterthought. She also highlights the need for pricing professionals to be more visible and vocal about the value they bring, as many people don't understand the full scope of their work. Why you have to check out today's podcast: Discover the common misconception that pricing is just about setting a number and uncover how it is deeply intertwined with customer value and business strategy. Gain insights on what's missing in the pricing industry and how professionals can elevate the value of their role. Learn how pricing should be integrated into product design and customer understanding aligning business goals with customer satisfaction. "Understand your customers, understand their needs. And once you do that, then you'll have a better understanding about their willingness to pay." - Claire Wang Topics Covered: 01:34 - How she found herself in pricing 02:12 - Pricing as it relates to actuary 03:57 - Explaining the cost-plus pricing in the world of insurance 06:57 - Discussing about price sensitivity and willingness to pay with regard to insurance 08:09 - Reason behind starting her consulting firm 10:02 - The misconception about pricing and what it truly is 14:46 - How success of pricing strategies often depends on how integrated pricing is within a company's overall operations 16:49 - Pricing being more than just setting a number 18:20 - Claire making her point that pricing should not be viewed as a zero-sum game 23:45 - Sharing her thoughts on building visibility for pricing professionals to raise awareness about the pricing profession 25:56 - Gauging perceived value of pricing professionals based on their visibility and content 27:34 - Claire's best pricing advice Key Takeaways: "Most people have no clue what pricing really is. They equate pricing with setting a price point, which is completely untrue." - Claire Wang "Pricing, fundamentally, is all about value." - Claire Wang "Pricing has got nothing to do with the price point. You really need to go through the whole funnel. And once you've done that, then the price point is just a byproduct." - Claire Wang People/Resources Mentioned: Allstate Insurance: https://www.allstate.com Telstra: https://www.telstra.com.au Connect with Claire Wang: LinkedIn: https://www.linkedin.com/in/claire-wang/ Connect with Mark Stiving: LinkedIn: https://www.linkedin.com/in/stiving/ Email: [email protected]

This is an Impact Pricing Blog published on August 1, 2024, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/southwest-airlines-new-seating-strategy-a-billion-dollar-decision/ 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/

With over six years of experience as a leader in marketing operations, Nathan Yeung helps mid-market businesses build, enhance, or support their marketing functions and drive value creation. As the Vice President, CMO Services at Find Your Audience Marketing Partner, he leads teams of marketing managers, graphic designers, media buyers, coordinators, and freelancers to develop and implement marketing strategies for organizations across various industries. In this episode, Nathan shares how empathy is crucial for understanding and communicating value, which directly influences pricing and client trust. He emphasized that many web pages fail because they attempt to appeal to everyone rather than focus on a specific audience and problem. Additionally, he advised against charging too little, suggesting that higher rates can be justified when trust is established, and recommends offering multiple pricing options to highlight the value of the primary choice. Why you have to check out today's podcast: Learn to understand and address your customers' pain points to significantly impact your pricing strategy and boost trust, leading to higher revenue. Find out why many web pages fail to convert and get actionable advice on how to create focused, empathetic web content that resonates with your target audience. Explore how trust plays a crucial role in client relationships and how it can influence pricing decisions, helping you secure higher-value contracts. "Never give a single price. Think about creative ways to give at least three and make your obvious choice your bottom line." - Nathan Yeung Topics Covered: 01:07 - Talking about his disciplined approach to health 02:01 - How he got into pricing and his perspectives on pricing 03:53 - Discussing his approach to helping B2B companies "discover revenue" 06:22 - The reactions and learning opportunities that come when a client quickly accepts a price offer 07:48 - The importance of truly understanding and communicating value when helping businesses discover revenue 11:17 - Value creation in B2B and B2C contexts 14:03 - Expanding on the concept of having marketing take on internal communications 15:08 - Two key issues why web pages fail and bringing in additional point about the "curse of knowledge" 18:22 - Discusses the concept of pricing and positioning in business 22:22 - Trust and how it relates to pricing and business growth 23:04 - Talking about his book, 'The Lazy Consumer', and discussing the concept of trust 24:49 - Elaborating on the importance of empathy in sales and how it can trigger a response from customers 25:53 - Underscoring the crucial link between trust and pricing 27:20 - Nathan's best pricing advice Key Takeaways: "When you forget about that [people are human], you get a lot of people locked into this state of logical thinking. And when you're too logical, it's hard to generate a lot of value. Because when they're logical, they're being highly critical." - Nathan Yeung "Understanding your ideal customer profile and really understanding their true pain points and where they are in a business, you can understand value." - Nathan Yeung "Value makes you really be empathetic, and you really have to understand what is valuable to your customer." - Nathan Yeung "Just because there's a quantifiable change that is valuable, that does not necessarily mean that person values that the most." - Nathan Yeung "HR is great for compliance and process and all that kind of lovely stuff, but they're really not great marketers." - Nathan Yeung "This idea of building culture, while it's important for HR to take care of that and be the accountable part of that, the reality is that marketers are likely the more important person to actually bring that message to market, which is the company in itself." - Nathan Yeung Connect with Nathan Yeung: LinkedIn: https://www.linkedin.com/in/yeungnathan/ Website: https://www.findyouraudience.online/ Connect with Mark Stiving: LinkedIn: https://www.linkedin.com/in/stiving/ Email: [email protected]

This is an Impact Pricing Blog published on July 25, 2024, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/stop-pre-discounting/ 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/

Frank Luby is a writing partner and editor for business books, articles, and corporate communication and co-founder and CEO at Present Tense LLC. In this episode, Frank emphasizes the importance of clear and effective writing for pricing professionals, offering techniques like the "10-10" and "Rule of 13" methods to structure writing efficiently. He highlights how good writing can influence decision-making within organizations, often reaching and persuading people beyond initial conversations. Additionally, he underscores the value of listening to customers and understanding their real needs, which can significantly enhance pricing strategies and company success. Why you have to check out today's podcast: Discover practical writing tips and actionable strategies to help you organize and improve your writing, making it more persuasive and impactful. Learn how writing plays a crucial role in influencing and shifting thinking within organizations amplifying your message beyond one-on-one conversations. Gain insights on structuring effective communication, prioritizing the right information in your writing and focusing on making a single point effectively. "Truly, honestly, listen to customers." - Frank Luby Topics Covered: 01:33 - How he got into pricing 03:23 - What's his contribution in Hermann Simon's book on pricing 04:21 - Noting two challenging tasks that makes writing about pricing difficult 05:39 - Acknowledging the complexity of the term "value" in pricing 07:36 - Deciding which narrative perspective to use in writing between blogs and books 09:15 - An effective writing technique to engage readers 10:05 - What his role is at the upcoming PPS (Professional Pricing Society) conference 12:09 - Why a pricing director or manager should care about improving their writing skills, even if they feel confident writing emails 14:10 - How writing can have a greater influence than many people realize 15:46 - Sharing two key writing approaches to help people organize their thoughts effectively 18:50 - Comparing writing to architecture 20:03 - Explaining the "Rule of 13" method as a way to test whether a chapter idea can stand alone 21:21 - The concept of prioritizing writing tasks using the acronym "CSR". 23:01 - Importance of understanding your audience, especially when trying to shift or replace existing strategies in pricing 25:53 - Introducing the 50/500 rule: Making a single, clear point in writing 27:31 - Frank's best pricing advice. 28:24 - Why businesses often don't listen to their customers, despite it being an obvious necessity Key Takeaways: "I often make the analogy to writing an architecture. And you wouldn't want somebody building your house just by having a bunch of bricks and cement and two by fours delivered. You'd like to see a plan, you'd like to see what they're going to design. And it's hard to change things later on. So, that planning part, especially for a book, is immensely important." - Frank Luby "That's where this 13-method comes in where you can test some of those things that if you can't have those three supporting pieces, or three examples or three ways to elaborate on a particular point, that's your signal right off the bat that that might not carry a chapter." - Frank Luby "The other hint is prioritizing what you want to write about." - Frank Luby "We love simplification and we love to have simple answers and simple descriptions, and no segment of customers, or no individual customer, is really that simple. So, we pick up on the things that we can make easy groups out of and we tend to ignore the rest. And sometimes, the rest we're ignoring is really the vital part of the equation." - Frank Luby People/Resources Mentioned: Hermann Simon: https://hermannsimon.com Price Management: Strategy, Analysis, Decision, Implementation: https://www.amazon.com/Price-Management-Strategy-Analysis-Implementation/dp/3319994557 Dow Jones: https://www.dowjones.com/about/ David Brooks: https://www.nytimes.com/column/david-brooks Connect with Frank Luby: LinkedIn: https://www.linkedin.com/in/frank-luby-318220/ Connect with Mark Stiving: LinkedIn: https://www.linkedin.com/in/stiving/ Email: [email protected]

This is an Impact Pricing Blog published on July 18, 2024, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/the-5-ws-of-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/

Tim Hanni is a trailblazer in the wine industry, renowned for his groundbreaking work in wine education, sensory sciences, and his mission to demystify wine for all. With the prestigious title of Master of Wine, Hanni holds the distinction of being one of the first Americans to earn this credential, marking a significant milestone in his illustrious career. In this episode, Tim shares how perceptions of wine quality are influenced more by psychological and sensory factors than by price, often making expensive wines indistinguishable from cheaper ones in blind tastings. He introduces the concept of "perceptual individualism," explaining how personal differences in taste perception affect wine preferences. Additionally, he highlights the complexities of wine pricing, contrasting the traditional cost-plus approach with the need to consider market perceptions and branding. Why you have to check out today's podcast: Gain insights into wine perception and psychology. Discover the challenges of traditional wine wisdom to understand the wine industry's myths and realities. Learn a comprehensive view on wine pricing contrasting cost-plus pricing with value-based pricing to help you gain insights into the factors that influence wine prices, including production costs, marketing, and consumer perception. "There are people who buy out on price alone. If it's more expensive, it must be better. But there's an inverse relationship between price and quality." - Tim Hanni Topics Covered: 02:01 - Discussing the unique nature of wine pricing and how it affects consumer behavior 04:19 - Talking about the impact of wealthy individuals, particularly those from Silicon Valley, entering the wine industry, which he describes as being over-premiumized 06:22 - Discussing the challenges of market segmentation in the wine industry, comparing it to the evolution of the tech industry 10:22 - Critiquing the wine industry's elitism and rigidity, using examples to illustrate how misleading some widely accepted norms are 12:18 - The background and story of 'Two-Buck Chuck' 13:52 - Addressing the often-debated relationship between wine quality and price 16:30 - Introducing the concept of "perceptual individualism" 20:13 - Elaborating on a wine study conducted by Frédéric Brochet at the University of Bordeaux in 2001 24:32 - How wine pricing is determined, focusing on what he refers to as the "bottom-up approach." 25:48 - Explaining the complexities of wine pricing and how factors beyond production costs influence the final price of a bottle 28:07 - How the complexity of pricing wine remains somewhat elusive Key Takeaways: "The label's not going to make necessarily all that much of a difference in the margin, but the label plus the provenance." - Tim Hanni "Unequivocally, sweet wine drinkers have the most taste buds. They have the highest perceptual acuity of any consumers at all. And often you are paying an extreme premium for that sweet wine." - Tim Hanni People/Resources Mentioned: Julia Child: https://en.wikipedia.org/wiki/Julia_Child Trader Joe's: https://www.traderjoes.com/home Fred Franzia: https://en.wikipedia.org/wiki/Fred_Franzia Charles F. Shaw: https://en.wikipedia.org/wiki/Charles_F._Shaw California State Fair Wine Competition: https://calexpostatefair.com/competitions/california-commercial-wine/ Joel Butler: https://www.linkedin.com/in/joel-butler-mw-1697667/ Frederic Brochet: https://www.researchgate.net/scientific-contributions/Frederic-Brochet-2029425754 California Grape Crush Report: https://www.nass.usda.gov/Statistics_by_State/California/Publications/Specialty_and_Other_Releases/Grapes/Crush/Final/2023/2023_Final_Grape_Crush_Report.pdf Robert Parker: https://www.robertparker.com/about/the-rating-system Connect with Tim Hanni: LinkedIn: https://www.linkedin.com/in/timhannimw/ Website: https://winebusinesseducation.com/ Website: https://www.myvinotype.com/en/ Connect with Mark Stiving: LinkedIn: https://www.linkedin.com/in/stiving/ Email: [email protected]