Impact Pricing

Shantanu Basu is currently the Senior Director of Go-To Marketing Strategy and Operations at Tanium. He was Director of Strategy and Operations at Intel for a long time, and he's part of an organization called RevGenius. Shantanu got his MBA from the University of Michigan. In this episode, Shantanu discusses value chain alignment alongside the importance of knowing what your value is and understanding what your customers think what your value is.   Why you have to check out today’s podcast: Discover why knowing your company’s value and understanding how your customer sees value in you when doing pricing; Understand the importance of doing things one at a time, especially when communicating about the company’s value chain; and Find out why it’s necessary for you to be able to ask the right value chain alignment questions   “When you think of yourself as a pricing professional, you're doing your pricing jobs so to speak, don't limit yourself to what somebody else might consider the definition of your job. A

We all know that price is a signal of quality, but what ends up happening is, over time people learn what the true quality is, and they realize if the prices match that true quality or not. If we're able to price relative to our true quality, then all is right with our customers in their minds and they're not going to change their purchase decisions. They're more likely to stick with us. Now, what happens if we deliver a ton of quality and we charge a low price? Well, first off, maybe a lot of people aren't going to find out because they're using our price as an indicator of quality. And they say, oh, that's way too inexpensive. It's not a product that would fit my needs. So, they never learned that yours is great. Once of course, someone buys in and they start using it, then sure, they say, hey, this is a fantastic deal. Maybe they talk about it, word of mouth. The question becomes, can you get people to buy it because it's such a low price. On the other hand, let's say you charge a really high price for som

There's a concept in economics, behavioral economics, called reference prices. And reference prices really say our customers have some expectation about what they think they're going to pay. And if our price is below that expectation, they get a good feeling they're getting a good deal. And the fact that they're getting a good deal provides them an incentive or the good feelings that say I'm actually going to buy. Richard Thaler broke this up into two different types of utility. There's transaction utility and there's functional utility. The functional utility is the utility that someone gets from our product. It's the reason they're buying it. But transactional utility is the feelings you get when you're going to buy something. And if you walk into a store expecting to pay $20, and you find it on sale for 15, you're thinking, Hey, that's a really neat deal, I'm going to buy that. Or you're more likely to buy it. "We should be paying attention to our customer's expectations." - Mark Stiving If we have a way t

José Vela is the Director of Pricing at Spandex Barcelona, known as one of the leading suppliers of graphics and digital materials worldwide. He is a strategic and business savvy leader who empowers business development and profitability improvements for global businesses, with an expertise in directing international trade, manufacturing, and services operations. José moved into pricing after having a General Manager's role. In this episode, José talks about the importance of getting the right price in selling your services as he relates it to the change and value you’re providing to your customers.   Why you have to check out today’s podcast: Understand why it’s a must for you to be able to price your products and services right in relation to winning more deals even at a high price; Discover how experience adds up to a pricing person’s credibility, therefore, resulting to high rates of success in sales; and Find out how necessary it is for you to think like your customers in order to provide the best value

This is an Impact Pricing Blog published on January 5, 2021, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/opportunity-costs-and-pricing/ If you have any feedback, definitely send it. You can reach us at mark@impactpricing.com. Now, go make an impact. Connect with Mark Stiving:  Email: mark@impactpricing.com LinkedIn

As pricing professionals, we really need to be the logical part of the business. Our product lines, they really want higher prices. Sometimes they become emotionally involved with their products and they think that they're worth a ton - and they probably are.   Have we explained the value to the customers? Are we able to capture all those higher prices?   "We pricing professionals are the fulcrum of the business. Product lines want higher prices, sales want lower prices. " - Mark Stiving And what we want to do as pricing people is make sure we understand whether or not we're communicating value well to the marketplace. And if we're not communicating value, maybe we're discounting so that we can at least win some business.   So we're almost like the dispassionate referee. We're trying to say, hey, it makes more sense for us to price this way if we want to maximize profits.   On the other hand, salespeople, customers too, what lower prices. Salespeople have prices, one of their tools to close a deal. When a cus

Paul Orlando is the Founder of Startups Unplugged and is the author of the book “Growth Units”, a book that makes unit economics straightforward. He builds incubator/accelerator programs around the world, getting companies to solve problems that they couldn’t in other ways, which allows the building of autonomy and skills that keeps employee retention high and maintains the company’s top talent. Paul is an adjunct professor and runs the incubator at USC. In this episode, Paul talks about calculating lifetime value as he shares why it is important to think about pricing in relation to the LTV.   Why you have to check out today’s podcast: Understand the relationship lifetime value has with pricing and why it’s better to learn early and often than to fail fast Find out why overpricing and underpricing are present in various companies Discover why your lifetime value isn’t and will never be limited to one number   “People are really afraid of raising prices. I think it was Marc Andreessen who said, 'a lot of pr

This is an Impact Pricing Blog published on December 29, 2021, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/call-it-customer-impact/  If you have any feedback, definitely send it. You can reach us at mark@impactpricing.com. Now, go make an impact. Connect with Mark Stiving:  Email: mark@impactpricing.com LinkedIn

As far as loving you is concerned, obviously, they love low prices; they love discounts. But the real love happens when we can deliver a ton more value than what they expected, what they actually have to pay for. These are the raving fans, the people who really value our products. And yet we couldn't capture all of that value even if we wanted to.  “Pricing has the power to make your customers love you, hate you, or anything in between.” - Mark Stiving As to hating you, customers will absolutely hate you when you raise their prices without some reasonable explanation, without doing something nice for them, because customers hate price increases. And of course, if our pricing is just ridiculous; if it's horrible, for whatever reason, they will learn to hate us. So pricing really is very powerful, it causes emotions inside our customers. We want to make sure we're managing those emotions carefully.  We hope you enjoyed this podcast. If you see have any questions or feedback please email me mark@impactpricing.co

Damien Robert is currently the Chief Solution and Delivery Officer at Pricemoov. He's been at Simon-Kucher & Partners (SKP) for 17 years of his career so he actually understands pricing really well. Damien also took a three-year stint at Disneyland Resorts Paris. Damien develops and implements tailor-made pricing solutions, ensuring easy price steering across the organization. In this episode, Damien talks about Machine Learning and how it helps optimize inputs in the pricing work as he shares insights in relation to Pricemoov’s models.   Why you have to check out today’s podcast: Find out what Machine Learning (ML) and Artificial Intelligence (AI) are all about and how these two are used in pricing Discover simple and advanced pricing strategies you can implement to reach a bigger market Understand why looking at price in the perspective of your client is a good move towards success   “Look at your prices with the client view.” – Damien Robert   Topics Covered: 01:32 – How Damien got into pricing 02:34

This is an Impact Pricing Blog published on December 22, 2021, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/the-art-of-pricing/  If you have any feedback, definitely send it. You can reach us at mark@impactpricing.com. Now, go make an impact. Connect with Mark Stiving:  Email: mark@impactpricing.com LinkedIn

Real value comes from real differentiation. Real value is turned into perceived value through marketing.  When we're up against the competition, which most of the time we all. Our customers are buying perceived differentiation. They look at our product or competitors' products. What's the difference in price and is it worth it? And the, ‘is it worth it’  has everything to do with the difference in capability, the product differentiation, the features that are different.  “Build real differentiation, but we have to make sure our customers know it.” - Mark Stiving Now we may have built the best product in the world. We may have built a product that is much, much better than our competitors, but if our buyers don't know that. If they don't believe that, then they're not going to choose our product buyers.  Aren't buying based on real differentiation? They're buying on their perceptions or what we'll call perceived differentiation. Our job as a company should be to build products that are truly better than our co

Ebrahim El-Ebiary is a Pricing Manager at Goodyear Tires. He’s been with Goodyear for six years now, having worked in Revenue Management at FedEx before that. Ebrahim is a Professional Certified Coach and he's genuinely interested in people and how they think. In this episode, Ebrahim talks about the importance of curiosity and good relationship to your pricing practice as you continue to make money through helping your customers do the same.   Why you have to check out today’s podcast: Learn about what revenue management is and the relationship it has with pricing Understand why it’s important that pricing people understand their customers’ future while having the customers take part in the creative process Find out about the benefits of having a good relationship with your customer and keeping that relationship until it lasts   “Before launching a very detailed analysis, ask the question, ‘how will this be used?’” – Ebrahim El-Ebiary   Topics Covered: 01:11 – How Ebrahim got into pricing 01:59 – Revenue m

This is an Impact Pricing Blog published on December 15, 2021, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/the-best-attitude-for-a-great-value-conversation/ If you have any feedback, definitely send it. You can reach us at mark@impactpricing.com. Now, go make an impact. Connect with Mark Stiving:  Email: mark@impactpricing.com LinkedIn

Costs don't drive pricing, willingness to pay drives prices.  I remember 1989. Yes. I'm that old? I was selling automatic test equipment to the semiconductor industry, and I heard this story on the radio that changed the way. I thought about pricing and costs forever. Intel built the 46 DX, which is the very first dual-core microprocessor in the world. Very expensive.  Of course, AMD decided they were going to create a single core version and they charged a much lower price. So they've taken a lot of business away from it. Yeah. Intel's thinking ‘Hey, we better do something’. So Intel creates a single-core version of their microprocessor and they charge a price more competitive with AMD. And so now they're not losing quite as much business. Now, this story makes all the sense in the world until you learn how Intel made the SX. They first made a DX, a dual-core processor, and then they took an extra manufacturing step with a laser to disable the coprocessor. It actually costs them more to build an SX, a single

Mark Stouse is the Chairman and CEO of Proof Analytics. He was 2020’s Top 10 Most Influential Analytics Leaders. He was also CMO/CCO at Honeywell Aerospace, so he has tons of experience. Mark also hosts his own podcast called “Accelerating Value”, a weekly podcast aimed at guiding people in creating, defending, and proving value with the help of experts. In this episode, Mark discusses how analytics lead SaaS businesses to success as he shares insights most SaaS entrepreneurs need to know about the relationship between analytics and pricing.   Why you have to check out today’s podcast: Discover how a different way of consulting like analytics can help SaaS businesses to become profitable nowadays; Know how much of a game changer analytics is in terms of keeping the relationship between customer loyalty and pricing intact; Find out how the scientific sense of inquiry helps pricing people reach greater heights in relation to sales and pricing with clients   “It isn't that you say, ‘Hey, what are you willing t

Every single customer touchpoint customers are evaluating us. They're saying that was a good experience. That was a bad experience. If we mess up an invoice and they have to call to fix it, that's a bad experience. And that destroys. But if our invoices are super easy to understand, and they tie back to all the previous paperwork and they make it easy for our customers to do their job, like, oh, pay the bill, then we're adding value. Even if it isn't our main product. Every customer touchpoint adds or subtracts value. “Everybody in your company that your customer touches either adds or subtracts value, make sure they add value.” - Mark Stiving This is obvious. When we think about the products we build and our customers touch our products, our products, great products, high quality products. It may be obvious when we think about marketing departments, because marketing is putting out communications and are those communications truly resonating? Or are they just falling flat or maybe even offending? What about

This is an Impact Pricing Blog published on December 8, 2021, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/the-power-of-procurement-matters/ If you have any feedback, definitely send it. You can reach us at mark@impactpricing.com. Now, go make an impact. Connect with Mark Stiving:  Email: mark@impactpricing.com LinkedIn

Vikas Pal Boaddh is the Senior Strategic Marketing and Pricing Leader at Honeywell. He started out as a Software Engineer but has switched careers after getting an MBA in Marketing and General Management. His pricing journey in Honeywell was a happy accident for him. His startup in Food Tech wasn’t working in his early years, so he was introduced to Honeywell’s pricing team. Now, he’s been with them for 10 years.  In this episode, Vikas discusses why value-based pricing is the right thing to do and shares why understanding how your customer thinks is a must in dealing with pricing.   Why you have to check out today’s podcast: Discover how important it is for you to understand the customer’s business first before making them understand how much money they’re going to make once they buy your product; Understand the four pillars of pricing frameworks in organization; and Find out how you can become more efficient in pricing through tips that will help you avoid repeatedly doing the same thing with progress.  

This is an Impact Pricing Blog published on December 1, 2021, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/value-based-mindset-is-hard-for-an-organization/  If you have any feedback, definitely send it. You can reach us at mark@impactpricing.com. Now, go make an impact. Connect with Mark Stiving:  Email: mark@impactpricing.com LinkedIn