The Power of Quantifying Value in Pricing Strategies with Todd Snelgrove

Todd Snelgrove is the Senior Director; Value Advisory at SAP. He is a value advisor who helps companies get paid for the value they create.

In this episode, Todd discusses the fundamental importance of value quantification in pricing and emphasizes the need for a structured process to carry it out effectively.

Why you have to check out today's podcast:

• Discover the importance of prioritizing value over solely relying on the behavioral economics of pricing when it comes to pricing strategies
• Find out the effectiveness of quantifying value over simply offering discounts
• Learn about what constitutes a value conversation

"Have a structured process to quantify customer value. It's not as hard as people think. Even if you're not perfect at it, it's better than nothing."

- Todd Snelgrove

Topics Covered:

01:05 - How Todd got into pricing

02:19 - Quantifying value in B2C

04:13 - The subconscious way of quantifying value

05:38 - Why behavioral economics matter less in B2B

08:05 - The decoy effect in pricing and how some tricks used in B2C doesn't work in B2B

12:16 - Evolving power dynamics in procurement and how salespeople should navigate dealings with procurement in different scenarios

17:31 - Performance guarantee over discount

20:26 - What transpires in a value conversation

22:20 - The telling versus the asking in a value conversation

25:20 - Tod's one piece of best pricing advice

26:18 - Why not many companies quantify value

27:08 - Todd's book: Value First Then Price

29:09 - Tying cost and benefits to a value conversation

Key Takeaways:

"When you talk about value, talk about real dollars. It's okay to list benefits and all these other things. But when you say value, show how that's going to be more profitable." - Todd Snelgrove

"I spend a lot of my time getting procurement to realize that 10% value per year is better than a 10% price cut." - Todd Snelgrove

"Price becomes an issue but only after you've discussed value." - Todd Snelgrove

Resources/People Mentioned:

• Value First then Price by Todd Snelgrove: https://expertsinvalue.com/books
• AstraZeneca: https://www.astrazeneca.com/

Connect with Todd Snelgrove:

• LinkedIn: https://www.linkedin.com/in/toddsnelgrove/
• Email: todd@expertsinvalue.com

Connect with Mark Stiving:

• LinkedIn: https://www.linkedin.com/in/stiving/
• Email: mark@impactpricing.com