Pricing Table Topics: 9 of Diamonds – Buyers on a Trust Journey are Not Price Sensitive

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 mark@impactpricing.com.  Now, go make an impact.   Connect with Mark Stiving: Email: mark@impactpricing.com LinkedIn: https://www.linkedin.com/in/stiving/

1 Marras 20242min

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: mark@impactpricing.com

28 Loka 202429min

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 mark@impactpricing.com.  Now, go make an impact.   Connect with Mark Stiving: Email: mark@impactpricing.com LinkedIn: https://www.linkedin.com/in/stiving/

25 Loka 20242min

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: mark@impactpricing.com

21 Loka 202433min

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 mark@impactpricing.com.  Now, go make an impact.   Connect with Mark Stiving: Email: mark@impactpricing.com LinkedIn: https://www.linkedin.com/in/stiving/

18 Loka 20244min

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: mark@impactpricing.com

14 Loka 202431min

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 mark@impactpricing.com.  Now, go make an impact.   Connect with Mark Stiving: Email: mark@impactpricing.com LinkedIn: https://www.linkedin.com/in/stiving/

11 Loka 20243min

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: mark@impactpricing.com

7 Loka 202429min