Hybrid Pricing and Pricing with AI with Steven Forth

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 delves into the dynamic world of pricing strategies as revealed through the lens of the Professional Pricing Society event. He talks about the latest developments, innovative practices, and thought-provoking discussions emerging from these events of pricing professionals. From uncovering cutting-edge pricing technologies to dissecting evolving pricing trends that offer valuable insights to help you in navigating the ever-changing landscape of pricing strategies especially where AI is concerned. Why you have to check out today's podcast: Discover what's in store for this year's Professional Pricing Society conferences Find out the significant and engaging topics discussed in the PPS event Look forward to Steven's valuable insights and key points on pricing trends and innovations, particularly in relation to AI "The other problem or challenge, I think, that one can have with AI-based approaches to pricing is the sort of black box nature. And generative AI, gives something of a path forward for that." - Steven Forth Topics Covered: 01:46 - Steven highlighting how the Professional Pricing Society [PPS] listens to Impact Pricing podcast 03:29 - Professional Pricing Society's calendar of events this year 04:39 - What's coming up for this year's event: Return of the book store 06:25 - Featured and notable books available at the event 09:54 - Other interesting things coming up for PPS' event 11:28 - Steven's important thoughts on pricing sustainability and some examples on point 15:41 - What differentiates a value model from a sustainability model as far as Ibbaka's concerned 17:26 - What he thinks of these big pricing vendors approach to AI 18:46 - Talking about pricing industry frustration and the black box nature of AI and the shift to generative AI 21:19 - Discussing the application of generative AI in a dynamically configuring software and its implications on the pricing strategies 24:56 - Sharing about the scale and complexity of traditional value model as well as the potential of generative AI to quickly adapt to different pricing and value configurations 28:39 - Watch out for an upcoming webinar on May 23rd 29:08 - What he thinks of people's reception to his presentation at the Professional Pricing Society's conference Key Takeaways: "Feel good metrics or social responsibility, none of those things are really going to get people to buy and pay for sustainable solutions. It has to be tied to value, and you have to be able to show that your green solution provides more value than the competing solutions." - Steven Forth "I think the secret here, at least from a pricing and modeling approach, is to find those variables that get used across the different models. And by having the same variable used in different models you can pull sustainability together with value together with pricing." - Steven Forth People/Resources Mentioned: Arnab Sinha Impact Pricing Episode 564: https://impactpricing.com/podcast/564-exploring-game-changing-pricing-dynamics-for-different-industries-with-arnab-sinha/ Game Changer: How Strategic Pricing Shapes Businesses, Markets, and Society by Jean-Manuel Izaret and Arnab Sinha: https://www.amazon.com/Game-Changer-Strategic-Pricing-Business/dp/1394190581 Stephan Liozu Impact Pricing Episode 582: https://impactpricing.com/?s=stephan+liozu Nick Nalepa: https://www.linkedin.com/in/nick-nalepa/ Stop Racing In A Blindfold!: Big Data + Pricing Science Drive Bigger Profits by Jim Vaughn: https://www.amazon.com/Stop-Racing-Blindfold-Pricing-Science/dp/099068380X Michelin: https://www.michelinman.com Hydropoint: https://www.hydropoint.com Vendavo: https://www.vendavo.com Pros: https://pros.com PriceFX: https://www.pricefx.com Totogi: https://www.totogi.com/ Resilience: https://www.bcg.com/publications/2023/resilient-pricing-for-uncertain-world Connect with Steven Forth: LinkedIn: https://www.linkedin.com/in/stevenforth/ Email: steven@ibbaka.com Connect with Mark Stiving: LinkedIn: https://www.linkedin.com/in/stiving/ Email: mark@impactpricing.com

6 Touko 202430min

This is an Impact Pricing Blog published on March 14, 2024, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/using-value-to-break-down-silos/ 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/

3 Touko 20243min

Rishi Bhatia is an experienced analytics consultant, data expert and market research professional with domain expertise in retail, technology, telecom, apparel, manufacturing, and insurance domain. In this episode, Rishi shares about Walmart's lower pricing strategy. He emphasizes the importance of prioritizing the customer when determining pricing strategies. He also highlights the significance of leveraging data and analytics to inform pricing decisions. And also the importance of adopting AI-driven models to streamline operations and remain competitive in the market. Why you have to check out today's podcast: Learn how Walmart maximizes profitability while maintaining its everyday low prices Discover how AI revolutionizes the retail industry by enabling retailers to make informed pricing decisions, rather than just providing pricing insights Explore the impact of retail pricing on customer loyalty and retention "Put your customer first. Rather than going for the traditional route, learn from the data as much as you can. And then, improve your models constantly based on how can you get the prices right." - Rishi Bhatia Topics Covered: 01:01 - How he found himself in pricing 02:46 - Why everyday low price policy for Walmart and how do they maximize revenue with this strategy 03:46 - Pricing and how it affects loyalty and retention 05:18 - What makes Walmart's margins high other than lower prices 06:48 - How AI in pricing optimization has evolved from basic insights generation to sophisticated model-driven recommendations 08:41 - Is AI a blackbox and how the process works in achieving pricing decision 11:31 - Walmart's primary focus regarding pricing decisions and how AI ensures timely transitions between product cycles and maintaining profitability 13:47 - How algorithms and recommendations ensures consistency and optimization across the retail chain 14:44 - Discussion around Wendy's dynamic pricing 19:49 - Rishi's response to Mark's advice for retailers and also talking about Walmart Plus 21:15 - Rishi's best pricing advice 23:12 - How do you measure value in retail products Key Takeaways: "Value pricing, what does your customer want, at what price your customer will be more loyal to you and what will they... because pricing is one component that everyone wants low price." - Rishi Bhatia "When you're putting the product, rather than going for the traditional route, learn from the data as much as you can and improve your models constantly based on that, how can you get the prices right." - Rishi Bhatia "If you're able to improve on that and the customer, your overall complaints are also going down. And that is one value you can measure from that perspective as well. It's not always in the monetary term, it's always on the customer satisfaction side as well." - Rishi Bhatia People/ Resources Mentioned: Walmart: https://www.walmart.com Uber: https://www.uber.com Connect with Rishi Bhatia: LinkedIn: https://www.linkedin.com/in/rishi-bhatia-5480577/ Connect with Mark Stiving: LinkedIn: https://www.linkedin.com/in/stiving/ Email: mark@impactpricing.com

29 Huhti 202424min

This is an Impact Pricing Blog published on March 7, 2024, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/to-fee-or-not-to-fee-that-is-the-question/ 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/

26 Huhti 20243min

Stephan Liozu has studied, researched, and practiced value-based pricing for over 15 years now. That includes training, speaking, consulting, managing pilot projects, and coaching large scale pricing transformations. In this episode, Stephan highlighted the utmost importance of understanding the value delivered to customers before setting prices, emphasizing a value-first approach to pricing strategies. Why you have to check out today's podcast: Learn the significance of focusing on a specific market segment to avoid distractions, streamline operations and increase chances of success Find out why you don't need to excessively customize your products Discover why prioritizing value over price can develop to more effective pricing strategies and maximize profitability "Do the value work first and then worry about pricing. So, value-based pricing is 90% value, 10% price. So, if you want to do that very well, value first, then price." - Stephan Liozu Topics Covered: 02:25 - How Stephan started in pricing 04:13 - Customer segmentation as it relates to value pricing 05:25 - Effective ways of maximizing segmentation 07:17 - Defining customer segmentation and how the SaaS scenario Mark described relate to that 10:16 - Integrating value pricing into customer segmentation 13:03 - What value means to the price buyer 14:11 - How is market segmentation different from customer segmentation? 16:52 - Discussing about product segmentation and taking software for an example 21:28 - The challenge of operationalizing customer segmentation 24:57 - Why focus on one market segment 26:41 - The need to not excessively customize your product 27:42 - Stephan's best pricing advice Key Takeaways: "Pick one market, focus on it, find your ICP, and then get a few logos; see what happens." - Stephan Liozu "Do the value work first and then worry about pricing." - Stephan Liozu "If you want to do that [value-based pricing] very well, value first, then price." - Stephan Liozu People/Resources Mentioned: Owens Corning: https://investor.owenscorning.com/ Thales: https://www.thalesgroup.com/en Connect with Stephan Liozu: LinkedIn: https://www.linkedin.com/in/stephanliozu/ Connect with Mark Stiving: LinkedIn: https://www.linkedin.com/in/stiving/ Email: mark@impactpricing.com

22 Huhti 202428min

This is an Impact Pricing Blog published on February 29, 2024, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/your-inward-focus-causes-horrible-decisions/ 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/

19 Huhti 20243min

Mike Bosworth is a Co-Founder of WeConcile considered as the world's first Relationship Rescue and Restoration application. In this episode, Mike shares effective pricing strategies and sales techniques to hold prices. Why you have to check out today's podcast: Learn about the concept of "buying vision" and help your customers recognize the value of your product or service Learn how to stand firm against pricing pressure and maintain your desired price Discover how to effectively use "polite No's" to firmly establish pricing boundaries "Understand the value, i.e. how your buyer would use a particular piece of your product to solve their problem. And if you have that knowledge, it's really easy to defend the value of your price." - Mike Bosworth Topics Covered: 02:13 - Mike's pricing approach 03:16 - Understanding why salespeople are losing the conversation when it comes to price 06:40 - What is a 'buying vision' and how helpful it is for buyers 07:26 - The need for salespeople to know well their customer's business 10:20 - How 'premature elaboration' gets you at a disadvantage 13:58 - Explaining 'cost justify' and 'price justify' from the buyers point of view 20:49 - The importance of patience in negotiation and use of "polite No's" to stand your ground on pricing 24:36 - Book resource of major negotiation stories you can check out 25:42 - Mike's pricing advice Key Takeaways: "The only salespeople who can go out and negotiate their own prices are those ahead of quota." - Mike Bosworth "I say to the managers, if your salesperson is under quotas, you have to go out there and provide the backbone and coach the call ahead of time." - Mike Bosworth "We want to teach them how to survive that call, but on their own, they're not going to have the ability to do it." - Mike Bosworth People/Resources Mentioned: Xerox: https://www.xerox.com/en-us Sales Force: https://www.salesforce.com David Crabtree: https://www.barnesandnoble.com/w/hold-out-david-n-crabtree/1119321227 Connect with Mike Bosworth: Linkedin:https://www.linkedin.com/in/mikebosworth/ Connect with Mark Stiving: LinkedIn: https://www.linkedin.com/in/stiving/ Email: mark@impactpricing.com

15 Huhti 202426min

This is an Impact Pricing Blog published on February 22, 2024, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/fear-stymies-your-growth/ 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/

12 Huhti 20243min