Impact Pricing

Oftentimes, salespeople are selling to a committee of people who have to make a big decision. Once they've made the decision, they typically say, hey, we want to go with this vendor, and then they submit it to purchasing or procurement. At that point in time, procurement pretends to be price sensitive, pretends that there's multiple different competitors involved. But if we can recognize that we've already been chosen, then we don't have to compete hard on price. This happens often, especially if we're going to be selling to a committee who has to make a decision. We hope you enjoyed this memecast. This impactful insight came from the book, Selling Value, which I wrote to help salespeople win more deals at higher prices. If you have any questions or feedback, please email me mark@impactpricing.com. Now go make an impact.   Connect with Mark Stiving: Email: mark@impactpricing.com LinkedIn: https://www.linkedin.com/in/stiving/

29 Kesä 20221min

Ayon Bhattacharyya is the Founder of Biz Growth Spurt, a consulting firm based out of New Zealand. He has experienced pricing in half a dozen companies, and he's a passionate animal welfare advocate. In this episode, Ayon discusses pricing power as he enumerates its four different levels while talking about value-based pricing.   Why you have to check out today’s podcast: Understand how pricing power relates to price elasticity Find out what Ayon’s four different levels of pricing power are all about Discover how Mark’s will I? which one? concept relates to these levels   “Think about your pricing power, and think about how – whether it's sort of competitive advantage, perceived value, all of those things – what can you do differently to improve your pricing power today.” – Ayon Bhattacharyya   Topics Covered: 01:18 – How Ayon got into pricing 02:33 – Defining value-based pricing and relating it to airline pricing 05:57 – Pricing power vs. price elasticity 09:50 – Ayon’s four different levels of pricing power 13:33 – Describing the levels: (1) Cost chaser 15:04 – Describing the levels: (2) Market pricer 15:46 – Describing the levels: (3) Value conqueror 18:16 – Doing behavioral economics at a cost chaser level 19:09 – Applying Mark’s “will I? which one?” concept to Ayon’s levels of pricing power 22:19 – Talking about value-based and fixed pricing 25:26 – Ayon’s piece of pricing advice for the listeners   Key Takeaways: “Pricing power is essentially your ability to charge a higher price without losing customers. Another way to say that is a company's ability to get the price it deserves for the value it delivers.” – Ayon Bhattacharyya “A maturity suggests that you need to get there over a period of time; you grow into it. It can't be something that you just start out with that, at level three. But that's not what I'm trying to say here. You can actually start out and you can be an early-staged business and you can start out as a value conqueror. You don't need to progress from level one to get to level three. You can start at level three.” – Ayon Bhattacharyya “There are some businesses that can just start at a higher level, but I think generally, it is a journey. I think of pricing strategy as a journey, not just an outcome.” – Ayon Bhattacharyya   People / Resources Mentioned: Biz Growth Spurt: https://bizgrowthspurt.com/ Stephan Liozu and his book: The Pricing Journey   Connect with Ayon Bhattacharyya: Website: https://bizgrowthspurt.com/ LinkedIn: https://nz.linkedin.com/in/ayonb Email: b@bizgrowthspurt.com   Connect with Mark Stiving: LinkedIn: https://www.linkedin.com/in/stiving/ Email: mark@impactpricing.com

27 Kesä 202227min

This is an Impact Pricing Blog published on May 18, 2022, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/how-much-does-a-buyer-value-your-product/ 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/

24 Kesä 20222min

You probably know that when we're negotiating, we do gifts and gets. We don't give anything unless we get something in return. Purchasing people are always asking us for discounts and sometimes we have to give in. We give a discount to a client or a customer. What should we get in return? Well, we should be thinking first about the things that are hard costs for us to serve our clients. For example, maybe there's a shipping cost. Maybe it's a warranty cost. But there are things that are truly that cost us money and if we can get those as clawbacks, as our gets when we give something, then we're actually giving up a lower margin. Many people call this pocket price. So, pocket price is, what's the price after I've looked at what are my costs to serve that individual customer. We hope you enjoyed this memecast. This impactful insight came from the book, Selling Value, which I wrote to help salespeople win more deals at higher prices. If you have any questions or feedback, please email me mark@impactpricing.com. Now, go make an impact.   Connect with Mark Stiving: Email: mark@impactpricing.com LinkedIn: https://www.linkedin.com/in/stiving/

22 Kesä 20221min

Daniel Elizalde was an IoT Product Manager Instructor at Stanford University. He used to work as the VP Head of IoT at Ericsson, but he has now narrowed his focus from IoT to climate tech firms. Daniel now helps climate tech product teams accelerate their product’s time to the market. In this episode, Daniel talks about his book, The B2B Innovator’s Map, as he explains why delivering value to your champion is a huge game-changer in the business world.   Why you have to check out today’s podcast: Discover what the book The B2B Innovator’s Map is all about; Understand why you, as a vendor, should understand what value means both to your company and to your customers; and Find out why you should look for champions and not for buyers, especially when you’re still starting in doing business   “When you are testing a potential solution, pricing has to be one of those things that you have to prototype. You have to prototype the packaging and the offering and how you actually present it to the customer.” – Daniel Elizalde   Topics Covered: 01:55 – A Narrower Focus: Daniel shares the backstory on how he’s decided to shift his focus from IoT to climate tech firms 04:11 – Daniel talks about the benefits of running his own consulting practice 06:18 – Helping other people, still, in the space of IoT 07:41 – Why Daniel wrote his book, The B2B Innovator’s Map 09:46 – The difference between B2B and B2C in terms of the way people do innovation + the content of Daniel’s book 14:35 – Relating Mark’s Selling Value book to Daniel’s B2B Innovator’s Map 18:51 – Understanding the strongest problems that your customers have as one of the main points in the book 21:50 – Looking for a champion, not a buyer persona + the goal of innovation 28:36 – Daniel’s piece of pricing advice for the listeners   Key Takeaways: “For an actual advisory project where I'm involved at the strategic level, I'm going to give priority to the climate tech companies, but that doesn't mean that there are no other avenues where people can get access to some of my experience.” – Daniel Elizalde “In my experience, a lot of the B2B products fail because they don't deliver value to their customers, like, customers don't see the benefit, they don't want to buy it, so they've failed. Value has to be delivered throughout, and so, therefore, value plays an immense part throughout the journey.” – Daniel Elizalde “Granted, as a vendor, your own solution is not going to be the fix for the whole problem, and you're part of the whole puzzle. But as a vendor, you have to understand what are those pains, what are those problems that your customers are having, because that's where the opportunity to deliver value lies.” – Daniel Elizalde “The value needs to be big for a big problem so that you can get a solution in the door.” – Daniel Elizalde “It's not about the users at this point. It's about delivering value to the champion because ultimately, that's the person that's going to open the door for you.” – Daniel Elizalde   People / Resources Mentioned: The B2B Innovator’s Map: https://danielelizalde.com/b2b-innovators-map/ Ericsson: https://www.ericsson.com/ Selling Value: https://www.amazon.com/Selling-Value-Deals-Higher-Prices/dp/1737655217/ Crossing the Chasm: https://www.amazon.com/Crossing-Chasm-3rd-Disruptive-Mainstream/dp/0062292986   Connect with Daniel Elizalde: LinkedIn:https://www.linkedin.com/in/danielelizalde/ Website:https://danielelizalde.com/   Connect with Mark Stiving: LinkedIn: https://www.linkedin.com/in/stiving/ Email: mark@impactpricing.com

20 Kesä 202231min

This is an Impact Pricing Blog published on May 11, 2022, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/data-and-or-value/ 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/

17 Kesä 20223min

If buyers are asking us for a business case, or help to write their own business case, what they're trying to do is document economic value. How much money is our product going to make or save their company? Well, this is awesome because what we want to do is help our buyers understand value. This is the exact best situation that we could possibly be in. So, what we as salespeople should be doing is understanding, how is it that our buyers get value from our products? And I can tell you it's not our features. And in fact, it's probably benefits, but it's benefits translated into, first, what's the problem we're solving for the customer? What's the expected result the customer might get? And finally, how do we turn that into dollars for that individual customer? When you've mastered this skill, and you can talk like this constantly, you will definitely win more deals at higher prices. We hope you enjoyed this memecast. This impactful insight came from the book, Selling Value, which I wrote to help salespeople win more deals at higher prices. If you have any questions or feedback, please email me mark@impactpricing.com. Now go make an impact.   Connect with Mark Stiving: Email: mark@impactpricing.com LinkedIn: https://www.linkedin.com/in/stiving/

15 Kesä 20221min

EPIC Conjoint’s CEO Matt Johnston and CTO Pavel Knorr help companies win by enabling game changing product and pricing decisions. At EPIC Conjoint, experts combine their deep domain knowledge with innovative research platforms. With this, they enable clients to better understand their customer’s preferences so they can make precise product and pricing decisions at great speed. In this episode, Mark engages in a conversation about conjoint with EPIC Conjoint leaders, Matt and Pavel.   Why you have to check out today’s podcast: Learn the importance of running market segmentation studies and figuring out what people’s price sensitivity is to know which groups are becoming more price sensitive Find out why you should understand the challenges your target market is facing and react accordingly to that to be of help instead of going for your typical pricing mechanics Understand why you should be realistic in the way you do your design   “If you're addressing the question ‘what is the proper price right now?’ and ‘what is the proper price three months after?’ you have to properly specify the price intervals for that, and you have to deal with – specifically in conjoint – you have to deal with the realistic market situation. – Pavel Knorr   Topics Covered: 01:25 – The backstory of how Pavel got into pricing 02:49 – Going back to the story on how and why EPIC Conjoint came to exist 05:56 – Talking about EPIC Conjoint’s project which Mark got involved with 09:56 – The global economy, recession, and its impact on people’s purchase decisions 17:08 – The challenge that arises when inflation rises but incomes do not 21:40 – Making decisions in the midst of supply constraints 29:50 – What Mark loves about what Conjoint does + the beauty of Conjoint 31:59 – Pavel’s piece of pricing advice for today’s listeners 33:39 – Connect with Matt, Pavel, and EPIC Conjoint   Key Takeaways: “When you have product development background, for you, it's actually quite important when you want to come up with the product line up, when you're doing the product optimization, because it's fine to get the product which shows the overall quite good results with the aggregated view. However, in the reality, it might end up with the case when you have build the product that platform suggested to be the best aggregate of products in the market, however, nobody really needs it because all your market is several subgroups of the niche customers.” – Pavel Knorr “We believe most people make purchases based on their needs. And what we've seen in the work we've done with clients is that needs can dictate different willingness to pay under different price sensitivities.” – Matt Johnston “Conjoint is the good tool to compare yourself against the competitors, but it's not performing well when it's considering buy or no buy at all. All the magic behind the conjoint is something like 50% of success, because if you collect the bad data or from wrong people, you will have nothing as the output; nothing useful for you as the output.” – Pavel Knorr   People / Resources Mentioned: EPIC Conjoint:https://www.epicconjoint.com/ O2:https://www.o2.co.uk/ Telefónica: https://www.telefonica.com/ URIDU: https://www.uridu.org/ BMW: https://www.bmw.com/ Hyundai: https://www.hyundai.com/worldwide/ Audi: https://www.audi.com/   Connect with Matt Johnston: Website:https://www.epicconjoint.com/ LinkedIn:https://www.linkedin.com/in/matt-johnston-5a53672 Email: mattjohnston@epicconjoint.com   Connect with Pavel Knorr: Website:https://www.epicconjoint.com/ LinkedIn:https://www.linkedin.com/in/pavel-knorr/ Email: pavelknorr@epicconjoint.com   Connect with Mark Stiving: LinkedIn: https://www.linkedin.com/in/stiving/ Email: mark@impactpricing.com

13 Kesä 202234min