Value Bread Blues? How to Announce Price Increases with Casey Brown

This is an Impact Pricing Blog published on June 15, 2023, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/the-ikea-effect-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: https://www.linkedin.com/in/stiving/

21 Jul 20232min

This one is the 3 of Hearts from the Selling Value card deck.  As you're doing your prospecting, you have to decide who you're going to reach out to for the prospecting. And since we know that buyers only buy products to solve problems that they have, what we should be thinking about is, well, where's the community or the marketplace of people that actually have this problem. So, if I were a moving company and I were trying to find companies that were trying to move, then there may be a way to say, "Hey, I want to go to commercial Realtors because I know commercial Realtors are aware of companies who are moving." And so now I can get commercial Realtors to give me potential names or customer possibilities and that's where I might go prospect.  So, when you think about what your product is, you want to think about, where are the people who actually have the problem that I solve? As I mentioned last week, I'm lucky in that I think all companies have pricing problems. But notice I only talk to companies. I don't talk to consumers because consumers don't have pricing problems. Why would I ever prospect in a pool of consumers?  So, prospect in that pool of buyers who you know have the problem that you can solve. We hope you enjoyed this example of Pricing Table Topics. What you just heard was done without a script. If you want to get better at speaking about pricing and value, grab a deck of our cards, pick a card, read the saying, and then talk for one to two minutes about what that card says. You'll become a better speaker and expert. 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/

19 Jul 20232min

Karen Chiang is a co-founder and managing partner of Ibbaka, a company that provides software and expertise to enable business growth by optimizing revenue performance through customer value management and talent optimization. In this episode, Karen discusses the importance of linking your pricing to value and creating pricing packages that accurately reflect the value provided to consumers.   What you will learn from this episode: Understand the concept of net dollar retention in relation to your customer base and as a means of measuring your revenue from operations Learn how to effectively package your offers by linking value to pricing Explore these net dollar retention levers to better understand the value your customers are seeking   "Getting to a value-based mindset is extremely important in order to improve your pricing power." - Karen Chiang   Topics Covered: 01:19 - How she got her into pricing 02:33 - Defining 'net dollar retention' 04:48 - Pricing as it relates to net dollar retention 09:18 - Linking pricing to value [where churns are concerned] 11:25 - Strategy to keep half a customer rather than losing completely 13:56 - What you must think about in the design of your offer 15:03 - What is product packaging and how it differs from cross-sell or upsell 18:23 - Pricing models and various packaging designs 19:32 - What a cross-sell and upsell are in terms of using the good, better, best 25:12 - Karen's best pricing advice that can impact one's business 26:29 - Net Dollar Retention levers by level of importance 29:04 - Usage based pricing as part of net dollar retention levers   Key Takeaways: "Pricing has to be linked to value. When you think about it, we want to come up with a pricing method or approach that really tracks the value that is being generated." - Karen Chiang "There always has to be an understanding of what you are negotiating. What will you give up in your package to make it more feasible for that discount? That's why it's actually a shrinkage in the package itself." - Karen Chiang "From the get-go and from the design, when we think about the design of our offers, we really have to be more cognizant of, what are the different components that go into that entire offer?" - Karen Chiang "A good, better, best strategy is one where you try to get people into a certain level, starting with good and you're trying to increase their growth and package by getting them to a better package then a best package." - Karen Chiang   People / Resources Mentioned: Steven Forth: https://www.linkedin.com/in/stevenforth   Connect with Karen Chiang: LinkedIn: https://www.linkedin.com/in/karen-chiang-2623241/ Email: karen@ibbaka.com   Connect with Mark Stiving: LinkedIn: https://www.linkedin.com/in/stiving/ Email: mark@impactpricing.com

17 Jul 202334min

This is an Impact Pricing Blog published on June 8, 2023, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/value-based-pricing-is-an-attitude/ 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/

14 Jul 20232min

This one is the 3 of Spades from the Selling Value card deck.  Of course, salespeople, marketing people, we have to do prospecting. The question becomes, who do we look for as prospects to move into our sales funnel?  Well, now that we know that people really have to solve problems, that's the reason they buy our products. The question now is, do we think it's easier to sell to people who already know they have a problem, or to people that we have to convince they have a problem?  You often see advertising like this where people will say, "Hey, come solve this problem." And now what's happening is people are self-selecting and, "Oh, yeah, I've got that problem," so they're trying to find those people. On the other hand, sometimes we have to convince somebody they have a problem. I find it interesting, I used to run a company a long, long time ago, and my cell phone number still is the phone number that I had when I had that company. And I'll get calls from moving companies that the opening line is, "Hey, I heard that Home Director is moving." Well, it turns out I don't run Home Director. Home Director doesn't exist anymore. Home Director's not moving. But that was a way for them to quickly prospect and find out, "Hey, do I have a company and is the company moving?" Because if the answer that's yes, I've got a problem. And if the answer that's no, then they don't have a problem. So they're trying to figure out relatively quickly, am I somebody that they might be able to sell to or not? So think about, when you're prospecting, are you prospecting to people who already know they have a problem? Or are you looking for people and then trying to convince them they have a problem?  As a pricing person, I have to tell you, I think every single company has a problem. But it's insane for me to try to go to a company and convince them they have a problem. And it is so much easier for me to work with companies who come to me because they know they have a problem. We hope you enjoyed this example of Pricing Table Topics. What you just heard was done without a script. If you want to get better at speaking about pricing and value, grab a deck of our cards, pick a card, read the saying, and then talk for one to two minutes about what that card says. You'll become a better speaker and expert. 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/

12 Jul 20233min

Jonathan Stark is a former software developer who is on a mission to rid the world of hourly billing. He is the author of Hourly Billing Is Nuts, the host of Ditching Hourly, and writes a daily newsletter on pricing for independent professionals. In this episode, Jonathan highlights the drawbacks of billing hourly which can reduce your value to just a commodity. Instead, he suggests pricing your services based on the outcome you deliver, thereby providing maximum value to your clients.   What you will learn from this episode: Discover the top reasons behind the shift away from hourly billing Find out the advantages of choosing outcome-based pricing over hourly billing Uncover why positioning your service effectively can have a significant impact on your pricing strategy   "Positioning is critically important for any kind of upward lift on your fees." - Jonathan Stark   Topics Covered: 01:04 - What got him into pricing 03:35 - The problem with having an hourly rate 06:11 - Pricing uncertainty in the case of a car diagnostic 08:45 - What makes it better charging fixed price upfront 10:33 - Why positioning your service is crucial in pricing 12:59 - What hourly rate appears to be on the label 16:15 - Touching on the 'Experience Economy' [pricing transformation] 19:06 - Formula for value or the maximum price 21:36 - The best reason to not use hourly prices 24:22 - Solving the scope problem with knowing the desired goal 29:21 - Jonathan’s pricing advice 30:38 - How to connect with Jonathan   Key Takeaways: "If you sell somebody an hour, you cannot make it more efficient. It takes an hour to deliver it. It artificially limits your income." - Jonathan Stark “The way I do it [on the scope problem], I don’t scope first, I scope last.” - Jonathan Stark   People / Resources Mentioned: Alan Weiss: https://alanweiss.com/about-alan-weiss/ Joseph Pines: https://strategichorizons.com/pine-and-gilmore/joe-pine/ How to Measure Anything: Finding the Value of Intangibles in Business by Douglas Hubbard: https://www.amazon.com/How-Measure-Anything-Intangibles-Business/dp/1118539273   Connect with Jonathan Stark: Website: https://jonathanstark.com/   Connect with Mark Stiving: LinkedIn: https://www.linkedin.com/in/stiving/ Email: mark@impactpricing.com

10 Jul 202332min

This is an Impact Pricing Blog published on June 1, 2023, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/commit-to-expand/ 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/

7 Jul 20232min

This one is the 4 of Diamonds from the Selling Value card deck.  Wow, walk away from a negotiation, ouch! We're essentially saying, "No, we're not going to negotiate anymore. Take the deal that we've given you or not. Totally up to you." And what happens when we do this?  First off, we're at risk of losing the deal, and that's painful. Especially, if you're in sales and you're paid to get revenue. You've got to meet a quota, your commission comes from that. But it turns out, from a company perspective, oftentimes that's a really smart thing to do.  First off, maybe it's the wrong customer for you. Maybe they need a deep, deep discount because they really don't get the value from your product that they should be getting. Or maybe that they're just negotiating and if you walk away, they come back and say, "Okay, we'll take it." And so, now you've made the sale.  Or, what if you even lose the deal? But because you lost that deal, word gets out, especially to channel partners, other salespeople, we're not willing to accept a deal below this specific price. And now everybody's working harder to sell value and make sure that we get the prices that we actually deserve.  This is hard. But if you end up losing deals because you walk away, my recommendation is track the profitability of the deals if you would've won them at this lower price and compare that to the profitability of the deals you win because you didn't lower the price. And even if you win more deals with lower prices, you probably make less margin and less profit. We hope you enjoyed this example of Pricing Table Topics. What you just heard was done without a script. If you want to get better at speaking about pricing and value, grab a deck of our cards, pick a card, read the saying, and then talk for one to two minutes about what that card says. You'll become a better speaker and expert. 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/

5 Jul 20232min