Hybrid Pricing and Pricing with AI with Steven Forth

Russ Winer is a William H. Joyce Professor of Marketing, Stern School of Business, New York University. His specialties include pricing, new technologies, consumer choice models, and advertising. In this podcast, Russ discusses the critical role of understanding consumer behavior in pricing decisions, emphasizing the importance of considering how customers will react to price changes. He explains the difference between academic theories and practical applications in marketing and also highlights the growing shift of research from academia to industry, particularly in data-driven fields like marketing, and stresses the need for businesses to stay competitive while balancing consumer protection and profitability. Why you have to check out today's podcast: Gain practical advice on how businesses can align their pricing strategies with consumer behavior for maximum impact. Discover the unique perspectives on how academic research shapes real-world marketing practices and why general theories can be a game-changer for business strategies. Learn about the challenges and opportunities in both B2B and B2C markets, including data availability, decision-making processes, and competitive pressures. "Don't forget the consumer, or customer, if it's B2B, when you're thinking about the price. How is the customer or consumer going to react when you take this particular action?" - Russ Winer Topics Covered: 01:48 - One accomplishment that brings Russ great pride 02:13 - Describing his entry into pricing 03:56 - Clarifying that he did not introduce the concept of reference price, though he was the first to incorporate it into empirical models 04:45 - Distinguishing reference pricing from behavioral economics 06:40 - How context influences reference prices, highlighting the relevance of acquisition and transaction utility in pricing 08:08 - Explaining the psychology behind 99-cent pricing 09:50 - Discussing deceptive pricing, highlighting practices like false markdowns in both brick-and-mortar stores and online retail 11:59 - Comparing deceptive pricing to deceptive advertising 14:33 - Differentiating between academics and practice in marketing 17:23 - The data availability challenges between B2C and B2B research 20:20 - Reflecting on the shift of research dominance from academia to industry 25:44 - How marketers' strategies to influence reference prices are not inherently harmful to consumers 28:14 - Russ's one best pricing advice Key Takeaways: "It's not just the firm side that's important when we think about pricing, it's also the consumer side, how they react to the prices that we're putting in the marketplace." - Russ Winer People/Resources Mentioned: Bob Lucas: https://en.wikipedia.org/wiki/Robert_Lucas_Jr. Richard Thaler: https://en.wikipedia.org/wiki/Richard_Thaler Dan Kahneman: https://en.wikipedia.org/wiki/Daniel_Kahneman Amos Tversky: https://en.wikipedia.org/wiki/Amos_Tversky Facebook: https://www.facebook.com Airbnb: https://www.airbnb.com Google: https://www.google.com/ Campbells: https://www.campbells.com/ Connect with Russ Winer: LinkedIn: https://www.linkedin.com/in/russ-winer-4b69b7/ Email: rwiner@stern.nyu.edu Connect with Mark Stiving: LinkedIn: https://www.linkedin.com/in/stiving/ Email: mark@impactpricing.com

23 Dec 202430min

This is an Impact Pricing Blog published on October 17, 2024, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/profit-vs-market-share-which-should-your-business-prioritize/ 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/

20 Dec 20243min

Mike Wilkinson is referred to as The Value Sales Expert whose focus is on value and value selling. In this episode, Mike shares what is involved in a successful value-based selling to enable tailored solutions that address specific challenges of your customers. He emphasizes the importance of measuring and reinforcing delivered value while developing ongoing relationships to uncover new opportunities and ensure long-term success. Why you have to check out today's podcast: Learn about a five-step value-based selling framework to help you master value-based selling and deepen customer relationships. Gain Insights from real-world perspectives, practical advice, and candid reflections on overcoming common sales challenges. Discover how to shift from a product-first to a customer-first mindset and transform your sales approach. "The most important thing from a seller's point of view is be confident in your price. And the way to be confident in your pricing is to make sure that you know, you're absolutely certain, that the value that you are delivering is more than a match for the price you're going to be charging." - Mike Wilkinson Topics Covered: 02:21 - Mike describing what he does 02:52 - Elaborating on the concept of value 07:33 - Highlighting the 'Value Triad' as it relates to the value drivers 11:08 - Mike's approach to teaching value-based selling 14:46 - Outdated sales practices that focus on pushing products rather than solving customer problems 16:48 - Thoughts on Zig Ziglar's sales principles and the importance of value discovery in the sales process 21:48 - How to ask impact-driven questions 24:07 - Detailing an effective value discovery and value demonstration to ensure a successful conclusion 26:51 - What value delivery means 28:07 - Value development and what it encompasses and the importance of regular reviews 29:33 - Mike's best pricing advice Key Takeaways: "Until we understand how our customers are defining value for them, then to all intents and purposes, value is a mystery. And as sellers in particular, our job is to solve that value mystery." - Mike Wilkinson "It's your customer that defines value, not you." - Mike Wilkinson "Until you've understood what the issues are from the customer's point of view, you do not have a solution." - Mike Wilkinson People/Resources Mentioned: McKinsey: https://www.mckinsey.com Zig Ziglar: https://en.wikipedia.org/wiki/Zig_Ziglar Seth Godin: https://www.sethgodin.com Connect with Mike Wilkinson: Website: https://axiavalue.com/ LinkedIn: https://www.linkedin.com/in/mikewilkinson-thevalueexpert/ Email: mw@axiavalue.com Connect with Mark Stiving: LinkedIn: https://www.linkedin.com/in/stiving/ Email: mark@impactpricing.com

16 Dec 202431min

This is an Impact Pricing Blog published on October 10, 2024, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/what-every-team-should-learn-from-pricing-experts-focus-on-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/

13 Dec 20243min

Daniel Cho has over 29 years of experience in the healthcare industry, currently serving as the Senior Director of Global Pricing at Philips Healthcare. With a background in sales, product management, and pricing strategy, Daniel has a unique perspective on how to effectively communicate value to customers and drive profitability. In this episode, Daniel shares his journey into pricing and the critical importance of understanding the value your product delivers to customers. He emphasizes that pricing should not just be about features but about the economic, operational, emotional, clinical, and societal value that resonates with different stakeholders. Through real-world examples, Daniel illustrates how a well-structured pricing strategy can lead to stronger, more profitable relationships. Why you have to check out today's podcast: Discover the five key value drivers that can transform your pricing strategy and enhance customer relationships. Learn how to effectively communicate value to different stakeholders within a healthcare organization, from CFOs to clinical staff. Gain insights into structuring contracts and pricing metrics that align with customer needs and perceptions of value. "Resist on the discount as much as possible. Look for every other ways to solve it rather than the discount. The discount should always be a last resort and not the first thing you want to deliver or give." – Daniel Cho Topics Covered: 02:33 - Daniel's journey into pricing 03:23 - The power of pricing strategy, using segmentation and perceived value to differentiate identical products for distinct markets 06:58 - How two identical products can be integrated differently with existing pricing ecosystems 07:57 - Leveraging his expertise in data analysis to establish Philips' first pricing department 12:11 - Initiating a value-based approach at Philips to create, price, and articulate value 14:22 - Defining value and discussing the 5 key value drivers in a health organization 18:03 - Tailoring value propositions and demonstrating how those four other value streams ultimately lead to financial and strategic benefits 25:22 - An effective sales training Daniel created that teaches salespeople to tailor value-based pitches to different stakeholders' priorities 31:27 - Daniel's best pricing advice Key Takeaways: "We cannot continue to sell features and benefits, we have to go and sell value." - Daniel Cho "If the product is not value-based, you can't ask the salespeople to sell value because you have to start from the product that actually deliver and generate value. So, we started from the product managers." - Daniel Cho "The first one is economic value. Very simple. Help me to make more revenue or help me to save costs so I have an economic benefit." - Daniel Cho "The next value is the emotional value. How can we create a better experience for the patients and also their own staff so the staff don't get burnout." - Daniel Cho "Financial value, although as strong as it is, doesn't resonate with everyone." - Daniel Cho "Stop giving discounts for free. Always get something back from the customer." - Daniel Cho People/Resources Mentioned: Philips Healthcare: https://www.philips.com/ Apple Watch Launch: https://www.apple.com/ Bausch and Lomb Contact Lens Case: https://www.bausch.com/ Connect with Daniel Cho: LinkedIn: https://www.linkedin.com/in/danielkkcho/ Connect with Mark Stiving: LinkedIn: https://www.linkedin.com/in/stiving/ Email: mark@impactpricing.com

9 Dec 202432min

This is an Impact Pricing Blog published on October 3, 2024, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/for-b2b-value-is-incremental-profit/ 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/

6 Dec 20242min

Lisa Thompson has corporate experience that spans software/SaaS, industrial manufacturing, life sciences/healthcare, medtech, fintech, and B2B services. Together with clients, she delivers unique, actionable solutions tailored to their organizational needs and realities leading to profitable, sustainable revenue and growth. In this episode, Lisa shares the importance of deeply understanding the economic value your product delivers to customers and aligning it with their buying processes, highlighting that many companies fall short in these areas. Through real-world examples, Lisa shows how uncovering the true drivers of customer satisfaction can transform pricing strategies and lead to stronger, more profitable relationships. Why you have to check out today's podcast: Deep dive into the critical importance of understanding and quantifying the economic value your product delivers to customers so you gain actionable insights to refine your approach. Gain valuable guidance on structuring contracts, from incorporating escalators to aligning terms with customer needs, ensuring profitability and flexibility in volatile markets. Learn how to evaluate and select pricing metrics that truly reflect the value customers derive, unlocking hidden revenue opportunities. "In the metric, understand how you currently charge customers. Not the price level, but the price metric. Double check to see if that aligns with whether they get high value or low value. If it doesn't, we don't necessarily have the right metric. There can be magic and a lot of money in getting the metric right." - Lisa Thompson Topics Covered: 01:43 - How she ended up in pricing 03:44 - Why value-based pricing is not simply charging higher prices for more value 05:32 - Highlighting the nuances in pricing strategies, explaining ways to leverage value other than higher prices 11:39 - Sharing a lighthearted story about Tom Nagle's amusing moments 13:37 - Emphasizing what many companies struggle to do with deal structuring 16:50 - Explaining why understanding the economic value of a product must come hand in hand with a deep knowledge of the customer's buying process 23:02 - The need for long-term contracts to include appropriate escalators and de-escalators 26:54 - Why contract structures should align with how customers perceive and experience value 30:59 - Lisa's best pricing advice Key Takeaways: "Just because value's high, it doesn't mean I can always get a high price for it." - Lisa Thompson "One of the things I want people to understand in our work is that getting a price premium or charging more than you used to charge isn't the only way to get paid for adding more value." - Lisa Thompson "We know the value, but that's not the same thing as knowing the buying process." - Lisa Thompson People/Resources Mentioned: Tom Nagle: https://impactpricing.com/podcast/604-insights-into-value-based-pricing-strategies-for-b2b-with-tom-nagle/ Reed Holden: https://impactpricing.com/podcast/ep97-pricing-in-the-new-normal-with-reed-holden/ Gilette: https://gillette.com Connect with Lisa Thompson: LinkedIn: https://www.linkedin.com/in/lisa-spadafora-thompson/ Email: LThompson@sturbridgegrowthpartners.com Connect with Mark Stiving: LinkedIn: https://www.linkedin.com/in/stiving/ Email: mark@impactpricing.com

2 Dec 202434min

This is an Impact Pricing Blog published on September 23, 2024, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/pricing-new-products-myth-1/ 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/

29 Nov 20242min