In this second episode of the pricing series, hosts David and Eric bridge from pricing theory into practical strategy and application. They explore the critical differences between cost-plus and value-based pricing, discuss price elasticity, and provide actionable frameworks for optimizing pricing in middle-market private companies.

When It Makes Sense:

How to Calculate:

Limitations:

Core Principle: Maximize profitability by capturing the value created for customers

Implementation Steps:

Example:

For Established Businesses:

Key Insight: Value pricing aligns your interests with customer interests – if you’re not bringing value, you shouldn’t be in business together.

“A price is not something you set, even though yes, you do set them, it’s more of a signal of what the market is saying about the value of certain resources.”

“Value pricing always aligns ourselves to the interest of the customer and the client. If we’re not bringing them value, then what the heck are we doing?”

“When all of your pricing energy is going to the cost side, you’re paying less attention to the demand side.”

David and Eric launch a new series focused on one of the most critical yet misunderstood topics in business: pricing theory and pricing strategy. This episode lays the groundwork for understanding how prices are set, why they matter, and how business owners can leverage pricing as a powerful tool for profitability and growth.

Main Topics Covered:

Key Takeaways:

Notable Quotes:

Action Items & Listener Challenge:

What’s Next:
The next episode will dive deeper into actionable pricing strategies, building on the theory discussed here.

Connect with Us:
Email: [email protected]

Thank you for listening to Emerge Dynamics! If you enjoyed this episode, please subscribe and share your feedback. Stay tuned for more insights on pricing and business strategy.

Summary

In this episode of the Emerge Dynamics podcast, David and Eric discuss the critical role of operational efficiency in business success. They explore the often-overlooked tweaks in daily processes that can lead to significant growth and impact. They use just one of the numerous possible examples to demonstrate their point: The order-to-cash-cycle. The conversation covers practical steps for improving the order-to-cash cycle, identifying pain points, measuring workflow efficiency, and implementing quick wins. They emphasize the importance of testing changes and documenting improvements to ensure sustainable growth and efficiency in business operations.

Takeaways

-Operational efficiency is crucial for business growth.
-Small tweaks in processes can lead to significant improvements.
-Mapping out workflows helps identify inefficiencies.
-Measuring the order to cash cycle is essential for cash flow management.
-Identifying pain points can reveal opportunities for improvement.
-Quick wins can be achieved by streamlining processes.
-Testing changes in a pilot program is important before full implementation.
-Documentation of processes aids in training new employees.
-Continuous improvement is key to operational success.
-Every business can benefit from focusing on efficiency.

Chapters

00:00 Introduction to Emerge Dynamics Podcast
01:39 The Importance of Operational Efficiency
03:05 Mapping the Order to Cash Cycle
05:40 Identifying Pain Points in Processes
12:00 Measuring Workflow Efficiency
17:01 Identifying Quick Wins for Improvement
18:15 Testing and Piloting Changes
20:19 Documenting Improvements for Future Reference

Because of their recent projects, David and Eric give some updates on the current dynamics they are seeing in middle market mergers and acquisitions (M&A). They emphasize factors that influence business valuations and sale-ability. They discuss how external risks like geopolitical tensions and tariffs impact M&A, but stress the importance of focusing on controllable internal factors to maximize business value. There are key strategies for business owners to prepare for a successful exit, regardless of market conditions.

Visit us to learn more about Business Value Acceleration.

In this episode David and Eric focus on the importance of businesses identifying and understanding the specific problems they solve for their customers. They emphasize how this clarity drives purpose, improves marketing, and differentiates businesses in competitive markets. They also discuss the balance between passion-driven purpose and addressing real societal needs, using examples like Apple’s iPhone to illustrate innovation that meets unexpressed desires.

Timestamps

00:01

Emerge Dynamics: Unveiling Middle Market Champions

This podcast spotlights the risk-takers and innovators in the multi-trillion dollar middle market, exploring how they outperform peers to deliver both financial returns and community impact. Through their stories, we uncover the unseen forces driving economic and social transformation.

00:38

Podcast Reunion: David and Eric Return

After a brief hiatus, hosts David Cusimano and Eric reunite with palpable excitement, signaling fresh episodes ahead. Their camaraderie hints at engaging discussions to come, like old friends picking up where they left off.

00:58

Passion Over Profit: The Heart Behind Emerge Dynamics

While business growth has stolen their recording time, the hosts reveal their podcast thrives on pure passion—no ads, no profits, just a shared mission to empower entrepreneurs and sprinkle wisdom like ‘nuggets’ into the world.

01:53

Current Events with a Business Twist: Upcoming Podcast Series

Instead of just rehashing headlines, Eric and David are crafting a multi-episode deep dive into news that actually helps entrepreneurs make smarter decisions—because running a business isn’t about noise, it’s about actionable insights.

02:37

The Core Question Every Business Must Answer

Entrepreneurs often get lost in selling products without realizing the deeper problem they solve—like selling widgets without understanding how they improve lives. This oversight not only drains purpose but also weakens marketing. When businesses grasp the real value they provide, it ignites team motivation and crafts authentic customer connections. The key? Constantly asking: ‘Why do we exist?’

03:58

Purpose vs. Business: Why Not All Passions Pay

A heartfelt purpose like filling the world with pink teddy bears might ignite your soul, but without solving real problems, it’s a charity—not a viable business. The key? Aligning passion with societal needs to create value that others will pay for.

05:26

Innovation Before Demand: The Art of Solving Unasked Problems

Like Apple’s iPhone revolutionizing life before anyone knew they needed it, true innovators identify latent desires—creating solutions for problems society hasn’t even articulated yet. This paradox of ‘building what people don’t know they want’ separates visionaries from followers, proving demand often follows invention rather than precedes it.

07:02

Pitching with Purpose: How to Frame Problems and Solutions

The key to a compelling pitch lies in balancing problem awareness with solution clarity—whether it’s as obvious as a hangover cure or as niche as serving 5 million underserved customers. While some audiences need no education on the problem (like hangovers), others require data-driven proof of an unmet need. The most effective pitches start by highlighting a tangible gap and immediately presenting a viable solution, turning skepticism into curiosity. Surprisingly, even non-innovative companies can craft compelling narratives by focusing on specific, underserved markets rather than trying to mimic industry giants like Apple.

08:59

The Power of Purpose: Why Your Business Must Solve a Real Problem

Forget competing on price—businesses thrive when they identify and solve a unique problem. Like a lighthouse in a storm, differentiation guides customers to you, not just to the cheapest option. When your team wakes up to change the world, not just collect a paycheck, magic happens. The alternative? A race to the bottom where the ‘winner’ is the one who earns the least.

12:14

More to Come: Stay Tuned for Future Episodes

In this episode of the Emerge Dynamics podcast, David Eric discuss the transformative impact of artificial intelligence (AI) on various industries, particularly focusing on knowledge work. They explore how AI is reshaping business processes, the importance of identifying unique value in a commoditized landscape, and the responsibilities that come with leveraging AI technology. The conversation emphasizes the need for businesses to adapt to these changes and harness AI as a tool for good, while also being mindful of the ethical implications and societal responsibilities associated with its use.

Takeaways

Just like the steam engine leveraged man’s muscles to create exponential productivity gains, AI leverages our minds to create exponential productivity gains. Those who embrace this will benefit incredibly.

AI is not going away; it’s transforming business.
The efficiency gains from AI are unprecedented.
Knowledge workers face significant disruption from AI.
Identifying the unique value in a commoditized landscape is crucial.
AI can enhance decision-making in healthcare.
AI is a tool that can be used for good or bad.
Businesses must adapt to the changing landscape of AI.
The societal responsibility of programming AI correctly is vital.
AI has the potential to leverage human intellect significantly.
Embracing AI can lead to leadership opportunities in the future.

Links

https://finance.yahoo.com/news/goldman-sachs-ceo-says-ai-192852635.html

https://www.mckinsey.com/capabilities/mckinsey-digital/our-insights/superagency-in-the-workplace-empowering-people-to-unlock-ais-full-potential-at-work

Ranking

Many thanks for Feedspot for acknowledging the work Eric and David have been putting in and recognizing the Emerge Dynamics Podcast as one of the top “Business Podcasts to Listen to In 2025”

https://podcast.feedspot.com/business_podcasts

In this episode of the Emerge Dynamics podcast, hosts David Cusimano and Eric Wingerter discuss the importance of perseverance in entrepreneurship, especially in light of current economic trends and challenges. They explore recent data on CPI and Fed rates, emphasizing the need for business owners to adapt to changing circumstances. The conversation highlights personal stories of overcoming adversity and the significance of having a purpose-driven approach in business.

Takeaways

Perseverance is essential for business owners and entrepreneurs.
Current economic trends, such as rising CPI, impact small businesses.
Adapting to change is crucial in a rapidly evolving market.
Personal experiences of struggle can strengthen resolve and purpose.
Having a clear purpose can drive motivation beyond financial success.
Historical examples of perseverance, like Milton Hershey, inspire current entrepreneurs.
Success and failure are not permanent states; learning is key.
Emotional resilience helps navigate business challenges.
Focus on logical choices amidst external noise and distractions.
A purpose-driven business is more adaptable to change.

Links

https://data.bls.gov/timeseries/CUSR0000SA0&output_view=pct_1mth

https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html

https://www.businessinsider.com/fedex-saved-from-bankruptcy-with-blackjack-winnings-2014-7?op=1

Many thanks for Feedspot for acknowledging the work Eric and David have been putting in and recognizing the Emerge Dynamics Podcast as one of the top “Business Podcasts to Listen to In 2025”

https://podcast.feedspot.com/business_podcasts

In this episode of Emerge Dynamics, we welcome Ali Beck, a blockchain and Bitcoin expert.

In previous episodes, we discussed the necessity of understanding Bitcoin and bringing in knowledgeable guests. Ali Beck, who co-founded HollaEx and did his master’s thesis on cryptography and Bitcoin security using elliptical curve cryptography, certainly qualifies. This episode promises to be enlightening for anyone who has yet to pay attention to the Web3.0 tsunami that is rapidly changing the business landscape.

Ali explains how emerging technologies like blockchain create new foundations for financial activities, moving beyond traditional banking systems that have been in place for the past century. Ali elaborates on the many use cases for blockchain, including the tokenization of real-world assets such as real estate, stocks, artwork, and even wine. He emphasizes the simplicity and opportunities that tokenization brings, allowing for automated and programmable money transfers without the need for traditional intermediaries. Ali shares fascinating real-world examples of tokenization, such as a client who tokenized premium wines for easier and more secure international trading, and an art museum raising funds to purchase artwork through fractional ownership tokens. These examples illustrate how blockchain is merging physical and digital worlds, offering new ways to manage and trade assets.

Ali’s company, HollaEx, addresses these opportunities by providing white-label crypto and blockchain solutions for businesses looking to integrate these technologies. HollaEx offers an interactive platform that allows businesses to create and manage digital assets, build trading platforms, and offer secure digital wallets to their users without understanding all the technical details of blockchain. We also explore how different regions across the globe are adopting blockchain technology.

Ali concludes with insights into the rapid advancements in AI and blockchain, predicting that 2025 will be a pivotal year for these technologies. He advises business owners to pay close attention to these trends and modernize their practices to stay competitive in a fast-evolving landscape. Listeners can learn more by visiting https://www.hollaex.com/.

David and Eric kick off 2025 by discussing the impact of current interest rates on business valuations. They delve into the recent trends, causes, and implications of ‘frothy’ valuations in the middle market, particularly focusing on how private equity investments are altering the market dynamics. The episode also explores the discrepancies in interest rates, the importance of mission preservation during business sales, and the critical elements that distinguish highly valued companies from their peers. They reference the Pepperdine Private Capital Markets study and numerous media articles covering how 10-year treasury rates are going the opposite direction of the Federal Funds Rate.

https://digitalcommons.pepperdine.edu/gsbm_pcm_pcmr

https://seekingalpha.com/news/4393383-us10y-soars-about-100-bps-since-fed-rate-cuts-signaling-a-diverging-inflation-outlook

https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html

In this captivating episode of Emerge Dynamics, hosts David and Eric delve into the transformative power of purpose in business. They discuss why defining and implementing a clear purpose is vital for driving employee engagement, improving company valuation, and achieving outstanding results. The episode also offers practical advice on embedding purpose into every aspect of business operations, from recruiting to decision-making processes. Eric and David wrap up by connecting purpose to profit and offering reasons why you might want to use a facilitator.