This is an Impact Pricing Blog published on June 29, 2023, turned into an audio podcast so you can listen on the go.

Read Full Article Here: https://impactpricing.com/blog/right-or-effective/

If you have any feedback, definitely send it. You can reach us at [email protected]. 

Now, go make an impact.

Connect with Mark Stiving:

• Email: [email protected]
• LinkedIn: https://www.linkedin.com/in/stiving/

This one is the 3 of Diamonds from the Selling Value card deck. 

The question now, as we're doing our prospecting, is to say which prospects will get the most value. We've talked in the last few weeks about finding prospects who realize they have a problem, finding prospects who we know have the problem, finding prospects who prioritize solving the problem. Now what we're saying is, let's find the prospects who get the most value out of solving that problem.

When we think about it, if a customer gets a ton of value from solving the problem, they're much more likely to say yes and move forward than somebody who gets a small amount of value from solving the problem. 

So, one way to think about that, as a pricing expert, I'll give you a quick hint. I work with software companies, I work with hardware companies. And sure, I love working with all of them. And I could work with software companies because there's great flexibility in the way they create their products or stick features into product options, and I love that. 

But when you think about a hardware company, the margins for hardware companies are so small and they have real hard costs. So, if we could improve their pricing by just a little bit, the percent profitability goes up dramatically. And so I would say, from my perspective, helping hardware companies, they have higher value in solving a pricing problem than a software company does. 

How does it work in your business? Which of your customers get the most value out of solving the problem that you 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, [email protected]. 

Now, go make an impact.

Connect with Mark Stiving: 

• Email: [email protected]
• LinkedIn: https://www.linkedin.com/in/stiving/

Kiran Gange founded RapidPricer and is currently working on automated pricing and promotions for retailers using image processing, spectral images, IOT data and artificial Intelligence.

In this episode, Kiran shares a dynamic pricing strategy for retailers that increases profits while providing greater value to customers.

What you will learn from this episode:

• Develop a dynamic pricing strategy that prioritizes maintaining long-term customer trust rather than solely focusing on profit
• Discover opportunities for retailers to implement dynamic pricing strategies
• Learn about a pricing strategy that reduces food wastage in the retail industry

"Take a look at your data to understand how customers are reacting to price changes."

- Kiran Gange

Topics Covered:

01:16 - What inspired him to write the book 'The Expert Guide to Retail Pricing'

02:55 - The reason for suboptimal pricing in most retail companies he works with

06:13 - Pricing in B2B versus B2C as it relates to value associated with the product or service

07:51 - Explaining about the lagged reaction between the value and the price of the product

09:22 - Illustrating the work they do at RapidPricer when it comes to dynamic pricing

13:16 - What helps customers in their decision when choosing stores to buy from

15:05 - Frameworks used and discussed in Kiran's book

16:16 - Identifying products that are profit drivers or traffic drivers

17:45 - Determining individual product elasticity even without changing prices [plus a discussion on category and product elasticity]

20:30 - Seeing opportunities for retailers to do dynamic pricing [Costco having a brilliant customer level analysis]

22:30 - What is the ‘minimum margin rule’

23:26 - How does pricing improve value

24:58 - Kiran’s best pricing advice 

Key Takeaways:

"There's so much more value to be achieved in actually selling the product at a lower price than to take this incremental profit and to lose the trust of the customer, which is much more important than your profit in the long run." - Kiran Gange

"It was Jeff Bezos who once said that our elasticity numbers always show that people are inelastic, but that's not true in the long run. You don't want to take prices up and lose the customer's trust. You might as well use a system to build trust while reducing the wastage and increasing the customer satisfaction." - Kiran Gange

"It's not about what the customer is going to see while he is already inside the store, but giving them a fair value where it matters." - Kiran Gange

People/Resources Mentioned:

• The Expert Guide to Retail Pricing by Kiran Grange: https://www.linkedin.com/posts/kirangange_retailpricing-booklaunch

Connect with Kiran Gange:

• Website: https://www.rapidpricer.com/
• LinkedIn: https://www.linkedin.com/in/kirangange/

Connect with Mark Stiving:

• LinkedIn: https://www.linkedin.com/in/stiving/
• Email: [email protected]

This is an Impact Pricing Blog published on June 22, 2023, turned into an audio podcast so you can listen on the go.

Read Full Article Here: https://impactpricing.com/blog/help-whats-bigger-than-pricing/

If you have any feedback, definitely send it. You can reach us at [email protected].

Now, go make an impact.

Connect with Mark Stiving:

• Email: [email protected]
• LinkedIn: https://www.linkedin.com/in/stiving/

This one is the 3 of Clubs from the Selling Value card deck. 

It really is easier to sell to someone who's already trying to solve a problem or realizes they have a problem and wants to go solve it. 

As I've mentioned previously, as a pricing expert, I believe that almost every company can use my services. Almost every company will benefit dramatically. And yet for me to go knock on a door of a company and say, "Hey, I'm a pricing expert. Would you like some help with your pricing," probably isn't going to be that fruitful because not many companies say, "Hey, I've got a pricing problem." 

But as soon as someone says, "Hey, I have a pricing problem." Now, what do they do? They start to look for someone who could possibly solve that problem. Maybe they go to professional pricing society meetings. Maybe they do Google searches on how to find pricing experts. Maybe they look up content and see who the experts are that are writing about it. And then they reach out to me, or to one of my competitors. But the point is, when someone reaches out to me, they've already said to themselves, "Hey, I have a pricing problem. Maybe someone can help me fix it." 

So, what about your business? If you know you can solve someone's problem, but they don't either know they have the problem or maybe they just know they have it but they haven't prioritized it. It isn't a big enough deal for them to go say, "Hey, I'm going to go fix that problem now."

It's probably better if we can find a way to find customers who've already prioritized solving your 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, [email protected]. 

Now, go make an impact.

Connect with Mark Stiving: 

• Email: [email protected]
• LinkedIn: https://www.linkedin.com/in/stiving/

Robert Edwards specializes in delivering consulting and training for company executives to understand how to optimally price their products and services, monetize their products, maximize value generation and extraction from their product portfolio, and develop their promotions and competitive strategy to increase profit. He holds a PhD in Pricing and Competitive Strategy.

In this episode, Robert shares how to simplify your pricing and effectively communicate its benefits and what value it generates.

What you will learn from this episode:

• Understand how to use price to generate value for your product or services
• Learn to use pricing to attract the customers you want
• Find out about the connection between behavioral economics and pricing

"Creating value for your pricing could be an extra dimension to what we talk about regularly when we're thinking about designing our products and pricing those products." 

- Robert Edwards

Topics Covered:

01:25 - How he found his route into pricing

03:15 - Discussing the idea about complicated and simple pricing

04:55 - How Ryanair creates a perception of simple pricing

05:55 - Why make your pricing simple

07:04 - Robert's important thoughts on creating value for your pricing

08:48 - How to add value through pricing

10:42 - LinkedIn as an example in the way of creating value and not just extracting value

14:34 - Thinking in terms of the buyer composition and not just the number of units bought

16:35 - Examples that uses price to attract the customers you want

19:50 - An example that uses pricing as an attention grabber to make all else reasonable

21:09 - A case of sellers focusing on different dimensions in attracting customers and not just pricing

22:57 - How pricing and behavioral economics tie into each other

25:36 - Considering behavioral economics at the beginning rather than at the end of the pricing process

26:18 - Understanding the pricing strategy around rebates

27:01 - Using value-based pricing and having the clarity of message why you're pricing in such a way

Key Takeaways:

"I would definitely recommend in a lot of cases simplifying your prices adds value to the products and service that you're offering because consumers have a really strong preference for this as well." - Robert Edwards

"Behavioral economics is increasingly at the heart of real pricing strategies because you can design a pricing strategy with rational consumers in mind, and it completely does not work the way you intended because consumers have these biases and they're susceptible to framing effects." - Robert Edwards

"A lot of the companies that I speak to, there's an opportunity to add value to their product by using a different pricing metric. And the only reason that pricing metric is really valuable is because of the behavioral biases of the consumers." - Robert Edwards

People / Resources Mentioned:

• Ryanair: https://www.ryanair.com/gb/en
• LinkedIn: https://www.linkedin.com/
• Subway:https://www.subway.com/en-us

Connect with Robert Edwards:

• LinkedIn: https://www.linkedin.com/in/edwardsra/

Connect with Mark Stiving:

• Email: [email protected]
• LinkedIn: https://www.linkedin.com/in/stiving/

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 [email protected].

Now, go make an impact.

Connect with Mark Stiving:

• Email: [email protected]
• LinkedIn: https://www.linkedin.com/in/stiving/

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, [email protected]. 

Now, go make an impact.

Connect with Mark Stiving: 

• Email: [email protected]
• LinkedIn: https://www.linkedin.com/in/stiving/

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: [email protected]

Connect with Mark Stiving:

• LinkedIn: https://www.linkedin.com/in/stiving/
• Email: [email protected]

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 [email protected]. 

Now, go make an impact.

Connect with Mark Stiving:

• Email: [email protected]
• LinkedIn: https://www.linkedin.com/in/stiving/