Impact Pricing

Steven Forth is Ibbaka's Co-Founder, CEO, and Partner. Ibbaka is a strategic pricing advisory firm. He was CEO of LeveragePoint Innovations Inc., a SaaS business.

In this episode, Steven explores the concept of generative pricing, emphasizing how AI can transform pricing strategies through real-time value measurement and dynamic proposal evaluation. He discusses how composable AI applications and generative adversarial networks might drive advancements in pricing and proposal management. Practical advice is also provided on using AI to optimize proposals, including developing effective evaluation rubrics and leveraging AI for better decision-making.

Why you have to check out today's podcast:

• Delves into the concept of generative pricing and how it can revolutionize pricing strategies through real-time value measurement, composability, and AI-driven proposal evaluation.
• Discover actionable advice on using AI to evaluate and improve proposals before submission which includes tips on developing effective rubrics and using AI tools to enhance proposal quality.
• Explore the future of pricing in a world increasingly influenced by AI, including the challenges of scaling costs, measuring value, and managing pricing with AI.

"Build a system that will evaluate your proposals, including your pricing proposals, before you send them out. You can do this using your currently available AI tools."

- Steven Forth

Topics Covered:

01:01 - Introducing the concept of "generative pricing" in the context of generative AI applications

02:17 - Elaborating on the concept of generative pricing by discussing the cost dynamics associated with generative AI applications compared to traditional SaaS applications

04:35 - Discussing the differences in cost between traditional search engines like Google and AI-powered services like Perplexity, highlighting the implications for generative pricing

09:28 - Shift in cost structures and the emerging properties of generative AI applications

13:54 - Configuring solutions that optimize the value delivered to customers continuously

16:02 - The potential for generative AI to enable more accurate and transparent value-based pricing models

18:41 - Explore the concept of generative pricing in the context of proposals and outcome-based pricing

22:10 - The idea of making predictions about the future of pricing, particularly in the context of generative AI, using a website called longbets.com

23:01 - How generative pricing necessitates a rethinking of pricing approaches

24:01 - Generative AI and how it affects cost management and value capture

25:30 - Discussing the implications of generative AI on the value and pricing of applications, particularly focusing on composable AI

28:42 - Steven's best pricing advice and actionable steps for leveraging AI in proposal evaluation and improvement

Key Takeaways:

"Yes, we have to be aware of costs. And the pricing systems are also going to need to be cost-management systems. But what's going to drive the configuration is value optimization." - Steven Forth

"Is generative pricing a clear, fully baked concept today? No, it's not. But I believe that generative AI is going to cause enough change that it's going to force us to rethink how we approach pricing." - Steven Forth

"...possibly as we get more sophisticated and flexible models, we'll be able to more formally manage the relationship between emotional values and also do a better job of pricing in order to reflect externalities." - Steven Forth

"We're going to have to really start designing our proposals and our pricing with the assumption that the consumer or one of the consumers is actually going to be an AI. And I think that also changes how we think about the pricing as well, and we're gonna need AIs in order to generate pricing that other AIs are going to accept." - Steven Forth

People/Resources Mentioned:

• Intercom: https://www.intercom.com
• Perplexity: https://www.perplexity.ai
• Google: https://www.google.com/?client=safari
• Gemini: https://gemini.google.comTheory
• Theory Ventures: https://theory.ventures
• Oracle: https://www.oracle.com
• Microsoft: https://www.microsoft.com/en-ph/
• Totogi: https://totogi.com
• Long Bets: https://longbets.org

Connect with Steven Forth:

• LinkedIn: https://www.linkedin.com/in/stevenforth/
• 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 13, 2024, turned into an audio podcast so you can listen on the go.

Read Full Article Here: https://impactpricing.com/blog/collusion-vs-implicit-collusion-navigating-legal-and-profitable-pricing-strategies/

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/

Leah Tharin brings B2B SaaS to the product-led growth retention light. Advising organizations to bring growth, product, marketing, and sales in line, scaling to move down or upmarket. She works in the operational details and not the hypothetical clouds with her clients.

In this episode, Leah explains the differences between product-led growth (PLG) and sales-led growth, highlighting the benefits of usage-limited freemiums in PLG strategies. She emphasizes the importance of focusing on core value and customer experience when designing freemiums. She advises on pricing strategies, recommending minimal price changes during the early stages and frequent experiments as the company matures.

Why you have to check out today's podcast:

• Find detailed definitions of key business concepts like product-led growth (PLG) and sales-led growth (SLG) that offer valuable comparisons to help you understand their differences, as well as applications.
• Learn practical and actionable advice on pricing strategies, emphasizing the importance of initial pricing for early-stage companies and the need for frequent pricing experiments as the company grows.
• Deep dive into effective business practices, such as leveraging freemium models and understanding the importance of customer value in pricing strategies.

"If you cannot convince people to use your stuff for free, then I think you should not have any price on your product."

- Leah Tharin

Topics Covered:

01:32 - Why she describe the relationship between pricing and value as stressful

03:09 - Defining a product-led growth

06:47 - Leah expanding the product-led growth definition to include interactive demos and automated marketing tools

08:49 - How companies adopt product-led growth to improve cost efficiency and compete with more agile, cost-effective competitors

11:22 - Sales-led growth defined

14:20 - What does a product-led growth focuses in getting into

20:02 - Understanding a Freemium product offer

24:10 - Why she prefers a Freemium model that is usage-limited

26:46 - An outcome-driven way of looking at the minimum viable product

29:31 - Leah's best pricing advice

Key Takeaways:

"Traditionally we talk about product-led growth in the terms of trials, freemiums, getting something for free forever until you buy it, and so forth. But I also talk about it in the context of getting an interactive demo where you understand what they now do inside of this demo." - Leah Tharin

"...what we try to do in product-led growth is exactly this. It's not so much about how much the customer spends in the initial payment with us or like even the first couple of months, maybe even year. It is about the lifetime value, how fast we can escalate this of course as well because this is also a sign of customer value." - Leah Tharin

"For commoditized markets, product-led growth, if it can be done, it's not always the right thing, but definitely the choice that you have to make. In new verticals with extremely complicated integrations, we tend to be more sales-led for sure." - Leah Tharin

People /Resources Mentioned:

• Netflix: https://www.netflix.com
• Spotify: https://open.spotify.com
• Hubspot: https://www.hubspot.com
• Salesforce: https://www.salesforce.com

Connect with Leah Tharin:

• LinkedIn: https://www.linkedin.com/in/leahtharin/
• Website: https://www.leahtharin.com/

Connect with Mark Stiving:

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

This is an Impact Pricing Blog published on June 6, 2024, turned into an audio podcast so you can listen on the go.

Read Full Article Here: https://impactpricing.com/blog/price-segmentation-in-action-why-geography-matters-for-your-wallet/

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/

Mac Kremer leads the pricing strategy practice at K1 Investment Management. He is experienced in B2B SaaS investing and value creation work.

In this episode, Mac shares strategies for growing SaaS businesses through price increases, upsells, cross-sells, and increased usage. It discusses the complexities of implementing pricing systems and emphasizes the importance of flexibility and understanding your pricing model. Additionally, it highlights the need to educate sales teams on value-based selling to reduce discounting and improve sales effectiveness.

Why you have to check out today's podcast:

• Discover valuable strategies for growing SaaS businesses, including ways to expand, manage and track revenue streams effectively.
• Understand the complexities of implementing pricing systems in various-sized companies and find out solutions from simple tools to more sophisticated systems.
• Learn practical tips on communicating value to customers, helping sales teams to sell more effectively reducing the reliance on discounts.

"Sit down with whoever's responsible for pricing, decide to set up a committee and a cadence and just start talking about it more and more."

- Mac Kremer

Topics Covered:

01:35 - How Mac found himself in pricing

02:42 - Describing his role at a private equity firm as both an advisor and consultant

03:38 - Discussing the importance of customer conversations in understanding value propositions

05:47 - Explaining that value can also include benefits beyond profit

07:28 - Similarities and differences between B2B and B2C purchasing decisions

08:49 - Using ROI calculators and the ability of sales reps to contextualize ROI within the business's specific goals

09:56 - How ownership of pricing in a company depends on its stage of development

14:01 - Importance of forecasting and budgeting for pricing activities

16:00 - Understanding the sources of revenue growth highlighting the four ways to grow a customer: Win, Keep, Grow

19:49 - What to focus on when it comes to net revenue retention

21:35 - Variety of pricing systems used and how it depends on the complexity of pricing models used

23:55 - The complexities of implementing and managing pricing systems as companies grow

25:57 - Helping salespeople understand and communicate value

29:06 - Mac's best pricing advice

Key Takeaways:

"Customer conversations are so critical to understanding the value proposition of your solution, and where you kind of see your customer's perceiving value before you even start to talk about price." - Mac Kremer

"The best place to start when you're having customer conversations is, you can go in and you can kind of engineer the true value calculator, the EVC, the economic value to the customer. But I think it's also just understanding their perception of the value that they're receiving. Because I think value comes in a lot of different forms, even outside of just profit." - Mac Kremer

"A lot depends on the complexity of your pricing model when you go to think about what system we should be using?" - Mac Kremer

People/Resources Mentioned:

• Maxio: https://www.maxio.com
• Chargebee: https://www.chargebee.com
• Gainsight: https://www.gainsight.com
• NetSuite: https://www.netsuite.com/portal/home.shtmlSalesforce:https://www.salesforce.com
• Tableau: https://www.tableau.com

Connect with Mac Kremer:

• LinkedIn: https://www.linkedin.com/in/mac-kremer/

Connect with Mark Stiving:

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

This is an Impact Pricing Blog published on May 30, 2024, turned into an audio podcast so you can listen on the go.

Read Full Article Here: https://impactpricing.com/blog/the-price-is-never-right/

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/

With 10+ years in strategic data-marketing, digital, AI and management consulting across sectors like automotive, travel, pharma, and BPO, Fabien Cros has been recognized for his knack to develop and deploy impactful, data-driven solutions. His expertise spans data consulting, AI solutions, UX, marketing analytics, and more.

In this episode, Fabien shares successful case studies, such as Patagonia and Decathlon, demonstrating how companies can transition to more sustainable business models and achieve higher profitability. Also, learn practical advice and strategies that can be directly applied to a company's business operations, helping make informed decisions and drive impact.

Why you have to check out today's podcast:

• Discover how to incorporate sustainability into your business models and pricing strategies, gaining valuable insights along the way
• Gain in-depth knowledge and practical advice on leveraging sustainability as a competitive advantage, backed by real-world examples and data
• Learn why there is a significant untapped market for sustainability-focused products and services, making it relevant for businesses aiming to capture new customer segments and drive profitability

"Go in depth, over-segment your market because you need to understand this new trend emerging around sustainability. Because it's a major untapped market for a lot of brands and companies."

- Fabien Cros

Topics Covered:

01:52 - How he got into pricing

03:43 - Introducing the concept of integrating pricing strategies with sustainability goals

10:25 - Discussing the challenges and benefits of integrating sustainability into pricing strategies

14:23 - Delving deeper into the concept of sustainability in pricing -- that sustainability is more than just a feature; it's a fundamental shift in business practices

18:30 - Acknowledging challenges integrating sustainability in pricing but also highlighting growing consumer awareness and regulatory pressures around sustainability

22:46 - The potential for sustainability as a competitive advantage in pricing strategies

27:21 - Examples of large companies successfully integrating sustainable practices

30:23 - Fabien's best pricing advice

Key Takeaways:

"What we say with Pricing for the Planet is, move to what we call 21st century concept which is value-based pricing. That way you can create additional revenue and additional profits. That way you can invest into sustainability." - Fabien Cros

"The data is showing us that you have a subset of the population. They're so passionate and they're so convinced that it's crucial that you cannot forget this market and this market segment could actually fuel a lot of the money and a lot of the financial need that is required to move to a more sustainable business model." - Fabien Cros

"We are trying to convey this message that sustainability could be viewed as a feature for the end users, but it's a new way of doing business." - Fabien Cros

People/Resources Mentioned:

• Accenture: https://www.accenture.com/
• Stephan Liozu: https://impactpricing.com/podcast/582-segmentation-strategies-uncovered-driving-revenue-through-focus-and-value-with-stephan-liozu/
• Schneider Electric: https://www.se.com/ww/en/
• Patagonia: https://www.patagonia.com/home/
• Doc Martens: https://us.rewair.drmartens.com/
• BCG: https://www.bcg.com
• Michelin: https://www.michelinman.com
• Decathlon: https://www.decathlon.com

Connect with Fabien Cros:

• LinkedIn: https://www.linkedin.com/in/fabien-cros-3b66a332/
• Website: https://www.pricingfortheplanet.com/

Connect with Mark Stiving:

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

This is an Impact Pricing Blog published on May 23, 2024, turned into an audio podcast so you can listen on the go.

Read Full Article Here: https://impactpricing.com/blog/how-value-based-selling-marketing-work-together-to-drive-increased-profitability/

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/

Dr. Thomas (Tom) Nagle founded the Strategic Pricing Group (now part of Monitor Deloitte) in 1987 soon after publication of the first edition of The Strategy and Tactics of Pricing. For more than three decades, he has advised companies, primarily in B-to-B markets, on how to manage more profitably the five elements of pricing strategy: Value Creation, Value Communication, Price Structure, Pricing Policy, and Competitive Price Setting.

In this episode, Tom shares how value is perceived and measured by customers, emphasizing the distinction between economic value and willingness to pay. He also delves into the complexities of pricing negotiations, highlighting the importance of understanding customer perceptions and effectively communicating the impact of products or services on their business outcomes.

Why you have to check out today's podcast:

• Understand the intricacies of value-based pricing, distinguishing between economic value and willingness to pay, and providing real-life examples illustrating these concepts effectively
• Delve into these two critical decisions buyers make to help you better understand and influence customer purchasing behaviors
• Find out practical advice on handling price negotiations, emphasizing the importance of "gives and gets" and strategies to avoid undermining your pricing integrity

"Don't ever believe what the customer is telling you upfront about what their value is. They may believe it, but they don't know the impact."

- Tom Nagle

Topics Covered:

01:29 - His early experiences with pricing influenced by his grandmother and how he got into pricing professionally

03:16 - How it is more effective to focus on market response to price changes and gather qualitative insights from clients than just precisely measuring elasticity

08:49 - Important thoughts on why pricing didn't matter much then before its deregulation

11:28 - Explaining the concepts of value and value-based pricing with an example illustrating the point

16:56 - The need to create policies to maintain price integrity and managing negotiations to prevent undermining value capture

23:25 - Discussing the concept of value-based pricing and sharing an insightful example where a service's value was evaluated against the status quo rather than a competitor

26:16 - Tom's best pricing advice

Key Takeaways:

"The goal is not to try to put a line between them that's a weighted average of the high prices and the low prices, and call it a demand curve. The goal is to figure out why we have all this variation and use that variation to create segments that eliminate the trade off between price and volume." - Tom Nagle

"The value isn't in the product. You can study the product from now until kingdom come, and you are never going to understand the value by studying the product. You have to study how the products' benefits impact the customer's income statement." - Tom Nagle

People/Resources Mentioned:

• Financial Analysis for Profit-Driven Pricing: https://sloanreview.mit.edu/article/financial-analysis-for-profitdriven-pricing/
• Walmart: https://www.walmart.com
• DuPont: https://www.dupont.com
• Malcolm Baldrige National Quality Award: http://asq.org/quality-resources/malcolm-baldrige-national-quality-award

Connect with Tom Nagle:

• LinkedIn: https://www.linkedin.com/in/thomas-tom-nagle
• 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 May 16, 2024, turned into an audio podcast so you can listen on the go.

Read Full Article Here: https://impactpricing.com/blog/roi-calculators-busting-myths-and-building-trust-in-b2b-sales/

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/