Impact Pricing

Jason Covitz, the Vice President of Commercial Finance at Covetrus, possesses a wide range of expertise including CFO, Business Growth, Value-Based Pricing, Sales Effectiveness, and Product Management, among others.

In this episode, Jason shares competitive pricing strategies, emphasizing the importance of understanding both inherent and relative value when comparing products to competitors. He shares practical methods for gathering competitive pricing intelligence and highlights the need for combining analytical and creative thinking in pricing.

Why you have to check out today's podcast:

• Gain valuable insights into how to approach value-based pricing, understand competitor comparisons, and leverage features to maximize your product's value
• Discover valuable methods for gathering competitive pricing intelligence and innovative techniques to help you make informed pricing decisions
• Learn to "ruthlessly prioritize" tasks based on their potential value to help you effectively focus your efforts and achieve significant business results

"Keep digging. Get your teams comfortable with learning. Be inquisitive, poke around, turn on the lights, and hopefully you find large piles of money."

- Jason Covitz

Topics Covered:

02:11 - What led Jason into pricing

03:17 - Discussing how analytics at Capital One included evaluating factors like the cost of repossessing a car and its post-repossession value

05:01 - Explaining the difference between a private equity (PE) owned company and a public company

07:32 - Advocating for a detailed feature-level competitor comparison

10:45 - Think about ROI conversation

11:45 - The challenge of determining competitor pricing for value-based pricing

16:16 - Discussing strategies for competitive pricing and understanding relative value

20:50 - Important thoughts on the use of conjoint analysis in B2B versus B2C contexts

22:40 - Talking about the blend of skills required in pricing, noting that it's not about pure numbers

23:44 - Jason's best pricing advice

Key Takeaways:

"Competitive intelligence from pricing --- people are like, well, I'm just going to ask them what the number is. Well, the number by itself doesn't stand alone; you got to bring the whole story to the conversation in that case." - Jason Covitz

People/Resources Mentioned:

• Capital One: https://www.capitalone.com
• First Data: https://www.first-datacorp.com
• Covetrus: https://covetrus.com/

Connect with Jason Covitz:

• LinkedIn: https://www.linkedin.com/in/jcovitz/
• 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 8, 2024, turned into an audio podcast so you can listen on the go.

Read Full Article Here: https://impactpricing.com/blog/simplifying-segmentation-for-enhanced-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/

With over 25 years of experience in pricing strategy, analytics, and customer relationship management, Adrienne Gordon is passionate about empowering businesses to leverage pricing as a long-term strategic advantage and a path to self-actualization.

In this episode, Adrienne delves into the profound impact of CEO decisions on overall company pricing. She explores the concept of 'value killers' such as the 'Bob Factor', the 'Lester Factor,' and 'Cheryl factor' illustrating how individual actions and outdated models can undermine pricing policies. Additionally, she discusses the importance of setting clear pricing goals, understanding price distribution and variance, and leveraging pricing processes to maximize profitability.

Why you have to check out today's podcast:

• Delve into the crucial role of leadership in effective pricing and value delivery within a company
• Find out common pitfalls and strategies in pricing that will help you understand how internal processes and individual actions can impact a company's pricing power and profitability
• Discover actionable advice for immediate impact enhancing your company's pricing approach and proactive value creation

"If you look at pricing as a process, you will self-actualize as a company."

- Adrienne Gordon

Topics Covered:

00:51 - How she found herself in pricing

02:26 - How her role in product management helped her develop valuable skills in product segmentation and customer insights

03:55 - Differentiating these two companies she manages, Pricing Empowered and Price Space

06:36 - The role of leadership, specifically CEOs, in pricing strategy

09:09 - Explaining the concept of "value killers" using the metaphor of "Bob"

11:40 - The negative impact of allowing CEOs to negotiate prices and discussing the concept of parameters of empowerment

14:29 - Another value killer: The Lester factor

16:55 - What makes ''Cheryl factor' a value killer and the extent of profit leaks this causes

20:15 - Three key actions leaders should take to drive pricing in their companies

24:19 - Differentiating between intentional and unintentional price variance

25:14 - Adrienne's best pricing advice

Key Takeaways:

"If the CEO doesn't believe that you can proactively price and influence markets with your pricing, then the company has no faith in it either." - Adrienne Gordon

"Parameters of empowerment: to me sometimes actually retracting some permission and then testing your value proposition, pushing pricing a little bit so that the organization can see the worth doesn't fall apart when you do that. And releasing that empowerment back, I think, actually, can help companies evolve." - Adrienne Gordon

"I often make recommendations, do not put on your parameters of empowerment 5, 10, and 15. Put on 4.72. Somebody's going to have to do the hard work to figure out what 4.72% discount is. And that's a good thing." - Adrienne Gordon

People/Resources Mentioned:

• McKinsey: https://www.mckinsey.com

Connect with Adrienne Gordon:

• LinkedIn: https://www.linkedin.com/in/adrienne-gordon-0a93129/
• Website: https://www.pricespace.com/

Connect with Mark Stiving:

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

This is an Impact Pricing Blog published on May 2, 2024, turned into an audio podcast so you can listen on the go.

Read Full Article Here: https://impactpricing.com/blog/reduce-the-risk-of-raising-prices/

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/

Tim Smith helps executives address critical questions in pricing, marketing, sales, and corporate strategy in the face of high uncertainty by using proven best practices informed by solid academic research.

In this episode, Tim delves into the Pricing Spineometer, a comprehensive tool designed to assess a company's pricing capabilities. By examining financial performance and organizational structure, one can provide valuable insights into the gap between a company's current pricing practices and optimal strategies. He also touches on the crucial role pricing plays in business success and the importance of CEO involvement in driving pricing excellence.

Why you have to check out today's podcast:

• Discover this pricing tool called Pricing Spineometer for assessing a company's pricing capabilities and learn how it works, its significance, and how it can benefit businesses
• Gain insights into the world of pricing strategies discover surprising findings about pricing practices in various industries and how they impact business performance
• Explore the critical role of CEOs in driving pricing excellence within organizations and understand why pricing decisions often require the direct involvement and prioritization of top leadership, and how this impacts business outcomes

"Take the time to apply the expertise necessary to your pricing questions. Think about it, and then listen to that expertise."

- Tim Smith

Topics Covered:

01:36 - Sharing an enriching experience teaching and consulting

02:45 - How he found himself in pricing

04:08 - What made him create Pricing Spineometer, what is it all about, clarity on it measuring a gap versus a scorecard

07:31 - The process of using the Pricing Spineometer

11:40 - How the initial financial analysis sets the foundation for understanding a company's pricing needs and capabilities

14:29 - Understanding that creating a Pricing Spineometer for a company involves significant work and expertise

16:26 - AI's impact on pricing and the companies' various reactions on their pricing capabilities assessment with pricing spineometer

19:16 - Valued for the expertise and insight not on time spent

20:08 - Surprises coming up for different companies pricing sophistication

22:19 - Does the CEO takes care of the development of pricing expertise and how does a CRO differ from a VP of Pricing

24:26 - Tim's best pricing advice

Key Takeaways:

"If you changed the way you thought about pricing, there'd be a huge bottom line impact to your company." - Tim Smith

"You're charging for the intellect that goes into the work, not the actual amount of time it takes to do the work." - Tim Smith

"There are ways to get around tools, there are ways to use the tools, but you've got to understand what the goal is." - Tim Smith

People/Resources Mentioned:

• World Class Pricing: The Journey by Paul Hunt: http://www.pricingsolutions.com/world-class-pricing-the-journey/
• TI: https://www.ti.com
• Walmart:https://www.walmart.com
• Coca Cola: https://www.coca-cola.com/us/en
• Pepsi: https://www.pepsi.com/
• Nvidia: https://www.nvidia.com/en-us/
• Kraft Heinz: https://www.kraftheinzcompany.com/

Connect with Tim Smith:

• LinkedIn: https://www.linkedin.com/in/drwiglaf/
• Website: https://wiglafpricing.com/

Connect with Mark Stiving:

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

This is an Impact Pricing Blog published on April 25, 2024, turned into an audio podcast so you can listen on the go.

Read Full Article Here: https://impactpricing.com/blog/the-value-of-a-feature-how-to-create-value-tables/

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/

Patrick Meegan is a Managing Director at Investor Group Services. Experienced in technology, industrials, consumer products, retail and e-commerce, subscription programs, pricing, and product strategy.

In this episode, he delves into the complexities of pricing strategies, emphasizing the importance of aligning prices with the perceived value and understanding market segments. She also explores the nuances between B2C and B2B pricing, highlighting the transparency in B2C and the significance of marketing and packaging in consumer products. Additionally, she provides insights on implementing price changes effectively in different organizational sizes and navigating the challenges of setting prices through distribution channels.

Why you have to check out today's podcast:

• Understand buyer drivers in order to make strategic decisions in pricing and packaging
• Learn practical advice on implementing price changes, particularly the challenges and strategies for ensuring successful pricing execution
• Gain valuable insights into the differences between B2C and B2B pricing, including unique challenges in B2C and the role of marketing in consumer products

"Spend time pressure testing the ideas."

- Patrick Meegan

Topics Covered:

01:51 - The best way to teaching case studies and the how to go about each case

02:49 - How he ended up in pricing despite lack of pricing background

03:59 - Value-based pricing and understanding buyer behavior

05:03 - The process of generating pricing insights

06:39 - Application of a framework to generate pricing insights

08:57 - Challenges and strategies for executing pricing changes, particularly in larger organizations

11:17 - Overcoming fear of raising prices.

13:08 - Strategies for reducing fear and uncertainty when implementing price increases

15:42 - The appropriate role of salespeople in pricing decisions

17:32 - The importance of setting and managing price floors and discounting policies for salespeople

21:34 - Maintaining pricing integrity and avoiding discounts

22:46 - The differences between B2C and B2B pricing strategies and how crucial is setting the end user price first when selling through distribution or channels

26:46 - Pat's best pricing advice

Key Takeaways:

"If we can't understand from the buyer's side what's driving their purchase, then it's hard for us to understand how to sell to them, how to negotiate, where to hang the value, how to package and how to structure the pricing model." - Patrick Meegan

"I cringe so much when I see people going out with a price of whatever it is with a discount right along with it because whatever value established you just eroded by saying it wasn't worth that." - Patrick Meegan

"Your portfolio also plays an important role in how you can influence pricing." - Patrick Meegan

People/Resources Mentioned:

• Kimberly Clark: https://www.kimberly-clark.com/en-us
• Kleenex: https://www.kleenex.com/en-us/
• Huggies: https://www.huggies.com/en-us/

Connect with Patrick Meegan:

• Website: maplestreet.com
• LinkedIn: https://www.linkedin.com/in/patrickmeegan/
• 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 April 18, 2024, turned into an audio podcast so you can listen on the go.

Read Full Article Here: https://impactpricing.com/blog/b2b-market-research-is-overrated/

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/

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 explains how AI can significantly enhance software customization and pricing, enabling more precise value delivery for each customer. He emphasizes that while AI introduces new capabilities, it does not fundamentally change the core principles of pricing.

Why you have to check out today's podcast:

• Dive deep into the comparison between AI and the transformative impact of SaaS, providing valuable insights into the future of software pricing and delivery
• Understand value models and how AI can optimize pricing strategies
• Explore how AI can enable highly customized software configurations and pricing, making it easier to deliver and capture value tailored to individual customers

"Before they invest a lot of time and effort in developing or pricing their own AI, find out what their customers are already doing and how they're thinking about the problems."

- Steven Forth

Topics Covered:

00:47 - Skepticism as well as optimism regarding AI and addressing the hype surrounding AI

04:15 - Exploring how AI might impact software pricing compared to the changes brought about by cloud-based SaaS.

07:05 - The way AI can optimize software configurations and pricing based on individual value drivers for each customer

10:44 - Discussing how SaaS fundamentally changed software pricing compared to AI

14:11 - How AI, while it enhances capabilities and user experiences, does not fundamentally change the underlying principles of pricing

16:31 - What is a value model?

18:15 - Pricing being tied more closely to value with the rise of AI

23:27 - Steven's best pricing advice

Key Takeaways:

"The underlying ways that we think about pricing have not changed because of generative AI and will not change, but some of them we'll be able to execute on much, much more effectively." - Steven Forth

"I think of pricing not as being something that is data-driven, but something that is model-driven." - Steven Forth

"AI is changing how we build, deliver, and experience the functionality that software and data can bring. But as it does that, it also opens new ways for us to think about the pricing of the applications and the data." - Steven Forth

People/Resources Mentioned:

• Pros: https://pros.com
• Microsoft: https://www.microsoft.com/en-ph/Don Norman: https://www.nngroup.com/people/don-norman/
• Jacob Nielsen: https://www.nngroup.com/people/don-norman/
• Totogi: https://www.totogi.com
• McKinsey: https://www.mckinsey.com
• Tom Nagle: https://www.linkedin.com/in/thomas-tom-nagle-2bb2288/
• Zilliant: https://zilliant.com
• Pricefx: https://www.pricefx.com
• Vendavo: https://www.vendavo.com
• Tomasz Tunguz: https://www.linkedin.com/in/tomasztunguz/

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 April 11, 2024, turned into an audio podcast so you can listen on the go.

Read Full Article Here: https://impactpricing.com/blog/value-for-buyer-personas/

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/