Impact Pricing

This is an Impact Pricing Blog published on April 13, 2023, turned into an audio podcast so you can listen on the go.

Read Full Article Here: https://impactpricing.com/blog/lessons-from-a-cute-story/

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 5 of Spades from the Selling Value card deck.

A value table consists of four columns: the solution, the problem, the result, and the value, typically in dollars. And when we do this, we think of creating the information, or the data in each cell for a typical customer.

But we would never walk into a customer and say, 'You should expect to make a million dollars by buying this product.' Or we would never walk into a customer and say, 'We would expect you to have 3% more productivity if you buy our product.'

Instead, when we think through all of the columns in a value table, and where additional profit comes from, and where additional productivity or reduced turnover, or whatever other effects we're going to have for our customers, then all we've done is say, 'This is a possible scenario.'

But if we understand what those are, then when we go in and start having conversations with our buyers, and we say, 'What problems are you trying to solve?' Or, 'What results might you be looking for?' We already know how to take those problems, turn them into results. Those results turn them into profit dollars to the customer.

So, I think of a value table more as a roadmap, as a conversation starter. As a way to say, 'Here's where I think the dialogue may be going.' But it certainly isn't the sales pitch we walk in with.

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, 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/

Michael Tatonetti is the Founder and CEO of Pricing for Associations. He is also a Pricing and Value Speaker and Consultant and a Certified Association Executive as well as a Certified Pricing Professional.

In this episode, Michael discusses the importance of aligning pricing and value with the mission of associations and non-profit organizations. He emphasizes that value should be the central factor in creating a pricing strategy, as it resonates more with members and strengthens their connection to the organization.

Why you have to check out today's podcast:

• Discover the three factors that distinguish associations from traditional subscriptions and find out their similarities in some aspects
• Find out how to price an association and why these two components of value and price tie in together to create the best pricing
• Learn how associations communicate better value in their pricing and the formula you can use to best convey your pricing

"Focus on the value. Always put the value before the price."

- Michael Tatonetti

Topics Covered:

01:01 - How he started a career in Pricing

02:36 - What differentiates non-profit associations from subscription businesses?

03:59 - How does competition feels different in an association space?

05:37 - Looking at an associations membership bylaws, pricing objectives, their competitive positions in the space

07:16 - Three things that makes an association different from subscription business and what makes them the same with it

10:15 - What to consider when shifting from annual to monthly billing for associations and what he advocates as the biggest thing that differentiates association from subscription

12:32 - Pricing an association and when does he consider competitors when pricing?

15:08 - Questions to ask to come up with the best pricing

17:17 - Using Van Westendorp to help in data analysis for pricing [and the number of samples needed for this tool]

18:17 - Michael letting Mark share his own idea of the right number of responses needed for Van Westendorp data analysis

20:49 - Relying on value and not on cost when communicating pricing

24:38 - Michael's best pricing advice that could impact any business

Key Takeaways:

"Most subscriptions, not all, of course, run on like a monthly basis. Of course you can do annual, but most of them, you think in monthly terms where most associations are billing annually." - Michael Tatonetti

"Most subscriptions for profit are able to just auto-bill where some associations, depending on state, cannot auto-bill, they can opt in, but for some they cannot." - Michael Tatonetti

"Associations are typically divided into one of two categories, either organizational or individual. They're typically called trade or individual, trade is organization. Now, when you have an organization, then yes, typically they're not going to have it on renew." - Michael Tatonetti

"I think of traditional subscriptions as an individual, I sign up and then I cancel when I want. Where with associations, there's typically more thought-power that goes into the decision to continue year over year." - Michael Tatonetti

"I lean in on value a lot. I typically will not do work with an organization on just price. I typically require that we're doing value and price because most organizations don't change their value too often." - Michael Tatonetti

People / Resources Mentioned:

• Robbie Kellman Baxter: https://impactpricing.com/podcast/ep94-powerful-pricing-insights-from-a-subscription-expert-with-robbie-kellman-baxter/
• Van Westendorp: https://en.wikipedia.org/wiki/Van_Westendorp%27s_Price_Sensitivity_Meter

Connect with Michael Tatonetti:

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

Connect with Mark Stiving:

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

This is an Impact Pricing Blog published on April 6, 2023, turned into an audio podcast so you can listen on the go.

Read Full Article Here: https://impactpricing.com/blog/you-have-the-curse-of-knowledge/

[powerpress]

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 6 of Diamonds from the Selling Value card deck.

If you are having value conversations, you're focusing on, what's the problem the client's trying to solve? What's the result they might expect to achieve?

And if that result is quantifiable and we're selling to a company, then almost certainly you can turn that quantifiable results into incremental profit to that company. But in order to do that, we have to understand the business of our customers.

I remember a long, long time ago when I was in sales, we were selling automatic test equipment and we had a device that was more accurate. But in order for the test equipment that was more accurate to have value to the client, we had to show, how does this more accurate tester generate more profit?

Well, the answer was, in order for a semiconductor manufacturer to ensure that a part was of a specific speed, they had to take in the accuracy of the test equipment. And so, if a test equipment was less accurate, they would build a bigger guardrail. And if a test equipment was more accurate, they could have a smaller guardrail, which meant more parts would pass the test. And those more parts passing tests were sold at higher prices, meaning they made more profit.

The point is, if we don't understand the business of our customers and we don't understand how they're going to make additional profit, then it's really hard for us to help our clients say, here's why this capability generates more profit for you. And when we're able to do that, then clients are much more likely and willing to buy from us.

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, and read the saying. 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/

Robbie Kellman Baxter is an Advisor to the world's leading subscription-based companies, a Keynote Speaker and Author of The Membership Economy and The Forever Transaction. She is also the Host of Subscription Stories Podcast.

In this episode, Robbie discusses the significance of upholding ethical standards when implementing a subscription business model, as it greatly affects the company's long-term viability.

Why you have to check out today's podcast:

• Learn about the unethical practices in subscription pricing and their long-term implications for your business
• Find out effective price segmentation strategies that can be applied to your subscription-based business model
• Know why these companies are the best models when it comes to subscription pricing

"Have a rationale for your pricing structure that you would be comfortable showing to a loved one who is a customer."

- Robbie Kellman Baxter

Topics Covered:

01:49 - What drove her entry into Pricing

04:28 - Why some companies make it hard for subscribers to cancel and what is it's negative implication in the long run

08:12 - Bad karma as a consequence of hiding a cancellation button

09:20 - Discussion around an advancing legislation on making it easier to cancel subscriptions anytime

11:11 - Understanding price segmentation in a subscription pricing

17:20 - How she negotiates when buying a car, for instance, knowing someone else paid a different price for that

19:20 - Price segmentation discussion around Everyday-Low Price[EDLP] versus High-low Price

21:09 - Discussing pricing segmentation used by Netflix and news organizations

23:25 - Another price segmentation point of discussion [based on where you live and how busy these areas are]

26:06 - Case in point at Macy's on price differential as the topic of discussion

27:51 - What makes her price sensitive even when she's non-price sensitive

29:20 - Robbie's best pricing advice

Key Takeaways:

"I tried to explain to them how [putting some friction into your cancellation process] in the short-term does work, in the long term, it kills your business. It kills your reputation, it ruins the trust." - Robbie Kellman Baxter

"Whatever it took to get you in there, it should take you out. If you can sign up any day of the week, any time of day, you shouldn't be required to cancel Tuesdays between two and four." - Robbie Kellman Baxter

"Where I come down on differentiated pricing or segmented pricing is if you can explain it to somebody. If your mother would be okay with being on the high end of that pricing and understanding why you're doing it, then I'm okay with it." - Robbie Kellman Baxter

People / Resources Mentioned:

• SiriusXM: https://www.siriusxm.com/
• Wells Fargo: https://www.wellsfargo.com/
• Suzi Watford: https://www.linkedin.com/in/suzi-watford-18547817/
• Dow Jones Wall Street Journal: https://en.wikipedia.org/wiki/Dow_Jones_%26_Company
• Booz Allen: https://www.boozallen.com/
• Macy's:https://www.macys.com
• JCPenney: https://www.jcpenney.com/
• Netflix: https://www.netflix.com/

Connect with Robbie Kellman Baxter:

• Website: https://robbiekellmanbaxter.com/
• LinkedIn: https://www.linkedin.com/in/robbiekellmanbaxter/
• 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 March 30, 2023, turned into an audio podcast so you can listen on the go.

Read Full Article Here: https://impactpricing.com/blog/ford-patents-feature-with-negative-value/

[powerpress]

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 6 of Clubs from the Selling Value card deck.

First, let's talk about an analytical journey. These are those people who, once they realize they have a problem that they might want to go solve, they spend a bunch of time doing their own research, probably on the internet, figuring out what are the different options, where they might buy it, what are the price points? These are the most price sensitive buyers we can deal with.

And yet, if we get an opportunity to talk to them as a salesperson would talk to a potential client, we could be sitting there saying, Hey, here's why our product is better than our competitor's product. But my recommendation would be to make sure we have the value conversation about the inherent value of solving the problem.

If we have that conversation, it may be that the buyer didn't realize that there were a lot of other opportunities or a lot of other places where there's value if they buy a product like this. The person might begin to trust the salesperson more and say, Hey, this person's really looking out for my best interest. The buyer is more likely to buy because we're showing them more and more value.

So, for a lot of different reasons, it makes sense for us to make sure that we're going back to, let's call it "first principles". We're going back to help our buyers understand what's the value of solving the problem. And in the meantime, we also need to talk about how we are differentiated and possibly better than competitive alternatives.

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/

JD Dillon is the Chief Marketing Officer, Communications Leader, and Pricing Professional at Tigo Energy.

In this episode, JD shares his 8D problem-solving technique that helps create a solid pricing strategy in place.

Why you have to check out today's podcast:

• Understand what the 8D technique of problem solving is and where you can specifically apply it to
• Learn how to figure things out and find solutions logically rather than emotionally
• Discover about the 'Five Why' in verifying the root causes of a problem

"If you are in a situation where there's a price reduction, try to do two or three other things first." - JD Dillon

Topics Covered:

01:15 - How JD's Pricing journey started

02:21 - Updates about T.J. Rodgers

03:23 - Overview of what the Eight-D problem-solving technique is all about

04:12 - How does a quality program relate to pricing?

05:32 - What goes on in D-Zero?

07:32 - Where do we ideally apply Eight-D to? [Showing a case study]

08:51 - D-One: What happens here?

10:24 - How do you go about D-Two?

12:36 - Action steps you need to do in D-Three

14:49 - Finding the root causes with D-Four and using the 'Five Why' technique

17:36 - How do you verify permanent corrective action in D-Five?

18:49 - Getting everything executed in D-Six

20:05 - Digging deeper into D-Five and [culture and internal processes]

20:58 - Preventing recurrence in D-Seven

22:48 - D-Eight: Congratulating the team

24:23 - How often do you perform the Eight-D process?

26:55 - JD's best pricing advice

28:25 - Connect with JD

Key Takeaways:

"Pricing is the quality metric for revenue." - JD Dillon

"If you do it right [Eight-D process], it builds into the DNA of the company. And after a few years you've improved your DNA continuously and quite a bit." - JD Dillon

"What I described is a thought process, that's all. You can do it in a meeting with people that know what they're doing. I can do it with somebody who's worked for me in the past and we can quickly go through the process in 10 minutes about one small little issue and then move on." - JD Dillon

People/Resources Mentioned:

• Ted Levitt: https://en.wikipedia.org/wiki/Theodore_Levitt
• T.J. Rodgers: https://en.wikipedia.org/wiki/T._J._Rodgers

Connect with JD Dillon:

• LinkedIn: https://www.linkedin.com/in/jd-dillon/

Connect with Mark Stiving:

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

This is an Impact Pricing Blog published on March 23, 2023, turned into an audio podcast so you can listen on the go.

Read Full Article Here: https://impactpricing.com/blog/discrimination-or-segmentation/

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/