This is an Impact Pricing Blog published on December 9, 2024, turned into an audio podcast so you can listen on the go.

Read Full Article Here: https://impactpricing.com/blog/unlocking-portfolio-value-through-strategic-price-increases/

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/

Joshua Lowe is a solution-focused pricing professional with a proven track record in pricing (10 years) and pricing transformation (3+ years). He also has an expertise in implementing and utilizing PriceFX, a cloud-native pricing management software. 

In this episode, Joshua discusses the evolution of pricing in the auto parts industry, explaining how his company is transitioning from traditional cost-plus pricing to more market-based and value-driven strategies. He highlights the role of data analytics and predictive modeling in optimizing pricing decisions while maintaining fairness and customer retention. 

Why you have to check out today’s podcast:

• Learn how a major industry player is shifting from cost-plus pricing to market-based and value-based approaches.
• Discover how analytics and data science shape pricing strategies, ensuring competitiveness and profitability.
• Understand why leaving some value on the table fosters long-term customer relationships and repeat business.

"You've got more pricing power than you might realize."

- Joshua Lowe

Topics Covered:

01:31 - Joshua describing his journey into pricing

02:55 - Clarifying that Napa Auto Parts is a wholly owned subsidiary of Genuine Parts Company and sharing why he has stayed with Napa Auto Parts

04:27 - How his pricing strategies not only capture value but also reinvest in growth and detailing his role in setting nationwide retail, wholesale, and resale pricing frameworks 

06:37 - The evolution of market segmentation in pricing, highlighting shifts between regional and nationwide pricing models and the factors influencing those changes

08:53 - Explaining customer segmentation in pricing, emphasizing the importance of transaction data, value drivers, and willingness to pay

11:27 - Pricing strategies based on delivery distance, emphasizing relationship-based pricing over cost-to-serve

13:09 - Explaining product segmentation and how Napa Auto parts sources products

15:56 - How cost increases from suppliers generally flow through their own pricing

17:03 - The role of cost-plus pricing in the industry and its gradual shift toward market-based and value-based pricing

21:31 - How Napa Auto Parts structures pricing

24:59 - Joshua's best pricing advice

Key Takeaways:

“There's a lot of price moves that you use in pricing to extract value, but a lot of times too, you're trying to figure out ways to reinvest those wins back into sales so that you can grow.” - Joshua Lowe

“You never try to extract a hundred percent of the value of any single transaction because you might actually start losing customer retention over time. You want to leave 10, 20% on the table. I've always kind of kept that in the back of my mind as we do certain activities of how we keep the fairness in play as we make pricing actions.” - Joshua Lowe

People/Resources Mentioned:

• Gates Corporation: https://www.gates.com/us/en.html
• Genuine Parts Company: https://www.genpt.com/
• Napa Auto Parts: https://www.napaonline.com/

Connect with Joshua Lowe:

• LinkedIn: https://www.linkedin.com/in/joshua-lowe-42034746/

Connect with Mark Stiving:

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

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

Read Full Article Here: https://impactpricing.com/blog/what-is-value/

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/

Dave Brown is a CEO / Founder of QiiQ Healthcare which is developing an AI assistant for healthcare workers, to invigorate the deep sense of fulfillment in delivering high quality care - frictionlessly.

In this episode, Dave shares how AI can improve healthcare by providing clinicians with actionable insights from patient data, making consultations more efficient. He highlights the challenge of adopting new technologies in healthcare due to risks and the complexity of changing established systems. Brown also shares insights on the economic impact of healthcare innovations and stresses the importance of doing thorough homework when entering the healthcare market.

Why you have to check out today’s podcast:

• Explore the impact of AI in healthcare and how it can improve healthcare outcomes and reduce doctor-patient interaction.
• Gain insights on healthcare pricing challenges and how understanding stakeholder decisions can lead to more effective solutions.
• Learn to navigate the massive, evolving healthcare industry and the challenges of making a meaningful impact through technology and pricing strategies.

"Do your homework. You cannot wander into this [healthcare] with youthful vigor and expect to change the world easily. And it's certainly not easy to come up with a pricing model that everybody understands and likes."

- Dave Brown

Topics Covered:

01:46 - How he got interested in pricing and why it mattered to him

03:13 - Detailing how QiiQ Healthcare technology works and what makes pricing for it complicated

10:58 - Sharing how QiiQ is driven by a social mission, as well as mentioning the real challenge in healthcare technology

13:49 - How QiiQ Healthcare technology is demonstrating its value in a leading Parkinson’s clinic

15:29 - Addressing patient willingness to pay and the impact of chronic diseases on society

18:34 - How QiiQ technology streamline doctor-patient interactions and save time

21:06 - Using the trolley problem to illustrate the complexity of decision-making in change management

23:31 - Highlighting the challenge of adopting new technology despite its potential, due to uncertainty and mental workload

25:34 - Discussing the challenges of accepting AI in healthcare, drawing analogies to self-driving cars and the risks involved

28:40 - Explaining how the relationship between cost reduction and profits in healthcare is complex and not solely driven by cynicism

29:45 - Dave's best pricing advice

Key Takeaways:

“Everybody that's working with me is driven by a social need or a social urge. It's extremely common in the healthcare industry. But part of what you're hearing [challenges] is motivated by a deeper grasp of the challenge in adoption. Without adoption, you generate no value.” - Dave Brown

Connect with Dave Brown:

• Website: https://www.qiiq.health/
• LinkedIn: https://www.linkedin.com/in/davecbrown/

Connect with Mark Stiving:

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

This is an Impact Pricing Blog published on November 24, 2024, turned into an audio podcast so you can listen on the go.

Read Full Article Here: https://impactpricing.com/blog/confused-buyers-dont-buy-a-case-study-in-how-to-align-saas-pricing-with-customer-value/

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/

Mark Peacock helps B2B Tech & Consulting firms expand margin & revenue growth with tailored pricing solutions & sales enablement.

In this episode, Mark shares practical strategies for implementing price increases effectively, including a two-stage communication process to manage customer expectations and reduce resistance. He emphasizes the importance of segmenting clients by price sensitivity and value to tailor pricing strategies and build confidence. Mark also highlighted the need to treat price increases for existing customers with the same care as new business pricing to maximize business impact.

Why you have to check out today’s podcast:

• Learn proven strategies to implement price changes confidently without losing customer trust or loyalty.
• Discover an innovative approach to preparing customers for price increases minimizing resistance, and maximizing acceptance.
• Explore techniques for segmenting clients, leveraging value-based pricing, and fostering long-term relationships.

“Treat price increases for existing customers with the same importance that you do pricing for new business, because it can have such a profound impact on your business and it's nothing to be scared of.”

- Mark Peacock 

Topics Covered:

01:48 - Describing his pricing journey

02:58 - The transformative power of smart pricing strategies

06:13 - Check out Mark's article in LinkedIn, ‘Raise Prices Without Raising Eyebrows’

06:52 - The importance of putting as much effort into planning and communicating price increases with existing customers as devoting to winning new business

09:21 - The two-stage process to make price increase more acceptable to your customers  

12:34 - The third step to communicating your price increase

14:49 - Explaining the value reasons why customers should stick with you [the fourth step]

16:55 - Communicate your 'investment story' [fifth step]

18:44 - Give your customers the options and do away with hard sell [sixth step]

21:53 - Talking about frictionless approach to price increase [seventh step]

23:22 - Important thoughts on the 'do something nice' strategy

26:45 - One top tip to help you segment customers based on price sensitivity and stop churn

27:59 - More techniques for customer segmentation

28:59 - Mark's best pricing advice

Key Takeaways:

“Communicating a price increase is a sales task, and you would never use negative language in a sales activity.” - Mark Peacock

“The most important thing about a price increase communication is that there is no hard sell.” - Mark Peacock

“You need to provide them with some ways to come back to you however they want, either to approve it, to reject it, to discuss it, or if you've got upgrade or downgrade paths as well.“ - Mark Peacock

“Be as open and transparent as possible so that the buyer has total agency and control over that decision, and you are making it entirely their decision because that's how you build trust.” - Mark Peacock

Connect with Mark Peacock:

• LinkedIn: https://www.linkedin.com/in/mark-peacock-pricemaker/

Connect with Mark Stiving:

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

This is an Impact Pricing Blog published on November 18, 2024, turned into an audio podcast so you can listen on the go.

Read Full Article Here: https://impactpricing.com/blog/perfect-pricing-is-impossible-and-thats-ok/

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/

Mark Gilham is an experienced senior executive with a proven track record in finance, strategy, and consulting. He brings deep expertise in driving commercial success, improving operational efficiencies, and influencing industry best practices. 

In this episode, Mark shares the transformative power of rebates as tools for driving both customer behavior and operational efficiency, rather than just cost-cutting mechanisms. He highlights the importance of designing rebates that align with business goals, such as incentivizing desirable customer actions, improving operational processes, and fostering long-term loyalty. 

Why you have to check out today’s podcast:

• Learn how rebates can go beyond simple cost-cutting to solve operational challenges, enhance customer loyalty, and drive profitability for your business.
• Gain insights into how rebates can incentivize customer behaviors that benefit both parties, creating a more collaborative and sustainable business relationship.
• Discover innovative ways to use rebates to optimize your operations, create efficiencies, and stronger partnerships with customers.

"Get out from behind your desk; get away from the spreadsheet and understand your business. Understand what makes your business tick."

- Mark Gilham

Topics Covered:

01:11 - How he transitioned from accountancy to pricing

02:24 - Explaining why accountants' focus on cost-plus pricing

03:52 - Highlighting how understanding pricing enables finance professionals to interpret data more effectively and influence business outcomes

05:35 - Strategic role of rebates in B2B, their challenges, and how they differ from traditional incentives and discounts

08:18 - Importance of structuring rebates and balancing discounts and rebates in B2B to maintain margins

11:11 - Dynamics of incentivizing end consumers versus channel partners

14:59 - Optimizing rebate structures

20:40 - Sharing how rebates can incentivize operational efficiency

25:55 - Advocating for pricing teams to lead rebate strategies to create lasting customer relationships and reduce reliance on discounting

28:11 - Highlighting the potential of rebates to address operational inefficiencies

Key Takeaways:

"Immature pricing practices tend to be that cost-plus. And when I say immature, it's not that it's bad, it's just they don't know what good looks like or what's better." - Mark Gilham

"A good rebate is a rebate that a manufacturer or supplier wants to pay out." - Mark Gilham

"I believe pricing have the tools and the skillset to, and it should be on the sell side, to equip salespeople to go out, not to win an order, but to kind of win a relationship. And make that relationship sticky so that discounting actually is not, it's always going to be important, but hopefully you can take a little bit of that pressure off the table." - Mark Gilham

"If you want a better deal from your supplier, think about all the things you could do to make their life easier and ask them, ‘What's that worth to you?’ And that's a far better way of getting a bit of extra money out of the contract than just saying, ‘I want my product for less.’" - Mark Gilham

People/Resources Mentioned:

• Enable: https://www.enable.com

Connect with Mark Gilham:

• LinkedIn: https://www.linkedin.com/in/markgilham/
• 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 November 11, 2024, turned into an audio podcast so you can listen on the go.

Read Full Article Here: https://impactpricing.com/blog/you-influence-your-customers-willingness-to-pay/

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/

Vance Morris is a former Disney Leader turned entrepreneur, coach, speaker and author. He helps businesses deliver extraordinary customer experiences through workshops, boot camps, and training at Disney.

In this episode, Vance shares practical strategies for implementing premium pricing by presenting options and building value through transparency and trust. He emphasizes the importance of creating emotional connections with customers to enhance loyalty and retention, even in B2B environments. Additionally, he advocates for confident implementation of price increases, highlighting that many pricing challenges stem from business owners' mindset rather than market resistance.

Why you have to check out today’s podcast:

• Learn how to confidently set premium prices and create packages that differentiate your business from competitors.
• Discover how emotional connections, rather than just logic, can drive customer loyalty and enhance sales, even in B2B settings.
• Get tips on overcoming common pricing hurdles and improving customer retention through simple yet effective strategies.

“People have enough information, they don't have enough implementation; just go do it. You could go out right now, raise your prices 10% and nobody's going to bat an eyelash.”

- Vance Morris

Topics Covered:

01:45 - How he found himself in pricing

02:31 - Sustaining a cycle of value and profitability as inspired by Disney's pricing strategies

05:20 - How he justifies premium pricing in his upholstery cleaning business

08:46 - Demonstrating expertise and showcasing value 

11:32 - Emphasizing the value of positioning as a premium service rather than competing on being the second cheapest

13:00 - Maintaining pricing integrity

14:21 - Adapting Disney-inspired strategies to differentiate your business making it incomparable to competitors

16:37 - How to differentiate your products or services, even in competitive markets like B2B software

17:57 - How to foster loyalty, enhance customer retention, and make price increases more acceptable

21:09 - Highlighting the value of small, thoughtful gestures to build a positive reputation and stand out in competition

22:42 - Offering premium pricing tiers in clear, non-salesy manner

24:57 - Vance’s best pricing advice

Key Takeaways:

"Not so much to justify [premium pricing], as it is being able to offer a better experience, which then allows me to charge a higher price, which puts more money in my pocket." - Vance Morris

"It's about creating a connection. It's people doing business with people. It's not people doing business with business and creating some kind of emotional connection with the purchasing manager, with whoever's doing the buying. And it just makes selling so much easier." - Vance Morris

"When you have that connection, a price increase may not be overlooked, but is a lot more palatable than just hard excel spreadsheets flying around." - Vance Morris

"There is no competitive advantage to being second cheapest; if you're not going to be the cheapest, you might as well go the other direction." - Vance Morris

People/Resources Mentioned:

• Disney: https://www.disney.com/
• Ritz-Carlton: https://www.ritzcarlton.com/
• Dunkin Donuts: https://www.dunkindonuts.com/en

Connect with Vance Morris:

• LinkedIn: https://www.linkedin.com/in/vancemorris/
• Website: https://deliverservicenow.com/

Connect with Mark Stiving:

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