Impact Pricing

Why you have to check out today’s podcast: 

• Understand how personalized customer onboarding converts and retains more customers 
• Find out the different pricing metrics Bonjoro used in coming up with good pricing 
• Find out how market segmentation helps in coming up with good pricing 

Matthew Barnett is the founder of Bonjoro and head honcho at Verbate. At the same time, he is also a contemporary artist. 

In this episode, Matt shares how Bonjoro uses different pricing metrics to come up with product pricing, and market segmentation helps them in deciding price.  

“I think especially early companies, think about what you want to price and price triple.”

– Matthew Barnett 

Get COV’s Pricing Metrics: 

The Most Important Pricing Decision in a Subscription Business Course at https://www.championsofvalue.com    

Topics Covered: 

01:04 – What does his company, Bonjoro do and what unique Pricing strategy does it have 

02:06 – One important message Bonjoro is driving at in sending videos rather than emails or text to customers 

02:22 – Pricing the Bonjoro way 

07:16 – Making decisions on usage data 

12:51 – Do pricing metric and value metric mean the same thing 

14:21 – How did Bonjoro come up with all the pricing metrics 

17:55 – Why Bonjoro don’t do Options for now 

22:18 – How to go about Options in Pricing 

25:32 – Looking at Slack and Zoom’s Pricing model 

32:07 – Why you need to give value at the onboarding of customers stage 

33:52 – Thoughts on price endings 

37:19 – Grandfathered pricing 

40:54 – Matt’s best pricing advice 

Key Takeaway: 

“At certain points on the customer journey, like this face to face stuff actually stopping for minutes and being like, it’s me, I’m a human. That’s what it’s about.” – Matt Barnett 

“Some of the sides of pricing is also packaging.” – Matthew Barnett 

“I’m at the point where I’m like, I kind of hate paying them but I keep paying it. So that to me is as a business owner I look at that and go that’s good pricing because I hate it enough to leave, but they extract every single dollar from me that they could possibly get like that.” – Matthew Barnett 

“I think given the fact that quite early in the company, I mean three years to me it’s still early, it says of a product. So I think one of the things here is to get to the stage where the three if we end up with the three plans or all of the four plans for the three. Those are the right price to value match as a base and then we start to add things on there that as far as segmentation. I actually do think higher plans honestly need a bit more bolstering in terms of feature sets.” – Matthew Barnett  

“It’s much easier to start high and then go, oops, come down than it is to go double your price and the next day. And I was like, hang on a minute.” – Matt Barnett 

“ I mean especially early companies always, always price too low. We are one of these. We did it too. I think if people don’t push back and say, ‘Hey, your price is too high.’ If no one ever says that, your pricing is too low.” – Matthew Barnett 

People / Resources Mentioned: 

• Slack 
• Zoom 
• LinkedIn 

Connect with Matthew Barnett: 

• Bonjoro.com 
• LinkedIn 

Connect with Mark Stiving:  

• Email: [email protected]   
• LinkedIn   
• Twitter 

• Understand how Data Science helps in pricing 
• Find out the disconnect between product managers and data scientists in terms of pricing a product  
• Discover why pricing work better with data analytics  allowing you to compare and assess different strategies

Neil Biehn is the Vice President of Business Analytics at Siemens Healthineers. He has over a decade of experience in analytics, segmentation, sales effectiveness, and pricing optimization. Neil’s specialties include Analytics, Segmentation, Revenue Management, Price Optimization, Operations Research, Willingness-to-Pay, and Data Science. 

In this episode, Neil shares with us how Data Science helps in pricing.  He also deep dives into why pricing works better with data analytics allowing you to compare and assess different pricing strategies. 

“Profit as a guide for price is limited and should be used only if it is in line with the strategy of a company. You are willing to lose customers to maintain a profit margin, ultimately, your customers don’t care about your profits, they care about the price of your services or materials or any products. Let Finance worry about running your profits.” 

– Neil Biehn

Get COV’s Pricing Metrics:

The Most Important Pricing Decision in a Subscription Business Course at https://www.championsofvalue.com   

Topics Covered:  

01:22 – How his path in Pricing started 

04:38 – A description of his current job   

05:45 – How does he describe the relationship of  “business people’ in an organization with ‘data science people’ 

10:17 – Logical comparison of the engineering team with the data science team 

13:40 – A look at one case study of coming up with good pricing at Siemens 

19:25 – How does he help solve a company’s price erosion problem 

20:24 – His one valuable pricing advice  

22:10 – How it looks like finding a solution to problems the data science way

Key Takeaway: 

“If you have data and have the facts, why wouldn’t you use it? Every single data point you have about price, every purchase someone makes at a price point will give you an unbelievable wealth of information and you should use it.” — Neil Biehn 

People / Resources Mentioned: 

• The Price Advantage by Walter Baker and Craig C. Zawada 
• PROS 

Connect with Neil Biehn: 

• LinkedIn 

Connect with Mark Stiving: 

• Email: [email protected]  
• LinkedIn  
• Twitter 

• Understand how Data Science helps in pricing 
• Find out the disconnect between product managers and data scientists in terms of pricing a product  
• Discover why pricing work better with data analytics  allowing you to compare and assess different strategies

Neil Biehn is the Vice President of Business Analytics at Siemens Healthineers. He has over a decade of experience in analytics, segmentation, sales effectiveness, and pricing optimization. Neil’s specialties include Analytics, Segmentation, Revenue Management, Price Optimization, Operations Research, Willingness-to-Pay, and Data Science. 

In this episode, Neil shares with us how Data Science helps in pricing.  He also deep dives into why pricing works better with data analytics allowing you to compare and assess different pricing strategies. 

“Profit as a guide for price is limited and should be used only if it is in line with the strategy of a company. You are willing to lose customers to maintain a profit margin, ultimately, your customers don’t care about your profits, they care about the price of your services or materials or any products. Let Finance worry about running your profits.” 

– Neil Biehn

Get COV’s Pricing Metrics:

The Most Important Pricing Decision in a Subscription Business Course at https://www.championsofvalue.com   

Topics Covered:  

01:22 – How his path in Pricing started 

04:38 – A description of his current job   

05:45 – How does he describe the relationship of  “business people’ in an organization with ‘data science people’ 

10:17 – Logical comparison of the engineering team with the data science team 

13:40 – A look at one case study of coming up with good pricing at Siemens 

19:25 – How does he help solve a company’s price erosion problem 

20:24 – His one valuable pricing advice  

22:10 – How it looks like finding a solution to problems the data science way

Key Takeaway: 

“If you have data and have the facts, why wouldn’t you use it? Every single data point you have about price, every purchase someone makes at a price point will give you an unbelievable wealth of information and you should use it.” — Neil Biehn 

People / Resources Mentioned: 

• The Price Advantage by Walter Baker and Craig C. Zawada 
• PROS 

Connect with Neil Biehn: 

• LinkedIn 

Connect with Mark Stiving: 

• Email: [email protected]  
• LinkedIn  
• Twitter 

Why you have to check out today’s podcast: 

• Why it is not a good idea to use Cost-Plus pricing in the manufacturing and distribution channels 
• Which tool to use to provide data for a favorable Pricing when you can’t obtain data from distribution channels 
• Find out favorable arguments, from a pricing standpoint, to go direct selling rather than by way of distribution channels 

Ralph Zuponcic is the president and co-founder of PricePoint Partners, LLC., a company that enables wholesale distributors and manufacturing companies to improve margin performance through price optimization initiatives, margin management tools, and highly effective pricing training programs. He is now a national authority on strategic pricing and margin management.  Ralph has lectured at The Ohio State University Fisher College of Business and at associations and companies across the country. He has also been featured in publications including The Wall Street Journal, Fortune Small Business, CFO Magazine, and Marketing News. 

In this episode, Ralph shares about pricing in the manufacturing and distribution channels industry.  

“Focus on smaller accounts to start with. And see what kind of improvement you can get there. And look for that price variation. And you don’t need to boil the ocean just start getting some improvement. Start small with pricing. Get some early wins. And move on from there.”  

– Ralph Zuponcic

Get COV’s Pricing Metrics:

The Most Important Pricing Decision in a Subscription Business Course at https://www.championsofvalue.com   

Topics Covered:  

01:26 – Ralph’s path to Pricing 

04:07 – Reasons why he is not for Cost-Plus Pricing 

07:08 – Why is there a lot of focus on cost in manufacturing companies 

08:33 – What happens when you use Cost-Plus Pricing and you lower your cost by a certain percentage 

09:03 – What do most distributors use other than Cost-Plus to address competitive pressures 

11:32 – What benefit can you get from Price-Variance Analysis 

12:59 – How to deal with Pricing with distribution channels who don’t have direct sales forces in the marketplace 

16:06 – How to do Pricing for distributors that is advantageous to both manufacturers and distributors 

18:18 – Ralph’s thoughts on distributors getting to choose their own prices 

21:31 – The difficulty with the manufacturer not having direct access to a distribution channel’s Pricing 

24:10 – From a pricing standpoint why is selling directly a better choice than through distribution channels 

25:26 – On the idea of manufacturers trading lower price to distributors for their data 

26:55 – Valuable pricing advice that can impact one’s business 

Key Takeaways: 

"If you are obviously pricing too high for the distributor and doesn't leave him enough margin, it disrupts what's going on in their marketplace with the final user or the final buyer. Achieving that balance is difficult. If you can have a relationship, maybe not with all the distributors, but some key distributors that are tight enough that you can have those discussions openly and honestly, it starts to give you some better insight and then you can cooperate right with each other to arrive at a pricing that's going to be meaningful both coming from the manufacturer and coming from the distributor." — Ralph Zuponcic 

"If I'm a manufacturer and I have the choice between direct and distribution, I know what I would prefer from a pricing standpoint. I'm ready to go direct. I have more control."— Ralph Zuponcic 

"What we do is we take all the data, all the price points that have been charged for a given item. We put them on a scatterplot, and we see how much variance there is. When you look at that scatter plot, we tend to think of it as market research data because it's telling us what customers are willing to pay." — Ralph Zuponcic 

“Start small with pricing, get some early wins and move on from there.” — Ralph Zuponcic 

Connect with Ralph Zuponcic: 

• Pricepointpartners.com 
• Facebook 
• LinkedIn 
• Phone number: (330) 342-0923 

Connect with Mark Stiving: 

• Email: [email protected]  
• LinkedIn  
• Twitter

Why you have to check out today’s podcast: 

• Why it is not a good idea to use Cost-Plus pricing in the manufacturing and distribution channels 
• Which tool to use to provide data for a favorable Pricing when you can’t obtain data from distribution channels 
• Find out favorable arguments, from a pricing standpoint, to go direct selling rather than by way of distribution channels 

Ralph Zuponcic is the president and co-founder of PricePoint Partners, LLC., a company that enables wholesale distributors and manufacturing companies to improve margin performance through price optimization initiatives, margin management tools, and highly effective pricing training programs. He is now a national authority on strategic pricing and margin management.  Ralph has lectured at The Ohio State University Fisher College of Business and at associations and companies across the country. He has also been featured in publications including The Wall Street Journal, Fortune Small Business, CFO Magazine, and Marketing News. 

In this episode, Ralph shares about pricing in the manufacturing and distribution channels industry.  

“Focus on smaller accounts to start with. And see what kind of improvement you can get there. And look for that price variation. And you don’t need to boil the ocean just start getting some improvement. Start small with pricing. Get some early wins. And move on from there.”  

– Ralph Zuponcic

Get COV’s Pricing Metrics:

The Most Important Pricing Decision in a Subscription Business Course at https://www.championsofvalue.com   

Topics Covered:  

01:26 – Ralph’s path to Pricing 

04:07 – Reasons why he is not for Cost-Plus Pricing 

07:08 – Why is there a lot of focus on cost in manufacturing companies 

08:33 – What happens when you use Cost-Plus Pricing and you lower your cost by a certain percentage 

09:03 – What do most distributors use other than Cost-Plus to address competitive pressures 

11:32 – What benefit can you get from Price-Variance Analysis 

12:59 – How to deal with Pricing with distribution channels who don’t have direct sales forces in the marketplace 

16:06 – How to do Pricing for distributors that is advantageous to both manufacturers and distributors 

18:18 – Ralph’s thoughts on distributors getting to choose their own prices 

21:31 – The difficulty with the manufacturer not having direct access to a distribution channel’s Pricing 

24:10 – From a pricing standpoint why is selling directly a better choice than through distribution channels 

25:26 – On the idea of manufacturers trading lower price to distributors for their data 

26:55 – Valuable pricing advice that can impact one’s business 

Key Takeaways: 

"If you are obviously pricing too high for the distributor and doesn't leave him enough margin, it disrupts what's going on in their marketplace with the final user or the final buyer. Achieving that balance is difficult. If you can have a relationship, maybe not with all the distributors, but some key distributors that are tight enough that you can have those discussions openly and honestly, it starts to give you some better insight and then you can cooperate right with each other to arrive at a pricing that's going to be meaningful both coming from the manufacturer and coming from the distributor." — Ralph Zuponcic 

"If I'm a manufacturer and I have the choice between direct and distribution, I know what I would prefer from a pricing standpoint. I'm ready to go direct. I have more control."— Ralph Zuponcic 

"What we do is we take all the data, all the price points that have been charged for a given item. We put them on a scatterplot, and we see how much variance there is. When you look at that scatter plot, we tend to think of it as market research data because it's telling us what customers are willing to pay." — Ralph Zuponcic 

“Start small with pricing, get some early wins and move on from there.” — Ralph Zuponcic 

Connect with Ralph Zuponcic: 

• Pricepointpartners.com 
• Facebook 
• LinkedIn 
• Phone number: (330) 342-0923 

Connect with Mark Stiving: 

• Email: [email protected]  
• LinkedIn  
• Twitter

• Discover about marketing strategies that drive pricing for optimized revenue  
• Learn about strategies and techniques to pull in data as the basis to optimize pricing for your vacation rentals 
• Learn how Beyond Pricing software product gather in data to come up with favorable pricing 

Ian McHenry is co-founder and board member for Beyond Pricing. He is a former investment banker and a management consultant in the airline and hotel industry. He founded Beyond Pricing, which helps vacation rentals and Airbnbs maximize their revenue through innovative software products and which has raised over $45m in venture capital from top-tier investors including Bessemer. 

 In this episode, Ian shares his expertise on pricing vacation rentals and how to optimize revenue earned from them. 

“Expose a bit of that black box. As you said, there might be just a couple of factors. There’s a lot of things that go into the factors, but if you can show like the prices up because of the seasonality versus an event, that creates a lot of trust and if you can show some of the underlying data trends that support that kind of recommendation and decision, it helps out a lot.”  

– Ian Mc Henry

Get Accelerate Your Subscription Business: Your Blueprint to Packaging & Pricing for Growth Course at https://www.championsofvalue.com   

Topics Covered:  

01:13 – What is Beyond  Pricing Company 

02:27 – What paved the way for him to Pricing 

03:55 – How to optimize pricing for only a single unit in Airbnb 

05:00 – How to look at external demand data to come up with vacation rental pricing 

06:57 – What other information do they have to pull, especially if there’s  a one-time event coming up 

11:44 – How not to underprice or overprice your vacation rentals 

16:05 – How does Ian price their own product 

21:53 – On trusting the data versus using the data in a black box 

20:23 – His pricing advice that impacts one’s business: “Play with data and segment a lot.” 

Key Takeaways: 

“I knew it wasn’t true when property managers told us we can’t make income from vacation rentals. I had all the data that tell otherwise. At any rate, we ended up making a lot of money off of it because it was really easy to capture that demand by just dynamically pricing it properly.” – Ian McHenry 

“If you’re really trying to figure out to do, play with data and segment a lot like trying to understand demand and willingness to pay across all different kinds of segments you find interesting. I’ve found that you find interesting stuff just playing with the data.” – Ian McHenry 

“If you’re building a product like ours where you do have buyers of that data that they need to trust the algorithm and not have it be a black box, one last thing is like expose as much as you can without necessarily giving away the secret sauce because a lot of the problem is getting buy-in for these predictions that you’ve made. – Ian McHenry 

“Expose a bit of that black box. Like you said, there might be just a couple of factors. There’s a lot of things that go into the factors, but if you can show like the prices up because of the seasonality versus an event, that creates a lot of trusts and if you can show some of the underlying data trends that support that kind of recommendation and decision, it helps out a lot.” – Ian McHenry  

People / Resources Mentioned: 

• JetBlue 
• Allegiant Air 
• Oliver Wyman 
• Southwest Airlines 
• Smith Travel Research  
• Hertz 
• Andrew Watterson 
• Scot Hornick 

Connect with Ian McHenry: 

• LinkedIn 
• E: [email protected] 
• https://beyondpricing.com/

Connect with Mark Stiving  

• Email: [email protected]  
• LinkedIn  
• Twitter  
• https://www.championsofvalue.com

• Discover about marketing strategies that drive pricing for optimized revenue  
• Learn about strategies and techniques to pull in data as the basis to optimize pricing for your vacation rentals 
• Learn how Beyond Pricing software product gather in data to come up with favorable pricing 

Ian McHenry is co-founder and board member for Beyond Pricing. He is a former investment banker and a management consultant in the airline and hotel industry. He founded Beyond Pricing, which helps vacation rentals and Airbnbs maximize their revenue through innovative software products and which has raised over $45m in venture capital from top-tier investors including Bessemer. 

 In this episode, Ian shares his expertise on pricing vacation rentals and how to optimize revenue earned from them. 

“Expose a bit of that black box. As you said, there might be just a couple of factors. There’s a lot of things that go into the factors, but if you can show like the prices up because of the seasonality versus an event, that creates a lot of trust and if you can show some of the underlying data trends that support that kind of recommendation and decision, it helps out a lot.”  

– Ian Mc Henry

Get Accelerate Your Subscription Business: Your Blueprint to Packaging & Pricing for Growth Course at https://www.championsofvalue.com   

Topics Covered:  

01:13 – What is Beyond  Pricing Company 

02:27 – What paved the way for him to Pricing 

03:55 – How to optimize pricing for only a single unit in Airbnb 

05:00 – How to look at external demand data to come up with vacation rental pricing 

06:57 – What other information do they have to pull, especially if there’s  a one-time event coming up 

11:44 – How not to underprice or overprice your vacation rentals 

16:05 – How does Ian price their own product 

21:53 – On trusting the data versus using the data in a black box 

20:23 – His pricing advice that impacts one’s business: “Play with data and segment a lot.” 

Key Takeaways: 

“I knew it wasn’t true when property managers told us we can’t make income from vacation rentals. I had all the data that tell otherwise. At any rate, we ended up making a lot of money off of it because it was really easy to capture that demand by just dynamically pricing it properly.” – Ian McHenry 

“If you’re really trying to figure out to do, play with data and segment a lot like trying to understand demand and willingness to pay across all different kinds of segments you find interesting. I’ve found that you find interesting stuff just playing with the data.” – Ian McHenry 

“If you’re building a product like ours where you do have buyers of that data that they need to trust the algorithm and not have it be a black box, one last thing is like expose as much as you can without necessarily giving away the secret sauce because a lot of the problem is getting buy-in for these predictions that you’ve made. – Ian McHenry 

“Expose a bit of that black box. Like you said, there might be just a couple of factors. There’s a lot of things that go into the factors, but if you can show like the prices up because of the seasonality versus an event, that creates a lot of trusts and if you can show some of the underlying data trends that support that kind of recommendation and decision, it helps out a lot.” – Ian McHenry  

People / Resources Mentioned: 

• JetBlue 
• Allegiant Air 
• Oliver Wyman 
• Southwest Airlines 
• Smith Travel Research  
• Hertz 
• Andrew Watterson 
• Scot Hornick 

Connect with Ian McHenry: 

• LinkedIn 
• E: [email protected] 
• https://beyondpricing.com/

Connect with Mark Stiving  

• Email: [email protected]  
• LinkedIn  
• Twitter  
• https://www.championsofvalue.com

• What does factors like leadership and influence have to do in pricing  your product and service 
• Pricing lessons you need to know to understand your business better 
• Discover how to organize your pricing leadership function for your business success 

Kevin Lemke is a commercial executive with a passion for fixing and creating businesses. Strong record of delivering revenue and margin upside. Career-to-date benefits generated are greater than $500M of additional margin – an average of .5% return on sales. His specialties include organizational Leadership, Innovation Strategy, Turnarounds & Business Transformation, Digital Marketing, B2B Sales, Pricing Strategy, Go-to-market Model Development, Value Proposition Development, Whitespace Identification, Organization structure development, and alignment. 

 In this episode, Kevin shares with us his expertise in setting up pricing in B2B and B2C businesses. 

Bring your sales guys into the conversation and have them be part of making sure that we’ve got the price, the right pricing programs, and discipline. I think they need to be part of this. They benefit. We all benefit.”

– Kevin Lemke

Get Accelerate Your Subscription Business: Your Blueprint to Packaging & Pricing for Growth Course at https://www.championsofvalue.com  

 Topics Covered: 

01:08 – What does he do as VP of innovation  

01:54 – How did his career in Pricing start 

03:05 – How was it like learning the systems and processes already in place at the time he entered the aviation industry 

05:20 – Thoughts about “pricing is the sales prevention team” 

06:29 – Talking about Leadership in Pricing 

07:16 – Describing his stint at Zilliant and where this company is focused at 

08:53 – Leading a pricing initiative when he got back to Dell 

10:15 – What does internal product management entail 

11:01 – Lessons he learned in pricing that helps in understanding business 

11:49 – The hard part of doing internal sales 

13:27 – Hints on how to be doing internal sales 

14:57 – What has contributed to his vast knowledge about pricing 

17:37 – What happens when we focus on value 

18:24 – What differentiates B2B pricing from B2C pricing 

19:47 – One valuable pricing advice he has 

Key Takeaways: 

“To be successful, to do things right, it’s very much a team effort, you know, and you can imagine, especially in these large fields you’re at in the center of things. So, it’s bringing a team of sales, finance, marketing, operations folks together.” – Kevin Lemke 

“To be successful, to do things right, it’s very much a team effort, and you can imagine, especially in these large fields, you’re at in the center of things. So, it’s bringing a team of sales, finance, marketing, operations folks together.” – Kevin Lemke  

People/ Resources Mentioned 

• Stanley Black & Decker 
• Continental Airlines 
• American Airlines 
• Dell Computer 
• Zilliant 
• Chris Mitchell 

Connect with Kevin Lemke: 

• LinkedIn 
• E:[email protected] 

 Connect with Mark Stiving  

• Email: [email protected]  
• LinkedIn  
• Twitter  
• https://www.championsofvalue.com

• What does factors like leadership and influence have to do in pricing  your product and service 
• Pricing lessons you need to know to understand your business better 
• Discover how to organize your pricing leadership function for your business success 

Kevin Lemke is a commercial executive with a passion for fixing and creating businesses. Strong record of delivering revenue and margin upside. Career-to-date benefits generated are greater than $500M of additional margin – an average of .5% return on sales. His specialties include organizational Leadership, Innovation Strategy, Turnarounds & Business Transformation, Digital Marketing, B2B Sales, Pricing Strategy, Go-to-market Model Development, Value Proposition Development, Whitespace Identification, Organization structure development, and alignment. 

 In this episode, Kevin shares with us his expertise in setting up pricing in B2B and B2C businesses. 

Bring your sales guys into the conversation and have them be part of making sure that we’ve got the price, the right pricing programs, and discipline. I think they need to be part of this. They benefit. We all benefit.”

– Kevin Lemke

Get Accelerate Your Subscription Business: Your Blueprint to Packaging & Pricing for Growth Course at https://www.championsofvalue.com  

 Topics Covered: 

01:08 – What does he do as VP of innovation  

01:54 – How did his career in Pricing start 

03:05 – How was it like learning the systems and processes already in place at the time he entered the aviation industry 

05:20 – Thoughts about “pricing is the sales prevention team” 

06:29 – Talking about Leadership in Pricing 

07:16 – Describing his stint at Zilliant and where this company is focused at 

08:53 – Leading a pricing initiative when he got back to Dell 

10:15 – What does internal product management entail 

11:01 – Lessons he learned in pricing that helps in understanding business 

11:49 – The hard part of doing internal sales 

13:27 – Hints on how to be doing internal sales 

14:57 – What has contributed to his vast knowledge about pricing 

17:37 – What happens when we focus on value 

18:24 – What differentiates B2B pricing from B2C pricing 

19:47 – One valuable pricing advice he has 

Key Takeaways: 

“To be successful, to do things right, it’s very much a team effort, you know, and you can imagine, especially in these large fields you’re at in the center of things. So, it’s bringing a team of sales, finance, marketing, operations folks together.” – Kevin Lemke 

“To be successful, to do things right, it’s very much a team effort, and you can imagine, especially in these large fields, you’re at in the center of things. So, it’s bringing a team of sales, finance, marketing, operations folks together.” – Kevin Lemke  

People/ Resources Mentioned 

• Stanley Black & Decker 
• Continental Airlines 
• American Airlines 
• Dell Computer 
• Zilliant 
• Chris Mitchell 

Connect with Kevin Lemke: 

• LinkedIn 
• E:[email protected] 

 Connect with Mark Stiving  

• Email: [email protected]  
• LinkedIn  
• Twitter  
• https://www.championsofvalue.com

Why you have to check out today’s podcast:  

• Find out about Model N’s pricing software, how it works and how it differs from other pricing vendors 
• Understanding the different channels High Tech industries go through and how this affects pricing and value setting 
• How does price execution play a big part in the price optimization 

Chanan Greenberg is a seasoned executive with 25 years of experience in front line leadership roles. He helped build companies from pre-revenue to successful IPO, lead acquisitions, held 2 CEO entrepreneur positions in companies selling to Government IT-Outsourcing Contractors, Service Providers, Aerospace & Defense, Telecommunication, High-Tech, and Multimedia Distributors. He led the first evangelical sales into Fortune 500 companies overcoming resistance to change and fear of working with early-stage companies. Nurtured C-level personal relationships with customers, partners, and investors. 

 In this episode, Chanan discusses revenue management and what Model N does that differentiates it from other pricing companies. 

“If you believe in the value of your product and your differentiation and the reason that you exist, don’t be subservient to the rest of the value chain.” 

 – Chanan Greenberg

Get Accelerate Your Subscription Business: Your Blueprint to Packaging & Pricing for Growth Course at https://www.championsofvalue.com  

Topics Covered: 

03:07 – How did he end up in Pricing 

04:27 – What industries does High Tech cover 

05:37 – The many problem scenarios High Tech help solve 

11:49 – How big are the companies that Model N serves 

14:51 – Understanding your end customer and why you need to legitimately ask to determine your pricing 

17:34 – Difference between Model N’s pricing software and other Pricing companies 

23:18 – The importance of having clean data 

24:38 – One important pricing advice he has 

Key Takeaways: 

“Stop thinking about pricing in silos. Pricing has a waterfall that continues well beyond that. It continues into how are you going to do discounting into the channel, whether it’s the ship and debit process or whether you’re paying out a rebate, whether you’re paying out price protection on the inventory that is out there. All these things at the end of the day, bring down that waterfall to its final net results and pricing doesn’t end with optimization. It doesn’t end with analytics and it doesn’t end with the based on the execution of a price and the close of a contract. It continues operating, and unless you can really bring these things into a single continuum, you are invariably going to leave money on the table without any doubt.” – Chanan Greenberg 

“If you’re working through channels and you want to understand who is the end customer, what are they willing to pay to determine how much you’re willing to discount, that’s a legitimate ask.” – Chanan Greenberg 

“Never assume that you can make up on bad business by scaling the volume. Because bad business is bad business, whether it’s big work or small.” – Chanan Greenberg 

“If you have good price execution in place, whether it’s a Model N or a different solution, then bringing in a solution that can help you do the micro-segmentation, try and change the curves of your product lines to adapt to specific market dynamics that you may have in different end markets or different territories, I think definitely has a creative value.” – Chanan Greenberg 

“You really need to stick to good price execution because what I’ve found in many companies is they think it’s like a magic formula. You implement it, you did it, and now it just supposed to continue spewing out great pricing for you when in fact you have to keep on feeding that beast every quarter.” – Chanan Greenberg 

Connect with Chanan Greenberg: 

• https://www.modeln.com/ 
• LinkedIn  
• Twitter 

Connect with Mark Stiving:    

• Email: [email protected]
• LinkedIn
• Twitter
• https://www.championsofvalue.com