Impact Pricing

 Why you have to check out today’s podcast:

• Learn the not-so-good strategies that companies do using subscription pricing
• Know the pitfalls in subscription pricing
• Discover what a pricing roadmap is and how is it related to big business decisions

Laura Fay is currently the VP Research & Advisory of XAAS Product Management for Technological Services Industry Association (TSIA) and founding member of Health Tech Capital.  Laura is a technology industry veteran with over 30 years of experience driving business growth in the enterprise software industry via leadership roles in product management, general management, product development, and customer success.

In this episode, Laura, who is a results-driven person and a very successful in driving enterprise software growth shares her perspectives about the role of pricing on subscription-type businesses and the relationship between pricing and product management.  She will also reveal the pitfalls that she found out in subscription pricing and how value metric and pricing metric are differentiated.

“If you’re going to build a pricing model based on your value proposition, you've got to understand at a deep level how the customer is getting value from the solution.” 

– Laura Fay

Stay updated on all thing pricing.  

Subscribe to 'The Pricing Perspective' here 

Topics Covered: 

01:20 – Laura tells a brief background and the business model of TSIA

03:13 – Her role in TSIA

04:08 – How pricing fits with product management

05:13 – The role of pricing on subscription-type businesses

07:13 – Relationship of pricing and product management

08:38 – What companies don’t do well when it comes to subscription pricing

13:35 – Estimated percentage of businesses that will not transition to subscription pricing in the next five years

16:22 – Two pitfalls that Laura sees in subscription pricing

18:58 – The difference between value metric and pricing metric

23:06 – Two stages of the pitfall in timing when product management starts to think about pricing

26:18 – Pricing roadmap and what it means

27:49 – A piece of pricing advice which could impact the listeners’ business

Key Takeaways:

“Understanding the value proposition that's being delivered and getting into those level of detail of understanding the customer process, how they use the product so that you can start doing that alignment of value and pricing.  It's not something you can turn on a dime overnight once you suddenly decide to do it. So, having a point of view on that earlier in the game and evolving it is pretty critical.” – Laura Fay

“I know the timing thing is only thinking about pricing at the launch phase and not thinking about pricing during the product design, and the offer design phase because they are interdependent. You might choose to move things around and how you put your packages or your solutions together, how you put your product suite together and what features, functions and capabilities and use cases and value go into each element in the portfolio. And that's going to pose how you price it. But if you don't think about that until the very end, you're probably missing an opportunity.” – Laura Fay

“Product managers should be called value managers because ultimately, that's what their job is.  The promise of that value proposition is the promise of the product, and that is to put a value proposition that you're going to realize when you purchase whatever solution they're defining and building.”  – Laura Fay

“The remit of product management to understand how the customer is perceiving that value that they're creating and then leverage that in into their pricing design.” – Laura Fay

Connect with Laura Fay:

• mailto:[email protected]
• tsia.com
• LinkedIn
• Twitter

Connect with Mark Stiving

• Email: [email protected]
• LinkedIn
• Twitter

Why you have to check out Today’s podcast: 

• Learn how pricing and sales process are connected 
• Discover what sales team needs from the product or marketing team to help them sell value 
• Know who in charge in prospecting 

Liz Heiman is the Chief Strategy Officer and Sales Leadership Coach at Alice Heiman, LLC wherein they help B2B companies grow rapidly by developing strategies that drive revenue and sales organizations to support it.  

In this episode, Liz will give us an in-depth understanding of how pricing and sales process are very closely tied and how these areas will substantially help the salespeople understand pricing through their sales process. 

"Every time we drop the price in a negotiation, we're dropping profit way more than the percentage of the product. So we want salespeople to do everything possible to not negotiate on price." 

– Liz Heiman 

Topics Covered: 

03:20 – Liz explains how capturing prices help salespeople understand the value of products 

06:52 – What a salesperson needs in terms of the value proposition 

10:38 – What sales team needs from the product or marketing team to help them sell value 

11:59 – Importance of collaboration in crafting the value proposition between the marketing and the design team  

14:21 – Building products that solve problems in the marketplace: Don't just start a business, solve a problem 

17:01 – Product-Market Fit: Two examples of creating a solution but it wasn’t a problem people wanted to be addressed  

21:10 – Dealing with the psychological aspects of pricing 

23:24 – Talking about prospecting and identifying whose job is it 

26:13 – Pricing advice from Liz: “Make sure your salespeople understand when they negotiate on price and drop that price, they set an expectation in the future, and we do not want to do that. 

Key Takeaways: 

“I don't think that sales or marketing ever stands alone in any solution. If we're not bridging the gap between sales and marketing.  If they're not partnering in solutions, then you have a problem.” 

– Liz Heiman 

“Not only do people have a problem, but they're willing to spend the money to solve the problem before you go out and spend a lot of money creating a solution.” – Liz Heiman 

“In a lot of ways, a salesperson has to deal with all of these emotions and overcome them.  And sometimes look at a situation and go. There's no way this guy, we talk about certain kinds of basic objections that you can't overcome.” – Liz Heiman 

“What's important when you're prospecting is to have a very clear definition about ideal customer profile and also a qualified lead. So, what marketing identifies as a qualified lead, and what sales identify as qualified lead may be very different.  What we want to do is merge those two things.” – Liz Heiman 

Connect with Liz Heiman: 

• mailto:[email protected]  
• aliceheiman.com 
• LinkedIn 
• Twitter 
• Facebook 

Connect with Mark Stiving 

• Email: [email protected] 
• LinkedIn 
• Twitter 

Why you have to check out Today’s podcast: 

• Learn how pricing and sales process are connected 
• Discover what sales team needs from the product or marketing team to help them sell value 
• Know who in charge in prospecting 

Liz Heiman is the Chief Strategy Officer and Sales Leadership Coach at Alice Heiman, LLC wherein they help B2B companies grow rapidly by developing strategies that drive revenue and sales organizations to support it.  

In this episode, Liz will give us an in-depth understanding of how pricing and sales process are very closely tied and how these areas will substantially help the salespeople understand pricing through their sales process. 

"Every time we drop the price in a negotiation, we're dropping profit way more than the percentage of the product. So we want salespeople to do everything possible to not negotiate on price." 

– Liz Heiman 

Topics Covered: 

03:20 – Liz explains how capturing prices help salespeople understand the value of products 

06:52 – What a salesperson needs in terms of the value proposition 

10:38 – What sales team needs from the product or marketing team to help them sell value 

11:59 – Importance of collaboration in crafting the value proposition between the marketing and the design team  

14:21 – Building products that solve problems in the marketplace: Don't just start a business, solve a problem 

17:01 – Product-Market Fit: Two examples of creating a solution but it wasn’t a problem people wanted to be addressed  

21:10 – Dealing with the psychological aspects of pricing 

23:24 – Talking about prospecting and identifying whose job is it 

26:13 – Pricing advice from Liz: “Make sure your salespeople understand when they negotiate on price and drop that price, they set an expectation in the future, and we do not want to do that. 

Key Takeaways: 

“I don't think that sales or marketing ever stands alone in any solution. If we're not bridging the gap between sales and marketing.  If they're not partnering in solutions, then you have a problem.” 

– Liz Heiman 

“Not only do people have a problem, but they're willing to spend the money to solve the problem before you go out and spend a lot of money creating a solution.” – Liz Heiman 

“In a lot of ways, a salesperson has to deal with all of these emotions and overcome them.  And sometimes look at a situation and go. There's no way this guy, we talk about certain kinds of basic objections that you can't overcome.” – Liz Heiman 

“What's important when you're prospecting is to have a very clear definition about ideal customer profile and also a qualified lead. So, what marketing identifies as a qualified lead, and what sales identify as qualified lead may be very different.  What we want to do is merge those two things.” – Liz Heiman 

Connect with Liz Heiman: 

• mailto:[email protected]  
• aliceheiman.com 
• LinkedIn 
• Twitter 
• Facebook 

Connect with Mark Stiving 

• Email: [email protected] 
• LinkedIn 
• Twitter 

• Learn why without the ability to have this conversation, value pricing is dead on arrival 
• Know why value conversation is the most valuable skill in business 
• Learn how to discipline yourself not to be a ‘solutionist’ and  not offer solutions too early in the process 

You can't do value pricing without having a conversation about the prospects problems and pain points. The way you talk to customers has a significant impact on your brand, and nothing delivers customer satisfaction quite like consistently valuable communication.  

Ed Kless is an expert in value conversation, the Senior Director of Partner Development and Strategy at Sage - a SaaS-based product company, and the co-host The Soul of Enterprise with another value pricing expert, Ron Baker.  

In this episode, Ed will dissect the process of creating value discussion, how to do value billing. Ditch the time sheets, frustrated clients and employees, and make more profits. 

“How you sell is a free sample of how you will solve.”

 – Ed Kless, quoting Mahan Khalsa

Stay updated on all thing pricing.  

Subscribe to 'The Pricing Perspective' here 

Topics Covered: 

01:30–Ed’s back story how he got introduced into the pricing industry through Ronald Baker book - Professional's Guide to Value Pricing 

02:28 –Ed does not believe in  timesheets, moving away from billing via the hour 

04:10 – Comparison between a consultant and a technician in terms of delivering service 

05:00 – Value conversation components: the cost, the price, and the perceived value 

8:27 – Value conversation explained - ‘How you sell is a free sample of how you solve.’ - Ed quoting Mahan Khalsa 

11:33 – People need to be heard -  why it is crucial in your value conversation 

16:44 – Mahan Khalsa’s Five Golden Questions 

1. How do you measure it? 
2. What is it now?  
3. What do you want it to be? 
4.  What is the value of the difference?  
5. Over time (usually one year)? 

17:39 – Value conversation for product marketing as suppose to making sales  

22:01 – The four steps to move off the solution: Listen, Assuage, Move and Close 

27:12 – A piece of pricing advice from Ed– “Offer choices. Do not hesitate to come up and compete with yourselves to try to develop choices for the customers.”  

 Key Takeaways:  

“What people want is that they want to felt listened to.” – Ed Kless 

“Prospects as other human beings can sense that [when you are not listening] as well.” – Ed Kless 

“Even when there is competition, and we make value conversation, people trust us more. They believe us more.” – Mark Stiving, quoting Ed Kless 

People and Resources Mentioned 

• Ronald Baker 
• Peter Black  
• Mahan Khalsa Let's Get Real or Let's Not Play  
• The Soul of Enterprise: Episode 182 - How to Have a Value Conversation 

 

Connect with Ed Kless 

• www.edkless.com 
• Facebook 
• Linkedin
• The Soul of Enterprise 

 

Connect with Mark Stiving  

• Email: [email protected]  
• LinkedIn  
• Twitter  

Connect with Mark Stiving 

• Email: [email protected] 
• LinkedIn 
• Twitter 

• Learn why without the ability to have this conversation, value pricing is dead on arrival 
• Know why value conversation is the most valuable skill in business 
• Learn how to discipline yourself not to be a ‘solutionist’ and  not offer solutions too early in the process 

You can't do value pricing without having a conversation about the prospects problems and pain points. The way you talk to customers has a significant impact on your brand, and nothing delivers customer satisfaction quite like consistently valuable communication.  

Ed Kless is an expert in value conversation, the Senior Director of Partner Development and Strategy at Sage - a SaaS-based product company, and the co-host The Soul of Enterprise with another value pricing expert, Ron Baker.  

In this episode, Ed will dissect the process of creating value discussion, how to do value billing. Ditch the time sheets, frustrated clients and employees, and make more profits. 

“How you sell is a free sample of how you will solve.”

 – Ed Kless, quoting Mahan Khalsa

Stay updated on all thing pricing.  

Subscribe to 'The Pricing Perspective' here 

Topics Covered: 

01:30–Ed’s back story how he got introduced into the pricing industry through Ronald Baker book - Professional's Guide to Value Pricing 

02:28 –Ed does not believe in  timesheets, moving away from billing via the hour 

04:10 – Comparison between a consultant and a technician in terms of delivering service 

05:00 – Value conversation components: the cost, the price, and the perceived value 

8:27 – Value conversation explained - ‘How you sell is a free sample of how you solve.’ - Ed quoting Mahan Khalsa 

11:33 – People need to be heard -  why it is crucial in your value conversation 

16:44 – Mahan Khalsa’s Five Golden Questions 

1. How do you measure it? 
2. What is it now?  
3. What do you want it to be? 
4.  What is the value of the difference?  
5. Over time (usually one year)? 

17:39 – Value conversation for product marketing as suppose to making sales  

22:01 – The four steps to move off the solution: Listen, Assuage, Move and Close 

27:12 – A piece of pricing advice from Ed– “Offer choices. Do not hesitate to come up and compete with yourselves to try to develop choices for the customers.”  

 Key Takeaways:  

“What people want is that they want to felt listened to.” – Ed Kless 

“Prospects as other human beings can sense that [when you are not listening] as well.” – Ed Kless 

“Even when there is competition, and we make value conversation, people trust us more. They believe us more.” – Mark Stiving, quoting Ed Kless 

People and Resources Mentioned 

• Ronald Baker 
• Peter Black  
• Mahan Khalsa Let's Get Real or Let's Not Play  
• The Soul of Enterprise: Episode 182 - How to Have a Value Conversation 

 

Connect with Ed Kless 

• www.edkless.com 
• Facebook 
• Linkedin
• The Soul of Enterprise 

 

Connect with Mark Stiving  

• Email: [email protected]  
• LinkedIn  
• Twitter  

Connect with Mark Stiving 

• Email: [email protected] 
• LinkedIn 
• Twitter 

Why you have to check out today’s podcast:

• Learn more of the meaning of value 
• Discover the two best-selling pricing and negotiation books that B2B companies are raving for 
• Know the differentiators that will drive prices

Reed Holden is an author, keynote speaker, coach, and founder of Holden Advisors– a team of seasoned practitioners that provides B2B pricing and negotiating advice to clients builds go-to-market strategies.

Reed specializes in helping sales teams avoid the procurement buzz saw by implementing strategies to recognize and counter margin-reducing buying tactics.

Today’s episode steers on the definition of value and the different methods to analyze it. Know how services, products, and other differentiators will drive prices, especially if there is heavy competition. Reed will tell more of his expertise in B2B pricing through his must-read and thought-leading books – Negotiating with Backbone and Pricing with Confidence.

“Conversations with procurement people are like playing a game of poker. And the way to win the game is by bluffing. And unless you’re prepared to play the game back, you’re going to lose each and every time.” 

– Reed Holden

Stay updated on all thing pricing.

Subscribe to ‘The Pricing Perspective’ here

Topics Covered: 

02:02 – Reed back story as a luminary in Pricing 

03:34 – The definition of “value” according to Reed 

04:52 – Various analysis made when value is in use 

06:36 – The value in using ROI calculators 

08:57 – Why focusing on the value of a product will increase the likelihood that customers will buy it 

10:36 – Telling about the Negotiating with Backbone book and why you should read it 

13:35 – How Reed coaches a company about value and shares the related contents in his Pricing with Confidence book 

15:38 – Narrating a short story inside this book about a company selling dirt 

21:10 – How other services and other differentiators will drive prices if there is substantial price competition of the product  

27:12 – A piece of pricing advice from Reed – “Keep it simple.” 

Key Takeaways: 

“In the world of B2B, we have this amazing advantage that says, if you can’t put a dollar value on a feature, on a product, as in how much money your customer is going to make or save because they bought your product, no one’s going to buy your product.” – Mark Stiving 

“As we get into sales teams in organizations that had deployed Roi calculators, one of the biggest problems that organizations have is the salespeople don’t use them. And if the sales people don’t use them, then certainly customers don’t see them.” – Reed Holden 

“Nobody buys a product feature. People only value of the product and so they teach their salespeople about the product and the product features. I’m talking about the product and the product features and no wonder we never capture value is this.” – Mark Stiving 

Resources mentioned: 

• Negotiating with Backbone 
• Pricing with Confidence 
• The Strategy and Tactics of Pricing – Second Edition 
• The Strategy and Tactics of Pricing – Third Edition
   

Connect with Reed Holden: 

• mailto:[email protected] 
• holdenadvisors.com 
• LinkedIn 
• Twitter 
   

Connect with Mark Stiving 

• Email: [email protected] 
• LinkedIn 
• Twitter 

Why you have to check out today’s podcast:

• Learn more of the meaning of value 
• Discover the two best-selling pricing and negotiation books that B2B companies are raving for 
• Know the differentiators that will drive prices

Reed Holden is an author, keynote speaker, coach, and founder of Holden Advisors– a team of seasoned practitioners that provides B2B pricing and negotiating advice to clients builds go-to-market strategies.

Reed specializes in helping sales teams avoid the procurement buzz saw by implementing strategies to recognize and counter margin-reducing buying tactics.

Today’s episode steers on the definition of value and the different methods to analyze it. Know how services, products, and other differentiators will drive prices, especially if there is heavy competition. Reed will tell more of his expertise in B2B pricing through his must-read and thought-leading books – Negotiating with Backbone and Pricing with Confidence.

“Conversations with procurement people are like playing a game of poker. And the way to win the game is by bluffing. And unless you’re prepared to play the game back, you’re going to lose each and every time.” 

– Reed Holden

Stay updated on all thing pricing.

Subscribe to ‘The Pricing Perspective’ here

Topics Covered: 

02:02 – Reed back story as a luminary in Pricing 

03:34 – The definition of “value” according to Reed 

04:52 – Various analysis made when value is in use 

06:36 – The value in using ROI calculators 

08:57 – Why focusing on the value of a product will increase the likelihood that customers will buy it 

10:36 – Telling about the Negotiating with Backbone book and why you should read it 

13:35 – How Reed coaches a company about value and shares the related contents in his Pricing with Confidence book 

15:38 – Narrating a short story inside this book about a company selling dirt 

21:10 – How other services and other differentiators will drive prices if there is substantial price competition of the product  

27:12 – A piece of pricing advice from Reed – “Keep it simple.” 

Key Takeaways: 

“In the world of B2B, we have this amazing advantage that says, if you can’t put a dollar value on a feature, on a product, as in how much money your customer is going to make or save because they bought your product, no one’s going to buy your product.” – Mark Stiving 

“As we get into sales teams in organizations that had deployed Roi calculators, one of the biggest problems that organizations have is the salespeople don’t use them. And if the sales people don’t use them, then certainly customers don’t see them.” – Reed Holden 

“Nobody buys a product feature. People only value of the product and so they teach their salespeople about the product and the product features. I’m talking about the product and the product features and no wonder we never capture value is this.” – Mark Stiving 

Resources mentioned: 

• Negotiating with Backbone 
• Pricing with Confidence 
• The Strategy and Tactics of Pricing – Second Edition 
• The Strategy and Tactics of Pricing – Third Edition
   

Connect with Reed Holden: 

• mailto:[email protected] 
• holdenadvisors.com 
• LinkedIn 
• Twitter 
   

Connect with Mark Stiving 

• Email: [email protected] 
• LinkedIn 
• Twitter 

• Learn how the Business to the Government (B2G) procurement process happen to help you understand how to sell to governments
• RFP: Cost Plus Pricing Model and Business Case-Based Pricing: Learn more about how value pricing model works when dealing with government
• Negotiation in public procurement: Crafting alternate proposal and why government procurement teams do not sometimes consider it

Chris Street is a value expert, an experienced analyst within the aerospace and defense sector. He can be found driving the implementation of Position-to-Win and Value-Based Pricing across Thales UK with occasional cameos in Paris. He earned his Business Studies at the University of Brighton. 

In this episode, Chris shares his expertise when it comes to Business to the Government  (B2G) procurement process. He will also give us an overview of the procurement process every government sector goes through and use that knowledge to gain an unfair advantage against competitors in a bid to win contracts.

“Always understand your competition, understand what makes them different, what makes them special, but then understand what value you're bringing and what makes you special as well. If you don't understand the competitive environment, you've got no way of being able to articulate why you're different, what makes you special.”

– Chris Street

Stay updated on all thing pricing.  

Subscribe to 'The Pricing Perspective' here 

Topic Covered 

01:27 – Chris sharing his career background 

04:10 – The best pricing value of a product to be sold to government or military 

04:58 – The request for quote process and the important details about it 

05:48 – How to figure out a competitors pricing model 

07:21 – How much profit margin are you willing to have to secure the government's contract with them 

08:23 – Explaining the Business Case-Based approach 

09:40 – Discussing the Cost Plus Pricing approach and sole source bid 

10:01 – The advantages of going competitive rather than a sole source bid 

13:13 – Relevance of metrics in the CRM and RFM 

15:25 – Thoughts on "government or anybody writing RFP are not experts" 

18:00 – Procurement team power: B2B versus B2G 

19:45 – How many proposals to give when responding to RFP 

22:16 – What transpires after you win a contract with the government 

Key Takeaway: 

“Everyone thinks their own technical features are unique and amazing, but ultimately if your competitors are doing the same thing, you've got no differentiation, you've got no ability to grab someone at a premium. So my advice is, keep an eye on what those competitors are up to. Make sure that you're staying one step ahead.” - Chris Street

Connect with Chris Street:  

LinkedIn  
Twitter  

Connect with Mark Stiving 

Email: [email protected] 
LinkedIn 
Twitter 

• Learn how the Business to the Government (B2G) procurement process happen to help you understand how to sell to governments
• RFP: Cost Plus Pricing Model and Business Case-Based Pricing: Learn more about how value pricing model works when dealing with government
• Negotiation in public procurement: Crafting alternate proposal and why government procurement teams do not sometimes consider it

Chris Street is a value expert, an experienced analyst within the aerospace and defense sector. He can be found driving the implementation of Position-to-Win and Value-Based Pricing across Thales UK with occasional cameos in Paris. He earned his Business Studies at the University of Brighton. 

In this episode, Chris shares his expertise when it comes to Business to the Government  (B2G) procurement process. He will also give us an overview of the procurement process every government sector goes through and use that knowledge to gain an unfair advantage against competitors in a bid to win contracts.

“Always understand your competition, understand what makes them different, what makes them special, but then understand what value you're bringing and what makes you special as well. If you don't understand the competitive environment, you've got no way of being able to articulate why you're different, what makes you special.”

– Chris Street

Stay updated on all thing pricing.  

Subscribe to 'The Pricing Perspective' here 

Topic Covered 

01:27 – Chris sharing his career background 

04:10 – The best pricing value of a product to be sold to government or military 

04:58 – The request for quote process and the important details about it 

05:48 – How to figure out a competitors pricing model 

07:21 – How much profit margin are you willing to have to secure the government's contract with them 

08:23 – Explaining the Business Case-Based approach 

09:40 – Discussing the Cost Plus Pricing approach and sole source bid 

10:01 – The advantages of going competitive rather than a sole source bid 

13:13 – Relevance of metrics in the CRM and RFM 

15:25 – Thoughts on "government or anybody writing RFP are not experts" 

18:00 – Procurement team power: B2B versus B2G 

19:45 – How many proposals to give when responding to RFP 

22:16 – What transpires after you win a contract with the government 

Key Takeaway: 

“Everyone thinks their own technical features are unique and amazing, but ultimately if your competitors are doing the same thing, you've got no differentiation, you've got no ability to grab someone at a premium. So my advice is, keep an eye on what those competitors are up to. Make sure that you're staying one step ahead.” - Chris Street

Connect with Chris Street:  

LinkedIn  
Twitter  

Connect with Mark Stiving 

Email: [email protected] 
LinkedIn 
Twitter 

Why you have to check out today’s podcast:

• Discover the concept of dynamic pricing to help you keep pace with constantly changing market dynamics
• Learn how to maximize your business ‘profit with predictive analytics and powerful artificial intelligence (AI) pricing strategy
• Know the definition of artificial intelligence (AI) and machine learning

Alexander Shartsis is the co-founder and CEO of Perfect Price, an artificial intelligence (AI) company empowering companies to make better decisions about pricing, profitability, and utilization. He is an entrepreneur and executive with a background in business development, sales, product, and engineering. He is a member of the Forbes Technology Council. He wrote a book called The Ultimate Guide to Pricing Strategy: A Playbook for Behavior-Based Pricing and Promotions. Alex holds an MBA from the UCLA Anderson School of Management, an MSc from the London School of Economics, and an AB from Dartmouth College.

In this episode, Alexander shares his expertise in the dynamic pricing model, which industries use it, and will it be harder to use it on a subscription type of business over the traditional ones? You’ll also get to understand the concept of artificial intelligence and machine learning and how they are associated with pricing strategies. Further, learn how his company, Perfect Price, delivers artificial intelligence for pricing that will significantly impact your company’s revenue.

“Always put yourself in the customer's shoes or just out of your own world of being a pricing professional and try and think about it differently. And maybe you'll come to the same conclusion or maybe you'll, you'll have an epiphany and think about things totally and differently. Letting go of your assumptions and your conviction of being right about how you're doing things today is a really powerful tool.”

– Alexander Shartsis

Stay updated on all thing pricing.  

Subscribe to 'The Pricing Perspective' here

Topics Covered: 

01:32 – Alexander’s shares how his focus in bringing technologies got him into pricing 

03:20 – The concept of dynamic pricing 

05:08 – Car rentals and car manufacturers as examples of industries which use dynamic pricing 

09:28 – Two ways to achieve dynamic pricing: demand-based pricing and market trend 

12:25 – Gathering outside data to predict demand or willingness to pay  

13:10 – The overlooked significance of a company’s own data – actual purchase data and web traffic data  

17:24 – Example of an AI pricing strategy  

18:20 – Definition of AI (artificial intelligence) and machine learning, and specifying Google Translate as a good example 

22:34 – How Alex’s company, Perfect Price, provides data with the companies to get the results they want 

25:23 – Difference of subscription business from the traditional types in terms of dynamic pricing 

27:41 – A piece of pricing advice from Alex – “Be really open-minded about pricing.  It's really easy to get emotionally attached to the way you've been doing things.” 

Key Takeaways: 

“It becomes much more about, how are you framing the problem? And I think the key difference with AI is learning from the data, as opposed to making a bunch of human understandable assumptions.” –  Alexander Shartsis 

“The thing that's almost always overlooked by companies is their own data.” –  Alexander Shartsis 

“In our opinion, wherever you're running an AI pricing strategy, you do need some human control over it.” –  Alexander Shartsis 

“It's hard to do dynamic pricing for anything where the consumer or buyer really has a solid expectation of price. And that can be subscriptions.” –  Alexander Shartsis 

“It is so often that we start down some path for whatever reason.  It's easy as a startup company.  We price it this way, and that's mostly internally focused, not externally focused. And as soon as we step back and start thinking about customers and willingness to pay and how it changes in situations, suddenly, we have so many more doors, so many more levers we can pull.” – Mark Stiving 

Resources mentioned: 

The Ultimate Guide to Pricing Strategy: A Playbook for Behavior-Based Pricing and Promotions 
 

Connect with Alex Shartsis: 

• perfectprice.com 
• LinkedIn
• Twitter 
   

Connect with Mark Stiving 

• Email: [email protected] 
• LinkedIn 
• Twitter