Ayon Bhattacharyya is the Founder of Biz Growth Spurt, a consulting firm based out of New Zealand. He has experienced pricing in half a dozen companies, and he's a passionate animal welfare advocate.

In this episode, Ayon discusses pricing power as he enumerates its four different levels while talking about value-based pricing.

Why you have to check out today's podcast:

• Understand how pricing power relates to price elasticity
• Find out what Ayon's four different levels of pricing power are all about
• Discover how Mark's will I? which one? concept relates to these levels

"Think about your pricing power, and think about how – whether it's sort of competitive advantage, perceived value, all of those things – what can you do differently to improve your pricing power today."

– Ayon Bhattacharyya

Topics Covered:

01:18 – How Ayon got into pricing

02:33 – Defining value-based pricing and relating it to airline pricing

05:57 – Pricing power vs. price elasticity

09:50 – Ayon's four different levels of pricing power

13:33 – Describing the levels: (1) Cost chaser

15:04 – Describing the levels: (2) Market pricer

15:46 – Describing the levels: (3) Value conqueror

18:16 – Doing behavioral economics at a cost chaser level

19:09 – Applying Mark's "will I? which one?" concept to Ayon's levels of pricing power

22:19 – Talking about value-based and fixed pricing

25:26 – Ayon's piece of pricing advice for the listeners

Key Takeaways:

"Pricing power is essentially your ability to charge a higher price without losing customers. Another way to say that is a company's ability to get the price it deserves for the value it delivers." – Ayon Bhattacharyya

"A maturity suggests that you need to get there over a period of time; you grow into it. It can't be something that you just start out with that, at level three. But that's not what I'm trying to say here. You can actually start out and you can be an early-staged business and you can start out as a value conqueror. You don't need to progress from level one to get to level three. You can start at level three." – Ayon Bhattacharyya

"There are some businesses that can just start at a higher level, but I think generally, it is a journey. I think of pricing strategy as a journey, not just an outcome." – Ayon Bhattacharyya

People / Resources Mentioned:

• Biz Growth Spurt: https://bizgrowthspurt.com/
• Stephan Liozu and his book: The Pricing Journey

Connect with Ayon Bhattacharyya:

• Website: https://bizgrowthspurt.com/
• LinkedIn: https://nz.linkedin.com/in/ayonb
• Email: [email protected]

Connect with Mark Stiving:

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