Impact Pricing

This is an Impact Pricing Blog published on August 25, 2023, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/defining-value-based-pricing/ If you have any feedback, definitely send it. You can reach us at mark@impactpricing.com.  Now, go make an impact. Connect with Mark Stiving: Email: mark@impactpricing.com LinkedIn: https://www.linkedin.com/in/stiving/

This one is the Ace of Clubs from the Impact Pricing card deck.  Nobody cares about your product. Let's use an example. Let's pretend that you're in the marketplace for a new car, and you're thinking to yourself, Hey, I could go buy a Tesla or some other electric car, or I could buy a more traditional gas powered car.  And so, are you really focused on what are the features of the electricity, of the batteries? Are you really focused on, Hey, if I buy electric then I have electric. You actually don't care.  Here's what you might care about. You might care about the fact that electric cars, especially Teslas, have amazing acceleration. They come off the line super quickly. You may care about the fact that you're not burning fossil fuels and you're not polluting your city. These are things that you value.  But you know what you don't care about? You don't care about the fact that it's electricity or if it's gas. You care about the things it does for you. How it impacts your life, how it impacts your world, how

Robert Ribciuc is the Managing Partner at EBITDA Catalyst. He helped establish, grew, and managed a successful advisory/consulting firm focusing on pricing strategy and analytics, go-to-market optimization, and revenue management for middle-market corporate and private equity portfolio (PE) clients in diverse industry verticals. In this episode, Robert shares the need to understand the veterinary business as a whole, from the service to the non-service products to come up with the best pricing strategy.   Why you have to check today's podcast: Understand how veterinary practice is different from other industries Consider the use of good, better, best pricing strategies when dealing with veterinary services and products Learn to holistically understand the veterinary business from the two sides -- the service and the non-service aspect to create best pricing strategies   "The hypothetical practice where the veterinarian also acts as the practice manager which the more you go up in size you have multiple prac

This one is the Ace of Diamonds from the Impact Pricing card deck.  Value-based pricing truly is a never ending journey. Think about what it means. It means we're going to charge what a customer is willing to pay. But you can't read your customer's mind. You have no idea exactly how much someone's willing to pay you. And so we can make decisions inside our company to get us closer and closer to that number. We can do experiments. We can do interviews. We can, by the way, sell more value, communicate value better, increase that willingness to pay. And so everything we do should be focused on how much is that customer willing to pay. But because we can't read their mind, we can't be perfect. And if we can't be perfect, that means we can always get better. My recommendation is don't pretend that we have value-based pricing done. Consider value-based pricing as an attitude, it's the goal. It's the journey that we're on to get better and better at capturing more of the value we deliver to our customers. We hope yo

This one is the Ace of Hearts from the Impact Pricing card deck.  It is true, the single most profitable pricing decision any company can make is to adopt value-based pricing. Now value-based pricing is hard to do, but it has a really simple meaning. It means charge what your customers are willing to pay.  If you had the ability to read your customer's mind and you knew exactly the most that they would pay for your product, then you could charge that and you'd win the deal. And you couldn't have won it at a higher price. And if you charged a lower price, then you left money on the table. So that's absolutely the optimal approach.  Of course, if our salespeople do a better job at communicating value, then we could increase how much our customers are willing to pay. So this isn't the whole deal, but understand the concept is, we want to be able to charge what our customers are willing to pay. And to do that, it's really an attitude inside our company.  We should be thinking instead of, hey, we charge based on o

Ronald J. Baker is the founder of VeraSage Institute, a reformed CPA and cost accountant who has changed his mind on the value of timesheets and cost accounting. His quest is to bury the billable hour and timesheets.    He is also a radio talk-show Host, The Soul of Enterprise: Business in the Knowledge Economy heard on www.voiceamerica.com.  In this episode, Ron let us know why he changed his mind when it comes to the use of timesheets when setting up pricing. Hear his reasoning about why you should also get rid of timesheets. He offers profound insights, as well as examples and explanations, into how certain pricing value and cost models are appropriate for particular industries.    Why you have to check out today’s podcast: Learn why many companies in accounting and the automobile industry are switching to subscription pricing Discover how timesheets cause leaders to focus on the wrong metrics, especially in pricing and value setting No timesheets? Is it possible?    “Even if you’re a solo entrepreneur,

This one is the Ace of Spades from the Impact Pricing card deck.  First, companies really do exist to create value for customers.  Think about what you do as a business. Everything you do is to get a customer to pay you money. And the only reason a customer would ever pay you money is if you are delivering more value to them than they're receiving. And so, our entire company needs to be focused on how do we create more value for customers? How do we deliver more value? How do we communicate the value?  But we spend all this time creating, communicating value, pricing is the one thing that we do that captures the value that we're able to create and communicate. So, when a buyer chooses to buy our product, they pay the price that we're asking, and that happens to be the transaction value. That's how we capture the value of what we deliver to our customers. 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

This is an Impact Pricing Blog published on August 17, 2023, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/pros-and-cons-of-price-variance/ If you have any feedback, definitely send it. You can reach us at mark@impactpricing.com.  Now, go make an impact.   Connect with Mark Stiving: Email: mark@impactpricing.com LinkedIn: https://www.linkedin.com/in/stiving/  

With a decade of experience as an author, speaker, coach, and trainer, Carole Mahoney helps entrepreneurs, founders, and salespeople grow their businesses with a collaborative and science-based sales formula. In this episode, Carole shares how to make an engaging and collaborative sales conversation that makes your potential buyers feel valued and heard. In doing so, you transform your sales conversations into positive and fruitful interactions.   What you will learn from this episode: Learn about this exercise called 'Questions and Periods Game', how to go about it and how it works with your clients Discover the step-by-step process of doing the 'Questions and Periods Game' through a role play demonstration of Carole and Mark Find out the essential principles you need to know about the art of selling   "Selling isn't something we do to other people. It's something we do with them. And I think that's a fundamental shift that we need to start making in sales." - Carole Mahoney   Topics Covered: 01:17 - Synop

This is an Impact Pricing Blog published on August 10, 2023, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/defining-value/ If you have any feedback, definitely send it. You can reach us at mark@impactpricing.com.  Now, go make an impact.   Connect with Mark Stiving: Email: mark@impactpricing.com LinkedIn: https://www.linkedin.com/in/stiving/  

This is an Impact Pricing Blog published on August 3, 2023, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/which-business-do-you-want/ If you have any feedback, definitely send it. You can reach us at mark@impactpricing.com.  Now, go make an impact.   Connect with Mark Stiving: Email: mark@impactpricing.com LinkedIn: https://www.linkedin.com/in/stiving/  

David Falzani is a CEO at Polaris Associates and a Professor at Nottingham University. In this episode, David discusses the strategy for driving higher pricing by understanding the value delivered to customers. He also dispels the myths surrounding the notion that high pricing lowers sales, sharing the results of experiments conducted with various companies that prove otherwise.   What you will learn from this episode: Learn how to achieve profitability without constantly chasing pricing Find out the underlying reasons for underpricing and dispel common misconceptions about the negative impact of higher prices on sales Discover experiments where doubling your price yields significantly higher profitability compared to low pricing strategies   "Think dynamically about price and do it often." - David Falzani   Topics Covered: 01:42 - Expounding on 'sustainable wealth creation' 02:54 - What caught his interest in pricing 04:36 - Three reasons why underpricing exist 06:48 - Emotional baggage and fear that comes

This is an Impact Pricing Blog published on July 27, 2023, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/pricing-usage-and-value-metrics/ If you have any feedback, definitely send it. You can reach us at mark@impactpricing.com.  Now, go make an impact.   Connect with Mark Stiving: Email: mark@impactpricing.com LinkedIn: https://www.linkedin.com/in/stiving/  

This one is the Joker 2 from the Selling Value card deck.  Almost always when we're dealing with B2B customers, B2B business, value can be measured in additional profit. And that's one of the things I love about B2B business and pricing, is because we know our price has to be related to how much additional profit will they make when they use our product, or when they use our product relative to a competitor's product. But it turns out, sometimes, buyers inside our customers don't really care about profit. Imagine that you're selling a piece of medical equipment and you're talking to a doctor in a big hospital. Now the doctor actually doesn't care how much additional profit you're going to make the hospital. There's an administrator someplace who cares a lot about how much additional profit you're going to make the hospital. And so, we still need to understand the profit side of this conversation.  But from that doctor's perspective, they couldn't care less about profit. What do they care about? They care abou

Sebastian Baier is the founder of Buynomics, an AI for ultimate customer-centric RGM decisions- in one SaaS solution. In this episode, Sebastian discusses how Buynomics' AI utilizes vast amounts of consumer behavior data to generate virtual customers, enabling the implementation of optimal pricing strategies.   What you will learn from this episode: Learn how to create a customer simulation to identify the key factors that drive the value of a product and develop effective pricing strategies for optimal results Discover how to create a customer model for B2B, even when limited data is available Learn how to effectively analyze and interpret customer data in terms of distribution rather than segment    "Collect data however ugly it might look." - Sebastian Baier   Topics Covered: 01:12 - What got him into pricing 02:47 - Buynomics and what it does 04:41 - Understanding customer simulation and segmentation in the way Buynomics work 08:03 - Talking about segments and distribution densities 12:24 - How Buynomic

This is an Impact Pricing Blog published on July 20, 2023, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/why-do-they-buy/ If you have any feedback, definitely send it. You can reach us at mark@impactpricing.com.  Now, go make an impact.   Connect with Mark Stiving: Email: mark@impactpricing.com LinkedIn: https://www.linkedin.com/in/stiving/  

This one is the Joker 1 from the Selling Value card deck.  You heard earlier that there are really three types of buyer's value journeys. Those happen to be analytical, relationship, and trust.  In the analytical relationship, there's typically a lower level person who's doing a lot of side by side comparison between your product and a competitor's product, and our buyers are by far the most price sensitive in that situation. Or we could go all the way to the trust journey, and that is where they come to us. They ask us, "Hey, what do you do? How do you help us solve our problems?" They never even look at a competitive alternative. And in that situation, they're the least price sensitive.  The relationship journey is the one in the middle, where people would come to us and say, "Hey, how do you help us solve our problem?" We guide them. They build a great relationship. They really like us. And then they say, "Yeah, but we have to go look at competitive alternatives." We've built up enough goodwill and probabl

Ian Campbell is the author of Wall Street Journal Best Seller "The Value Sale". As Chief Executive Officer of Nucleus Research he is responsible for the company’s investigative research approach, product set, and overall corporate direction. He is a recognized expert on the return on investment (ROI) and total cost of ownership (TCO) analysis of technology and has written and presented extensively on a range of organizational topics and the importance of matching technology to business organizational objectives. In this episode, Ian shares how you can create optimal pricing by understanding how customers use your product and find value in them.   What you will learn from this episode: Learn how to quantify a product's value in measurable terms Find out the three value propositions you can derive from when helping people find and understand their product's value Discover how to restructure your conversations to help people recognize the value you offer and you get empowered to price that value   “Look at the

This is an Impact Pricing Blog published on July 13, 2023, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/its-too-expensive/ If you have any feedback, definitely send it. You can reach us at mark@impactpricing.com.  Now, go make an impact.   Connect with Mark Stiving: Email: mark@impactpricing.com LinkedIn: https://www.linkedin.com/in/stiving/  

This one is the 2 of Diamonds from the Selling Value card deck.  I'm often asked who should own pricing, and one of the departments that often comes up is finance. And of course, I'm not a huge fan of finance owning pricing. And the biggest reason is finance doesn't truly understand the value of our products. Usually that's going to be someone in product management, product marketing, or even sales, which I'm not a fan of them owning pricing either. However, finance so much wants to be involved with pricing. It's so crucial to their projections. It's so crucial to company growth, which they care a lot about. They really want to be involved with pricing, even though they don't understand value. So, how do we get them involved in pricing?  That's pretty simple. Finance has a bunch of quant people. They have access to every piece of data inside the entire company, and they have the desire to make us or help us do better in our pricing. And so, let's figure out what are the KPIs, the key performance indicators, t