Impact Pricing

Possibly my single favorite KPI in the world of pricing is average selling price. Are we managing average selling price per product, average selling price overall across the portfolio. If you have a single product that has a price on it and you can monitor that average selling price, that gives you a great indication of what's going on in your marketplace, how well we're selling value. If you can monitor average selling price by salesperson, now we're getting a great indicator of which salespeople do a good job at selling value and which ones don't. If you can't manage average selling price, maybe you're going to have an average deal size. How big are the opportunities that we're facing, that we're being able to bid on? And which ones of those are we winning or not? But my recommendation, find some KPI, maybe two or three, that are a great indicator of how well our customers are perceiving our value, which means their willingness to pay and how well our salespeople are selling value. Track them over time. Wat

Gabriel Dabi-Schwebel is the Founder and CEO of SalesDeck, an online sales communication tool. He is also the Founder and CEO of 1min30, a French inbound marketing agency. He is an entrepreneur, speaker, and author of eight marketing and sales methodologies books. Gab hosts the Virtual Selling podcast. In this episode, Gabriel talks about service packaging as he shares how they do it in his marketing company, 1min30.   Why you have to check out today’s podcast: Find out how to get your product packaging and pricing right Learn good, better, best service packaging through the way a marketing company does it Understand why pricing is at the heart of entrepreneurship   “If you are in service, the idea of packaging what you sell is very important.” – Gabriel Dabi-Schwebel   Topics Covered: 01:29 – Growing up with French fonctionnaire parents while wanting to become an entrepreneur 02:19 – How Gabriel got into pricing; Gabriel realizes how important pricing is 04:36 – Talking about service packaging in line with

This is an Impact Pricing Blog published on July 6, 2022, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/a-good-case-for-cost-plus-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/  

Pricing decisions can always help us achieve our goals. We need to make sure we understand what those goals are. I would start with understanding what the corporate objectives are. Oftentimes those are things like we need to raise our average selling price. We need to gain more market share. We need to have more margin. Typically, these goals, these corporate goals, are established by our CEO and our executive team, and they're there to drive increased market capitalization. However, your product may have a different set of goals than what your corporate goal is. So, what is the goal of your product? The goal of your product may be to bring more people into the platform so that we then have more people we can sell upgrades to. That's a great goal. We need to understand that as we're setting our pricing. Your goal may be we need to generate more revenue, more profit, so that we can fund other projects. That's a great goal. We just need to know what our goals are. As we're making these pricing decisions. We hop

John Chisholm was a US lawyer. For 15 years, he's been in law firms, using value-based pricing, and now subscription pricing. John swims in the ocean every morning with his Speedo around his neck. Pricing for law firms or even major consultancy firms is not easy. Price your final client contracts too high, and you’ll lose some of your most high-value clients. Price them too low, and you’ll be forced to work too few staff to the bone to cut costs. In this episode, John shares how law firm should approach their pricing strategy.     Why you have to check out today’s podcast: Discover how to create a pricing revenue model that funds a thriving firm while generating real value for clients Learn how to make your law firm and consultancy clients understand the value of your service and the risks they are avoiding by hiring you compared to your competitors by communicating the value you provide Discover why a pricing expert is essential to the profitability of any law firm   “Just don't price your own work.” – Joh

This is an Impact Pricing Blog published on June 29, 2022, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/how-i-think-about-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's really targeted at marketing people, product management. It turns out that we make fun of salespeople a lot because they offer discounts, they don't know how to sell value. But the question that I would ask is, what have you given them in terms of tools and knowledge and confidence that they can win deals at the prices that we think they should be winning at? We may have gone out and done a ton of analysis in the marketplace, we understand the value of our product, we understand how we compare to the competition, but have we shared that well with our salespeople? In my newest book, Selling Value, I describe something called a value table. And if you've created a value table, it simply documents where the value of your product really comes from. And if you can share that information with your salespeople, it gives them the ability to go look for places where there really is value in the marketplace. And it gives them the ability to have value conversations with their customers and potentially close

Colin Jasper has a Bachelor of Science in Statistics. He's been in consulting since 1997 and is currently a Principal at Positive Pricing in Melbourne, Australia. Colin is a competitive bridge player, and was a speaker at the Professional Pricing Society (PPS) this year. In this episode, Colin debunks three pricing myths and explains why these are the complete opposite of what people should be doing in pricing.   Why you have to check out today’s podcast: Discover three common myths people practice when doing pricing Understand why these false myths and are the complete opposites of what people should be doing in pricing Find out why we shouldn’t compete on price and not behave like a commodity   “Let's not behave like a commodity. Let's avoid competing on price.” – Colin Jasper   Topics Covered: 01:29 – How Colin got into pricing 02:31 – Creating huge impact on companies through pricing 03:31 – Billable hours in professional services firms: Perspectives of clients and firms 07:32 – Fixed $500/month vs. hou

This is an Impact Pricing Blog published on June 22, 2022, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/adopt-price-segmentation/ 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/  

I like to run the following thought experiment. Imagine that I'm auctioning off a coffee mug. Auction it off in a classroom, or a keynote room, and maybe I can get people to bid say $15 for my coffee mug. And then when I hand the coffee mug over, I intentionally pull out a $50 bill and show them, hey, this $50 bill was in the coffee mug. Well, why didn't I get paid for that? Because the buyers didn't know that it was there. Their perception was, it was a coffee mug. Now imagine I reach back and I grab a second coffee mug and I auction that one off. Now I might get $40. But what if there is an no $50 bill in this coffee mug? The real point, is that what our buyers believe has everything to do with their willingness to pay. It actually has nothing to do with what's true. Hopefully as marketers, as business people, we try to help clients believe the truth. But if we've built products that are better than our competitors, if we have $50 bills tucked into our coffee mugs and our buyers don't know it, we can't win

Sagar Thakur is the Business Planning & Pricing Strategy guy at Outreach. He worked in SaaS Monetization Strategy at VMware, and he plays way too many instruments. In this episode, Sagar talks about the challenges and opportunities of a pricing role as he explains why costs don’t drive pricing.   Why you have to check out today’s podcast: Discover the challenges and opportunities of being a pricing person, and why it’s challenging but beneficial to have pricing departments as internal consultants Find out what the three-step process is on how to tie value creation and value capture process together Understand why prices aren’t based on costs but on value/the customers’ willingness to pay   “Don't start with pricing. Start with assessing value, quantifying it, understanding it, getting your handle on what value is with a specific feature or product, how it scales, how customers perceive it, where they start, where they end.” – Sagar Thakur   Topics Covered: 01:07 – How Sagar got into pricing 02:28 – The

This is an Impact Pricing Blog published on June 15, 2022, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/buyers-value-journey-map/ 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/  

We all want our salespeople to sell more value. What does that actually mean though? If we think about it, our customers, whether they be consumers or businesses, they buy value. They exchange money for the value they perceive that they're going to get from our product, however they want to measure that value. Our job as a salesperson needs to be to make sure our customers, our buyers, understand how much value our product might be able to give them because the more value they perceive the more we can charge, the more likely we are to win the deal. Our job as a salesperson selling value then is to increase how much value our customers perceive from our products. We hope you enjoyed this memecast. This impactful insight came from the book, Selling Value, which I wrote to help salespeople win more deals at higher prices. If you have any questions or feedback, please email me mark@impactpricing.com. Now go make an impact.   Connect with Mark Stiving: Email: mark@impactpricing.com LinkedIn: https://www.linkedin.

Christine Carragee has been working as Carragee Consulting’s Business Consultant for more than six years now. She's done two different stints at the Vendavo – first as their Senior Pricing Consultant then as a Principal Consultant – so she certainly understands pricing. Christine was a Senior Pricing Analyst at Capella University. She lived on three continents before she was four years old. In this episode, Christine explains why it’s a must that you consider the segmentation of individuals when doing pricing in higher ed as she shares her pricing journey with Capella University.   Why you have to check out today’s podcast: Find out how Capella University sets their price to students; Discover how financial aids such as scholarships and loans help you create good quality for the university; and Understand why it’s a must that think about the segmentation of individuals when doing pricing in higher ed   “A huge portion of higher ed pricing is through the grants and scholarships and loans. And so, what you're

This is an Impact Pricing Blog published on June 8, 2022, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/to-fee-or-not-to-fee/ 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/  

Last week, we talked about economic value and how businesses are able to calculate how much money are they going to make or save based on buying and using your product or solution. Sadly, consumers can't do that in almost all situations. I love this one blue shirt I get from Brooks Brothers but there's no way to calculate how much money that shirt makes me or saves me. Instead, it's a feeling I get. It's the fact that I've gotten compliments when I've worn that shirt. So, I have a willingness to pay for that shirt over other shirts. I value it more than I value other shirts. The only way I can think of to measure the amount of value is based on my willingness to pay. And this is true with our clients as well. When we start thinking about how much does a customer or a consumer value our products, we probably need to be thinking in terms of willingness to pay. We hope you enjoyed this memecast. This impactful insight came from the book, Selling Value, which I wrote to help salespeople win more deals at higher p

Dale Harrison has been consulting in life sciences for seven years now, but he's been an executive in biotech for 16 years. Dale started his career as a physicist. In this episode, Dale shares how he’s able to not make biotech products a commodity as he tells us the stories on how he gets inside the minds of both their customers and competitors.   Why you have to check out today’s podcast: Understand the importance of stepping outside the product and the company when it comes to making a product stand out in the market; Discover why it’s a must that you get inside the head of both your buyers and competitors, especially with seeing where your competitors are blind in their framework; Find out how to get inside the mindset of your buyers and competitors through stories of tricks that worked   “Pricing has little to do with analysis. Analysis is a supporting role, but only supporting. The real issue with pricing is getting inside the head of the customer, and equally importantly, inside the head of your compe

This is an Impact Pricing Blog published on June 1, 2022, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/the-power-of-economic-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/

It's true, every time we buy something, we buy it because we think we get more value than the price it's going to cost us. It's kind of hard for us as consumers to say how much is that value, and we think of that in terms of dollars. But in a corporate setting, how much they value something can almost always be decided by how much money do they think they're going to make or save because they're buying our product or our solution. That amount of money they're going to make or save is called economic value. If we learn how to interpret our features and our benefits into our clients' economic value, and especially if we can learn to help them turn it into economic value, it will become much, much easier for us to close deals and understand why our customers are buying or not buying in the first place. We hope you enjoyed this memecast. This impactful insight came from the book, Selling Value, which I wrote to help salespeople win more deals at higher prices. If you have any questions or feedback, please email m

Christopher Uthe is the Director of Product Management at Ocelot, where he champions scalable day-to-day organizational changes to transform it to a product-driven company. He's been working in the education market since 2006, both for an educational institution and for companies that sell education. Chris started his first business at the age of 16. In this episode, Chris explains how pricing works in institutions of higher education as he discusses the factors that make pricing difficult in that field.   Why you have to check out today’s podcast: Find out how to find value if you can’t get a good and apt pricing metric Understand how pricing in higher educational institutions work, as well as the thing that makes it difficult Discover why higher education should be more focused on B2C pricing than on B2B   “It's so hard to bundle and discount correctly, that most of the time, that's not being done right.” – Chris Uthe   Topics Covered: 01:28 – The story behind Chris’ interest in pricing 02:15 – Pricing an