Impact Pricing

This one is the 4 of Spades from the Selling Value card deck. Every time a salesperson gets in front of a procurement officer, a purchasing agent, however they're called, the purchasing agent will act price sensitive. Their job is to get a better price for their company.  And so, they will always tell you that your price is too high, they need a discount. And you have to decide as a salesperson, do you want to give it to them? And here's the trick, does the purchasing agent actually have any power or authority to influence the decision process?  If you're selling a commodity, and they could go to three, or four, or 10 different sources to get essentially the exact same thing, and those are all approved sources for the manufacturing capability, procurement has a lot of power. You need to do a great job at making sure procurement stays happy and figure out what it really takes to close that deal.  On the other hand, if you're selling a piece of capital equipment and you've had a long sales cycle selling to a re

Jens Hentschel's passion is B2B relationship management and is especially interested in the interaction between the two sides at the negotiation table: buyers and sellers, suppliers and customers, sales and procurement professionals. In this episode, Jens delves into the role of procurement in guiding the internal stakeholder's buying journey on the supply side, while the sales professional assists in facilitating a value-based negotiation.   Why you have to check out today’s podcast: Gain a comprehensive understanding of procurement's involvement in the sales process using the direct and indirect spend terminologies Recognize the significance of involving procurement at the outset of the negotiation process Learn how procurement and sales can create a mutually beneficial scenario in pricing value   "When you get into that situation where you have been put on the spot in that negotiation, don't budge on price." - Jens Hentschel   Topics Covered: 01:16 - How he got into pricing 03:04 - Jens important thought

This is an Impact Pricing Blog published on May 4, 2023, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/price-segmentation-by-negotiating/ 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 5 of Diamonds from the Selling Value card deck.  We typically give our salespeople some level of discount authority. And the reason we do that is, let's say they walked in, and they asked the factory, or headquarters, 'Hey, could I have a 5% discount?' And we always say yes to that. Then all we've done is slowed down the sales process.  Instead, we give them some level of discount authority. Knowing that, you know, if you come in for 5% or less, I'm going to give it to you anyway. So, you just have permission to go give 5% or less. The problem, of course, is that salespeople typically give the max that they're allowed to give.  There's all these different levers that they could pull. They could sell value, and they can discount price. And discounting price is one of those levers that they're going to pull because it's easy. See how easy it is for me to discount the 5% and it doesn't hit my commission that much. So, it's okay for me to give that 5% discount.  What we want to do as a company is

Alessandro Monti is a pricing enthusiast and expert on all topics related to monetization, conversion, upselling, digital pricing, price management, and business and pricing history. In this episode, Alessandro highlights the importance of adopting a monetization-led growth approach for your business and emphasizes the need to start implementing this strategy early on in your business.   Why you have to check out today’s podcast: Learn to redefine growth in the sense of making it profitable and sustainable Discover the importance of a monetization-driven growth strategy for the long-term success and sustainability of your business Find the ideal pricing metric for your business to attain optimal product-pricing-market fit and achieve success   "Choosing the appropriate price metric seems to be probably one of these game-changing moments for your businesses." - Alessandro Monti   Topics Covered: 01:32 - What brought him to pricing and what made him choose SKP 02:43 - Why he believes in supply and demand 06:0

This is an Impact Pricing Blog published on April 27, 2023, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/simplify-your-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 5 of Clubs from the Selling Value card deck. Most salespeople are paid on commission, and typically that commission is a percentage of the revenue. So, 2% of the revenue, 5% of the revenue, somewhere in that ballpark. The problem is, that incremental revenue, if I want to grow my revenue by 1%, the salesperson is only going to get 2%, or their commission rate, of the 1%. And it's a really, really tiny number. However, for the company, that 1% could be a really big number especially if your overall margins are relatively small, because that incremental 1% of revenue is a hundred percent profit. But we don't incentivize our salespeople to get that next 1% very much. Ideally, what we would do is, we would create a sales incentive structure so that covering costs, maybe they don't make anything, but anything from cost to list price, the amount of commission, the amount of incentive payment they get goes up for the higher the price they get.  I, typically, like to have a target price. I also have a

Andrew Bailey is a Value Pricing and Price Negotiation Specialist. He is the founder of Commercial Strategy 4. He helps you unleash your pricing power to sell more, more often, and at a higher price to achieve the profits you deserve. In this episode, Andrew shares his strategy for value-based pricing negotiations to help you achieve the highest possible pricing for your product or service.   Why you have to check out today's podcast: Explore how you can present alternative options during negotiations by combining price and value selling strategies Discover one great technique for setting the stage and preparing the buyer's mindset for a pricing value conversation Uncover a more effective approach to pricing instead of simply relying on discounts   "Improve your prices and just get really good at customer conversations." - Andrew Bailey   Topics Covered: 01:14 - How he started in pricing 03:40 - Important consideration for negotiation 04:58 - Defining value for clients and questions to ask to understand the

This is an Impact Pricing Blog published on April 20, 2023, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/nobody-cares-about-your-product/ 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 5 of Hearts from the Selling Value card deck. It's true, customers hate price increases. Heck, I get an annual price increase from Intuit for my QuickBooks, and I hate it. But there's nothing I can do about it. I just have to sit around and stew about the fact that I really despise that Intuit raises my price every year.  However, when we blame costs, then people hate us a little bit less. So, we know as pricing people, as salespeople, we know that our prices really have nothing to do with our costs. But our customers don't really know that, and our customers believe the cost drive pricing. So therefore, if we're going to raise prices, the only real reason customers accept is that our costs went up. Imagine if Intuit sent me that email every year, and instead of it said, 'Hey, we're raising your price by $8, $10,' whatever it happens to be. Instead they say, 'Hey, our costs have gone up this year. We need to pass that on. We're going to increase your price by $10.' sure, I still dislike it. Bu

Darlene Nordstrom is an accomplished pricing professional with experience in developing and implementing worldwide software pricing and licensing strategies spanning traditional on premise, cloud and software as a service (SaaS) offerings. Broad financial knowledge including revenue recognition, standalone selling price, return on investment, profit and loss statements and various analyses such as profitability, variance, impact, market and competitive analyses. In this episode, Darlene highlights the crucial role of interdepartmental collaboration in developing a robust pricing strategy. Additionally, she stresses the importance of having a designated pricing specialist to oversee the entire process.   Why you have to check out today’s podcast: Find out why interdepartmental cooperation makes a successful pricing strategy What added value does a pricing person bring to the table with departmental integration notwithstanding Learn why you should be discerning when creating short-term and long-term pricing ef

This is an Impact Pricing Blog published on April 13, 2023, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/lessons-from-a-cute-story/ 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 5 of Spades from the Selling Value card deck. A value table consists of four columns: the solution, the problem, the result, and the value, typically in dollars. And when we do this, we think of creating the information, or the data in each cell for a typical customer.  But we would never walk into a customer and say, 'You should expect to make a million dollars by buying this product.' Or we would never walk into a customer and say, 'We would expect you to have 3% more productivity if you buy our product.'  Instead, when we think through all of the columns in a value table, and where additional profit comes from, and where additional productivity or reduced turnover, or whatever other effects we're going to have for our customers, then all we've done is say, 'This is a possible scenario.'  But if we understand what those are, then when we go in and start having conversations with our buyers, and we say, 'What problems are you trying to solve?' Or, 'What results might you be looking for?' We a

Michael Tatonetti is the Founder and CEO of Pricing for Associations. He is also a Pricing and Value Speaker and Consultant and a Certified Association Executive as well as a Certified Pricing Professional. In this episode, Michael discusses the importance of aligning pricing and value with the mission of associations and non-profit organizations. He emphasizes that value should be the central factor in creating a pricing strategy, as it resonates more with members and strengthens their connection to the organization.   Why you have to check out today’s podcast: Discover the three factors that distinguish associations from traditional subscriptions and find out their similarities in some aspects Find out how to price an association and why these two components of value and price tie in together to create the best pricing Learn how associations communicate better value in their pricing and the formula you can use to best convey your pricing   "Focus on the value. Always put the value before the price." - Mic

This is an Impact Pricing Blog published on April 6, 2023, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/you-have-the-curse-of-knowledge/ [powerpress] 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 6 of Diamonds from the Selling Value card deck. If you are having value conversations, you're focusing on, what's the problem the client's trying to solve? What's the result they might expect to achieve?  And if that result is quantifiable and we're selling to a company, then almost certainly you can turn that quantifiable results into incremental profit to that company. But in order to do that, we have to understand the business of our customers.  I remember a long, long time ago when I was in sales, we were selling automatic test equipment and we had a device that was more accurate. But in order for the test equipment that was more accurate to have value to the client, we had to show, how does this more accurate tester generate more profit? Well, the answer was, in order for a semiconductor manufacturer to ensure that a part was of a specific speed, they had to take in the accuracy of the test equipment. And so, if a test equipment was less accurate, they would build a bigger guardrail. And

Robbie Kellman Baxter is an Advisor to the world's leading subscription-based companies, a Keynote Speaker and Author of The Membership Economy and The Forever Transaction. She is also the Host of Subscription Stories Podcast. In this episode, Robbie discusses the significance of upholding ethical standards when implementing a subscription business model, as it greatly affects the company's long-term viability.   Why you have to check out today’s podcast: Learn about the unethical practices in subscription pricing and their long-term implications for your business Find out effective price segmentation strategies that can be applied to your subscription-based business model Know why these companies are the best models when it comes to subscription pricing   “Have a rationale for your pricing structure that you would be comfortable showing to a loved one who is a customer.” - Robbie Kellman Baxter   Topics Covered: 01:49 - What drove her entry into Pricing 04:28 - Why some companies make it hard for subscribe

This is an Impact Pricing Blog published on March 30, 2023, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/ford-patents-feature-with-negative-value/ [powerpress] 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 6 of Clubs from the Selling Value card deck. First, let's talk about an analytical journey. These are those people who, once they realize they have a problem that they might want to go solve, they spend a bunch of time doing their own research, probably on the internet, figuring out what are the different options, where they might buy it, what are the price points? These are the most price sensitive buyers we can deal with. And yet, if we get an opportunity to talk to them as a salesperson would talk to a potential client, we could be sitting there saying, Hey, here's why our product is better than our competitor's product. But my recommendation would be to make sure we have the value conversation about the inherent value of solving the problem. If we have that conversation, it may be that the buyer didn't realize that there were a lot of other opportunities or a lot of other places where there's value if they buy a product like this. The person might begin to trust the salesperson more and sa

JD Dillon is the Chief Marketing Officer, Communications Leader, and Pricing Professional at Tigo Energy. In this episode, JD shares his 8D problem-solving technique that helps create a solid pricing strategy in place.   Why you have to check out today’s podcast: Understand what the 8D technique of problem solving is and where you can specifically apply it to Learn how to figure things out and find solutions logically rather than emotionally Discover about the 'Five Why' in verifying the root causes of a problem   "If you are in a situation where there's a price reduction, try to do two or three other things first." - JD Dillon   Topics Covered: 01:15 - How JD’s Pricing journey started 02:21 - Updates about T.J. Rodgers 03:23 - Overview of what the Eight-D problem-solving technique is all about 04:12 - How does a quality program relate to pricing? 05:32 - What goes on in D-Zero? 07:32 - Where do we ideally apply Eight-D to? [Showing a case study] 08:51 - D-One: What happens here? 10:24 - How do you go about