Mark Stiving of Impact Pricing gave a great talk on value based pricing and price segmentation at the Aug-26-2020 Lean Culture Online event. Here is a recording of the event and a copy of his slides.
Mark Stiving on Value Based Pricing and Price Segmentation
The Two Most Powerful Pricing Decisions for Any Product at Wed-Aug-26 Lean Culture. Here is the description of the event:
OK, here’s the spoiler. These two powerful decisions are: (1) always use value based pricing and (2) adopt price segmentation.
In this webinar, you will learn what, why, and some how on both of these. What these concepts truly mean. Why they are so powerful you should internalize them in your company regardless of company size. And a little bit of how to implement them.
About the speaker: Mark Stiving, PhD, MBA, of Impact Pricing is a widely recognized pricing expert and marketing pro who teaches companies how to boost revenues and realize their true value. With 25+ years experience in price segmentation, pricing product portfolios and visionary pricing, Mark’s analytical skills provide specific direction—and quantifiable results.
- Most Profitable Pricing Decision: Adopt Value Based Pricing
- Charge What A Customer Is Willing To Pay (WTP)
- Exercise: What is Value
Pick a buyer and one of your products Write down the value to that buyer.
- Value is what a buyer is willing to pay.
It is either value in use or value in choice.
- Typical Buyers Value Journey:
- Will I? Value in use.
Solve the problem
In the budget?
Less price sensitive
- Which One? Value in choice
Best bang for the buck
Very price sensitive
- Purchase: Most purchases go through both decisions.
- Will I? Value in use.
- The Second Most Profitable Pricing Decision: Adopt Price Segmentation
- Charge Different Prices To Different Customers Based on their Willingness to Pay
- Customer Characteristics
- Transaction Information
Video and Slides
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