Who has the Most Pricing Power? with Steven Forth

Why you have to check out today’s podcast: Discover how to develop a pricing strategy that leverage the value your organization creates Learn how to execute pricing actions to drive commercial outcomes and growth Discover how to use pricing tools to create and transform pricing that supports your business model    Pricing is where it all comes together, says Steven Forth - co-founder of Ibbaka the leading platform to price and differentiate for the client’s market. In this episode. Steven shares how he helps companies redefine their value, as well as how they price offerings in the marketplace through a combined deep understanding of pricing design with market segmentation and value creation.  “Segment your customers based on value. You need to understand what your value drivers are.”  - Steven Forth Increase Your Pricing Knowledge: Become a Champions of Value INSIDER!   To sign up go to insider.championsofvalue.com.       Topics Covered: 01:24 - Backstory of how Steven started his pricing career: How sitting down with Tom Nagle and reading his book was a turning point in Steven’s career 03:56 - Pricing being an indicator and diagnostic tool in business 05:00 - With new trends coming up in the market, Steven shares what he is seeing as happening in Pricing these days and his insights about it 06:32 - Pricing and one's willingness to pay 08:05 - As there are different views about value-based pricing, Steven shares what value-based pricing means to him 11:42 - Some companies say they have a problem with pricing, but after digging deeper they actually have a value problem. Steven expounds on this 16:02 - Pricing optimization is based on available data around. How do B2B and B2C differ when it comes to available data to utilize 16:02 - As B2C obtains more data than B2B, how do these two differ in terms of value-based pricing and dynamic pricing  19:31 - Steven expounds on conventional economic theory and how it relates to price elasticity of the demand curve 22:28 - Where does value-based pricing tie into outcomes-based pricing 26:21 - Talking about pricing power. Who has the most pricing power? 28:21 - Why do you need to have a deep understanding of value when it comes to executing outcomes-based pricing 30:35 - Steven discusses the importance of different economic value drivers and emotional value drivers especially where medical companies are concerned Key Takeaways: “Pricing is a great indicator and diagnostic tool. It lets you explore so many different parts of the business.”- Steven Forth “Dynamic pricing has always been how commodities are priced. Markets are dynamic pricing. That's what they are. And we've learned how to make the algorithmic and apply artificial intelligence and machine learning to it.” - Steven Forth “Willingness to pay is an outcome. It's what you're trying to shape. Framing pricing around willingness to pay, and doing analytics to estimate willingness to pay, I think is actually a way to sub-optimize your pricing outcomes.” - Steven Forth “Value-based pricing for me is an understanding of the economic, emotional, and community value that your offer creates compared to the alternatives.” - Steven Forth “Whoever takes on the most risk has the most pricing power. The seller’s ability to predict value outcomes should be more powerful than the buyers. Therefore the seller should be willing to take on more risk.”  - Steven Forth  People and Resources Mentioned: The Strategy and Tactics of Pricing by Thomas Nagle William Gibson Connect With Steven Forth: LinkedIn Ibbaka.com   Connect with Mark Stiving:    Email: [email protected]     LinkedIn     Twitter