You’ll Never Get Pricing Right, But How Can You Get Better

About the Episode

Buyers trade money for value. Understanding this is key to a company getting better tomorrow. Pricing expert Mark Stiving talks about the easiest way to increase a company’s value and looks at how pricing adjustments impact value, sales growth, and the perception of a business. He discusses developing strategies for an effective price increase, managing the timing, how a company can confidently raise prices without the fear of losing customers, and other strategies that can increase a company’s value.

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“Always put yourself in the shoes of the buyer to understand how they are getting value from your product. Buyers trade money for value.”

Mark Stiving

In this Episode

1:34 What is a pricing expert, and what is Mark Stiving’s background as a pricing expert?
2:40 What is the easiest way to increase the value of a company?
4:50 Why are businesses hesitant to use an increase in pricing to raise their profit margins?
5:22 How can small businesses get over the fear of increasing their market prices? Are there any strategies to mitigate the perceived risk associated with increasing prices?
8:09 Is there a typical price increase, such as 5%, 10%, or 20%? How frequently should a small business consider raising its prices?
10:38 When a PE firm acquires a company, what is the impact on pricing and the value of the acquired business?
15:14 What are some of the biggest hurdles and mistakes companies make with increasing pricing?
16:45 A discussion of Netflix as an example of the worst and best ways to communicate price increases.
20:35 What should a company consider when determining price increases for its product versus customer segments?
24:05 A look at Apple’s pricing strategy for its base products and add-ons.
29:25 How can a business judge the effectiveness of a price increase?
32:51 What other strategies can businesses use to increase value?
37:50 How can a pricing strategy be developed for a company’s product portfolio?
39:33 What is a pricing metric? How can a pricing metric help a company generate revenue from an existing customer base?
42:28 What are the most common impacts of price increases on a business?

Learn More About This Episode

Resources Mentioned in This Episode

Terms Mentioned in This Episode

  • B2B: Business-to-Business – Businesses that sell products or services to other businesses.
  • B2C: Business-to-Consumer – Businesses that sell products or services directly to consumers.
  • EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization – a measure of a company’s operating performance.
  • PE Firm: Private Equity Firm – an investment management company that invests in private companies.
  • SaaS: Software as a Service – a business model where businesses provide software applications over the internet on a subscription basis.

Meet Our Guest

Mark Stiving

Mark Stiving

Founder of Impact Pricing

Mark Stiving, Ph.D., MBA, is a widely recognized pricing expert and marketing pro who teaches companies how to boost revenues and realize their true value. He has 25+ years of experience in price segmentation, pricing product portfolios, and visionary pricing. Sought after as a trusted advisor, Mark has consulted, trained, and coached hundreds of companies, including Cisco, Procter and Gamble, Grimes Aerospace, Splunk, and Crowdstrike. 

Mark started and successfully sold three powerful companies in the tech sector. His legendary “Value Acceleration Bootcamp: How to use customer value to price, package, and sell products” helps PE firms and innovative companies master their buyers’ purchasing decisions to win more business at higher prices. Mark is also a prolific and highly rated author of the books Impact Pricing: Your Blueprint for Driving Profits, Win Keep Grow: How To Price and Package To Accelerate Your Subscription Business, and Selling Value: How to Win More Deals at Higher Prices.

Location Location: Reno, Nevada

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