Review > Value First, Then Price: Building Value-Based Pricing Strategies

Finalized Value First, Then Price: Building Value-Based Pricing Strategies by Andreas Hinterhuber (editor), Todd C Snelgrove (Editor) My Book Rating - 2.5/5 (Qualitative - between "Okay" and "I Liked It”) BOP#3 - Book Club The book explores the relevance and importance of a value-driven organization through multiple lenses: (i) pricing, (ii) procurement, (iii) management, and (iv) change management. It comprises 25 individual pieces—including interviews, essays, use cases, and empirical evidence—written by various authors. These contributions emphasize the importance of understanding value, its relevance, and how to effectively quantify and communicate it both internally and externally. As a whole, the book serves as a solid introduction and refresher on the significance of being a value-driven organization in any industry. It encourages readers to focus on the value they generate for customers and consumers. It also provides a great starting point for deepening your knowledge of value-based approaches and opens multiple pathways for further exploration.A recommended read for professionals in pricing, sales, and procurement, offering insights on how they can apply these principles within their organizations. A word of caution: Avoid the Kindle edition. While it is technically readable on a Kindle, the formatting has not been properly adapted to the platform. As a result, many of the Kindle’s features and readability enhancements are missing, significantly diminishing the overall experience and value. (text revised by a LLM) https://www.goodreads.com/review/show/7110863649

- Pedro

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Starting a new book! Value First, Then Price: Building Value-Based Pricing Strategies by Andreas Hinterhuber (editor), Todd C Snelgrove (Editor)

Starting a new book! Value First, Then Price: Building Value-Based Pricing Strategies by Andreas Hinterhuber (editor), Todd C Snelgrove (Editor) "...Value-based pricing – pricing a product or service according to its value to the customer rather than its cost – is the most effective and profitable pricing strategy. Value First, Then Price is an innovative collection that proposes a quantitative methodology to value pricing and road-tests this methodology through a wide variety of real-life industrial and B2B cases. This book offers a state-of-the art and best practice overview of how leading companies quantify and document value to customers. In doing so, it provides students and researchers with a method by which to draw invaluable data-driven conclusions, and gives sales and marketing managers the theories and best practices they need to quantify the value of their products and services to industrial and B2B purchasers. The 2nd edition of this highly-regarded text has been updated in line with current research and practice, offering three new chapters covering new case studies and best practice examples of quantified value propositions, the future of value quantification, and value quantification for intangibles. With contributions from global industry experts this book combines cutting edge research on value quantification and value quantification capabilities with real-life, practical examples. It is essential reading for postgraduate students in Sales and Marketing with an interest in Pricing Strategy, sales and pricing specialists, as well as business strategists, in both research and practice. ..." https://www.goodreads.com/book/show/59858279-value-first-then-price?ac=1&from_search=true&qid=zhnvkchD61&rank=3

- Pedro

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Finalized Win, Keep, Grow: How to Price and Package to Accelerate Your Subscription Business by Mark Stiving - My Book Rating - 4/5

Finalized Win, Keep, Grow: How to Price and Package to Accelerate Your Subscription Business by Mark Stiving My Book Rating - 4 / 5 (Qualitative - “Really Liked it”) BOP#2 - Book Club A concise and highly insightful book on thinking and managing subscription businesses. It offers numerous valuable insights that I’ll carry into my professional life—not only for subscription businesses but also for broader applications, such as Internal Transfer Pricing within Management Performance Systems. These concepts have direct relevance to various organizational areas. I plan to publish a more detailed review in the near future—or at least, I hope to! https://www.goodreads.com/review/show/7061305482

- Pedro

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Review: Never Split the Difference: Negotiating As If Your Life Depended On It

Never Split the Difference: Negotiating As If Your Life Depended On It by Chris Voss
My rating: 4 of 5 stars

Great book on negotiation, very practical and easily implementable on your day-to-day work, and very easy to read. Should be mandatory, among others, on every sales capabilities program!

It's a great (if not mandatory) complement to the hard-skills you should know about negotiation and challenged several beliefs that i had and it made me think on how to approach every negotiation process.

Beside reading it, i will study it and will definitely read my notes every time i will enter a more demanding negotiation process to complement the other negotiation tools that i already have in my negotiation strategy bag-pack.

Concepts like:(i) Labels/Accusation Audit, (ii) Calibrated Questions; (iii) Questions to identify deal killers; (iv) how to diffuse deal-killing issues; (v) how to leverage noncash offers, (vi) identify black swans; (vi) how to set goals to maximize your possible outcome (not settle with one that is in the ZOPA range); (vii) how to be a mirror; (viii) how to master the No and get "That's right" moment, etc...are of great value!

Would be great if you do not read it so i can have leverage on the next negotiation process.



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Dynamic Pricing Silver Bullet?

https://www.ibbaka.com/blog/2019/11/7/dynamic-pricing-is-a-two-edged-sword

Fully agree with this great post! When you only have (want to sell) a hammer everything looks like a nail. Every solution has its value and should be applied accordingly and we should avoid to go with the latest trend flow and thoroughly assess the pros & cons and look at the value fundamentals. "...The conflation of willingness to pay and differentiated value has to come to an end. Willingness to pay is an outcome of the creation, communication and delivery of differentiated value. It is an outcome and not a driver. Pretending that you understand value because you can estimate willingness to pay is wrong headed. ..."

Review: The Strategy and Tactics of Pricing: A Guide to Growing More Profitably

The Strategy and Tactics of Pricing: A Guide to Growing More Profitably by Thomas T. Nagle
My rating: 4 of 5 stars

A good text book on pricing in its strategic and tactical perspective. Decided to read it in order to shore-up my Pricing knowledge and it was of great utility. I do recommend its reading for someone that wants to know more about pricing, to the professionals already working to provide a sound framework to their day-to-day activities and allow better decisions that have implicit a tremendous value to the overall organizations they work for.

It provides pricing theory as deemed needed (and if you want to explore more you have a plethora of references you can explore), but it's practical text book that applies the theory presented to actual cases and guides you through such important strategic process. Even in the field on how to determine the pricing level (value, pricing elasticities, etc...) always have a pragmatic and practical approach that one can use immediately.

Pricing is presented where the push comes to shove. i.e. when every company captures the value it has previously created and you can see a lot of value be siphoned away due to bad practices.

From all the applicable concepts presented, i would like to highlight the following:
- The Value Cascade - great representation on how to manage value and then pricing. An how you spill value in each caption
- How to define the best value to your customer;
- How to estimate the economic value estimation (economic vs. psychological);
- How to create break-even sales curves vs. pure elasticities (difficult to estimate in real markets)
- Ethics and law - also a good chapter that push-back some preconceived ideas and limitations,

Do recommend its reading and have it readily available for every pricing professional.



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Ideas on solving the Pricing Puzzle - Based on a BCG article

Excellent BCG article on Pricing based on a Wealth management example, although in my opinion applicable to any industry.

What are my main conclusions:

1. Pricing (in all its dimensions) is a key component of a company strategy, not just a tactic lever one should/could use;
2. The top quartile pricing performers have significant better overall results
3. Smart pricing has 4 main components:
• Proper client segmentation (avoid broad-based segmentation on external characteristics easy to define, but on customer behavior and required service levels) ;
• Have a clear value proposition for each segment;
• Optimize the price structure for each segment
• Constantly reassess the above, making it a process and not a 1 time yearly event
• have a clear pricing strategy;
• favor quality over quantity - start small, test, pivot (if needed) and only then deploy. Each company, division, product has its own story;
• Obtain sponsorship within the organization and buy-in (quick wins are important)
• Pricing is a core strategic competence not just a tactic one within marketing
• Embrace Data Analytics - target pricing algorithms, pricing intelligence, etc
4. The Exhibit 6. is self-explanatory and is a great infographic over the key roles and responsibilities of any Pricing team.

Solving the Pricing Puzzle (aWealth management example)

On Pricing - how to create value

Why do they sell used books by weight (and what that implies for pricing data)

Interesting and make you think about several industries