Pricing is one of the 4 P’s of marketing. Before the bean-counters and financial analysts took over this domain, pricing sat firmly in the remit of the marketing department. Then the great purge happened and each of the other P’s peeled off from marketing, fragmenting the critical strategic marketing discipline. There only so much that can be done by looking at spreadsheets and creating economic models. What was lost, was an understanding of how customer value manifests itself – the irrationality – the art.
Jon Manning is here to restore that connection, as he leverages his deep knowledge of economics, finance and marketing. By default, the large majority of businesses will use a cost-plus pricing strategy which is a legacy pricing method, firmly rooted in product manufacturing.
While there’s a lot of cross-over with the product domain, this episode discusses pricing strategies for services almost exclusively. Jon’s worked for many sectors including, petroleum, airlines, internet cafes, SaaS and more. As the founder of outsourced pricing strategy consultancy marketplace, Pricing Prophets, there isn’t much he hasn’t been exposed to. So we needed to hear the best ways to price our product offering and the mistakes to avoid.
He cleverly wraps many stories and real-life examples from his career into the mix. Even pricing novices will be able to understand the concepts that we’re discussing. Have a listen and I’m sure there’s a follow up on the cards.
Rory Sutherland – Alchemy
Pricing Prophets marketplace
LinkedIn – Jon’s profile is here
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This episode was edited and produced by:
John James and team