Jeff Robinson is the CEO at Revolution Pricing LLC and Author of Price for Growth!
In this episode, Jeff shares how pricing should be a strategic effort in driving a company's growth. He talks about how pricing executives should think in terms of long-term margin, having growth precedes profit.
Why you have to check out today's podcast:
"Think about the growth aspect of your business before you think about the profit aspect of your business. Think about the engine of growth before you think about harvesting profits." - Jeff Robinson
Topics Covered:
01:31 - How he started his pricing career
02:34 - Sharing his story of why he stayed with PROS for almost two decades
04:46 - What happens when salespeople have discount authority
06:20 - Different pricing models
07:36 - Are salespeople the best ones to determine pricing strategy?
10:18 - What he thinks of price differentiation
11:53 - Fairness in pricing - what it really means
15:19 - It's almost never really about pricing; it's about value
17:58 - Can pricing people make or add more value as an internal consultant?
20:40 - What he'd like to see happen at the level of Pricing Director
23:06 - Pricing's two different kinds of macro goals
26:14 - What growth strategy should look like
27:40 - Win, keep, grow - what does it refer to
29:42 - Jeff's pricing advice that can greatly impact one's business
Key Takeaways:
"Price differentiation is not only fine, I think it's desirable. But I think you got to do it in a way that you can maintain a good customer experience across your customer base." - Jeff Robinson
"Customers hate that they're getting priced based on their willingness to agree. If it's not fair, you're going to get a lot of blowbacks. If it is fair, then they'll play along. Look at the airline industry; you have tons of differentiated pricing. But I think most people understand the game; they understand there's some objectivity behind where the pricing is coming from." - Jeff Robinson
"Pricing needs to be at the forefront. I think pricing should be integral to the entire growth strategy of the company. And the reason I say that is because I think they have the most data. And I think they theoretically have the capability to understand all these intersections, if that makes sense." - Jeff Robinson
"Can pricing people make or add more value as an internal consultant? Yeah, definitely. Because as an internal consultant, they can operate at a level where they can add a lot of value, and they don't have to go into every minute detail. They can go into the level of detail that's needed." - Jeff Robinson
"The whole idea is if you think about growth precedes profits, then from a pricing perspective, pricing leadership should be thinking about growth first, and then thinking about profits when the time's right." - Jeff Robinson
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