Navigating the Future of Pricing: Insights on AI and Value Dynamics with Steven Forth
Impact Pricing
Navigating the Challenges of Pricing Platforms and Value Dynamics
Exploring the intricacies of pricing platforms, including challenges in assigning value, strategies for different user types, balancing floor price with revenue generation, and variations based on business models.
Steven Forth is Ibbaka’s Co-Founder, CEO, and Partner. Ibbaka is a strategic pricing advisory firm. He was CEO of LeveragePoint Innovations Inc., a SaaS business. In this episode Steven shares the shifting landscape for pricing professionals, emphasizing the rising importance of pricing strategists over analysts in leveraging AI for value-centric decision-making. Additionally, he highlights the possibilities beyond automation to include real-time recalibration of value models, enabling companies to better adapt to changing customer needs and market dynamics.
Why you have to check out today’s podcast:
- Discover the importance of custom packaging solutions designed to meet the unique needs of diverse users, adding significant value to their experience and allowing for optimized pricing strategies
- Find out how AI is impacting pricing strategies
- Understand the evolving role of pricing people: pricing analysts and pricing strategists
"What pricing people should be doing today is learning how to have productive conversations with AI agents."
- Steven Forth
Topics Covered:
02:44 - Discussing about platform pricing and solution pricing in the context of AI
05:40 - The challenge that pricing platforms presents when it comes to quantifying value for all users
07:06 - Generative AI versus computational knowledge AI in the case of Wolfram Alpha
10:20 - Highlighting the value of packaging solutions tailored to specific needs which can be more valuable to users
12:06 - What goes in the pricing world with AI around
18:38 - Pricing strategists becoming increasingly important, need for better systems to facilitate meaningful conversations and decision-making
20:11 - Would it be possible for AI to make people inside the company understand what value is to customers
24:08 - Six types of value drivers according to Ed Arnold
27:03 - The challenge of building large amount of value models
30:20 - Steven's best advice to pricing people
31:12 - Building a value model through client interviews
Key Takeaways:
"Why don't people focus more on value? I think part of this is because many of us find it easier to look inside our own company than outside to our customers." - Steven Forth
"In an uncertain world, having options and being able to generate options gives you a much more adaptive and resilient business." - Steven Forth
"They [pricing people] need to be learning how to ask the AI questions. They need to be learning how to train the AI so that it can better answer those questions." - Steven Forth
"They [pricing people] need to be understanding the strengths and weaknesses of the answers they're going to get. Because like it or not, you are going to be using an AI, you are using an AI, in your work today, even if you're not aware of it." - Steven Forth
People/ Resources Mentioned:
- Wolfram Alpha: https://www.wolframalpha.com
- Stephen Wolfram: https://www.stephenwolfram.com
- Mathematica: https://www.wolfram.com/mathematica/
- Pros: https://pros.com
- Zilliant: https://zilliant.com
- Ed Arnold: https://www.linkedin.com/pulse/how-quantify-value-service-ed-arnold/
- McKinsey: https://www.mckinsey.com
- Microsoft Co-Pilot: https://copilot.microsoft.com
Connect with Steven Forth:
- LinkedIn: https://www.linkedin.com/in/stevenforth/
- Email: steven@ibbaka.com
Connect with Mark Stiving:
- LinkedIn: https://www.linkedin.com/in/stiving/
- Email: mark@impactpricing.com
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