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The Product Experience

Decoding the mysteries of pricing strategies - Dan Balcauski on The Product Experience

Oct 4, 2023
Dan Balcauski, Founder and Chief Pricing Officer at Product Tranquility, discusses common pricing misconceptions, aligning pricing strategy with business objectives, and the impact of pricing on customer acquisition costs, sales cycles, and revenue expansion. They also explore metrics for measuring pricing effectiveness and conclude by highlighting the podcast's theme music and promoting Product Tank Community.
41:14

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

  • Value-based pricing should be the goal, focusing on creating differentiated value for customers.
  • Pricing research methods like Van Westendorp and discrete choice can help in determining customer willingness to pay and analyzing product features and price points.

Deep dives

Pricing Expertise and Guidance for B2B SaaS Companies

Dan Balkowski, founder and chief pricing officer at Product Tranquility, joins the podcast to discuss the importance of pricing in B2B SaaS companies. He emphasizes that pricing is determined by who and how you charge, rather than the price tag itself. Dan explains that competition-based pricing is a common mistake and that value-based pricing should be the goal. He suggests conducting pricing research using methodologies like Van Westendorp or discrete choice methods. To measure pricing effectiveness, Dan recommends analyzing metrics such as competitive win rate, percentage of deals lost to pricing, and discounting percentage. Overall, he emphasizes the need for alignment, research, and ongoing refinement in pricing strategies.

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