Impact Pricing Unlocking Pricing Potential Using the Pricing Spineometer with Tim Smith
Tim Smith helps executives address critical questions in pricing, marketing, sales, and corporate strategy in the face of high uncertainty by using proven best practices informed by solid academic research.
In this episode, Tim delves into the Pricing Spineometer, a comprehensive tool designed to assess a company's pricing capabilities. By examining financial performance and organizational structure, one can provide valuable insights into the gap between a company's current pricing practices and optimal strategies. He also touches on the crucial role pricing plays in business success and the importance of CEO involvement in driving pricing excellence.
Why you have to check out today’s podcast:
- Discover this pricing tool called Pricing Spineometer for assessing a company's pricing capabilities and learn how it works, its significance, and how it can benefit businesses
- Gain insights into the world of pricing strategies discover surprising findings about pricing practices in various industries and how they impact business performance
- Explore the critical role of CEOs in driving pricing excellence within organizations and understand why pricing decisions often require the direct involvement and prioritization of top leadership, and how this impacts business outcomes
"Take the time to apply the expertise necessary to your pricing questions. Think about it, and then listen to that expertise."
- Tim Smith
Topics Covered:
01:36 - Sharing an enriching experience teaching and consulting
02:45 - How he found himself in pricing
04:08 - What made him create Pricing Spineometer, what is it all about, clarity on it measuring a gap versus a scorecard
07:31 - The process of using the Pricing Spineometer
11:40 - How the initial financial analysis sets the foundation for understanding a company's pricing needs and capabilities
14:29 - Understanding that creating a Pricing Spineometer for a company involves significant work and expertise
16:26 - AI's impact on pricing and the companies' various reactions on their pricing capabilities assessment with pricing spineometer
19:16 - Valued for the expertise and insight not on time spent
20:08 - Surprises coming up for different companies pricing sophistication
22:19 - Does the CEO takes care of the development of pricing expertise and how does a CRO differ from a VP of Pricing
24:26 - Tim's best pricing advice
Key Takeaways:
"If you changed the way you thought about pricing, there'd be a huge bottom line impact to your company." - Tim Smith
"You're charging for the intellect that goes into the work, not the actual amount of time it takes to do the work." - Tim Smith
"There are ways to get around tools, there are ways to use the tools, but you’ve got to understand what the goal is." - Tim Smith
People/Resources Mentioned:
- World Class Pricing: The Journey by Paul Hunt: http://www.pricingsolutions.com/world-class-pricing-the-journey/
- TI: https://www.ti.com
- Walmart:https://www.walmart.com
- Coca Cola: https://www.coca-cola.com/us/en
- Pepsi: https://www.pepsi.com/
- Nvidia: https://www.nvidia.com/en-us/
- Kraft Heinz: https://www.kraftheinzcompany.com/
Connect with Tim Smith:
- LinkedIn: https://www.linkedin.com/in/drwiglaf/
- Website: https://wiglafpricing.com/
Connect with Mark Stiving:
- LinkedIn: https://www.linkedin.com/in/stiving/
- Email: mark@impactpricing.com