Impact Pricing Pricing as Language: How It Influences Valuation and Market Perception with Mike Blake
Mike Blake is the founder of High Score Strategies, with over 26 years of experience in business valuation and M&A markets. He specializes in advising small to medium-sized businesses (SMBs) on increasing their valuations. Mike is passionate about the relationship between pricing and value, and how effective pricing strategies can significantly impact a company's worth.
In this episode, Mike shares his insights on how pricing affects valuation, the importance of differentiation in a competitive market, and the shift from growth to profitability in business models. Together, they explore the concept of context-driven pricing, the significance of signaling in pricing strategies, and how companies can leverage their unique data to enhance their market position.
Why you have to check out today’s podcast:
- Discover how pricing communicates a company's brand and market position.
- Explore the relationship between pricing, profitability, and business valuation.
- Learn about the importance of differentiation and how to create a competitive moat.
“Pricing is language. It communicates to the market what kind of brand you are.”
– Mike Blake
Topics Covered:
01:37 – The relationship between pricing and valuation.
02:30 – The importance of pricing in determining profitability and cash flow.
03:39 – Differentiation and competitive moats in pricing strategies.
04:53 – The shift from growth to profitability in business models.
08:36 – Signaling in pricing and its impact on investor perception.
11:17 – How to differentiate in a market dominated by larger players.
13:23 – The relevance of pricing strategies for SMBs, and how service-based companies offer consulting as value-ad.
17:04 – What Mike does.
19:36 – Why businesses that don't know their business model.
20:53 – Why value-based pricing is excruciatingly difficult.
25:53 – Mike’s advice on pricing and negotiation.
Key Takeaways:
“Pricing is the stem cell for all of that. [Cash flow, revenue, and profitability]” – Mike Blake
“Companies that get pricing right are the most valuable.” – Mike Blake
“If you're selling 100% of your deals you're probably not optimizing your revenue because you're selling too cheaply.” – Mike Blake
“Understanding your unique data can create alternative revenue streams.” – Mike Blake
Connect with Mike Blake:
- LinkedIn: https://www.linkedin.com/in/unblakeable/
- Email: mblake@highscoresstrategies.com
Connect with Mark Stiving:
- LinkedIn: https://www.linkedin.com/in/stiving/
- Email: mark@impactpricing.com