Impact Pricing

Mastering Contracts, Metrics, and Value: Strategies for Pricing Excellence with Lisa Thompson

Dec 2, 2024

34:10

Lisa Thompson has corporate experience that spans software/SaaS, industrial manufacturing, life sciences/healthcare, medtech, fintech, and B2B services. Together with clients, she delivers unique, actionable solutions tailored to their organizational needs and realities leading to profitable, sustainable revenue and growth.

In this episode, Lisa shares the importance of deeply understanding the economic value your product delivers to customers and aligning it with their buying processes, highlighting that many companies fall short in these areas. Through real-world examples, Lisa shows how uncovering the true drivers of customer satisfaction can transform pricing strategies and lead to stronger, more profitable relationships.

Why you have to check out today’s podcast:

Deep dive into the critical importance of understanding and quantifying the economic value your product delivers to customers so you gain actionable insights to refine your approach.
Gain valuable guidance on structuring contracts, from incorporating escalators to aligning terms with customer needs, ensuring profitability and flexibility in volatile markets.
Learn how to evaluate and select pricing metrics that truly reflect the value customers derive, unlocking hidden revenue opportunities.

"In the metric, understand how you currently charge customers. Not the price level, but the price metric. Double check to see if that aligns with whether they get high value or low value. If it doesn't, we don't necessarily have the right metric. There can be magic and a lot of money in getting the metric right."

- Lisa Thompson

Topics Covered:

01:43 - How she ended up in pricing

03:44 - Why value-based pricing is not simply charging higher prices for more value

05:32 - Highlighting the nuances in pricing strategies, explaining ways to leverage value other than higher prices

11:39 - Sharing a lighthearted story about Tom Nagle's amusing moments

13:37 - Emphasizing what many companies struggle to do with deal structuring

16:50 - Explaining why understanding the economic value of a product must come hand in hand with a deep knowledge of the customer's buying process

23:02 - The need for long-term contracts to include appropriate escalators and de-escalators

26:54 - Why contract structures should align with how customers perceive and experience value

30:59 - Lisa's best pricing advice

Key Takeaways:

"Just because value's high, it doesn't mean I can always get a high price for it." - Lisa Thompson

"One of the things I want people to understand in our work is that getting a price premium or charging more than you used to charge isn't the only way to get paid for adding more value." - Lisa Thompson

"We know the value, but that's not the same thing as knowing the buying process." - Lisa Thompson

People/Resources Mentioned: