Impact Pricing From Commoditized to Premium: The Remarkable Effect with Ton Dobbe
Ton Dobbe is the founder of Value Inspiration, helping SaaS companies transform from commoditized to remarkable. He's the author of The Remarkable Effect, where he explores what makes products stand out and command premium prices. And he's a keynote speaker and podcast host himself.
In this episode, Ton shares his insights on how SaaS companies can escape the commodity trap and command premium pricing by focusing on their unique approach to solving customer problems, rather than just features and functions.
Why you have to check out today's podcast:
- Learn how to identify and articulate the real problems your customers face that keep them awake at night.
- Discover why competing on your approach rather than features is the key to premium pricing.
- Understand how guarantees and risk reduction can justify higher prices and improve your entire business operation.
"Start thinking about what you do and why customers would pay a premium for that. And if you cannot answer that, there's work to do. It's a very simple question. What would it take for people to start paying a premium for it?"
– Ton Dobbe
Topics Covered:
02:37 – Startup failure and value proposition: Why 75% of software scalers fail despite achieving product-market fit and how the inability to market at appropriate value becomes their downfall
04:07 – Value is a story: Ton's definition of value as "a story in the head of a customer" versus Mark's "result of solving problems" and how perception drives pricing acceptance
09:28 – Value pricing and guarantees: How adding guarantees reduces customer fear of making mistakes and enables premium pricing, plus the psychology behind buyer decision-making
12:33 – Guaranteeing results for customers: The insurance model approach to guarantees and how implementation success creates win-win scenarios for both vendor and customer 15:28 – Competing on approach, not features: Why software companies must differentiate based on their unique approach to solving problems rather than feature comparisons with competitors
19:09 – Secret sauce for ideal customers: Ton's 12-step "pressure cooker" process for identifying your value foundation and connecting company knowledge to customer segments
22:11 – Ideal customer segmentation benefits: How focusing on perfect-fit customers accelerates sales cycles, increases win rates, stops discounting, and improves every business function
27:59 – The value of AI solutions: Why companies fail when they position themselves as "AI-powered" instead of focusing on the specific problems their AI capabilities solve
30:39 – Premium pricing strategies: The fundamental question every company must answer - why would customers pay a premium for what you do, and what would it take to achieve that?
Key Takeaways:
"Value is a story in the head of a customer. When I say to you, for example, this is 30,000 US dollars. Some people will say, that's expensive. And other people will say, that's a bargain. And the difference is how well you communicate the value in a way that clicks with them." – Ton Dobbe
"The moment you can add something like a guarantee or like a reliable promise to that, you can even charge more on pricing because it takes a lot of objections away around the fear of messing up." – Ton Dobbe
"If you compete on a feature function level, everybody will lose. So you have to make a choice, are we going to compete on the feature function level or are we going to compete on something else?" – Ton Dobbe
"The moment you get that idea in their head, this is the choice and they're gonna solve my problem better than anyone else. They're gonna give me more value than anyone else. Well, why should I even start talking about discounts?" – Ton Dobbe
People / Resources Mentioned:
- The Jolt Effect (book on buyer indecision)
- Christian Owens, CEO of Paddle
Connect with Ton Dobbe:
- Website: https://valueinspiration.com
- Book: https://theremarkableeffect.com
- LinkedIn: https://www.linkedin.com/in/tondobbe/
Connect with Mark Stiving:
- LinkedIn: https://www.linkedin.com/in/stiving/
- Email: mark@impactpricing.com