Impact Pricing The Power of AI in Pricing Optimization for B2B and B2C Markets with George Boretos
George Boretos has over 25 years of professional experience in leadership positions in the enterprise software market, a deep understanding of AI technologies, and a successful journey as an entrepreneur launching three startups and raising $9mn in Seed & Series A funding, working with Fortune 500 and other customers worldwide. His most recent endeavor, FutureUP, brings in this experience to help enterprises make data-driven decisions to optimize pricing, improve profitability, and accelerate growth.
In this episode, George shares about using AI for price optimization, particularly in SaaS and manufacturing industries. He explains how his company, FutureUP, helps businesses analyze customer and macroeconomic data to determine optimal pricing strategies, focusing on standardized products. He also discusses AI’s role in predicting pricing for new markets and the importance of taking the first step to review and adjust prices regularly.
Why you have to check out today’s podcast:
- Learn how AI is revolutionizing pricing strategies, particularly in SaaS and manufacturing sectors.
- Gain a deeper understanding of the key differences between pricing in B2B and B2C markets, including negotiation tactics, price variance, and strategic vs. deal-based pricing.
- Discover practical advice on how to approach pricing in your business, including why regular pricing reviews and value-based pricing can make a big impact.
"Just start doing something. Even if this something is, okay, reexamine your prices. Not once per two years or per year, examine them every quarter of a year, at least. Not just your cost plus your margin, do something a bit more sophisticated. Ask your customers, for instance, or your partners to establish some other benchmarks and interesting price points."
- George Boretos
Topics Covered:
01:32 - How he got started in pricing and how he initially got into AI before pricing
03:39 - The differences between AI when he started versus today’s advanced tools
05:57 - Describing his AI model and how it integrates various parameters at multiple levels
08:06 - Clarifying the common perception of AI being synonymous with neural networks as a misconception
11:04 - Explaining that for his particular model, the formulas are pre-existing and universal
12:31 - Agreeing that AI today can incorporate both internal company data and external factors
14:07 - What his company FutureUP is built out for
17:42 - How extrapolating data from one country to another can be challenging if the data sample is small
19:10 - Explaining how his company, FutureUP’s model can handle both B2B and B2C markets
20:15 - Key differences between B2B and B2C pricing strategies
22:47 - How price variance is more common in B2B though in B2C there can still be significant price differences between list and actual price
23:35 - What company size does FutureUP typically targets
24:32 - George's best pricing advice
26:18 - Two main reasons companies don't often prioritize or experiment with pricing
27:55 - Why change management is crucial in pricing decisions
Key Takeaways:
"I do believe, and I do agree that the negotiation part and the discounting part is more complex and more interesting and more important for the B2B environment. The list prices are almost irrelevant." - George Boretos
People/Resources Mentioned:
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FutureUP: https://www.futureup.io
Connect with George Boretos:
Connect with Mark Stiving:
- LinkedIn: https://www.linkedin.com/in/stiving/
- Email: mark@impactpricing.com