Impact Pricing

Buying isn't logical;  it's predictive.  In this episode, we explore why buyers hesitate, stall, and say "let me think about it" — even when the value is clear. Mark Stiving and Rebecca Kalogeris break down the real driver behind purchase decisions: confidence — the balance of payoff, probability, and anticipated regret. If buyers are betting on a future, your job isn't to explain features; it's to increase their belief that the future you promise will actually happen. Listen in to understand why buyers buy futures, not features and how to close the confidence gap without lowering your price.   Why You Have to Listen: Understand why buying is closer to gambling than logic; and what that means for pricing. Learn the three drivers of buyer confidence and how to increase them without discounting. Discover why more information often reduces clarity instead of increasing commitment.   "Buyers buy futures, not features." — Mark Stiving   Topics Covered: 01:00 – Buying Is a Prediction. Every purchase is a bet on the future — and we're surprisingly bad at making predictions 02:30 – Buying as Gambling. Why customers are placing bets without knowing the odds — and what sellers misunderstand about that 04:00 – Confidence = Payoff + Probability. The two core levers behind every buying decision: 06:30 – Belief Beats Information. Why more facts don't necessarily increase confidence — and why belief often wins 08:30 – The Confidence Threshold. Buyers must cross a psychological line before they commit — and most sellers don't know where that line is 10:00 – Anticipated Regret: The Hidden Variable. What happens if I'm wrong? Will I get blamed, embarrassed, or fired? 11:45 – The Real Buyer Disconnect. Sellers talk about features. Buyers are trying to predict their future. 13:00 – Mic Drop Moment. The insight that reframes everything: buyers buy futures, not features   Key Takeaways: "Predictions are really hard — especially when they're about the future." – Referencing Yogi Berra, discussed by Mark & Rebecca  "Confidence isn't just value. It's payoff, probability… and anticipated regret." – Mark Stiving "There's a confidence threshold you have to cross before you're willing to buy." – Mark Stiving "If I don't believe it, no amount of facts I'm reading are going to help me." – Rebecca Kalogeris   People/Resources Mentioned: Yogi Berra Buyer Disconnect (Mark Stiving's Upcoming Book)    Connect with Rebecca Kalogeris: LinkedIn: https://www.linkedin.com/in/rebecca-kalogeris    Connect with Mark Stiving: LinkedIn: https://www.linkedin.com/in/stiving/ Email: mark@impactpricing.com  

Before we talk about confidence. Before we talk about willingness to pay. Before we talk about buyer disconnect. We need to question something far more fundamental: What are buyers actually doing when they decide? In this pilot episode of the Decision Series, Mark Stiving and Rebecca Kalogeris unpack a deceptively simple idea that reframes how every purchase works;  especially in B2B.  They explore why value isn't as concrete as we assume, why certainty is often an illusion, and why so many pricing conversations miss what's really driving the decision. If pricing sometimes feels disconnected from buyer behavior, this episode starts to reveal why.   Why You Have to Listen: Understand why value doesn't exist at the moment of purchase; and what buyers are actually evaluating instead. Reframe perceived value as a belief about the future, not a fact in the present. Lay the foundation for everything that follows in the Buyer Decision series.   "Buying is a prediction of the future."  – Mark Stiving    Topics Covered: 00:00 – Buying Is a Prediction of the Future. The foundational idea that reshapes how we think about value 01:40 – What Is Buyer Disconnect? The gap between how buyers perceive value and how sellers think buyers perceive value 04:30 – The Drill Example: When Does Value Actually Happen? Value doesn't exist at purchase — it only exists if the future plays out as expected 06:20 – Perceived Value vs. Real Value. Why perceived value is all buyers have when they decide 09:45 – Why B2B Raises the Stakes. Business buyers are predicting both product outcomes and reputational consequences 11:40 – What Comes Next: Confidence. If buying is prediction, the next question is obvious — how do buyers build enough confidence to act?   Key Takeaways: "Value doesn't exist at the time of purchase." – Mark Stiving  "Buyer disconnect is the gap between how buyers perceive value and how sellers think buyers perceive value." – Mark Stiving "In B2B, buyers aren't just predicting product outcomes — they're predicting what happens to their reputation." – Mark Stiving "There are two predictions in every purchase; I assume the product will behave the way I expect, and I assume I'll behave the way I expect." – Rebecca Kalogeris   Resources and People Mentioned: Yogi Berra Buyer Disconnect (Mark Stiving's Upcoming Book)   Connect with Rebecca Kalogeris: LinkedIn: https://www.linkedin.com/in/rebecca-kalogeris   Connect with Mark Stiving: LinkedIn: https://www.linkedin.com/in/stiving/ Email: mark@impactpricing.com  

This is an Impact Pricing Blog published on December 22, 2025, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/pricing-ai-when-algorithms-replace-buyers/ If you have any feedback, definitely send it. You can reach us at mark@impactpricing.com.  Now, go make an impact.   Connect with Mark Stiving: Email: mark@impactpricing.com LinkedIn: https://www.linkedin.com/in/stiving/  

Whether you've been with us since the beginning or you just discovered Impact Pricing last week, this episode is for you. If you're one of our longtime listeners, you know Mark's voice, you've heard his insights, and maybe you've even implemented some of his strategies in your own business. But have you ever wondered what drives him to keep showing up week after week, year after year? If you're new here, welcome. You're about to meet the person behind the podcast—not just as a pricing expert, but as someone who genuinely loves teaching and believes that understanding value can transform your business and your career. Mark Stiving is the host of Impact Pricing and founder of Impact Pricing LLC. But before he was a pricing expert, he was a teacher—of scuba diving, kayaking, and marketing. That passion for helping people learn never left him. Even after retiring in 2019, Mark couldn't stop sharing what he knows about pricing and value. In this heartfelt solo episode, Mark pulls back the curtain on his journey. He shares why he chose to dedicate his post-retirement life to pricing education, what keeps him energized after blogging every week since 2010, and the two critical topics that consume his attention right now. This isn't just another pricing lesson—it's an invitation to understand the "why" behind everything we do here at Impact Pricing. For our loyal listeners: Thank you for being part of this community. This episode is Mark's way of reconnecting with you and reaffirming his commitment to your success. For our new listeners: This is the perfect place to start. You'll understand not just what we teach, but why it matters so deeply to the person teaching it.   Why you have to check out today's podcast: Discover why teaching and sharing pricing knowledge became Mark's post-retirement mission and driving passion. Learn about the two critical topics dominating modern pricing strategy: AI pricing and context-driven pricing. Understand how value impacts decisions across sales, marketing, product development, and packaging—not just pricing.   "Probably my single most favorite thing is when I share something with someone and it has an impact on their life. I absolutely love that." - Mark Stiving   Topics Covered: 00:30 - Mark's Retirement and Continued Mission. Why Mark retired in 2019 but couldn't stop sharing pricing knowledge, and how his blogging streak since 2010 kept him connected to his passion. 01:15 - The Joy of Teaching. Mark's history as an instructor across multiple disciplines—from scuba diving and kayaking to university-level marketing—and why teaching is his core passion. 02:00 - The Pricing Knowledge Gap. Why pricing and value are critical business topics that remain poorly understood, and Mark's mission to change that. 02:45 - Working with Different Organizations. How Mark's work differs between large enterprises (focusing on sales teams) versus small and mid-sized businesses (focusing on executive teams). 03:30 - Two Current Focus Areas. Deep dive into Mark's concentration on AI pricing and context-driven pricing, including the concept of value architecture. 04:45 - Context-Driven Pricing Framework. How buying contexts differ for every purchase and how companies can structure their product portfolios to deliver and capture more value.   Key Takeaways: "Pricing and value are such important topics in all of business and so few people understand it. And that's almost my mission now is just to see how many people I can get to have a better understanding." - Mark Stiving "All buying is contextual. Every purchase that's made is made in a different way than any other purchase has ever been made." - Mark Stiving "When we start thinking through context-driven pricing, that drives me to something I call a value architecture, which is how do you structure the way you think, the way you built your product portfolio, the way you have packaged your greatest features?" - Mark Stiving   Resources Mentioned: Impact Pricing Blog (since 2010): https://impactpricing.com/blog/ Mark's Substack newsletter Impact Pricing monthly newsletter   Connect with Mark Stiving: LinkedIn: https://www.linkedin.com/in/stiving/ Email: mark@impactpricing.com Website: https://impactpricing.com  

This is an Impact Pricing Blog published on December 15, 2025, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/pricing-ai-three-levels-of-value-visibility/ If you have any feedback, definitely send it. You can reach us at mark@impactpricing.com.  Now, go make an impact.   Connect with Mark Stiving: Email: mark@impactpricing.com LinkedIn: https://www.linkedin.com/in/stiving/

Steven Forth is a pricing strategist and AI innovator with decades of experience building value-based pricing models.  As the founder of Value IQ, he blends rigorous pricing theory with emerging AI applications—often pushing the boundaries of how pricing professionals think about data, modeling, and buyer behavior. In this episode, Mark and Steven step into another live debate aka 'intellectual challenge' about AI-generated synthetic data  with real pushback, not polite agreement. They challenge whether synthetic data is a breakthrough for pricing or just smarter-looking "fake data" that distances us from buyers. What unfolds is an unscripted stress test of the idea itself, and it ends with a surprisingly human conclusion you should definitely listen to.   What You'll Learn in This Episode: What synthetic data actually is—and how it differs from simply "making up numbers." Where synthetic data becomes dangerous, especially when assumptions about buyer behavior go untested. Why even the most advanced AI modeling cannot replace direct conversations with buyers.   "Go out and talk to buyers and understand their buying process." – Steven Forth   Topics Covered: 00:00 – Why synthetic data is suddenly a pricing topic. Steven introduces Value IQ and the idea behind AI-generated pricing intelligence. The setup: why synthetic data is gaining attention—and why Mark is skeptical from the start. 03:45 – What is synthetic data (without the buzzwords)? A plain-language definition of synthetic data and how it differs from CRM or ERP history. Why backward-looking data limits pricing strategy. 06:30 – The "fake data" objection. Mark challenges the idea head-on: Isn't this just inventing numbers? A sharp exchange on statistical misuse, p-values, and the danger of generating data that simply confirms what you want to see. 09:30 – Interpolation vs. extrapolation in pricing models. Why most pricing data isn't normally distributed. Discussion of fat tails, clustering, segmentation signals, and what synthetic data might distort—or reveal. 12:30 – The three types of synthetic data. Steven outlines three practical applications. (1) AI-generated buyer simulations. (2) Stress-testing value and pricing models. (3) Modeling competitive and economic scenarios. This is where the conversation moves from theory to use cases. 16:30 – Can AI predict buyer behavior? Mark pushes the core issue: pricing changes behavior. So how can synthetic data anticipate it? A discussion about assumptions, validation, and ground truth. 20:00 – A practical example: AI-driven Van Westendorp studies. A concrete scenario: simulate 100 real buyers, test pricing sensitivity, validate with actual survey data, and refine the model. A tangible way to experiment responsibly. 23:30 – The risk: Are we moving further from real buyers? The philosophical tension of the episode. Does synthetic data create insight—or another buffer between pricing teams and customers? 26:30 – The surprisingly human conclusion. After 25 minutes of AI debate, Steven's final advice is simple and grounded: talk to buyers and understand their buying process. 29:00 – Closing thoughts and where to connect. How to reach Steven and Mark—and a final reminder that AI is a tool, not a substitute for customer insight.   Key Takeaway: "Synthetic data is data that is generated for you by your AI." – Steven Forth "With synthetic data, you can explore scenarios that do not yet exist or parts of the market you do not yet touch." – Steven Forth   People and Resources Mentioned: Craig Zawada – Former McKinsey partner, co-creator of the pocket price waterfall; now Chief Strategy Officer at PROS  Benoit Mandelbrot – Referenced in the discussion about fat-tailed distributions and why pricing data is often not normally distributed. Pocket Price Waterfall – A pricing analytics framework originally developed at McKinsey. Van Westendorp Price Sensitivity Meter – Used as a practical example of how synthetic data could simulate buyer responses. Conjoint Analysis – Discussed as a potential future application for synthetic respondents. Bayesian Updating / Bayesian Statistics – Mentioned as a way to iteratively improve models by aligning synthetic data with real-world results. Interpolation vs. Extrapolation – Statistical concepts debated in the context of synthetic modeling. Normal vs. Fat-Tailed Distributions – Discussion on why pricing data often violates normal distribution assumptions.   Connect with Steven Forth: LinkedIn: https://www.linkedin.com/in/stevenforth/  Email: steven@valueiq.ai Subscribe to Steven's Substack: Synthetic data in pricing: https://pricinginnovation.substack.com/p/synthetic-data-in-pricing   Connect with Mark Stiving: LinkedIn: https://www.linkedin.com/in/stiving/ Email: mark@impactpricing.com  

This is an Impact Pricing Blog published on December 8, 2025, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/ai-cant-own-pricing/ If you have any feedback, definitely send it. You can reach us at mark@impactpricing.com.  Now, go make an impact.   Connect with Mark Stiving: Email: mark@impactpricing.com LinkedIn: https://www.linkedin.com/in/stiving/  

Alex Shartsis is a pricing and go-to-market advisor who helps founders charge what their products are actually worth. He is the CEO of Silverwood and Skyp, working with early- and growth-stage companies on pricing discipline, packaging, and monetization. This episode explores why charging too little early is one of the most expensive mistakes founders make, including the story of raising a customer from $500 a month to $20,000. Mark and Alex discuss when to raise prices, how early sweetheart deals quietly damage businesses, and why price often signals quality in AI and SaaS markets.   Why You Have to Check Out This Episode: Understand why early underpricing creates long-term trauma in customer bases, teams, and investor conversations. Learn when to raise prices (and when not to) especially with early customers and pilots. See why price often acts as a signal of quality in markets where buyers can't easily judge value (AI, software, experimentation budgets).   "If you can charge for value early and be disciplined about it, you'll have a much better journey—you'll look better to investors, and you'll be running a more viable business much sooner." — Alex Shartsis   Topics Covered: 02:00 – From $500 to $20,000: A Pricing Wake-Up Cal. Alex shares the deal that pulled him into pricing—and why willingness to pay is often far higher than founders expect. 06:10 – Founder Discounts and Early Pricing Mistakes. How "sweetheart deals" happen, why they feel harmless early on, and how they quietly break pricing discipline. 10:45 – Should You Raise Prices on Early Customers?A nuanced discussion on fairness, trust, investor expectations, and when price increases actually make sense. 15:30 – Building NRR Into Pricing (Without Repricing Customers). Why limits, packaging, and expansion paths matter more than simply charging more later. 18:45 – AI Changes the Cost and Pricing Equation. Why the old "software has no marginal cost" mindset no longer holds in AI-driven businesses. 22:30 – Price as a Signal of Quality. When buyers use price to infer value—and why this shows up strongly in AI and experimental products. 26:15 – Credit-Based Pricing: Temporary Fix or Long-Term Problem?. A candid debate on credits, customer confusion, and what it signals about unresolved value models. 29:10 – Final Advice: Charge for Value Earlier. Alex's closing guidance for founders—and why pricing discipline creates better businesses, not just higher revenue.   Key Takeaways: "If you can charge for value early and be disciplined about it, you'll have a much better journey—you'll look better to investors and you'll be running a more viable business sooner." — Alex Shartsis "Most early-stage founders charge too little, and it quietly creates problems that don't show up until much later." — Alex Shartsis "Price often becomes a signal of quality when buyers can't easily judge value—especially in AI and software." — Alex Shartsis   People & Resources Mentioned: Carta – Carta's ERP for private capital combines software and services to deliver connected clarity and control across equity, fund, and portfolio management. Google Maps – Example of usage-based pricing evolution Tesla – Used as an example of starting high and expanding market access over time Porsche – is referenced as a real-world analogy for how premium pricing shapes belief, not because Porsche has radically different parts, but because the brand and price tell a story buyers trust.excellence. Kyle Poyar -  is referenced in the context of "reasonable use" pricing. Steven Forth - comes up during the discussion on credit-based pricing models, especially in AI-driven products.   Connect with Alex Shartsis: LinkedIn: https://www.linkedin.com/in/shartsis/ Skyp: https://skyp.ai Silverwood: https://silverwood.ai   Connect with Mark Stiving: LinkedIn: https://www.linkedin.com/in/stiving/ Email: mark@impactpricing.com  

This is an Impact Pricing Blog published on December 1, 2025, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/pricing-ai-outcome-based-pricing-the-holy-grail-for-ai/ If you have any feedback, definitely send it. You can reach us at mark@impactpricing.com.  Now, go make an impact.   Connect with Mark Stiving: Email: mark@impactpricing.com LinkedIn: https://www.linkedin.com/in/stiving/  

This episode takes a slightly different approach than the usual Impact Pricing conversation. Instead of teaching a finished framework, Mark brings an early draft of his upcoming book to the table and asks Steven to react to it as a thoughtful pricing peer.  Steven Forth, co-creator of ValueIQ, largely agrees with the direction of the book, but pauses on a key point: how buyer context is defined, and whether the argument separates value and willingness to pay too cleanly. Mark jokingly tells Steven he's "wrong," setting the tone for what follows: a calm, constructive discussion that explores where the ideas hold up and where they still need work. What unfolds is a straightforward, unscripted book review in progress. The ideas are tested against real examples, refined through debate, and shaped in real time.  For listeners who care about pricing theory and how it actually gets formed, this episode offers a transparent look at how those ideas evolve before they're finalized and published.   Why you have to check out today's podcast: Why buyer context is trickier than it sounds and where pricing frameworks often oversimplify it. How value and willingness to pay diverge in real buying decisions using practical examples. What this debate changes about how you think about pricing before ideas turn into rigid rules.   "Most pricing books don't really deal with buyer context. That's why this conversation matters."  — Steven Forth   Topics Covered: 01:11 – Steven's career update, transition from being a CEO. 08:54 – Why this episode is different. Mark brings an unfinished book draft to the conversation, setting up a rare moment where ideas are explored, challenged, and shaped before they're finalized. 10:40 – The core question the book has to answer. A turning point in the review as Steven pushes on whether context affects only willingness to pay or fundamentally changes value itself. 17:13 – Testing the argument with real examples. They pressure-test the book's ideas using real buying scenarios where value stays the same but willingness to pay shifts dramatically. 22:10 – Where theory meets real buyer constraints. A discussion of budget limits, framing effects, and mental ceilings that complicate clean pricing logic and challenge how the book explains buyer behavior. 25:45 – How this feedback shapes the final book. Mark reflects on what this debate changes in the manuscript and why early, honest pushback is essential before pricing ideas turn into published frameworks.   Key Takeaways: "Value didn't change, context did." — Steven Forth "I agree that context influences willingness to pay, but I'm not convinced it doesn't also influence value." — Steven Forth   People Mentioned: Michael Mansard - referenced for his Compass Framework and ongoing work on pricing, value, and attribution. Edward Wong - Mentioned in the context of collaborative work on value attribution and pricing research. Karen Chiang - Mentioned as leading the services side of Ibbaka as Steven transitions away from CEO roles. Tom Nagle - Referenced in discussions around economic value, willingness to pay, and foundational pricing theory.   Connect with Steven Forth: LinkedIn: https://www.linkedin.com/in/stevenforth/  Email: steven@ibbaka.com   Connect with Mark Stiving: LinkedIn: https://www.linkedin.com/in/stiving/ Email: mark@impactpricing.com  

This is an Impact Pricing Blog published on November 24, 2025, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/a-tool-to-reveal-your-value-literacy/ If you have any feedback, definitely send it. You can reach us at mark@impactpricing.com.  Now, go make an impact.   Connect with Mark Stiving: Email: mark@impactpricing.com LinkedIn: https://www.linkedin.com/in/stiving/  

Kathryn Porritt is the founder and CEO of Iconic Empires, where she specializes in helping elite experts build luxury and premium positioning. With a focus on monetization expertise and authority, Kathryn works with clients to elevate their brands and expand their vision of possibilities. Her unique approach emphasizes mastery, rarity, and transformative experiences, enabling her clients to connect deeply with high-end buyers. In this episode, Mark Stiving sits down with Kathryn Porritt to explore the intricacies of selling luxury goods. They discuss the differences between luxury and premium buyers, the importance of creating an expanded vision of possibilities, and how to effectively communicate value in high-end markets.    Why You Have to Check Out This Episode: Learn why luxury buyers don't negotiate and how expanding a buyer's future vision removes price from the conversation entirely. Understand the difference between premium and luxury pricing, and why treating them the same quietly caps your revenue. Discover how elite sellers confidently say bold prices without flinching, discounting, or overselling.   "Expand a vision of possibility for people—show them what they can't see for themselves. When you focus on that, pricing becomes easy."  – Kathryn Porritt   Topics Covered: 01:30 – What Luxury Buyers Actually Buy. Why true luxury customers aren't purchasing features or value props—they're buying rarity, mastery, and first-of-its-kind experiences. 05:40 – Premium vs. Luxury: The Line Most Sellers Miss. How premium buyers still compare and negotiate—while luxury buyers step outside price entirely. 08:45 – The "Expanded Vision of Possibility" Framework. Why the most powerful pricing conversations anchor buyers in a future they didn't know was available. 12:30 – When Budgets Grow (Even in Corporations). How elite sellers expand scope and impact—causing "fixed" corporate budgets to quietly increase. 16:10 – Confidence, Control, and Saying the Number. Why the price you can say without hesitation determines whether the buyer trusts you. 19:40 – Intuition vs. Calculators in Luxury Pricing. How elite experts balance cost, margins, and intuition when there is no reference price. 23:20 – Why This Isn't Just for Luxury Brands. Mark connects the dots: this is exactly how every B2B seller should be selling value. 26:40 – One Pricing Principle That Changes Everything. Kathryn's closing advice—and why expanding possibilities is the fastest path to higher prices.   Key Takeaways: "People at this level, people who buy luxury, like true luxury buyers, they're looking for something that's not necessarily about the value." – Kathryn Porritt "That expanded vision of possibility is the difference. And like I said, that's when pricing becomes almost obsolete in the conversation." – Kathryn Porritt "For a luxury buyer, it's not about the budget." – Kathryn Porritt   People & Resources Mentioned: Iconic Empires – Kathryn's firm helping elite experts position, monetize, and sell at the highest levels. Jeff Bezos – Referenced as an example of true luxury buying behavior where budget is irrelevant Coca-Cola - Mentioned as a corporate example in the context of budget discussions for events. Luxury Market - Discussed as a distinct market segment with unique buyer motivations.   Connect with Kathryn Porritt: Website: https://www.kathrynporritt.com/ Website: https://iconicempire.com  Linkedin: https://www.linkedin.com/in/kathryn-porritt?originalSubdomain=au    Connect with Mark Stiving: LinkedIn: https://www.linkedin.com/in/stiving Email: mark@impactpricing.com  

This is an Impact Pricing Blog published on November 17, 2025, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/credits-the-bridge-between-ai-uncertainty-and-value-clarity/ If you have any feedback, definitely send it. You can reach us at mark@impactpricing.com.  Now, go make an impact.   Connect with Mark Stiving: Email: mark@impactpricing.com LinkedIn: https://www.linkedin.com/in/stiving/  

Ryan Susanna is the VP of Sales at LogiSense, where he helps telecom, IoT, and SaaS companies operationalize complex usage-based and hybrid pricing models. With more than two decades in monetization, automation, and billing infrastructure, Ryan didn't come up through pricing theory—he came up through execution. His work sits at the intersection of pricing ideas and the systems required to make those ideas real at scale. In this episode, Ryan breaks down why billing platforms quietly shape—and sometimes constrain—pricing innovation, what usage-based pricing actually looks like in practice, why many AI pricing models default to credits, and the single pricing habit he believes every company must adopt: testing pricing ideas in isolation before scaling them across the business.   Why You Have to Check Out This Episode: Understand why pricing innovation fails after approval—and how billing and monetization systems quietly block execution. Learn which modern pricing models die first in rigid systems (usage-based, high-watermark, hybrid, credits). Discover how to test pricing ideas safely without risking your entire go-to-market motion.   "Find an isolated way to test your pricing hypothesis before you boil the ocean for your entire motion."  — Ryan Susanna   Topics Covered: 02:00 – From Physics to Monetization (By Accident). How Ryan's background in physics, computer science, and sales led him into billing systems—and why monetization sits closer to pricing than most teams admit. 04:00 – "Why Should Pricing Care About Billing?" Mark challenges the assumption that billing is just collecting money. Ryan explains how billing systems determine which pricing models are even possible. 07:00 – High-Watermark Pricing Explained. Charging based on peak concurrent usage—not total usage—and why this better reflects customer value in many SaaS and telco models. 08:30 – Earned Discounts and Hybrid Usage Models. How companies combine multiple usage metrics to guide behavior while protecting margins. 14:00 – Meter Everything (Even If You Don't Charge for It). Ryan explains why future pricing decisions depend on historical usage data you may not even know you need yet. 19:00 – Credits vs. Value-Based Pricing. Mark reframes credits as a payment mechanism—not a pricing model—and explains why value correlation matters. 23:00 – The Pricing Test Most Companies Skip. Why executives roll out pricing changes globally—and how isolated testing could prevent costly mistakes. 25:00 – Final Advice for Pricing Leaders. Ryan's core message: pricing strategy without monetization readiness is just theory.   Key Takeaways: "You could dream up any pricing scenario if you want, but if you can't operationalize it at scale, you are setting yourself up for failure." – Ryan Susanna "Billing systems quietly decide which pricing models you're allowed to use." – Ryan Susanna "If you pick a model and you have the same model forever, then it will not appear hard for you—because it's what you've always done. What's hard is change." – Ryan Susanna   People / Resources Mentioned: LogiSense – Monetization and billing platform enabling complex usage-based pricing OpenAI – Referenced in the context of AI credit-based pricing models Databricks – Example of proprietary credit-based pricing (DBUs) Slack – Example of active-user pricing metrics   Connect with Ryan Susanna: Email: rsusanna@logisense.com LinkedIn: https://www.linkedin.com/in/ryansusanna/   Connect with Mark Stiving: LinkedIn: https://www.linkedin.com/in/stiving Email: mark@impactpricing.com  

This is an Impact Pricing Blog published on November 10, 2025, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/designing-hybrid-and-evolving-pricing-models-for-ai/ If you have any feedback, definitely send it. You can reach us at mark@impactpricing.com.  Now, go make an impact.   Connect with Mark Stiving: Email: mark@impactpricing.com LinkedIn: https://www.linkedin.com/in/stiving/

Mike Wilkinson, founder of Axia Value Solutions, joins Mark Stiving to explore how AI is fundamentally changing buying behavior—and why this shift exposes weak value stories more than it threatens good sellers. In this episode, Mike explains how AI has raised buyer expectations by enabling benchmarking, price testing, and faster comparisons—rewarding sellers who clearly communicate value and exposing those who don't. He and Mark show why AI creates mediocrity when used blindly, and why value clarity—not pricing tricks—determines who wins.   Why You Have to Check Out This Episode: Understand how AI is changing buyer expectations—and why buyers now demand clearer value justification before accepting price. Learn where AI helps sales—and where it hurts—including why copying AI outputs creates "AI mediocrity" instead of differentiation. Discover how value clarity and value literacy become your competitive moat in an AI-saturated selling environment.   "Whatever price you're charging or thinking of charging, make sure that it's supported by the value that you are communicating that you can deliver."  – Mike Wilkinson   Topics Covered: 02:17 – AI Is Changing How Buyers Buy. Buyers now show up informed with comparisons and benchmarks, shifting the focus from persuasion to value justification. 06:00 – How Buyers Use AI When Making Decisions. Why price-focused questions produce very different answers than value-focused ones. 09:08 – Using AI to Support Value Selling. Where AI helps sellers think through value—and where copying AI outputs makes everyone sound the same. 11:32 – The Real Problem: Most Salespeople Don't Understand Value. Why unclear definitions of value break value-based selling, with or without AI. 17:23 – AI as a Sales Assistant, Not a Replacement. How AI supports preparation and thinking, but can't replace real customer conversations. 19:25 – Practical Ways Salespeople Should Use AI. What actually helps sellers win—from research to prep—and what's just busywork. 22:55 – Researching Customers with AI Before the Call. How to use AI to understand the company, the market, and the buyer before the meeting. 27:17 – Pricing Advice: Value Has to Justify Price. Why prices fall apart when sellers can't clearly explain why they're worth it.   Key Takeaways: "The people who truly understand and communicate value are the people who will rise above that mediocrity." – Mike Wilkinson "For me, the question in the customer's mind is: if you're more expensive than a competitor, why should I make that additional investment? What do I get back in return? And if the answer is, 'I haven't a clue,' prepare to discount. If you've got some great reasons why you're worth more than competing alternatives, then you're into the conversation." – Mike Wilkinson   People & Resources Mentioned: Axia Value Solutions – Mike Wilkinson's consultancy focused on value-based selling and commercial excellence. Value-Based Selling – A sales approach centered on discovering, quantifying, and communicating customer-specific value rather than competing on price. AI in Sales Enablement – Used for research, preparation, and idea generation—not as a substitute for human judgment or relationship-building. Mentioned LinkedIn article in the episode: https://www.linkedin.com/pulse/future-selling-ai-world-michael-wilkinson-5brme/    Connect with Mike Wilkinson: Website: https://axiavalue.com/ LinkedIn: https://www.linkedin.com/in/mikewilkinson-thevalueexpert/ Email: mw@axiavalue.com   Connect with Mark Stiving: LinkedIn: https://www.linkedin.com/in/stiving Email: mark@impactpricing.com  

This is an Impact Pricing Blog published on November 3, 2025, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/pricing-ai-evaluating-pricing-metrics/ If you have any feedback, definitely send it. You can reach us at mark@impactpricing.com.  Now, go make an impact.   Connect with Mark Stiving: Email: mark@impactpricing.com LinkedIn: https://www.linkedin.com/in/stiving/

Steven Forth, Managing Partner at Ibbaka and co-creator of Value IQ, joins Mark Stiving to tackle a topic most pricing teams are avoiding: pricing governance in an AI-driven world. This episode explores who owns pricing decisions when AI is involved, how companies should govern data and models, and why pricing leaders must step into a broader leadership role or risk having governance imposed on them by others.  If AI is touching your pricing process in any way, this conversation will change how you think about responsibility, risk, and trust.   Why You Have to Check Out This Episode: Understand what pricing governance actually means and why poor governance shows up as finger-pointing between sales, pricing, and finance. Learn the new governance questions AI introduces around data usage, bias, accountability, and mistakes. Discover why pricing leaders must own AI governance or risk losing control of pricing decisions altogether.   "The big issue for me is how, as pricing people, do we develop the knowledge that we need to be accountable for AI pricing governance? It's not something any of us were taught." – Steven Forth   Topics Covered: 01:51 - Pricing Governance and Accountability. What pricing governance really means and why accountability breaks down when roles are unclear. 05:04 - Pricing and Customer Value Alignment. Why pricing teams sit at the center of aligning sales, product, finance, and customer value. 08:01 - AI Challenges in Pricing Governance. How AI introduces new risks around data usage, ownership, and responsibility in pricing decisions. 12:45 - AI Pricing Governance Challenges. Who is accountable when AI makes mistakes and how strict rules can slow innovation. 16:35 - AI Governance in Pricing. Why pricing leaders must take ownership of AI governance or risk losing control to other functions. 22:13 - AI Transparency in Pricing. The importance of explainable pricing models and why transparency matters to both sellers and buyers. 26:49 - AI in the Buying Process. How buyers are using AI to evaluate vendors and why transparency will shape future pricing outcomes. 28:08 - Connecting on LinkedIn. How to continue the conversation and connect with Steven Forth directly.   Key Takeaways: "Governance is an area of pricing that we don't spend enough time thinking about and talking about because it's not sexy and it does not immediately tie to results." – Steven Forth "If pricing leaders don't take ownership of AI governance, someone else will." – Steven Forth "It's the fact that the AIs are not deterministic that allows them to be, dare I say it, creative and to find new things." – Steven Forth "AI generally does a better job of explaining how it got to its answers than most humans can." – Steven Forth   People & Resources Mentioned: Tom Nagle – Referenced as Steven's mentor and a foundational thinker in pricing governance  Michael Mansard – Mentioned for prior work and thinking on pricing governance Tim Smith – Referenced for contributions to pricing governance discussions Karen Chiang - Co-founder of Ibbaka Stephan Liozu – Mentioned for advocating the Chief Value Officer role Anthropic – Research on bias and AI self-evaluation OpenAI – Data usage and model governance considerations Deal Desks – Scaling pricing guidance with AI support   Connect with Steven Forth: LinkedIn: https://www.linkedin.com/in/stevenforth/  Email: steven@ibbaka.com   Connect with Mark Stiving: LinkedIn: https://www.linkedin.com/in/stiving Email: mark@impactpricing.com  

This is an Impact Pricing Blog published on October 27, 2025, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/what-pe-firms-miss-in-pricing-due-diligence/ If you have any feedback, definitely send it. You can reach us at mark@impactpricing.com.  Now, go make an impact.   Connect with Mark Stiving: Email: mark@impactpricing.com LinkedIn: https://www.linkedin.com/in/stiving/  

Michael Mansard, Principal Director of Subscription Strategy at Zuora, joins Mark Stiving to challenge one of pricing's most accepted conventions: the order of good, better, best. In this episode, Michael shares original research showing how simply changing the display order to best, better, good can significantly increase purchase intent and revenue. Drawing on behavioral economics, loss aversion, and real-world testing, he explains why buyers react differently when the most expensive option is presented first.   Why You Have to Check Out This Episode: Learn how reversing plan order increased top-tier selection by 15 points in controlled testing. Understand how loss aversion works against you in traditional pricing pages and how to flip it. Discover when best, better, good works and when it can hurt retention and Net Revenue Retention (NRR).   "By simply changing the order of plans, we increased revenue by nearly 11% without changing price or features."  – Michael Mansard   Topics Covered: 01:16 - Best, Better, Good vs. Plan Order. Why the order of pricing plans matters and how flipping it can change buyer decisions. 06:23 - The Compromise Effect in Decision-Making. Why buyers gravitate toward the middle option and how loss aversion shapes that behavior. 08:11 - How Plan Order Impacts Choice. What happens when the most expensive plan is shown first and why it reframes value. 11:39 - Pricing Strategy and Consumer Behavior. How buyers justify decisions emotionally versus rationally when evaluating plans. 15:10 - Rethinking Good, Better, Best. Why traditional pricing layouts may limit revenue and when best-first works better. 18:11 - Customer Satisfaction and Pricing Strategy. Risks to churn and net retention and why right-selling matters more than upselling. 22:53 - How to Test Monetization Strategies. Why A/B testing, qualitative feedback, and small-scale experiments are essential.   Key Takeaways: "A very basic tweak, changing the order from good, better, best to best, better, good, can lead to significant revenue uplift." – Michael Mansard "Best, better, good reframes the buying question from 'Is it worth paying more?' to 'Why wouldn't I choose the best?'" – Michael Mansard "Loss aversion means the feeling of losing is much stronger than the feeling of gaining." – Michael Mansard "Pricing pages should make trade-offs clearer, not more confusing." – Michael Mansard   People & Resources Mentioned: INSEAD – Where the research originated through executive education Loss Aversion Theory – Behavioral principle driving buyer choice Goldilocks / Compromise Effect – Why buyers avoid extremes Disney+, Wix, Apple – Examples of best-better-good pricing SurveyMonkey – Example of plan order varying by segment   Connect with Michael Mansard: LinkedIn: https://www.linkedin.com/in/michaelmansard/ Article: It's Time to Flip Good, Better, Best on Its Head  (published on LinkedIn)   Connect with Mark Stiving: LinkedIn: https://www.linkedin.com/in/stiving Email: mark@impactpricing.com