In this episode, Dan Balcauski, founder, and chief pricing officer at Product Tranquility, discusses the intricacies of pricing strategy with host Brian Moran. They explore the importance of focusing on value and differentiation, the pitfalls of cost-based and competition-based pricing, and the need to treat pricing as a dynamic, strategic process.

Key Takeaways from Dan Balcauski: 

• What you charge determines your success. Who and how you charge determines your success even more.


• I would spend most of my time on what the price tag goes on, and little time on the actual number that goes on the price tag.


• Customers don’t care about your costs; they care about the value they receive.”


• The relative value is crucial. Humans notice changes and comparisons, not absolute values.


• Pricing is a process, not an event. It should be treated as a strategic growth lever for your business.


• Most companies stay too long in cost-based or competition-based pricing without understanding customer value


• Understanding customer context and subjective value is key to effective pricing.


• The three Cs of pricing—cost-based, competition-based, and customer value-based—form a ladder of sophistication.


• Every pricing decision involves trade-offs and risks; there are no silver bullets.


• If you haven’t touched your pricing in two years, it’s time to revisit it.

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