Blogcast: Why Buyers Really Buy

This is an Impact Pricing Blog published on October 6, 2025, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/pricing-ai-the-compass-spectrum-of-pricing-metrics/ If you have any feedback, definitely send it. You can reach us at [email protected].  Now, go make an impact.   Connect with Mark Stiving: Email: [email protected] LinkedIn: https://www.linkedin.com/in/stiving/

Etinosa Agbonlahor is the CEO of Decision Alpha and former Director of Behavioral Research at Fidelity Investments. A behavioral economist by training, she helps companies understand how customers actually make decisions—and how that should shape pricing. In this episode, Etinosa and Mark Stiving unpack the tension between real value and perceived value, why customers don't react to prices rationally, and how behavioral economics can strengthen pricing strategies. They explore value drivers, ethical nudging, the fear of raising prices, and why most buyers don't remember prices as clearly as business owners think. If you want clearer, psychology-backed ways to price, communicate value, and make better pricing decisions, this episode gives you practical insights you can use right away.   Why You Have to Check Out Today's Podcast: Why customers forget your prices—and how that myth makes business owners afraid to raise them. How behavioral economics expands value beyond profit into perception, context, and emotion. How to raise prices ethically using segmentation, glide paths, and clear communication.   "Understand your customer. Do the pricing research with customers—not just with quant models. Go talk to customers. It's important." — Etinosa Agbonlahor   Topics Covered: 02:08 – Pricing and Behavioral Economics. Mark and Etinosa debate where behavioral economics fits in pricing—Mark sees it as the final touch, while Etinosa argues it shapes value perception from the start. 05:20 – Defining Real vs. Perceived Value. A foundational question: is value measured strictly in outcomes, or also in emotion, context, and comparison? Their contrasting definitions reveal why pricing teams often misread customers. 09:05 – Value Beyond Monetary Price. Etinosa expands value to include convenience, safety, time saved, emotional comfort, and opportunity cost—benefits customers feel but rarely articulate. 10:37 – Value Drivers in Pricing Strategies. Behavioral research uncovers the real outcomes customers care about. Mark connects this to pricing strategy: quantify value drivers to justify stronger pricing. 15:32 – Manipulation in Behavioral Economics. Mark asks whether nudging is manipulation. Etinosa explains that behavioral tools aren't coercive—intent determines whether they help or harm the customer. 18:02 – Ethics of Choice Architecture. Every pricing page is a designed choice. Etinosa contrasts ethical nudges with dark patterns, while Mark questions how businesses balance their goals with customer wellbeing. 22:22 – Behavioral Economics in Business. Real-world examples show how behavioral insights improve retention, financial outcomes, and long-term customer relationships—not just revenue. 24:20 – Pricing Fears and Customer Perception. The Spotlight Effect is a myth: customers don't track your prices as closely as you think. The two discuss how clearer communication and segmentation reduce backlash when raising prices. 28:48 – Understand Your Customer. Etinosa's closing advice: real pricing power comes from customer conversations—not spreadsheets. Behavioral economics begins with understanding actual human behavior.   Key Takeaways: "Value is all about perception. Once you step into perception, you're in behavioral economics." — Etinosa Agbonlahor "There is no such thing as a neutral choice. Every pricing page is designed—intentionally or unintentionally." — Etinosa Agbonlahor "People are not rational. Once you accept that as fact, you can design pricing that fits how people actually behave."  — Etinosa Agbonlahor "Business owners think customers remember prices more than they actually do." — Etinosa Agbonlahor   People / Resources Mentioned: Richard Thaler – Nobel laureate; originator of transaction utility and foundational behavioral economics concepts. Dan Ariely – Author of Predictably Irrational, referenced in discussing irrational decision patterns. Weber-Fechner Law – Psychological principle used to design perceptually smoother price increases.   Connect with Etinosa Agbonlahor: LinkedIn: https://www.linkedin.com/in/etinosasere Email: [email protected]   Connect with Mark Stiving: LinkedIn: https://www.linkedin.com/in/stiving/ Email: [email protected]

This is an Impact Pricing Blog published on September 29, 2025, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/nobody-wants-to-buy-ai/ If you have any feedback, definitely send it. You can reach us at [email protected].  Now, go make an impact.   Connect with Mark Stiving: Email: [email protected] LinkedIn: https://www.linkedin.com/in/stiving/

Danilo Zatta is the author of The Pricing Model Revolution, The 10 Rules of Highly Effective Pricing, and the new book Revenue Growth Management. He is recognized as one of LinkedIn's Top 5 Pricing Thought Leaders and brings decades of consulting experience from Accenture, Simon-Kucher, and BCG. His work is anchored in one simple insight: pricing is the "sunny side" of consulting. He shares real examples of companies that increased profit by cutting ineffective promotions and by detecting thousands of spare-part pricing outliers with AI. This episode explores pricing leadership, the CEO's role, the difference between pricing truth and framework preference, and why democratized pricing knowledge makes talent the true competitive advantage.   Why You Have to Check Out This Episode: Learn how AI spots hidden pricing outliers across hundreds of thousands of SKUs and turns them into instant profit. Discover why FMCG companies burn cash on promotions and how smart RGM frameworks finally fix it. Understand the real "truth" behind pricing frameworks and why people, not methodology, drive pricing success.   "Start the AI pricing journey—not by boiling the ocean—but by finding a use case that works, proves value, and then expand it." – Danilo Zatta   Topics Covered: 01:27 - How Dan Got Into Pricing. His shift from cost-cutting to pricing and why he calls it the "sunny side" of consulting. 06:57 - Freedom in Consulting Choices. Comparing Accenture, Simon-Kucher, and BCG—and why team chemistry matters most. 09:11 - Revenue Growth Management. How FMCG brands optimize trade terms, promos, and price architecture for profit. 11:55 - FMCG as B2B. Why FMCG selling to retailers is a pure B2B relationship with limited price control. 17:22 - Implicit Collusion in Airlines. How industries use public price signaling to influence competitor behavior. 19:13 - AI in Spare Parts Pricing. How AI identified major pricing outliers and delivered over €1M in quick wins. 24:42 - Why AI Beats Excel. AI's advantage in scale, complexity, and instant alerts across massive SKU sets. 27:15 - Starting Your AI Pricing Journey. Begin with one use case, prove it works, then expand—no perfect data needed.   Key Takeaways: "Pricing used to be specialized knowledge. Today it's democratized—so what differentiates you is the team, not the tools." – Danilo Zatta "If you're the market leader, you must act first. Smaller players can't reduce promotions until you do." – Danilo Zatta "Pricing is never boring because every industry has its own logic, levers, and constraints." – Danilo Zatta   Books by Danilo Zatta: The Pricing Model Revolution: https://www.amazon.it/Pricing-revolution-pricing-cambier%C3%A0-comprare/dp/8836010547/ The 10 Rules of Highly Effective Pricing: https://www.amazon.com/Rules-Highly-Effective-Pricing-Management/dp/1394195761 Revenue Growth Management: https://www.amazon.it/Revenue-Management-Manufacturing-Application-Industry/dp/3319807595/   Connect with Danilo Zatta: Website: https://www.danilozatta.com/  LinkedIn: https://www.linkedin.com/in/danilo-zatta  Books: https://www.danilozatta.com/books/    Connect with Mark Stiving: LinkedIn: https://www.linkedin.com/in/stiving Email: [email protected]  

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

Ed Arnold, founder and managing partner at The Valorizer, brings decades of hands-on experience building customer value models, teaching value conversations, and guiding companies toward value-based pricing. After working directly with Tom Nagle at Monitor Group and leading value initiatives at LeveragePoint, Forrester, and Ibbaka, Ed has become one of the most respected practitioners of Economic Value Estimation (EVE) in B2B. In this episode, Ed and Mark dive deep into what "value" actually means, why B2B buyers define it differently than sellers, and how to quantify economic outcomes in a way that withstands scrutiny. They debate value vs. willingness to pay, unpack why value stories outperform case studies, and explore how real conversations—not spreadsheets—unlock premium pricing.   Why You Have to Check Out Today's Episode: Master the real meaning of "value" in B2B—and why most companies still get it wrong. Discover how to run a value conversation that reveals economic impact and customer priorities. Learn how to turn EVE models into persuasive value stories your buyers can resell internally.   "You need to quantify the value of the product you're selling—and you need to talk to customers about that to understand it and write their value story."  — Ed Arnold   Topics Covered: 05:09 – Value Perception in B2B: Why Customers Decide with Both Logic and Emotion 08:34 – Value vs. Willingness to Pay: The Debate Begins 12:06 – Why Willingness to Pay Is Not Value (And What It Actually Measures) 19:04 – Value Perception in B2B Sales: Influence, Trust, and Risk 20:41 – Value Is Always Relative (And Why Alternative Choices Change Everything) 24:26 – Value-Based vs. Competitor Pricing: Why They Aren't the Same Thing 28:03 – Value Story vs. Case Study: What Buyers Actually Need to Make Decisions 32:47– Quantifying Product Value: How to Build a Story Buyers Can Take to Their Executives   Key Takeaways: "Value comes from use, not purchase." — Ed Arnold "Willingness to pay is not value, if it were, we'd never talk about leaving money on the table." — Ed Arnold "In B2B, value is 80% logic, 20% emotion." — Ed Arnold "A value story is customized. A case study is generic." — Ed Arnold "You can't build a value story without having a value conversation first." — Ed Arnold "Sometimes the value model reveals there simply isn't a differentiated advantage—and you have to accept that." — Ed Arnold    People and Resources Mentioned: Tom Nagle: https://www.linkedin.com/in/thomas-tom-nagle LeveragePoint: https://www.leveragepoint.com/  Reed Holden: https://www.linkedin.com/in/reed-holden-913ab69/    Connect with Ed Arnold: LinkedIn: https://www.linkedin.com/in/edarnold1/  Newsletter: https://edarnold1.substack.com/    Connect with Mark Stiving: LinkedIn: https://www.linkedin.com/in/stiving/ Email: [email protected]  

This is an Impact Pricing Blog published on September 15, 2025, turned into an audio podcast so you can listen on the go. Read Full Article Here: https://impactpricing.com/blog/why-buyers-really-buy/ If you have any feedback, definitely send it. You can reach us at [email protected].  Now, go make an impact.   Connect with Mark Stiving: Email: [email protected] LinkedIn: https://www.linkedin.com/in/stiving/

Matt Knaggs, Senior Business Value Lead at Zilliant, brings a decade of pricing insight shaped by an unexpected leap from industrial safety into commercial excellence. Known for blending analytics, AI, and practical sales enablement, he now helps B2B companies make smarter, more confident pricing decisions by pairing data science with human judgment. In this episode, Matt and Mark dive straight into the real-world intersection of pricing and AI, where deterministic models still set prices, GenAI fills in missing context, and messy CRM data finally becomes usable.  Matt shares how he built a custom GPT that builds other GPTs, why "pricer in the loop" is essential, and how AI can elevate pricing teams without replacing them. They unpack the future of pricing, the danger of outsourcing expertise, and why curiosity beats perfection in an AI-driven world.   Why You Have to Check Out Today's Episode: Learn how AI can enhance pricing (without setting prices for you) - including specific use cases where GenAI adds context, fills data gaps, and boosts pricer effectiveness. Discover the "Pricer in the Loop" model and why Matt believes humans will remain essential for trust, validation, nuance, and internal adoption. See how to use AI as a thought partner - to generate buyer problems, value drivers, competitive alternatives, and messaging frameworks that accelerate value-based pricing.   "Don't hide from all of the advancements in AI. It can be scary and intimidating, but try what you can. AI won't tattle on you for asking dumb questions." - Matt Knaggs   Topics Covered: 03:30 – How Matt Went From Safety to Pricing—and Why the Discipline Hooked Him 04:22 – The Reality of AI in Pricing: What Matt Sees Working (and Failing) Inside Companies 11:58 – Matt Reacts to Mark's Approach: Using AI to Map Buyer Context 15:34 – When a Pricing Expert Builds AI That Builds AI: Matt's Custom GPT Story 19:01– The Messy Data Problem Every Pricer Knows… and How Matt Uses AI to Fix It 24:09– Matt's Honest Take on the Future: Why AI Won't Replace Pricers Anytime Soon 27:34 – The Threat to Expertise: Matt and Mark Explore What Happens When People Outsource Thinking 31:53 – What AI Can Do for Pricing Strategy (If You Use It Intelligently) 33:15 – Matt's Final Challenge to Pricers   Key Takeaways: "AI is probabilistic, not deterministic. You can give it the same inputs and get different outputs. That's why I'm not ready for GenAI to set prices." - Matt Knaggs "You don't need to learn AI to protect your job. But if you ignore it, the person who learns how to use AI might take your job." - Matt Knaggs "The future pricer isn't replaced—it's the translator. The one who explains the 'why' behind what AI suggests." - Matt Knaggs "You can't outsource judgment. You need the pricer in the loop to validate hallucinations, nuance, and context." - Matt Knaggs "AI can scan markets, pull competitor moves, and hand-wave at things you should consider—things deterministic models miss." - Matt Knaggs   People & Resources Mentioned: Zilliant: Pricing optimization & management platform where Matt leads value initiatives Stephan Liozu: Pricing author referenced for value-based pricing frameworks Salesforce + OpenAI / Claude Connectors: For CRM automation   Connect with Matt Knaggs: LinkedIn: https://www.linkedin.com/in/matthewknaggs/   Connect with Mark Stiving: LinkedIn: linkedin.com/in/stiving Email: [email protected]  

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

Bill Diggons, managing partner at Qittitut Consulting (yes, named after a fast-growing, healthy Inuit bear), shares 24 years of pricing wisdom earned across 182 projects in 57 countries. A disciple of pricing legend Tom Nagle and former oil industry marketer at Schlumberger and Halliburton, Bill reveals why single-column bids are leaving 3-5 margin points on the table and how tiering transforms B2B pricing. From Wagyu beef pricing psychology to semiconductor de-specification strategies, Bill and Mark debate whether prices should be easy or hard to compare, why "Boss Hog" beats techno-nerd names, and the counterintuitive power of ending prices in odd numbers instead of zeros. Plus, why Bill charges $5,000 extra just to read client contracts.   Why you have to check out today's podcast: Discover why tiering consistently delivers 3-5 margin points minimum—and how three-column bids with strategic naming force buyers to make trade-offs instead of price comparisons. Learn the "no zeros" pricing rule that generated $8 million in three months by making prices look carefully calculated rather than negotiable. Master the art of non-compliant RFP responses with alternatives that disrupt tender processes and win on value instead of lowest price.   "Not profound, but no zeros on the quote. It's so often that we can get half a margin point just out of stuff like that. And then beyond that, try some naming and tiering because it's going to work for you." – Bill Diggons   Topics Covered: 02:09 - The Qittitut Origin Story: Why a Dancing Bear Beat "Bill & Bob's Consulting". 05:39 - What is Tiering? Moving Beyond Single-Column Bids. 10:07 - The Restaurant Menu Masterclass and Boss Hog's Emotional Appeal - How to Decide What Features Go in What Tiers. 19:02 - Responding to RFPs with Tiered Alternatives and Non-Compliant Bids. 20:02 - The Power of "Networking Best Practices Meeting" vs. "Presentation". 26:23 - Final Advice: No Zeros on the Quote (And Why It Generated $8 Million). 28:12 - Contacting Bill and Why He Charges $5,000 to Read Contracts.   Key Takeaways: "Tiering to me is having at least a three-column bid, naming the columns, and then having some names on the products or services to imply added value. Whenever we've introduced this, it always results in three to five margin points minimum." - Bill Diggons "I demand the right to segment that price to the outcome, the value the buyer gets. Even though the variable cost of the motor is identical, I want to be able to sell it at an economy price in a benign environment and at a premium price in an extreme environment because I put billions of dollars into creating this thing." - Bill Diggons   People / Resources Mentioned: Tom Nagle: Author of "Strategy and Tactics of Pricing" - pricing authority who transformed Bill's approach in oil and gas. Schlumberger: Oil company where Bill worked in marketing. Halliburton: Oil company in Bill's background. QSales: Where Bill was practice leader for 20 years. A.T. Kearney, McKinsey, Deloitte: Consulting firms mentioned in the RFP rejection story where Bill's price was "too low". Starbucks: Referenced for tall, grande, venti tiering strategy. iPhone/Apple: Used as two examples - 99-cent pricing psychology AND customers not comparing to Huawei when upgrading. Huawei: Mentioned as iPhone competitor that iPhone users ignore when upgrading.   Connect with Bill Diggons: Company: https://www.qittitut.com/  Linkedin: https://www.linkedin.com/in/billdiggons/  Email: [email protected]   Connect with Mark Stiving: LinkedIn: https://www.linkedin.com/in/stiving/ Email: [email protected]