Description:
In this episode of The Builders, I’m excited to welcome back Per Sjofors, the renowned “Price Whisperer.” Per shares profound insights into the art and science of pricing strategies, using compelling real-life stories to illustrate how businesses can harness pricing power to boost profitability and attract ideal customers.
Throughout our conversation, Per explains the significance of understanding your market, adjusting pricing models, and the role of effective communication in justifying price changes. We delve into topics such as the psychology of pricing, the importance of customer segmentation, and how targeted marketing messages can make or break your pricing strategy.
Per also highlights the often-overlooked impact of non-customers on business growth and the dangers of echo chambers. By drawing from his book, “The Price Whisperer: A Holistic Approach to Pricing Power,” Per demonstrates how a holistic approach to pricing can drive sustainable growth and enhance financial performance.
Whether you’re running a small business, launching a startup, or managing an established enterprise, this episode is packed with actionable insights that can transform your approach to pricing.
Key Takeaways:
- Loyalty Programs: Discover why paid loyalty programs like Costco’s are more effective than free ones and how they improve cash flow.
- Pricing Power: Discover how to increase prices without losing sales volume and why it’s crucial for your business’s success.
- Customer Targeting: Learn why targeting the right customer segments with tailored pricing is more effective than focusing solely on existing customers.
- Storytelling in Sales: Understand the importance of building a “story vault” to enhance sales and marketing efforts.
- Market Positioning: Explore how rebranding and repositioning can justify higher prices and attract better customers.
- Psychology of Pricing: Uncover the psychological impact of pricing and how small adjustments can lead to significant profitability.
Per “The Price Whisperer” Sjofors
Per, aka “The Price Whisperer”, is a thought leader and author in everything pricing and how companies can use pricing to drive higher growth, sales volume, and profits. He is a sought-after speaker for various conferences, appears regularly on podcasts and business radio shows, and gets routinely quoted in the financial and business press.
THE MEAT OF IT!
- Introduction and Welcome Back
- The Power of Storytelling in Business
- Importance of stories in human learning and sales
- Building a “story vault” within companies
- Understanding Pricing Power
- Definition of pricing power by Warren Buffett
- The significance of pricing power in business success
- Case Studies on Effective Pricing Strategies
- SaaS company’s pricing transformation
- Repositioning for higher profitability
- Profitability and Business Growth
- Importance of focusing on profitability
- Pricing’s leverage on business success
- Subscription Models and Monetization
- Different ways to structure pricing models (e.g., subscriptions, packages)
- The impact of pricing models on customer retention
- Avoiding Echo Chambers
- Risks of only listening to existing customers
- Example of targeting the wrong market segment
- Effective Communication During Price Increases
- Strategies for messaging price increases
- Importance of reminding customers of value
- Loyalty Programs and Cash Flow
- Paid loyalty programs vs. free ones
- Examples like Costco’s membership model
Click to See Episode Chapters and Timestamp
| Timestamp | Summary |
| 0:00 | The Importance of Stories in Sales and Marketing |
| 8:16 | The Importance of Pricing Power in Business Success |
| 14:40 | The Impact of Pricing on Company Profitability |
| 19:31 | Reinvesting Profits for Sustainable Growth and Better Services |
| 23:53 | The Importance of Non-Customers in Market Growth |
| 27:36 | How Misguided Market Research Can Limit Business Growth |
| 30:59 | Innovative Pricing Strategies and Reducing Sales Friction |
| 37:02 | The Power of Paid Loyalty Programs and Strategic Price Increases |
| 45:50 | The Price Whisperer Shares Stories and Insights on Pricing |
Check out these related Episodes:
- Episode 186: Joel Salomon – Navigating Economic Uncertainty: The Power of Mindset and Manifestation
- Episode 171: Michael Buzinski – Implementing the Rule of 26: How to Double Your Website Revenue
- Episode 98: Per Sjofors – “The Price Whisperer” on How to Increase & Defend Prices, Doing Pricing Research & More!
