This episode of the Leading Learning podcast features a Content Pod™ on effective pricing practices delivered by Tagoras managing director Jeff Cobb at the 2015 Leading Learning Symposium. We’re grateful to YM Learning (formerly Digital Ignite) for being the executive sponsor for the symposium.
Listen to the Show
Read the Show Notes
00:18 – A preview of what will be covered in this episode which is the audio of a Content Pod from the 2015 Leading Learning Symposium on effective pricing practices delivered by Tagoras managing director Jeff Cobb.
00:51 – Jeff and Celisa explain that Content Pods were used at the symposium to provide short nuggets of content that were aligned with the three overarching themes of the conference (reach, revenue, and impact). The content delivered could also be used in the afternoon App Labs.
02:20 – A discussion about the reasons for choosing the topic of pricing for a Content Pod and how it connected to other themes discussed at the symposium.
04:37 – Jeff begins the Content Pod with a story about a poet to make the analogy that in pricing, we often look for answers but we don’t necessarily ask the necessary fundamental questions.
06:25 – Jeff proposes three non-obvious questions to ask about pricing practices in your organization:
1. How can we change the category?
2. How can we change the reference?
3. How can we change the offering?
06:56 – Jeff tackles the first question (How can we change the category?) and explains what he means by category. He talks about how all offerings fall by default into a particular category and how within each one there is an acceptable price range. He explains that by creating a new category or changing the dynamics of the category, you can then establish or impact the acceptable price range rather than simply inheriting it.
09:03 –Starbucks, Dyson, and TED are highlighted as organizations that have effectively increased their pricing by changing the dynamics and/or creating new categories for their products/services.
11:24 – Jeff addresses question #2 (How can we change the reference?) which he says to ask when it’s clear that you can’t change the category. He suggests three ways to influence the reference price that are all based on mindset:
1. Raise your price–enough to make a difference (consider zone of indifference)
2. Put a “magnet” in the market—introduce something in your portfolio that is high-price and high-value
3. Become non-generic—brand/name and put a visual element with major product lines and consider effect of language/word choice
18:44 – Jeff examines question #3 (How can we change the offering?) and explains that is important to think in terms of offerings rather than products. He shares a few examples and discusses the concept of the Value Ramp that shows that there is (or should be) a correlation between price and value.
21:49 – Final thoughts about pricing and that the fundamental question is about control and whether or not you can change the category, reference, or offering.
22:28 – Wrap-Up
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24:06- Sign off
Be sure to check out information about Learning • Technology • Design™ (LTD), an upcoming Leading Learning event to be held May 18-19, 2016 in Arlington, VA.