Strategic Pricing and the Moment of Truth
Lisa Spadafora Thompson helped define the term "strategic pricing." Literally.
During her work at the Strategic Pricing Institute and later with Monitor Group and Deloitte, she helped countless companies tackle thorny strategy, product, service, sales, marketing, and, yes, pricing challenges.
Now she does the same as the founder of Sturbridge Growth Partners, and her experience includes significant involvement with industrial manufacturers.
Lisa does a remarkable job weaving together all the business threads to explain how strategic pricing should represent the integration of company strategy and other functions, rather than a margin calculation.
She also ties her considerable independent director and board governance experience to the topics of corporate strategy, marketing, sales and specifically, pricing strategy.
She's also active in non-profit work empowering youth and helping prisoners reintegrate into society with productive, paying and meaningful jobs.
Connect with Lisa for more insights into strategic pricing.
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Strategic Pricing and Board Governance - Lisa Spadafora Thompson on Industrial Growth Insitute Episode 15
Episode Recap
Summary
In this conversation, Ed Marsh interviews Lisa Spadafora Thompson, a globally known expert in pricing and portfolio growth for B2B companies.
They discuss strategic pricing, product management, and the challenges faced by industrial manufacturing companies.
Lisa shares insights on:
- the role of pricing in marketing
- the history of strategic pricing
- the importance of understanding customer value
- the impact of pricing on profitability
- the role of product managers
- challenges of discounting strategies
- the impact of pricing on company growth and sustainability.
The conversation delves into the intricacies of strategic pricing, exploring the multifaceted nature of pricing models and their impact on business success.
Lisa shares insights on customer-driven pricing, cost considerations, competitive advantage, and the broader macroeconomic environment. She also discusses the intersection of board governance and management, as well as her involvement in nonprofit work and her outlook on the future of business.
Takeaways
- Strategic pricing is a profit-driven approach to pricing that focuses on maximizing the value captured in the form of price.
- Product managers play a crucial role in understanding the intersection of customer needs and company goals to drive profitability and growth.
- Lack of understanding customer value, over-engineering products, and absence of a discounting strategy are common causes of lack of profitability.
- Small businesses often have a better understanding of customer value and profitability due to the simplicity of their organizational structure.
- Pricing is a strategic function that requires alignment with corporate strategy and a deep understanding of customer needs and market dynamics. Strategic pricing encompasses customer-driven pricing, cost considerations, competitive advantage, and the broader macroeconomic environment, requiring a holistic approach to pricing models.
- The intersection of board governance and management plays a crucial role in overcoming counterproductive organizational silos and driving impactful governance for business success.
- Involvement in nonprofit work and fostering education, especially for youth and marginalized communities, is a meaningful and impactful endeavor for creating positive change in society.
- The future of business holds the promise of redefining capitalism to focus on creating wealth, jobs, and community well-being, presenting an exciting opportunity for businesses to contribute to positive societal impact.
Takeaway Quotes from Lisa Thompson
- "When you're doing it strategically, this is pricing."
- "When you're sitting in front of the customer, that is the moment of truth. And everything you've done in the business, not just marketing, everything you've done as it relates to the products you've developed, the costs that you incur to bring them to market, the way you've priced, everything comes to roost when you are sitting in front of that customer."
Outline
00:00 The Art of Strategic Pricing: Maximizing Value and Profitability
17:40 Challenges and Solutions in Industrial Manufacturing Pricing
44:29 Unraveling the Complexity of Strategic Pricing
53:26 Navigating the Intersection of Board Governance and Management
01:08:09 Empowering Youth and Fostering Education
01:19:47 Redefining Capitalism: The Future of Business
Where do pricing, customer research and product roadmap fit into your overall revenue growth framework?
Check out the Overall Revenue Effectiveness™ Approach for more.
