The art and science of pricing | Madhavan Ramanujam (Monetizing Innovation, Simon-Kucher)

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Madhavan Ramanujam is a senior partner at Simon-Kucher, where he works with tier-one tech companies like Uber, Asana, and LinkedIn to help them develop their pricing and monetization strategies. He’s also the author of the most widely read book on pricing strategy, Monetizing Innovation. In today’s podcast, we talk about all the elements that go into your pricing strategy. Madhavan gives real-life examples of having conversations about “willingness to pay,” how segmentation should impact your pricing, and when to start thinking about pricing. He also shares tips on how behavioral pricing impacts your thinking, how to restructure your pricing during a downturn, and much more.
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Find the full transcript here: www.lennysnewsletter.com/p/th...
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Where to find Madhavan Ramanujam:
• Twitter: / madhavansf
• LinkedIn: / madhavan-ramanujam-153...
• Website: www.simon-kucher.com/en-us/le...
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Where to find Lenny:
• Newsletter: www.lennysnewsletter.com
• Twitter: / lennysan
• LinkedIn: / lennyrachitsky
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Referenced:
• Monetizing Innovation: www.amazon.com/Monetizing-Inn...
• It’s Price Before Product. Period: review.firstround.com/its-pri...
• Rahul Vohra on NFX podcast: • What is the Pricing Fr...
• Leaders, Killers, and Fillers framework: / leaders-fillers-and-ki...
• Predictably Irrational: www.amazon.com/Predictably-Ir...
• Preorder Unlocking Growth: www.amazon.com/Maximize-Profi...
• Confessions of the Pricing Man: www.amazon.com/Confessions-Pr...
• Simon-Kucher books: www.simon-kucher.com/en-us/re...
• Mastering SaaS pricing (Kyle Poyar): www.saas-knowledge-base.com/d...
• 6 Must-Reads on Pricing a Product: review.firstround.com/our-6-m...
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In this episode, we cover:
(00:00) Madhavan’s background
(06:29) How Madhavan got into pricing and monetization
(08:02 ) Why he wrote Monetizing Innovation
(09:43) Why pricing is a cross-functional discipline, but ultimately a function of product
(11:27) What “willingness to pay” is, and why founders need to have conversations about it early and often
(15:23) How Porsche built their SUV around customer feedback and willingness to pay
(18:46) How testing helped a marketplace company avoid building something customers don’t value
(23:50) Several methods to use to learn willingness to pay
(33:38) When and how the willingness-to-pay conversations happen
(37:08) How many customers you should be talking to
(38:13) When to revisit pricing
(39:20) Segmentation strategies
(42:42) Why you need to act differently to your segments that have different needs
(44:33) When to think about segmentation
(47:49) Examples of segmentation done well
(52:24) The importance of dynamic segmentation
(53:19) The three pricing strategies: maximizing, penetrating, and skimming
(55:49) How to use bundling and packaging to unlock segmentation
(59:50) Why how you charge is more important than how much
(1:03:30) Subscription vs. usage
(1:07:40) Pricing options and structures
(1:10:22) How to run tests to see which pricing model works best
(1:12:06) Focusing on benefits vs. features
(1:16:13) What behavioral pricing is and why it’s important
(1:20:54) Tactics for behavioral pricing
(1:26:33) Determining pricing thresholds
(1:28:23) Tips for pricing in a depressed market
(1:32:50) Madhavan’s new book
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Пікірлер: 17

@ephemeral_epiphanies Жыл бұрын

B2b Saas PM myself who's been working on building software monetization capabilities. Watched the entire episode in a single go. Took some notes as well. Some good tactical advice and frameworks in here from Madhavan. Love the curation of folks you're doing Lenny, it's so unique and relevant at the same time.

@KottayamMalabar Жыл бұрын

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@shakilhasnat6368 Жыл бұрын

Always look for your podcast. So much quality.

@yongbinchoi2976 Жыл бұрын

Great conversation! it's very insightful.

@howdy1814 Жыл бұрын

packed with a ton of useful knowledge. thank you

@lindameier6561 8 ай бұрын

thank you for this!

@segunagbaje6823 Жыл бұрын

This is a gem of a conversation. One of my best episodes.

@kalpona-yk5re Жыл бұрын

Your videos are very nice

@kalpona-yk5re Жыл бұрын

thank you

@user-ik8vy1rg8f 9 ай бұрын

Excellent talk! That cheesy music at the very end was a blemish on the production quality though.

@mariamartin8029 Жыл бұрын

I had the read the book Monetising Innovation and I think it is one of the best books on pricing strategy. This one of the most engaging podcast filled with tons of examples that actually helped me understand the concepts much better.

@mindkhichdi Жыл бұрын

Best to add chapters as well so that we can scroll to specific sections.

@LennysPodcast Жыл бұрын

Will look into this!

@LennysPodcast Жыл бұрын

Figured it out, will do in the future!

@Nidhikalia-et1bm Жыл бұрын

appreciate your video. This side of Khetal, Haryana I am Nidhi... truly adores you, Sir. Please Make a video highlighting the best university in northern India, I am aware with Chandigarh University's agricultural programme, particularly its online classes.