The Sales Hacker Podcast
The Sales Hacker Podcast

Episode · 1 year ago

Friday Fundamentals 140: Ajit Ghumar


Fundamental Fridays 140: Ajit Ghumar

Everybody at Sam Jacobs. Welcome to the SALESACER podcast and to Friday fundamentals. Happy Friday. We've got this week's guest back on the showed, a jet Gulman. A jeet is the head of product marketing for Narvar and he's really an expert product marketing veteran. He's written a book all about pricing and then we're going to be talking about that today and he's just a great guy. So, before we get there, though, and we ask a geet about the number one mistake companies make when thinking about pricing, we want to thank, of course, our sponsors. We've got two sponsors for today's Friday fundamentals. The first is outreach at, which triples the productivity of sales teams and empowers them to drive predictable and measurable revenue growth by prioritizing the right activities and scaling customer and engagement with entire automation. Outreach makes customer facing teams more effective and improves his ability into it really drives results. We're also brought to you by pavilion. Pavilion is the key to getting more out of your career. Our private membership connects you with the network of thousands of like minded peers and resources where you can tap into leadership opportunities, professional development, mentorship and other... made for high growth leaders like you and the teams that you manage. Unlock professionable potential with the pavilion membership at join Pavilioncom a jeet, welcome back to the show. Thanks for having me on again. We're excited to have you back. So here's our question for Friday fundamentals. What's the number one mistake companies make when thinking about pricing? Yeah, thanks. Would ask me the question Sam. I think the number one mistake companies make is they make a default decision. So time and again I see a community to a excellent, Bang up job on their product. They really make sure they deliver value that the customer and then pricing is there's hit a mental block when the pricing question comes up. It's almost like they forgot everything that they knew about the customer at that point. Sometimes the decision is made by a sales operations person WHO's trying to help a salesperson close a deal and there's a little bit of Amnesia that happens. So the problem is that there is a misconception that pricing... tough, it's complex or it's very analytical and often, you know, our MBA school or Grad school will give us that impression with to conjoint analysis and different survey methods. And while all of them are valid and legit many of those things that we learned from like consumer for FMCG products and so on and don't immediately borrow to a software landscape. And what I would say is custom companies need to kind of build a muscle of discussing this when you're discussing more about value and they start with the discussion about who is our market? What are the different segments in the market and how do we map our product to the value that the market is receiving? So the act of upstream, act of positioning, first of all understanding the positioning and then working on the packaging to modules that will work for the market is really important often times. And Enterprise buyer will value things like collaboration features, security features much more than...

...a commercial buyer or a SMB buyer, who may have other considerations they more. They may want it to use a software quickly, they may want it to be self served, they want to be successful with that fast. They don't really care about longer implementation times and so on, but an enterprise customer make care more about hey, I want a customer service manager to help me because this is complex and it is high importance project for my company. so by able to be able to understand the needs for these buyers and then being able to create packages that can really change and differentiate the amount of revenue you can get and at the same time improve their customer experience and NPS from your product. Had you not done the exercise in a thought thoughtful way? I love it. After the packaging discussion is then then when you go and discuss okay, well, Mr Customer, this is my price point, and you...

...have an understanding of their comparables, what they're looking at when they're buying something, then you can justify the price point. You can have a pricing structure that works for Your Business. Early businesses like to have like one part tariffs, which is more like pay as you go, so as you find value or as you use us, you pay, but that can be very variable and seasonal. Then you can have the on the other end of the spectrum, cell phone type plan that say hey, by x amount of minutes from us, or you can buy the unlimited plan for the higher fee. That gives you a lot more predictability. And in between there is another thing called the two parts that iff with many Sass companies use, which is like hey, it's a platform fee and then it's a pay as you go model. So it's a sequence of steps at which the price point and these style of structure and contract structures are the latter decisions that are important, the most important die. Do I have the right offer for you, Mr Customer, and do I really understand you and your unique needs? Very, very useful. I love it. I Gee if folks are listening and maybe they want to...

...hire you as an advisor or a consultant or just pick your brain on pricing. What's the best way to get in touch with you? Yeah, I'm on Linkedin. AJIKUMAN. I'm happy to happy to help. Awesome. I folks on or chat to me. You can linkedincom forward, slash the word in for M F Jacobs. Thanks again to our sponsors. Outreach tripling the productivity of sales teams everywhere and pavilion a transformational gathering place for high growth leaders and your teams. Learn more joint PAVILIONCOM A G, thanks so much for being our guest on the show this week. Thanks so much, Sam and everybody else will talk to you next time.

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