044: Pricing consultant with 20 years’ experience at the world-leading pricing firm with 1,400 staff talks about the importance of smart pricing in growing a small business, shares tips and resources for owners (Christoph Petzoldt)Oct 10, 2020
In this episode, I interview Christoph Petzoldt, the Managing Partner of Simon-Kucher’s Australia/New Zealand operations. Chris has 20 years of management consulting experience across all industries and his work focuses on strategic marketing, portfolio/bundle design, and pricing optimization. He has conducted more than 80 consulting projects in Europe, Southeast Asia, Middle East, Oceania, and South America.
Chris is specialized in portfolio optimization, value-based pricing, pricing research, retention, and sales execution. He founded Simon-Kucher’s Australia/New Zealand business in 2011, covering all industries in the region. Before that, he was responsible for telecommunications in APAC, a topic that remains his focus. He comes on to talk about how small business owners can use proper pricing to build and grow their businesses towards long-term success.
This Cast Covers:
- A subject matter expert on pricing for the last 20 years with experience working in a variety of industries.
- The importance of growing businesses looking at their pricing at different stages of their growth.
- Demystifying the concept of the price elasticity of demand.
- How to start a business that makes a profit by fulfilling the needs of customers.
- The harm that “Jumping to conclusions” kind of pricing causes to small businesses.
- Using costs and competition as a guide for product pricing.
- The pricing assumption that cost Audi $400 Million in lost opportunity.
- The power of pricing: How branding, packaging, and the story around a product can help a business in the commodities space come up with its own unique price for the product.
- Why small businesses should not start with very customized offers when they’re starting out.
- How Christoph worked in helping a railway company come up with an effective pricing model that enabled it to make more money and remain competitive.
- The effectiveness of combining behavioral economics and market research when working on pricing.
- Perpetual discounting and how it works without eroding the value of a brand in consumers’ minds.
- Why large retailers should consistently collect customer-oriented data by surveying their employees on the ground.
- Doing optimal pricing by looking at what the data shows, what the customers give as feedback, and what common sense and behavioral economics show.
- How small businesses can use knowing their actual revenues, costs, and profit to do their pricing.
- The businesses that can use loyalty programs and why.
- What to do about pricing on day one of starting in business: Check whatever you do and what value it creates for your customers.
- Influence By Robert Cialdini
- Monetizing Innovation By Madhavan Ramanujam
- Price Management By Hermann Simon
- Christoph on LinkedIn
“Sometimes you can’t see the forest behind the tree” – Christoph Petzoldt (03:57 to 04:17)
“The prerequisite to making money with a business is fulfilling a need a customer can fulfill elsewhere, better” – Christoph Petzoldt
“People are willing to pay for having their needs fulfilled” – Christoph Petzoldt
“Customers will always complain about your prices. If they don’t complain then you’re in trouble because it’s a sign you’re too cheap” – Christoph Petzoldt
“Think about the value before you design the product” – Christoph Petzoldt
Music from https://filmmusic.io “Cold Funk” by Kevin MacLeod (https://incompetech.com). License: CC BY (http://creativecommons.org/licenses/by/4.0/