Value-Based Pricing: Valuing and Monetizing Products and Services with Jon Manning

Jon Manning is the Head of Pricing / Chief Economist at MYOB and Author of "Overcoming Floccinaucinihilipilification: Valuing and Monetizing Products and Services". His career has been a journey through the most commonly used pricing methodologies: the cryptic world of oil industry pricing, cost-plus pricing in catering & consumer packaged goods, revenue/yield management in aviation, travel & tourism, and dynamic pricing in internet cafes on the High Streets of the EU and USA. In this episode, Jon shares that more than relying on Twitter and Facebook likes, especially with startup companies, it's essential to have a pricing model at the start, so you provide and create value at the onset. He talks about the book and how it tackles the end-to-end journey in the world of value creation, understanding, monetization, and communication of value.   Why you have to check out today's podcast: Discover and understand the value-based pricing canvas so you can provide value even at the start of your business Learn to identify the sources of value in your product and services to define your value proposition clearly Find out how you can be focused on value creation but making it more powerful with behavioral economics in consideration   "It's all about value, really. So, just make sure you understand the value. And if you're monetizing value you just can't go wrong." - Jon Manning   Topics Covered: 01:25 - Talking about Jon's book: Overcoming Floccinaucinihilipilification 03:40 - How does a crowdsourcing website work for Pricing Prophets? 06:35 - What is a value-based pricing canvas as the main gist of Jon's book 08:30 - How each cell in a canvas work 10:34 - Talking about the internal pricing processes and customer-facing processes in the pricing canvas 13:18 - Where creating value appears in the book 15:28 - Talking about the second half of the book about customer value analysis 16:43 - Why Jon put behavioral economics at the last part of the book 20:24 - Sharing an exciting experience where behavioral economics is concerned 21:36 - What got Jon started in Pricing 22:38 - The best pricing advice Jon shares that can have a significant impact in your business   Key Takeaways: “What's really been interesting is that sort of six, seven years down the track, when I go into those workshops now, nine out of 10 businesses do have a pricing model when they start. They realize they provide value from day one.” - Jon Manning “The first part of the book is to make use of the canvas to identify the sources of value in your product or service. And that's a collection of approximately about 15 quadrants which will help you be able to clearly define your value proposition, the economic value you provide, how you stack up against the competition and things like that.” - Jon Manning “The second half of the book then says, okay, let's take your understanding of value now. And let's actually strike a price point for you based on one of four value-based pricing methodologies. So, it's a sort of end-to-end journey.” - Jon Manning “One of the methodologies I walked through in the second half of the book is customer value analysis. And I only talk about a very basic version of customer value analysis, but just through that exercise, and other methodologies that other authors have written about, you can quickly identify features that should be included or excluded from a package if you're asking the right questions to customers.” - Jon Manning “I like behavioral economics, it is useful. I agree that it should be value first, behavioral economics second, but it can also be powerful at the same time.” - Jon Manning   People/Resources mentioned: Overcoming Floccinaucinihilipilification: Valuing and Monetizing Products and Services by Jon Manning Zen Ore 99 Designs   Connect with Jon Manning: https://pricingprophets.com/ LinkedIn   Connect with Mark Stiving:  Email: [email protected] LinkedIn