May 13, 2019
Why you have to check out today’s podcast:
- Find out how the HAAS Alert technology prevents road collisions
- Discover the pricing approach used on direct selling vs indirect selling through channel distribution
- Learn how customers can save more on paying upfront fees vs
annually on a five-year plan
Jeremy Agulnek is the Vice President of Connected Car at HAAS Alert since October 2017. His start-up company offers real-time collision prevention system on roadways through its HAAS Alert Safety Cloud technology. He brings in years of sales and product management expertise from the various technology companies he joined in the past. Jeremy earned a BS in Electrical Engineering from the University of Pennsylvania and graduated with Honors from the University of Chicago – Booth School of Business.
Today, Mark dives into his first Impact Pricing recorded coaching session in this special podcast episode with guest, Jeremy. You’ll get first-hand information as they share a power-packed conversation about Jeremy’s company, HAAS Alert. Jeremy will tell more on how HAAS Alert operates and generates income, how the three categories of costs affect the economic value of the vehicle, more so, the pricing model of HAAS Alert and know the different approach used on direct selling and indirect selling through channel distribution. Mark, then again, will give his insightful and expert tips and advice that will surely help your business.
Whether you’re a business owner, a student, or somebody interested in pricing, don’t forget to grab your pen and ensure you take down notes as this is one interview you shouldn’t miss!
“Find the market segment where they get the most value out of what you’re offering.”
– Mark Stiving
Topics Covered:
02:05 – Jeremy talks about his company, HAAS Alert and how it prevents a collision on-road vehicles
03:52 – How real-time and automatic feeding of data into the Waze app adds value to HAAS Alert
05:05 – The two-sided marketplace where the company generates revenues: (1) fleet owners and operators, and (2) car co-manufacturers
08:45 – Three categories of costs on roadside accidents:
Minor collisions – requires repair of the vehicle and out of
service time
Medium – major damage happens which might need a vehicle
replacement
High – may involve personal injury lawsuits
11:02 – Probability that the three categories will occur to
determine the economic value to the buyer
13:42 – Detailing the flexible pricing model of HAAS Alert
15:38 – Mark gives his expert opinion on the pricing model of HAAS Alert
19:20 – Discussion on the effects of direct selling vs indirect selling through channel distribution
22:43 – Challenge on bundling hardware to the subscription price and pay the distribution channel
25:40 – Value-based pricing as a healthy approach to attain business sustainability
27:16 – The churn rate at the end of the term
28:34 – How customers save more on paying upfront fees vs annually on a five-year plan
31:39 – Pros and cons of upfront price and upfront buy-in
34:53 – Mark shared a brief story when he kept on increasing his rate as a speaker, and yet people still agree to pay
36:08 – Mark’s thoughts on price segmentation specifically when asked what to do if customers talk
Key Takeaways:
You find the market segment where they get the most value out of what you’re offering, and that’s where you go penetrate first because those are the people who have the biggest pain and they’re more likely to say yes to us. They’re more likely to pay us higher numbers, and we start to build the business that way.”– Mark Stiving
“We want to capture more of the value that our buyers believe is there, that our buyers perceive. That’s always important.” – Mark Stiving
“In the long run, you’d like your distribution channel to be out of getting that subscription revenue. That’s your revenue, not theirs. You need to pay them enough to sell your product, but you don’t need to pay them forever.” – Mark Stiving
Connect with Jeremy Agulnek:
Connect with Mark Stiving