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Mar 1, 2021

Alon Ellis is a partner at Deloitte Monitor. He is leading Deloitte Australia’s Pricing Strategy & Margin Management capability

In this episode, Alon shares how he believes it is value-based pricing but understands what value means not from your perspective but on customers’. He talks about not giving everything away to the customer as you are in the business of providing a service or a product, and you have to be profitable.


Why you have to check out today’s podcast:

  • Learn how to sell on value and what that actually means not from your point of view but from the customer’s point of view
  • Learn how to communicate simply and straightforwardly your value and the pricing strategy that aligns with it
  • Understand the economic analysis in every pricing decision


“Make it easy. And this is the hardest thing in pricing. Let’s assume that you’re entirely on board with value-based pricing and you’re thinking about getting the consistency and all that kind of stuff. The simpler you can make your pricing without losing big valuables, the better.”

– Alon Ellis


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Topics Covered:

01:18 – How Alon’s curiosity led him to a career in Pricing

02:36 – How he went from industry to consulting to industry to consulting

06:57 – What is pricing consistency

08:58 – Having an economic analysis in every pricing decision

13:20 – Analytics versus value

15:41 – What is economic value estimation

17:23 – The difficulty when customers don’t care about the features and benefits you make

18:58 – Factors you can’t reduce to purely analytical process

20:21- How Australia and the US differ in terms of companies not understanding their product’s value

21:31 – Why salespeople need to be confident in communicating to the consumers that price is fair and reasonable

25:39 – How do the market perceive discounts

26:48 – Alon’s pricing advice that would greatly impact your business


Key Takeaways:

“Sometimes I get to kind of almost the extreme customer advocacy. So, everything is about us giving away stuff to the customer, or the other extreme, you know that trying to screw over the customer. And that’s never going to create a long-lasting relationship. You need them to be somewhere in the middle.” – Alon Ellis

“We always need to sell on value, but we need to make certain we understand what that actually means not from our point of view but from the customer’s point of view.” – Alon Ellis

“I believe it’s always value-based pricing as the number one way but they actually have to understand what value means from the customer’s point.” – Alon Ellis

“There’s nothing worse than a client who’s invested lots and lots of money into features that they think should have some value. But you’ve actually done this while you figured out that no one really cares.” – Alon Ellis

“This is where the psychology, the real world comes in. And that’s where, I think you can’t reduce this into a purely analytical process.”  – Alon Ellis


Resources / People Mentioned: 


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