Jun 21, 2021
Michael Hurwich is one of the foremost and sought after Pricing, Revenue & Strategy Management Consultants known around the world. Michael is a highly effective and energetic business leader with over 20 years of experience in Strategy, Revenue Optimization, Mergers & Acquisitions, New Product Development and reengineering business processes. Michael works closely with leadership from the C-Level to line management to develop and execute clearly defined pricing strategies.
In this episode, Michael takes pizza as an example to explain pricing as there are commonalities shared by businesses when it comes to pricing strategies and tactics that resonate with the whole concept of pricing pizza.
Why you have to check out today's podcast:
- Learn how value and demand factors, not cost, help you increase price
- Find out how you win customers and gain their loyalty
- Learn how to harmonize your pricing and the value that you deliver
“Definitely focus on demand, supply and demand issues. When something seems very busy, there's a tremendous opportunity to elevate your price, so long as you're delivering value in the marketplace.”
- Michael Hurwich
Topics Covered:
02:03 - Why talk about pizza
03:29 - A variety of pizza suiting everyone’s preference on every location
04:44 - Why are organizations leaving money on the table when pricing pizza
08:07 - Pricing being all about value, the supply and demand
11:36 - How do we avoid price transparency
15:20 - What is price transparency and the goal of moving consumers to purchase more than they otherwise would have
19:17 - Pricing and elasticity of demand
22:03 - Talking about loss leader products
24:03 - How to earn your customer’s loyalty
26:56 - His best pricing that can greatly impact one’s business
Key Takeaways:
“The key is to really figure out how to move away and make the price a little less transparent and focus on the value and the demand of those products. It's all about supply and demand. And the stock market reflects that very well, as does Bitcoin.” - Michael Hurwich
“It's really about moving customers to where you want them to end up at the end of the day. And it's incumbent upon vendors to drive purchasing behavior, not the other way around.” - Michael Hurwich
“The goal is really to focus less on price and price points, focus more on value and increasing that value perception and differentiation.” - Michael Hurwich
“In the pricing world, the important component of understanding price is also to evaluate and determine the elasticity of demand.” - Michael Hurwich
“And one of the things that people, most consumers actually don't know, they typically don't know the individual price of a product. What they do know is how much they're willing to spend when they go out.” - Michael Hurwich
“Better to sell the first slice at full ticket price, the second slice at half price, you're more than covering your costs, and also covering some incremental fixed overhead, at the same time, an extra sale. - Michael Hurwich
Resources Mentioned:
- McDonalds: https://en.wikipedia.org/wiki/McDonald%27s
- Burger King: https://www.bk.com/
- Wendy’s: https://www.wendys.com/
- Schneider: https://www.se.com/us/en/
- Pepsi: https://www.pepsi.com/en-us/
- Coca Cola: https://www.coca-colacompany.com/
- Win Keep Grow: How to Price and Package to Accelerate Your Subscription Business by Mark Stiving: https://www.amazon.com/Win-Keep-Grow-Accelerate-Subscription/dp/1631954784
Connect with Michael Hurwich:
Connect with Mark Stiving:
- Email: mark@impactpricing.com
- LinkedIn: https://www.linkedin.com/in/stiving/