Dec 7, 2020
Jason Covitz is a VP of Pricing, Analytics, and Strategy at Safelite AutoGlass. His specialties include: P&L Management - CFO/CIO, Business & Risk Analysis, Value-Based Pricing, Sales Effectiveness, Product Management & Marketing, Business Strategy, and Data Analysis. And he has experience in a wide range of industries that includes Retail, Healthcare, Financial Services, Manufacturing, Online Services, Outsourcing, Telecommunications, Defense, and Strategic Consulting.
In this episode, Jason talks about how to measure value and how to get paid for value you give. As a business for profit your goal is not so much about increasing your market share as it is about growing your revenue.
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Why you have to check out today’s podcast:
- Learn how to make CFOs favor Value-Based Pricing more than Cost-Plus Pricing
- Find out one strategic action to encourage sales teams to communicate better a products’ value
- Learn how to turn sales conversations with sales teams to value conversations
“Number one is listen. Go around as you're joining an organization, go talk to everybody and listen to what their problems are. And then the second part is, go add value there. They're going to tell you where the problems are, and where the problems are it's usually where the money is. Go solve that problem, that's worth money to you and the organization.”
- Jason Covitz
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Topics Covered:
01:32 - What brought Jason to Pricing
01:58 - What is his analytics work all about
02:57 - How his work in the competitive intelligence area relate to his being VP of Pricing
04:02 - How Pricing touch every part of the company
05:25 - How do CFOs look at Pricing
06:46 - How scared or excited are CFOs to get involve in Pricing
08:03 - How to get CFOs to think more about the Value Pricing and less of Cost-Plus Pricing
09:48 - Taking a look at the dispersion chart
13:18 - How to get around to stop the notion of Pricing people as ‘sales prevention’
15:39 - How to help the sales team sell value better
18:41 - Understanding the win rate and communicating it to sales teams
20:06 - Looking at win rate as true measure of whether pricing is doing well or not
21:35 - How win rates are often calculated
22:48 - What’s the right win rate
23:50 - How to tell when you’ve reached the right win rate
25:56 - What is a ‘Deal Desk’
27:47 - Why are ‘Deal Desk’ can be very transactional
30:16 - What percentage of deals should you be approving
31:34 - Seeing different approval rates by different people
32:29 - Pricing advice that helps impact your business
Key Takeaways:
“Once you understand what's going on in the market, what drives value, it's very easy to say, hey, I want to price it this way to win. And I want to win it, price it this way to maximize profit.” - Jason Covitz
“My experience with sales teams are 5, 10 percent of sales teams get the value story. My experience is usually, find a champion, find the sales guy who is the value seller and find out a way to call out his achievements. And I call positive peer pressure, 'Hey, look what Bob's doing. Bob just did this. And as a result, he made all this extra money.'” - Jason Covitz
“I think about pricing with a capital P, which means it should be doing price setting, it should be deal management, it should be doing the analytics, you know, if you're not doing all those pieces, as a price organization, you're missing your calling at every opportunity to drive impact.” - Jason Covitz
“You want to understand win rate and you want to communicate that to sales teams. And you can cut that in multiple different ways. It doesn't have to be an overall win rate. It can be by size segment, geo, salesperson, just to kind of you know, push it a little further.” - Jason Covitz
“Where you do interviews and go through the whole nine yards, people make decisions on four things, they make it on price, they make it on sales experience, they make it on operational experience, and they make it on product or solution capabilities. Those are the four, time and time again.” - Jason Covitz
“I look at win rate, as kind of one of my true measures of whether my pricing is doing well or not.” - Jason Covitz
Resources / People Mentioned:
- Manage for Profit, Not for Market Share: A Guide to Greater Profits in Highly Contested Markets by Hermann Simon
- Cardinal Health
Connect with Jason Covitz:
- E: jascovitz@gmail.com
Connect with Mark Stiving:
- Email: mark@impactpricing.com