NEW SHOW FEATURE: If you want to ask Ron or Ed a question and be featured on the show, please submit a voice recording from any device at https://thesoulofenterprise.com/questions
SHOW SUMMARY: Join Ed and Ron as they delve into the complexities of modern pricing strategies and their impacts on consumers and brands. We’ll explore the supposed frustration consumers face with the rise of add-on fees and personalized pricing. From airline baggage fees to layered subscription costs, hidden charges make it increasingly difficult for buyers to navigate the marketplace without feeling nickel and dimed. Also, is price-led profit growth coming to an end? Is inflation and recession fear signaling a shift away from growing margins from more sophisticated pricing? Finally, are luxury brands underpricing? Despite their premium positioning, some luxury brands might not be charging enough to reflect their true value and maintain their exclusivity. We’ll discuss the 4Es of pricing high-end brands, and how we can apply that framework to professional firms. Join us as we unravel these topics and discuss how consumers and businesses can navigate the complex world of modern pricing.
SHOW NOTES
Segment one
At the start of the show, Ron and Ed discussed “The era of price-led profit growth is coming to an end” https://www.marketingweek.com/ritson-price-led-profit-growth/
“Marketers know customers and how to communicate to them, and the finance department does it doesn’t” https://www.marketingweek.com/ritson-price-led-profit-growth/
Wait….what? “Growth is still the imperative, but getting it from a brilliantly executed pricing [strategy] is surely coming to an end.” https://www.marketingweek.com/ritson-price-led-profit-growth/
Correct. 100% “Most people I know don't even think about the price of what they're buying at McDonald’s.” —Ed Kless
Arthur Laffer was asked once, “How many companies do you need in an industry in order for it to be competitive?” And he said, “One.”
Segment two
Well, we disagree with almost everything in this article but that’s no reason not to discuss it and talk about the counter arguments: https://www.theatlantic.com/ideas/archive/2024/04/surge-pricing-fees-economy/678078/ @jcbeam
“In a world of constantly shuffling prices, could predictability become a competitive advantage?” Yes, absolutely. https://www.theatlantic.com/ideas/archive/2024/04/surge-pricing-fees-economy/678078/
“If one company refuses to switch to all-in pricing, it can undercut the rest.” That's also known as a marketing opportunity. https://www.theatlantic.com/ideas/archive/2024/04/surge-pricing-fees-economy/678078/
Everything about this article resonated with Ron and Ed: “How Starbucks Devalued Its Own Brand” https://hbr.org/2024/06/how-starbucks-devalued-its-own-brand
NSFW. You’ve been warned. “The kid from Brooklyn” talks about Starbucks https://www.dailymotion.com/video/xudxl
Segment three
If you plan to go to the AICPA digital conference in Denver this year you can get a preferred price of $100 off If you type in the code DCPA100 upon checkout. Ed and Ron will BOTH be there. https://www.cpa.com/digital-cpa
We have a preferred price for Ed’s upcoming event in Dallas with Hector Garcia. Use code FOE900 at this link: https://reframe.shoprocket.io/#!/2-day-event-in-dallas-tx-aug-5-6 @qbkaccounting
What’s really wrong with the Starbucks customer experience today? Joe Pine nails it with, “Mobile ordering places you and your in-house order in an invisible queue of indeterminate and sometimes seemingly interminable length.” https://hbr.org/2024/06/how-starbucks-devalued-its-own-brand @joepine
Regarding a coffee shop idea, “Throw in the coffee for free and it subsumes the the actual product into the experience.” —Ron Baker
Segment four
In segment four, “Are luxury brands underpricing?” https://jingdaily.com/posts/opinion-are-brands-like-burberry-and-balenciaga-underpricing-themselves
Editor’s note: I was taught the 4Ps of marketing in college and thought they were crap. How about “the 4E framework of: Emotion, Experience, Engagement, and Exclusivity.” https://jingdaily.com/posts/opinion-are-brands-like-burberry-and-balenciaga-underpricing-themselves
Regarding engagement marketing, “When executed well, clients fall in love with a brand and as a result, are willing to invest in a relationship.” https://jingdaily.com/posts/opinion-are-brands-like-burberry-and-balenciaga-underpricing-themselves
Bonus Content is Available As Well
Did you know that each week after our live show, Ron and Ed take to the microphone for a bonus show? Typically, this bonus show is an extension of the live show topic (sometimes even with the same guest) and a few other pieces of news, current events, or things that have caught our attention.
Click the “FANATIC” image to learn more about pricing and member benefits.