Episode #513: Interview with SEC Commissioner Hester M. Peirce

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: In this insightful episode of The Soul of Enterprise, Ron and Ed are joined by SEC Commissioner Hester M. Peirce, famously dubbed “CryptoMom” for her forward-thinking views on cryptocurrency and blockchain regulation. They’ll dive into her perspectives on a range of pivotal topics currently reshaping the financial landscape including PCAOB (Public Company Accounting Oversight Board), particularly its oversight roles and evolving challenges in today’s regulatory environment, ESG (Environmental, Social, and Governance) reporting in financial markets and, of course, Bitcoin and other cryptocurrencies, with Commissioner Peirce offering her thoughts on how the regulatory framework should evolve to encourage innovation while protecting investors. Join Ron and Ed for this fascinating and timely discussion with one of the SEC’s most outspoken and influential commissioners.

SHOW NOTES

Segment one

• As with many career paths, her role at the SEC was not necessarily intentional. Commissioner Peirce has a degree in economics and a Yale Law School degree.

• “Do you think CPAs should have a monopoly on audit?” - I can’t do Commissioner Peirce’s answer justice in 280 characters. It’s at the start of the show today and will be available in about 1 hour on all of the major podcast platforms.

• “One of the reasons people come here to raise capital is because they know that they can trust the financial statements of the companies they're investing in” —Commissioner Peirce

• From Commissioner Peirce: “We are Not the Securities and Environment Commission - At Least Not Yet” https://www.sec.gov/newsroom/speeches-statements/peirce-climate-disclosure-20220321 

Segment two

• The history of the Securities and Exchange Commission dates back to the Wall Street crash of 1929. If you’ve not previously read the background, here is a starting point: https://en.wikipedia.org/wiki/U.S._Securities_and_Exchange_Commission  

• This is a great principle identified by Commissioner Peirce during our conversation: “The basic point that we need to remember as a regulator is that we have a job to do. And we have to prove our cases. […] And that's a good thing for administrative agencies to remember.”

• “We want to keep as dynamic of a competitive playing field as we can. […] And so we really need to fight to keep those barriers to entry low.” —Commissioner Peirce

Segment three

• “Our capital markets work so well in this country, and one of the things that makes me sad is that we're not seeing more Americans participate in those markets, either as investors or as founders of companies.” —Commissioner Peirce

• Regarding private equity: “We want to make sure capital is flowing into every corner of our economy. And one of the ways that capital comes in is through private equity. […] I think it's very healthy to have a dynamic market” —Commissioner Peirce

• Confused about the SEC? This is helpful from Commissioner Peirce: “We are a civil agency. We can't put anyone in prison. […] but it's the Department of Justice that will put people in prison if that's if that is going to happen.”

Segment four

• A great listener question from Joe Woodard today, “Are there plans for the US to have its own digital regulator?” There’s more to the question and a rather thorough answer from Commissioner Peirce in segment four of the show.

• A big THANK YOU to Commissioner Peirce for joining us today. The podcast will be available in about an hour and the show notes will be published on Monday at TheSoulofEnterprise.com.

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. 

Episode #512: Outstanding Olio

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: It has been a few months since Ron and Ed emptied their stacks of stuff that have accumulated regarding all things pricing, subscription, and business in general. To correct that, this week's episode will do just that. Featured will be some posts from the Subscribed Institute, a story about a Dallas wine club, Mozart, and more. Settle in with a nice glass of your favorite fall wine.

SHOW NOTES

Segment one

• A wine warehouse in Dallas noticed that customers were coming in and chatting with each other so they started offering food. Now, it’s the hottest member-only restaurant in North Dallas https://www.dallasnews.com/food/restaurant-news/2024/10/09/55seventy-wine-cellar-dallas-great-food/ 

• Do you have half the average household income in America in expendable cash? The barbell effect has an option to take your money. As Ron and Ed both say, “Healthier, wealthier, wiser” https://www.economist.com/business/2024/09/26/the-rise-of-the-40000-gym-membership 

• Here’s a statistic I didn’t expect to hear today, “40% of restaurants awarded a Michelin star in 2005 to 2014, closed by the end of 2019.” Why? The expectations are significantly higher once a star is awarded. https://www.economist.com/business/2024/09/24/the-curse-of-the-michelin-star 

• Ron and Ed are not fans of surcharges but did bring attention to this article from a Professional Pricing Society member on LinkedIn https://www.linkedin.com/pulse/surcharges-new-revenue-source-vs-cause-failure-danilo-zatta-phd-mba-kkgfe/  

Segment two

• A new Mozart single just dropped on Spotify. Yes, Mozart…you read that correctly. https://www.avclub.com/new-mozart-single-just-dropped

• “Intuit's Tax Breakup Campaign Sparks Strong Response from the NATP” via @WoodardCompany https://report.woodard.com/articles/intuits-tax-breakup-campaign-sparks-strong-response-from-the-natp-fpwr 

• Who remembers Quicken MacInTax? https://www.amazon.com/Quicken-MacInTax/dp/B00P2YCRZA 

• “We figured out a long time ago that if we bundled and gave a fixed price and added access, we could charge a much higher price.” —Ron Baker

Segment three

• Since 2019 the “big four” accounting firms have increasingly found themselves on the hook for multimillion-dollar fines and settlements https://www.economist.com/business/2024/09/19/pwc-needs-to-rethink-its-global-governance 

• Congratulations to Mark Koziel, a three time guest on The Soul of Enterprise, for his new CEO appointment! https://www.aicpa-cima.com/news/article/mark-koziel-new-aicpa-cima-ceo 

• The new Starbucks CEO is quoted in the Wall Street Journal as saying, “We will be the community coffeehouse known for great coffee” https://www.wsj.com/business/hospitality/starbucks-coffee-discounts-strategy-ceo-dcbde38b 

• “To me, Starbucks illustrates a glaring issue, which is, you cannot solve non pricing issues with pricing. […] Pricing, kind of like advertising, will just exasperate the problem.” —Ron Baker

Segment four

• Here is some recent research from the Subscribed Institute. Keep in mind that they reference usage based fees and we already have those. They are called hourly rates. https://www.zuora.com/resource/the-future-of-genai-pricing-metrics-and-models/ 

• Taco Bell Introduces ‘Name Your Price Tool’ On Its App For Diners On A Budget https://www.foodbeast.com/news/taco-bell-introduces-name-your-price-tool-on-its-app-for-diners-on-a-budget/ 

• Spoiler alert in segment four! If you have not watched A Gentleman in Moscow yet, Ed talks about some of the great lines from the show https://www.paramountplus.com/shows/a-gentleman-in-moscow/ 

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. 

Episode #511: Top Ten (or so) Pricing Principles

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: In this episode of The Soul of Enterprise, Ron and Ed dive into the transformative world of pricing strategies. Pricing is more than just setting a number—it’s about understanding and conveying the true value of outcomes. Together, they explore the common pitfalls of cost-based pricing, the importance of focusing on utility, and how consultants can command higher prices by focusing on transformations rather than time spent. They’ll discuss the need to apply the same creativity to pricing that consultants apply to solving business problems, and why having the courage to walk away from negotiations can actually increase your pricing power. Other topics include providing pricing options, leveraging the power of transparency in expectations, and avoiding the trap of negotiating solely on price. Whether you’re a consultant, business owner, or service provider, this episode will challenge you to rethink your approach to pricing and provide practical tips to boost your profitability by focusing on the value you deliver. Tune in to learn why leading companies never limit their profitability—and neither should you!

SHOW NOTES

Segment one

• Pricing principle: Remember that transformations command higher prices than services.

• “There's a universal desire to become healthier, wealthier and wiser period. That's true for all of us.” —Ron Baker

• From Ed today (and often quoted), “Common offerings command a common price, but uncommon offerings command and uncommon price.”

• Pricing principle: Use your costs as a floor, not a ceiling. None of the world’s leading companies put a limit on their profitability, and neither should you.

Segment two

• Pricing principle: Provide pricing options, but never ranges. When discussing options, don’t focus on the amount, focus on the difference.

• “If you picked up anything off the shelf and saw a price range on your can of soup or your box of cereal, you'd be annoyed. And your customers are annoyed when they hear a range.” —Ron Baker

• Pricing principle: Apply the same creativity to pricing as you do to solving your customer’s business problems.

• Pricing principle: Price when you have the most leverage. A service needed is worth more than one that has been delivered.

Segment three

• Ask a question of Ron or Ed…..OR ask a question of an upcoming guest. From any device, just use this link https://www.thesoulofenterprise.com/questions 

• Will you be in Vegas on October 25th? Ron will be speaking at the Professional Pricing Society. More information here: https://www.pricingsociety.com/ppsvegas24 

• Pricing principle: Signal early in the process that you’re willing to walk away, you’re not a supplicant to your customer.

• Pricing principle: Insist on transparency of expectations in place of transparency of costs and hours. Costs are the seller’s concern, not the buyer’s. 

• Pricing principle: Never negotiate on price. If you reduce price, reduce value. Otherwise, you impair your pricing integrity.

Segment four

• Pricing principle: Always structure payment terms upfront (no billing work in progress in arrears).

• Pricing principle: Stop running away from risk — embrace it. All profits originate from risk, especially supernormal and windfall profits. Actuaries price risk, so can we.

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. 

Episode #510: AI Policy and Innovation — Second interview with Adam Thierer

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: Ron and Ed welcome Back Adam Thierer, now with the R Street Institute, to talk about government regulation and AI. Adam has written extensively about how government regulation potentially affects the progress of innovation, especially with regard to new technology. This episode promises to be a wide-ranging and timely conversation.

SHOW NOTES

Segment one

• The California legislature passed Senate Bill 1047 but Newson vetoed it. Adam argues that this was probably one of the five most important moments in digital technology policy developments. 

• Adam has noted that the most important principle for AI regulation is not stifling it. He hasn’t just noted it. He writes extensively about it. More here: https://www.rstreet.org/commentary/the-most-important-principle-for-ai-regulation/ 

• “The AI regulation argument is more important than previous technologies because it's not just about information and communications technology. It's also about broad based autonomous systems, robotics, machine learning, data science, quantum computing and a whole host of other things.” —Adam Thierer

Segment two

• “Economists, politicians, political scientists and business theorists don't usually agree on much, but they do agree that technological innovation is widely considered the main source of economic progress.” —Adam Thierer

• On the second segment today, Adam made a STRONG argument for how commercial drones are an example of an autonomous system that we've gotten very wrong in the regulatory environment.

• If you have not read one of Adam’s books yet, read this: “When my Permissionless Innovation book came out, I said you have this choice between permissionless innovation or the precautionary principle. More here: https://www.amazon.com/Permissionless-Innovation-Continuing-Comprehensive-Technological/dp/0989219348 

• “You can't even name a company that is a digital innovator in Europe today. So it's a powerful example of how laws and policy defaults matter deeply for innovative outcomes.” —Adam Thierer

Segment three

• “The freedom to code, the freedom to compute and the freedom to innovate should represent America's default policy. We must have a marketplace that is driven by a vision from our policy leaders that embraces the freedom to innovate.” —Adam Thierer

• “One of the most interesting things about technology law in general is that the best types of remedies or agencies are those that are more general in character as opposed to specific in some ways.” —Adam Thierer

• Fun fact about the regulatory capture environment at the Federal level: The first time the Food and Drug Administration started looking at regulating computer health was in 1981. Nineteen eighty one!!!

• This was a GREAT quip from Adam about how regulation can become overbearing: “Are we going to have to go to our HOA and say, ‘Can I code today?’”  

Segment four

• Here’s a great article from Adam that we talked about today on the 4th segment of the show: “Eurocrats plot to hobble US AI leadership on our own shores” https://thehill.com/opinion/4904165-europe-eu-regulation-tech/ 

• “The Policy Origins of the Digital Revolution & the Continuing Case for the Freedom to Innovate” https://www.rstreet.org/commentary/the-policy-origins-of-the-digital-revolution-the-continuing-case-for-the-freedom-to-innovate/ 

• “California Rejects AI Regulatory Extremism” https://www.rstreet.org/commentary/california-rejects-ai-regulatory-extremism/ 

• A big THANK YOU to Adam Thierer for joining us today. Adam is a senior fellow for the Technology & Innovation team at R Street. More information about his work at this link https://www.rstreet.org/people/adam-thierer/ 

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.