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045: Jon Manning on the Art of Pricing and How Economic Theory Has Got Pricing All Wrong

045: Jon Manning on the Art of Pricing and How Economic Theory Has Got Pricing All Wrong

FromEconomic Rockstar


045: Jon Manning on the Art of Pricing and How Economic Theory Has Got Pricing All Wrong

FromEconomic Rockstar

ratings:
Length:
53 minutes
Released:
Aug 13, 2015
Format:
Podcast episode

Description

Jon Manning is the Founder and Principal Consultant of Sans Prix and has over two decades of Pricing experience in a wide variety of industries.
Since establishing Sans Prix, Jon (and his associates) have generated millions of dollars in incremental revenue for clients in places such as the UK, USA, India, and Australia.
Increasingly in demand as both a speaker and educator, Jon has spoken at many conferences, workshops, webinars and educational institutions across the Asia-Pacific, the Middle East and the United Kingdom.
In 2011, Jon and Greg Eyres established Pricing Prophets, the world’s first and only online pricing advisory service where clients can ask a panel of global pricing experts and thought-leaders what price to charge for a product or service and why.
Jon holds a Bachelor of Business (Applied Economics) from Deakin University (Australia), a Graduate Diploma of Business (Management) from Monash University (Australia) and a Master of Arts (European Studies), from The University of West London. He is a member of the Australian Institute of Management and the Professional Pricing Society.
In this episode, you will learn:

why Jon believes pricing is more of an a art than a science.


why pricing is based on human behavior that no scientific model can predict.


why there’s no such thing as Adam Smith’s Invisible Hand.


that 70% to 80% of companies use cost-based methods to set prices and few use a value-based method.


why customers don’t care about companies who use cost-based pricing and prefer companies that use value-based pricing methods.


why the best pricing strategy for a company is a value-based method.


the trials and tribulations of the pricing strategy adopted by Netflix and how it affected its share price.


how a $40 fine for returning a DVD late led to the founding of Netflix.


if the best strategy for companies to announce price increases to its customers is to do so a few years in advance.


how behavioral economics is opening up a minefield of exploration in pricing.


how Apple used anchoring techniques to sell their iWatch by offering a $10,000 iWatch. It makes the mainstream iWatch appear to be value for money.


how a $100 omelette was used by a restaurant to act as a decoy so it can influence your decision to pay for high-end or expensive goods.


and much more.


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Released:
Aug 13, 2015
Format:
Podcast episode

Titles in the series (100)

Economic Rockstar is created for you, the economist, financial analyst, teacher or student. If you are looking to expand your knowledge in economics and finance, Frank Conway delivers the information you just don't want to miss. Economic Rockstar brings to you each week an economist, financial analyst or business leader who shares their experiences, research interests or ideas. Hear their views on different schools of economic thinking - Chicago, Austrian, Keynesian and Classical, behavioral economics, stock markets, and how economics and finance can be used in our everyday lives. Economic Rockstar interviews top-level lecturers and academics from highly renowned universities, best-selling authors and bloggers, inspirational CEOs and business leaders, as well as amazing and thought-provoking people who have recently discovered economics and finance and are carving out a career in their new-found passion. Guests in each episode gives us wonderful advice, takeaways and insights that will help you become part of the Economic Rockstar community which is 'Connecting Brilliant Minds in Economics and Finance'.