Value-based Pricing for Subscription Businesses with Arjun Patnaik

<p><strong>Arjun Patnaik</strong> is Head of Pricing & Commercial Finance at Pine Labs. He used to work at GE as an Audit Manager. </p> <p>In this episode, Arjun talks about how the role of pricing is richer in subscription businesses than any traditional business as it allows you to pull many pricing levers. He shares how triangulating the three important factors of knowing your value, communicating it, and figuring out people's willingness to pay drives the whole point of pricing. </p> <p> </p> <p><strong>Why you have to check out today's podcast:</strong> </p> <ul> <li>Learn to differentiate and understand how pricing works in a traditional versus subscription business</li> <li>Learn about the whole customer lifecycle and lifetime value in pricing subscription</li> <li>Find out the three pillars of subscription pricing where everything flows from there</li> </ul> <p> </p> <p align="center"><strong>“</strong><strong>Don't undervalue yourself. Don't leave money on the table. Do the hard work. Don't just go for a cost-plus or competition-based pricing. Spend the time, talk to your customers, understand their value equation and willingness to pay. It's going to pay off. So, spend time, money, and effort on pricing, and it will pay you back.”</strong>  </p> <p align="center"><em>- Arjun Patnaik</em> </p> <p> </p> <p><strong>Topics Covered:</strong> </p> <p>01:46 - Arjun's accidental entry into the world of pricing </p> <p>02:46 - What pricing for him is </p> <p>03:56 - What was GE's pricing approach, as he used to work there </p> <p>06:13 - How was it like for him moving from cost-plus pricing to value-based pricing </p> <p>08:51 - Why is the role of pricing much richer in subscription business than any regular sales business </p> <p>10:18 - What he thinks of subscription pricing </p> <p>14:11 - The business he was involved in at GE </p> <p>14:56 - Talking about businesses transitioning from traditional ones to subscription </p> <p>15:58 - His thoughts over Finance people being the wrong people to run pricing </p>