How To Effectively Price B2B Products And Services

Ajit Ghuman is a SaaS product marketing veteran and currently runs Product Marketing at Narvar. In this episode of the Sales Leadership Show, Ajit explains how to price B2B products and services and how sales leaders can make pricing strategies more effective. Resources: AjitGhuman.com Book: Pricing To Scale Ajit Ghuman on LinkedIn Transcript  Will Barron: This episode of the show is brought to you from the Salesman.org HubSpot Studio. Coming up on today’s episode of the sales leadership show.   Ajit Ghuman: The problem with begging yourself to competition is that you’re saying, you’re only 10% better than them. So when I approach pricing, I look at it in three piece, positioning, packaging, and then placing. So it starts with your strategy, goes into the positioning, then goes into the packaging. And finally, you talk about the pricing. Let’s say you’re selling a book on Amazon. That’s the only lever you have, right? You don’t really have other packaging levers. You’re selling one-to-one books. That’s the only lever.   Will Barron: Hello sales nation, and welcome to today’s episode of the sales leadership show. On today’s episode, we have Ajit Ghuman. He is the author of ‘Price To Scale’. And price is exactly what we’re talking about on today’s episode. Where price comes from for anyone who isn’t sure, who you should be going to if you feel like the pricing is wrong, and why you’re probably incorrect if you’re questioning the price from a sales perspective in the first place. Everything we talk about, it’s available in the show notes for this episode, over at thesalesleadership.org. And with that said, let’s jump right into it. Ajit, welcome to the salesman podcast.   Ajit Ghuman: Thanks for having me, man.   How to Price B2B Products and Services · [01:38]    Will Barron: I’m glad to have you on. So we go down to a topic that’s for a sales leadership show and across all of the content over Salesman.org. We’ve never really covered, which is insane, right? We’re going to cover pricing, where it comes from, who should be setting the pricing, a whole different range of topics here that we’ll dive into. But to get us started, I want to ask you a massively loaded and leading questions. I’m sure answer isn’t this. But, is there a better way to price a product or service in the B2B world? Often seemingly what some people think pricing comes from which is, we map out all the competitors in the marketplace, and then we price our products, 10, 15% either side of it. Is there a better way to price a product than that?   “The problem with pegging yourself to competition is that you’re saying, you’re only 10% better than them.” – Ajit Ghuman · [01:57]    Ajit Ghuman: Of course. I mean, the problem with begging yourself to competition is that you’re saying, you’re only 10% better than them. Where you could be much more better than them. And it also undervalues and undermines your capabilities. You may be, you’re unique. And the question is how to price such that you capture the value delivered by our uniqueness. So that is, competition has a role to play in it, but certainly is not the guiding light.   How To Price Non-Unique Products and Services · [02:48]   Will Barron: What’s your experience with this Ajit,