Imagine navigating the complex terrain of pricing strategies with none other than Karan Sood of Rakuten Kobo, a virtuoso of sales operations. We peel back the layers of traditional cost-based models and reveal the intricate dance of value-driven pricing. As Karan recounts tales from his time in the automotive trenches, where static pricing was a missed opportunity, we're reminded that the price tag hanging off products isn't just a number—it's a story of market life cycles and competitive choreography.

With case studies in hand and compensation models flipped on their heads, Karan breaks down the metamorphosis of pricing, and how value communication is the game-changing strategy that keeps the cash registers ringing. As we gaze into the crystal ball of pricing's future, Karan and I dissect the up-and-coming world of outcome-based models—where tech payments are entwined with measurable results, thanks to the surgical precision of AI.

In this episode:

(0:00:00) Evolution of Pricing Models - Discussing the shift from cost-based to value-driven pricing, emphasizing the need to adapt pricing strategies to a product's lifecycle and market saturation.

(0:08:46) Digital Transition in Advertising - Karan’s transition from automotive into traditional print to digital advertising and the challenges of measuring value, change management, and customer adaptation during this transformation.

(0:16:48) Market Dynamics and Pricing - The importance of staying current with industry evolution and consumer trends to align pricing strategies with market changes, and the distinction between perceived and economic value in pricing.

(0:28:59) Outcome-Based Pricing in Tech - Exploring the tech industry's move towards outcome-based pricing models, the role of AI in measuring success, and the associated legal and revenue considerations.

(0:36:10) Favorite 90s hip-hop jam and what Biggie might be doing in today’s world

Welcome to Street Pricing, the only show where proven SaaS (Software as a Service) leaders share their mindset and mistakes in pricing so we can all stop guessing and start growing. Street Pricing is hosted by Pricing I/O CEO and Pricing Coach, Marcos Rivera, sought after slayer of bad pricing. With 20 years of pricing expertise, he has helped price over 200 SaaS products and coached over 100 SaaS CEOs and counting! From the streets of the Bronx to CEO, Marcos wants to take the guessing out of pricing.