Impact Pricing

Value-Based Pricing in the Subscription Economy: Why It's Hard to Perfectly Align Value, Usage, and Pricing with Ed Arnold

16 May 2022

Audio

Description

Ed Arnold works as an Advisor at Ibbaka, a software provider for high growth companies that helps optimize planning and execution of key growth initiatives while improving company performance. He was the VP of Products at LeveragePoint for 10 years, and was able to work with the pricing legend, Tom Nagle. In this episode, Ed talks about the future of value-based pricing in the subscription economy as he discusses how product-led growth companies achieve their initial growth which later on leads to big wins. Why you have to check out today's podcast: Understand why pricing in value is the key in very clever segmentation in terms of creating user profiles in the market; Find out how product-led growth companies grow from being a small enterprise to being loved by a bigger market Discover companies that are product-led growth businesses and realize how much they've grown since day one "Understand how your customer gets value from using your product, not from buying it; not in terms of what the product offering is in terms of features, but how they actually use it." – Ed Arnold Topics Covered: 01:03 – Who is Tom Nagle? 01:41 – How Ed got into pricing + creating a tool and working with Tom Nagle 03:07 – Explaining what LeveragePoint is 03:50 – Future of value-based pricing in subscription: Value as a differentiator in the market 07:11 – Buying vs. negotiating a price: Knowing what you're after 11:43 – Product-led growth practice as a brilliant strategy for business 13:55 – What Ed and everybody else likes about PLG – instant gratification 17:43 – Life-changing benefits of Slack 19:15 – Aligning pricing metrics 21:34 – Why usage-based pricing frustrates Mark 23:41 – Changing and having more than one pricing metric 27:13 – Ed's piece of pricing advice for the listeners 28:06 – What Ed thinks about behavioral economics Key Takeaways: "If you're thinking about what sort of animal you're hunting in the enterprise game, those are the whales. I think value is the only way you can differentiate yourself in the enterprise market." – Ed Arnold "No corporate buyer ever heard of Slack until thousands of people in their company were already using it. So, in a sense, the business employee is a consumer, and that's how product-led growth companies are getting that initial growth. They're making it so ridiculously easy for people to start using it before the corporate procurement folks or even IT departments have any idea that they're using it. That's what makes that model so, so attractive for investors." – Ed Arnold "We like to talk about three types of metrics. And you got to link those three together. Ideally, if you can link those three together, you're in Nirvana, because your price is aligned with value and it's aligned with usage and everything is great." – Ed Arnold "When it's the right thing to do, and it makes sense, it does pay dividends. But it's tough. And I think it's really a leap of faith and doing it." – Ed Arnold People / Resources Mentioned: Ibbaka: https://www.ibbaka.com/ The Strategy and Tactics of Pricing by Tom Nagle: https://www.amazon.com/gp/product/1138737518/ref=dbs_a_def_rwt_hsch_vapi_tpbk_p1_i0 Monitor: https://www2.deloitte.com/global/ LeveragePoint: https://www.leveragepoint.com/ Salesforce: https://www.salesforce.com/ Slack: https://www.slack.com/ Calendly: https://calendly.com/ Zoom: https://www.zoom.us/ Connect with Ed Arnold: Email: [email protected] LinkedIn: https://www.linkedin.com/in/edarnold1/ Connect with Mark Stiving: LinkedIn: https://www.linkedin.com/in/stiving/ Email: [email protected]

Transcription

This episode hasn't been transcribed yet

Help us prioritize this episode for transcription by upvoting it.

0 upvotes

🗳️ Sign in to Upvote

Popular episodes get transcribed faster

Other recent transcribed episodes

Transcribed and ready to explore now

13:00H | 21 DIC 2025 | Fin de Semana

01 Jan 1970

Fin de Semana

10:00H | 21 DIC 2025 | Fin de Semana

01 Jan 1970

Fin de Semana

12:00H | 20 DIC 2025 | Fin de Semana

01 Jan 1970

Fin de Semana

2ª PARTE | 06 ENE 2026 | EL PARTIDAZO DE COPE

01 Jan 1970

El Partidazo de COPE

3ª PARTE | 22 ENE 2026 | EL PARTIDAZO DE COPE

01 Jan 1970

El Partidazo de COPE

3ª PARTE | 04 MAR 2026 | EL PARTIDAZO DE COPE

01 Jan 1970

El Partidazo de COPE

Comments

There are no comments yet.

Please log in to write the first comment.

Report any issue

Impact Pricing

Value-Based Pricing in the Subscription Economy: Why It's Hard to Perfectly Align Value, Usage, and Pricing with Ed Arnold

This episode hasn't been transcribed yet

Other recent transcribed episodes

13:00H | 21 DIC 2025 | Fin de Semana

10:00H | 21 DIC 2025 | Fin de Semana

12:00H | 20 DIC 2025 | Fin de Semana

2ª PARTE | 06 ENE 2026 | EL PARTIDAZO DE COPE

3ª PARTE | 22 ENE 2026 | EL PARTIDAZO DE COPE

3ª PARTE | 04 MAR 2026 | EL PARTIDAZO DE COPE

Sign in to Audioscrape

Share this moment