Hybrid Pricing and Pricing with AI with Steven Forth

<p><strong>Steven Forth</strong> is Ibbaka’s Co-Founder, CEO, and Partner. Ibbaka is a strategic pricing advisory firm. He was CEO of LeveragePoint Innovations Inc., a SaaS business designed to help companies create and capture value. Steven is what I consider one of the great pricing thinkers in our industry.</p> <p>In this episode, Steven enlightens us about hybrid pricing models and explains why we should adopt it. He also shares why pricing people need to change the way they see AI along with the work they do in pricing.</p> <p> </p> <p><strong>Why you have to check out today’s podcast:</strong></p> <ul> <li>Understand one of the unstated rules of pricing that talks about pricing power along with insights into future risk</li> <li>Find out how artificial intelligence (AI) can help address concerns regarding the connection between pricing and predictability, and why pricing people should change how they see AI in line with pricing</li> <li>Discover the reason on why most of us need to adopt hybrid pricing models and why the two pricing metrics in that should be independent of each other</li> </ul> <p> </p> <p><strong>“Most of us need to adopt hybrid pricing models, and the two pricing metrics should be independent of each other. If the two pricing metrics track each other closely, why bother having a hybrid pricing model? You need two metrics that are relatively independent of each other, and that will give you the flexibility you need to respond in a difficult economic environment.”</strong></p> <p><em>– Steven Forth</em></p> <p> </p> <p><strong>Topics Covered:</strong></p> <p>00:42 – Steven’s insights on what a hybrid pricing model looks like</p> <p>02:30 – Issues on pricing model that applies credits/tokens to usage</p> <p>04:44 – Predictability; whoever has the best insight into future risk has the greatest pricing power</p> <p>09:37 – Pricing people vs. the recent trend: AI and how it sets prices</p> <p>12:02 – The Achilles heel of value-based pricing, and the hybrid pricing practice in companies</p> <p>1