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

<p><strong>Ed Arnold</strong> 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 <a href= "http://www.leveragepoint.com/">LeveragePoint</a> for 10 years, and was able to work with the pricing legend, Tom Nagle.</p> <p>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.</p> <p> </p> <p><strong>Why you have to check out today’s podcast:</strong></p> <ul> <li>Understand why pricing in value is the key in very clever segmentation in terms of creating user profiles in the market;</li> <li>Find out how product-led growth companies grow from being a small enterprise to being loved by a bigger market</li> <li>Discover companies that are product-led growth businesses and realize how much they’ve grown since day one</li> </ul> <p> </p> <p align="center"><strong>“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.”</strong><strong> </strong></p> <p align="center"><em>– Ed Arnold</em></p> <p> </p> <p><strong>Topics Covered:</strong></p> <p>01:03 – Who is Tom Nagle?</p> <p>01:41 – How Ed got into pricing + creating a tool and working with Tom Nagle</p> <p>03:07 – Explaining what LeveragePoint is</p> <p>03:50 – Future of value-based pricing in subscription: Value as a differentiator in the market</p> <p>07:11 – Buying vs. negotiating a price: Knowing what you’re after</p> <p>11:43 – Product-led growth practice as a brilliant strategy for business</p> <p>13:55 – What Ed and everybody else likes about PLG – instant gratification</p> <p>17:43 – Life-changing benefits of Slack</p> <p>19:15 – Aligning pricing metrics</p> <p>21:34 – Why usage-based pricing frustrates Mark</p> <p>23:41 – Changing