REFLECTIONS ON THE SOUL OF ENTERPRISE PODCAST: THE ART AND SCIENCE OF PRICING
By Ethan Williams
I recently had the privilege of joining Ron Baker and Ed Kless on The Soul of Enterprise podcast, where we dove deep into the world of pricing strategy. If you haven’t listened to the episode yet, you can check it out here. It was a fantastic conversation covering everything from the myths of cost-plus pricing to why value-based pricing isn’t just about getting a bigger cut of the pie—it’s about creating real partnerships with clients.
How Did I Get Here?
One of the early topics we touched on was my journey into pricing. Like many in this field, I didn’t wake up one day dreaming of pricing models. Instead, it was a simple yet profound piece of advice that set me on this path: “You’ll figure it out.” That phrase sparked a career that led me through PwC, GE Digital, McKinsey, KKR, and ultimately, the founding of Fractional Pricing Advisors.
Throughout my career, one thing has been abundantly clear: too many businesses—especially professional services and software companies—are leaving money on the table because they don’t know how to price their offerings effectively. And the problem isn’t just limited to pricing teams; it extends all the way up to the C-suite.
Pricing: Part Investment Bank, Part David Blaine
One of my favorite moments from the conversation was when we discussed the idea that pricing is often seen as “part voodoo and part bingo.” I countered with my own take: pricing is actually “part investment banker and part David Blaine.”
Why? Because pricing is both an analytical discipline and an art form. It requires deep financial acumen—understanding net present value (NPV), return on investment (ROI), and pricing elasticity—but it also demands creativity. You’re constantly testing, adjusting, and finding ways to position your offering in a way that resonates with customers.
Breaking the Cycle of Cost-Plus Pricing
A major challenge I see in the market is the reliance on cost-plus pricing. PR firms, accountants, and consultants often default to this method because it feels safe and familiar. But here’s the truth: the biggest pricing mistakes aren’t about overpricing—they’re about underpricing.
I see it all the time: firms undervaluing their own work simply because they don’t know a better way. The billable hour is so ingrained in professional services that many firms can’t imagine pricing based on the value they actually deliver.
Value-based pricing isn’t about squeezing more out of clients—it’s about aligning incentives. If you’re confident that your service delivers significant ROI, then pricing should reflect that value. In the podcast, we discussed how Philips Medical takes a multi-faceted approach to value, considering economic, operational, clinical, emotional, and societal impact. This broader perspective helps companies price their offerings more effectively and win more profitable deals.
The Four Key Metrics of Business Success
One of the insights I shared on the podcast is a simple framework for assessing whether your pricing strategy is working. Winning in business comes down to four key KPIs:
Average deal size – Are you increasing the value of each contract?
Cycle time – How long does it take to close a deal?
Win rate – Are you actually winning the deals you pursue?
Margin – Are you pricing in a way that drives profitability?
If you’re not tracking these four metrics, you’re flying blind. Understanding them can help businesses shift their pricing strategies from cost-plus to value-based and ultimately increase their bottom line.
Where Should Pricing Authority Lie in an Organization?
This is always a hot topic. Who owns pricing? The reality is, there’s no single perfect answer, but one thing is clear: pricing decisions need C-suite support. If leadership isn’t aligned on pricing strategy, the company will struggle to implement meaningful changes.
For many businesses, especially those between $50M-$150M in revenue, fractional pricing expertise can be a game-changer. That’s exactly why I started Fractional Pricing Advisors—to help companies that need high-level pricing strategy without the commitment of a full-time hire.
The Best Way to Avoid a “No” in Pricing
We closed the conversation with a simple but powerful tip: “The best way to not hear ‘no’ is to not pose a yes/no question.” This is critical in pricing negotiations. Instead of asking, “Do you want to move forward at this price?” try reframing the conversation to emphasize options and trade-offs. Pricing is all about positioning, and how you frame the discussion can make all the difference.
Final Thoughts
I had a fantastic time on The Soul of Enterprise, and I’m grateful to Ron and Ed for having me on. If you’re interested in learning more about pricing strategy and how to apply value-based pricing in your business, check out my custom GPT, Value-Based Pricing Advisor here.
And if you’re ready to take your pricing strategy to the next level, reach out to us here on the website.
Let’s start pricing for value, not just cost.
