Jared Smith is the CEO of PriceSmith, a consulting firm specializing in pricing strategies for distributors and light manufacturers. With a background in pricing systems from Vendavo and experience as an adjunct professor at Oklahoma State, Jared brings a wealth of knowledge to the table. He is passionate about helping companies optimize their pricing strategies to capture more value.

In this episode, Jared shares his journey from Frito-Lay to leading pricing innovation in the B2B distribution space. Together, they explore the key distinctions between B2B and B2C pricing models, especially the negotiation-heavy and data-rich nature of distribution.

Why you have to check out today’s podcast:

• Learn about the differences between B2B and B2C pricing strategies.
• Understand the role of pricing systems in managing large SKU portfolios in distributorship.
• Discover how to effectively segment customers for better pricing strategies.

“Invest in your master data and keep chipping away at it. Start with 80/20 of your products and get that right.”

– Jared Smith

Topics Covered:

01:42 - Jared shares how he got into pricing after his MBA and experiences at Frito-Lay and in B2B distribution.

02:57 - Discussion on the differences between B2C and B2B pricing, including transparency and data access.

06:06 - Challenges in understanding why customers buy and the limitations of data analytics.

12:55 - Jared explains his focus on distribution and the unique challenges it presents.

14:40 - Discussion on the relevance and limitations of cost-plus pricing in distribution.

19:17 - Exploration of how to implement good, better, best pricing in distribution.

25:28 - Discussion on whether distributors publish prices or rely on quotes for transactions.

26:33 - Jared shares insights from Uber experiences and how they relate to distribution pricing.

31:27 - The impact of customer loyalty on pricing strategies and potential risks.

32:55 - Jared's key piece of advice on investing in master data for better pricing strategies.

33:58 - Connect with Jared.

Key Takeaways:

“Distribution is an amazing thing. Obviously, it's worldwide. And the simple fact of it, it has two very unique aspects. The first one, a lot of SKUs. And then, the second one is that you have a lot of customers.” – Jared Smith

People/Resources Mentioned:

• PriceSmith: https://www.pricesmith.com/
• Vendavo: https://www.vendavo.com/
• Oklahoma State University: https://www.okstate.edu/
• Pepsi: https://www.pepsi.com/
• Frito-Lay: https://www.fritolay.com/
• Coca-Cola: https://www.coca-cola.com/
• Apple: https://www.apple.com/
• LG: https://www.lg.com/
• Uber: https://www.uber.com/
• Lyft: https://www.lyft.com/

Connect with Jared Smith:

• LinkedIn: https://www.linkedin.com/in/jaredpaulsmith/
• Email: jared@pricesmith.com

Connect with Mark Stiving:

• LinkedIn: https://www.linkedin.com/in/stiving/
• Email: mark@impactpricing.com

This is an Impact Pricing Blog published on February 17, 2025, turned into an audio podcast so you can listen on the go.

Read Full Article Here: https://impactpricing.com/blog/the-secret-to-using-ai-in-pricing-ask-expert-questions/

If you have any feedback, definitely send it. You can reach us at mark@impactpricing.com.

Now, go make an impact.

Connect with Mark Stiving:

• Email: mark@impactpricing.com
• LinkedIn: https://www.linkedin.com/in/stiving/

James Wilton is the founder and managing partner of Monevate, a consulting firm focused on pricing strategies. With a background in consulting from McKinsey and A.T. Kearney, James has a wealth of experience in helping companies capture value through effective pricing. He recently published a book titled "Capturing Value," which delves into the strategic importance of pricing in business.

In this episode, James discusses the nuances of pricing and its critical role in understanding value within a company. He shares insights on how businesses can develop pricing strategies that align with their value propositions and enhance their overall success. James emphasizes the importance of aligning pricing strategies with corporate goals and understanding customer needs, particularly in the SaaS and B2B sectors.

Why you have to check out today’s podcast:

• Learn about the relationship between pricing, value, and corporate strategy.
• Gain insights on the differences between B2B and B2C pricing strategies.
• Understand the evolving landscape of usage-based pricing and its implications.

“Being a little bit more thoughtful of thinking about, what are those different levels of offering that I can give? What is the right price metric that really does help me scale across a few different segments? That can make a massive difference to how much value you're able to extract from your market.”

– James Wilton

Topics Covered:

01:22 – James’ journey into pricing and consulting.

03:35 – The strategic importance of pricing in business.

04:47 – Understanding value and its impact on pricing decisions.

06:24 – The role of pricing in SaaS and B2B companies.

08:12 – Pricing strategy and corporate valuation.

15:05 – James shares insights on pricing AI, arguing that the fundamental principles of pricing remain the same, despite the unique challenges AI presents.

17:08 – James discusses how Monevate is using AI to analyze qualitative research, improving efficiency in summarizing interview results.

20:36 – Exploration of usage-based pricing, with James explaining its advantages and the importance of aligning pricing metrics with the value delivered to customers.

27:32 – James offers key pricing advice for companies, stressing the importance of creating a differentiated pricing structure to maximize value extraction from the market.

28:45 – Connect with James

Key Takeaways:

"Capturing value is about understanding what pricing should do for your company, to capture a fair portion of the value that you create for your customers." - James Wilton

"With AI models these days, you're seeing token-type models that fundamentally focus on the amount of work the system is doing. This results in a cost-based metric rather than a value-based metric." - James Wilton

"Value really is getting some kind of utility from something in its basic way." - James Wilton

People/Resources Mentioned:

• Monevate: https://www.monevate.com/
• McKinsey: https://www.mckinsey.com/
• Capturing Value: https://www.amazon.com/dp/B0DRDVPQJ9
• A.T. Kearney: https://www.kearney.com/
• RELX: https://www.relx.com/
• Steven Forth: https://impactpricing.com/podcast/665-the-future-of-ai-monetization-trends-and-challenges-with-steven-forth/
• PayPal: https://www.paypal.com/

Connect with James Wilton:

• LinkedIn: https://www.linkedin.com/in/jamesdwilton

Connect with Mark Stiving:

• LinkedIn: https://www.linkedin.com/in/stiving/
• Email: mark@impactpricing.com