Mark S A Smith – Subscription Model: the Future of your Business

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By Mark Stiving, Ph.D. | Pricing Expert, Mark Stiving, and Ph.D. | Pricing Expert. Discovered by Player FM and our community — copyright is owned by the publisher, not Player FM, and audio is streamed directly from their servers. Hit the Subscribe button to track updates in Player FM, or paste the feed URL into other podcast apps.

Why you have to check out today’s podcast:

  • Advantages of subscription pricing: why brands like Amazon and Uber chase the subscription model
  • Get an expert’s analysis on the subscription model of several companies
  • How the subscription business model impacts the growth of a company's revenue growth

Summary

Mark S A Smith is an author, podcaster and a business growth strategist. He helps companies grow their business as fast as possible by teaching them how to sell their services at a higher margin through disruption marketing. He designs and implements leadership, sales, marketing, customer acquisition and client conversion systems that find and recruit willing buyers for products and services ranging from common every-day to high-end unique and disruptive.

In this episode, Mark deeps dive into the ins and outs of subscription pricing. He’ll share his insights on why for him subscription pricing is both wonderful and awful. Also, he gives a thorough explanation of how the subscription model is a driving force in generating revenues.

Topics Covered:

02:34 – Reasons why subscription is wonderful according to Mark: it is easier to sell and customers prefer the stability they get from a subscription model

07:11 – Hitting its prime: Amazon’s subscription model, how this type of subscription model generates revenues

11:34 – Discussion around the 'bad aspects' of subscriptions

15:14 – The difference between a leasing agreement and ‘true’ subscription

17:46 – Uber’s subscription model: Is it a subscription or a by-demand model

21:04 – Mark’s valuable pricing advice: “Never ask your customers what you should charge them.”

Key Takeaways:

“If you're the CEO of the company, your job is to maximize shareholder value. So, every executive on the planet is looking for a way to pivot to subscription models if they expect to keep their job over the next 36 months.” - Mark S A Smith

“Our job as a sales professional is to match the needs of the customer. And a lot of times we have to help them figure out what those needs are and make us their safest choice, not the best choice. And a subscription model substantially improves the probability that they'll see us as safer versus a transaction-only purchase.” - Mark S A Smith

“In the world of negotiation, keep in mind lowering the price to get a deal is not negotiation. It's stupidity.” - Mark S A Smith

Resources:

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Hey Pricing Practitioners, have the chance to get Impact Pricing: Your Blueprint for Driving Profits

Just Answer the Question: Why do customers always push back on price?

(Post your answer at Mark’s LinkedIn designated Post)

37 episodes