Unlocking the Black Box of Pricing: Why Pricing is So Easy in Theory but Not in Real Life with Alessandro Monti

Impact Pricing
|

Automatic TRANSCRIPT

On march diving to his allesandro. Monte here are three things you wanna know about allesandro before we start. He is a professor for corporate management and organization at cologne business school. He's done stints at both s. Kp and wolters kluwer two companies. That i truly respect in rural the pricing and he went to uc. Berkeley as did i. Welcome alessandro i'm mark. Thanks for having me on the show. It's to be here they. How'd you get into pricing in the first place. Yeah we all have Have a story That we can tell and it's always interesting to know how we kind of entered into this adventure now. The first touch boy was of course during studies microeconomics on the train. Sort of a communist. Of course you get the standard pricing approach the supply and demand things there but the real id say management world touch point with pricing. Ause my first job which was at a skippy. and since then this s- topic while yeah caught my attention and all in topic. So that's that's the that's the story. So why do you stay. You're all in but why it's I think prices. In general. They i once i think once read wasn't article into quote woes welded the central hinges of the economy so the price at the end of the day clears markets. Price is something that you feel as a consumer immediately. it's sometimes pain and sometimes pleasure. So it has the behavioral component and yet. That's i think that's. That's what makes prices annual dealing with. I sing quite fascinating for me. At least so. I'll buy into the fact that it touches almost everything so it's so powerful and yet i love the fact that so few people understand it and which means that when we can advise them we can have huge impacts in their lives and their businesses. So definitely i that nice. So you got a phd in business history. I have never heard of that before. And then you went to work for escapee. How did a phd in business history. Help you in escapee while it helps out first of all from the let's say methodological perspective you know learning the same more scientific tools and techniques. So it really does help in then tackling all those pressing questions. that of course should be tackled from. Let's say a more profound way. Okay so i always go the fundamental way when it comes to pricing so it helps you know to to have the tools and techniques sort of this research perspective had so definitely helped while just on a side note when when i talked to my escape you partners because i actually did the phd wild being escapees. So they kind of allowed me on sabbatical end. When when i talk project say while hd and has a history component. Yeah i I i saw some some question marks there say well how does that now. Kind of translate into our everyday business and dan. I think at the end. The research the businesses. Phd helps you to understand. Probably the president and also get sort of a a hint on what will come eventually in the future and so is it a quantitative phd when you do business history. you're still doing a bunch of stats and quantitative research and things like that. Yeah while you can do both ways. You can approach both waist. Now what i did actually is i. I went into historical archives. So i really dig deep into the documents from the. Let's say early seventeenth century and had to research him and had to read them and had to understand how much let's say executive spec at that time decided on pricing pricing strategies. Of course you can do to quantitative approach. You need to have the data said so you need to have some numbers eventually for that period in history. It's already like a jackpot. Having documents at all so the point here was really to understand the decision making at that time. So it's a more qualitative. Approach the

Coming up next