Our vision is of a world in which all businesses reach their fullest potential and become the best version of themselves.
Businesses do this by:
1) Creating an engaging environment where all employees live the company mission and vision to build their community by serving their customers in their own unique way,
2) Understanding that all proper profits and returns on investment come only from improving customers’ lives by delivering products and services to them at better prices and/or higher quality than they could have had on their own,
3) Understanding the assets invested in their business and how to deploy them to maximize returns,
4) Embarking on a quest of value maximization by maturing the organization (reducing company specific risk), implementing scale-able business processes, team alignment and a methodical road map of organic or acquisition growth, and
5) Being ready, when the time comes for ownership transition, to do so in a way that maximizes wealth to the selling owner, rewards employees for their participation in creating that value, and allows a buyer to realize the full value that has been built within the organization.
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Our vision is of a world in which all businesses reach their fullest potential and become the best version of themselves.
Businesses do this by:
1) Creating an engaging environment where all employees live the company mission and vision to build their community by serving their customers in their own unique way,
2) Understanding that all proper profits and returns on investment come only from improving customers’ lives by delivering products and services to them at better prices and/or higher quality than they could have had on their own,
3) Understanding the assets invested in their business and how to deploy them to maximize returns,
4) Embarking on a quest of value maximization by maturing the organization (reducing company specific risk), implementing scale-able business processes, team alignment and a methodical road map of organic or acquisition growth, and
5) Being ready, when the time comes for ownership transition, to do so in a way that maximizes wealth to the selling owner, rewards employees for their participation in creating that value, and allows a buyer to realize the full value that has been built within the organization.
Episode 91: Pricing Strategy to Optimize Success – Part 1
Emerge Dynamics Podcast
25 minutes 26 seconds
1 week ago
Episode 91: Pricing Strategy to Optimize Success – Part 1
Welcome to the first episode of Emerge Dynamics, the podcast for managers and investors in middle-market private companies worldwide. Hosts David Cusimano and Eric Wingerter launch a new series focused on one of the most critical yet misunderstood topics in business: pricing theory and pricing strategy. This episode lays the groundwork for understanding how prices are set, why they matter, and how business owners can leverage pricing as a powerful tool for profitability and growth.
Main Topics Covered:
* Introduction to Emerge Dynamics and its mission
* Why pricing matters for business value and profitability
* Pricing theory vs. pricing strategy: understanding the “why” and the “how”
* Price as a signal, not just a number (Ludwig von Mises quote)
* Market dynamics and price setting (cost-plus pricing, market examples)
* The invisible hand and market signals (Adam Smith, government price controls)
* Marginal payers and market clearing (Böhm-Bawerk, horse auction example)
* Subjective value and ethics in pricing
* The dynamic nature of prices and market size impact
* Practical applications for business owners (M&A, product pricing)
Key Takeaways:
* Adopt a “price as signal” mindset—every price is a signal of value.
* Experiment and gather data: try changing a product’s price and observe the results.
* Beware of over-reliance on cost-plus pricing; focus on value.
* Understand the role of marginal buyers and sellers in price setting.
* Recognize the subjectivity and ethical considerations in pricing.
Notable Quotes:
* “Price is not a number you set. It’s a signal you read.” – Ludwig von Mises
* “Good managers have to set prices according to market conditions.”
* “Each individual player in the market has a subjective value. This is going to play into how we start implementing pricing strategy in our next episodes.”
* “If nothing changes when you raise your price, you may have more pricing power than you think.”
Action Items & Listener Challenge:
* Try changing the price of a low-risk product and observe the results.
* Share your experiences with the hosts at podcast@emergedynamics.com for a chance to be featured in a future episode.
What’s Next:The next episode will dive deeper into actionable pricing strategies, building on the theory discussed here.
Connect with Us:Email: podcast@emergedynamics.com
Thank you for listening to Emerge Dynamics! If you enjoyed this episode, please subscribe and share your feedback. Stay tuned for more insights on pricing and business strategy.
Emerge Dynamics Podcast
Our vision is of a world in which all businesses reach their fullest potential and become the best version of themselves.
Businesses do this by:
1) Creating an engaging environment where all employees live the company mission and vision to build their community by serving their customers in their own unique way,
2) Understanding that all proper profits and returns on investment come only from improving customers’ lives by delivering products and services to them at better prices and/or higher quality than they could have had on their own,
3) Understanding the assets invested in their business and how to deploy them to maximize returns,
4) Embarking on a quest of value maximization by maturing the organization (reducing company specific risk), implementing scale-able business processes, team alignment and a methodical road map of organic or acquisition growth, and
5) Being ready, when the time comes for ownership transition, to do so in a way that maximizes wealth to the selling owner, rewards employees for their participation in creating that value, and allows a buyer to realize the full value that has been built within the organization.
