Jean-Manuel Izaret, the Managing Director & Senior Partner at Boston Consulting Group, and author of Game Changer: How Strategic Pricing Shapes Businesses, Markets, and Society
Often sidelined in strategic conversations, pricing is, in fact, a linchpin in shaping business landscapes and driving social innovation. Jean-Manuel Izaret from the Boston Consulting Group unveils this transformative force, demonstrating that pricing extends far beyond mere numbers—it’s a catalyst for change.
Elevating Pricing in Strategic Discourse
Imagine a world where pricing isn’t the last checkbox but the first. “Pricing is foundational,” Izaret asserts, advocating for its early integration in strategic planning. This shift can ripple through every aspect of business, from product design to market penetration and competitive differentiation, ultimately influencing societal trends and priorities.
Disruptive Pricing: More Than Just Numbers
The narrative of pricing unfolds across various sectors, showcasing its role as a disruptor. From Uber’s ride-sharing revolution to Airbnb’s redefinition of accommodation, pricing strategies have shattered traditional models, crafting new consumer expectations and market realities. Izaret’s experiences highlight how pricing can engineer industrywide transformations, emphasizing, “It’s not just about adjustment; it’s about innovation.”
Mission-Driven Pricing: A Tool for Nonprofits
Nonprofit organizations stand at a crossroads where pricing strategies can amplify their impact or undermine their reach. Izaret sheds light on this delicate balancing act, suggesting adaptive models that harmonize with nonprofit missions while ensuring sustainability. For example, tiered donation systems and sliding scale fees can democratize access to services, reflecting a commitment to inclusivity and engagement.
From Apple to Healthcare: Pricing as a Game-Changer
Echoing lessons from Apple’s strategic pricing of the iPod, Izaret points to the potential for cross-sector application. He envisions a healthcare system inspired by the ‘Netflix model,’ where subscription pricing democratizes access to care, offering a stable, predictable framework for both providers and patients. This approach, he argues, could revolutionize patient experience and outcomes, particularly in managing chronic conditions or accessing high-cost treatments.
Conclusion: Pricing as a Force for Good
In weaving together insights from diverse realms, from tech giants to healthcare innovators, this conversation with Izaret reaffirms pricing’s multifaceted role. It’s not just a business tool; it’s a societal lever, poised to shape futures and forge new paths. As businesses and nonprofits alike grapple with the complexities of the modern world, embracing strategic pricing could be key to unlocking success and driving meaningful change.
To listen to the full interview or read the transcript, just click here.
Denver Frederick, Host of The Business of Giving serves as a Trusted Advisor and Executive Coach to Nonprofit Leaders. His Book, The Business of Giving: New Best Practices for Nonprofit and Philanthropic Leaders in an Uncertain World, is available now on Amazon and Barnes & Noble.