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Well, hello and thank you all so
much for yet another 

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professional Pricing Society 
podcast and joining us for 

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today's discussion. 
My name is Terrence and we have 

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a great conversation ahead of 
us. 

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Today we have George Garza, he's
a strategic consultant at an 

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amazing company called Pros, who
by the way will be at our 

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Atlanta conference this upcoming
fall, October 10th through the 

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13th. 
And they are a long time PPS 

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sponsor, so we're excited to see
them yet again. 

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George is gonna be speaking with
us about pricing as a team 

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sport. 
George, how you doing today? 

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I'm great. 
Thank you. 

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How are you doing well, doing 
awesome. 

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Glad to have you here. 
Glad to. 

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It's a nice, bright morning 
today over on my side of town. 

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I'm actually based in Atlanta 
right now. 

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I'm not sure if you guys are. 
Where are you guys based out of?

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I'm here in Houston, Houston. 
Nice. 

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Is it hot over there like it is 
in Atlanta? 

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Yeah, okay. 
Cool. 

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Cool. 
We'll go ahead and dive into 

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this conversation. 
I wanted to ask you first, you 

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know, what's the significance of
digital transformations when you

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think about today's business 
landscape? 

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Yeah. 
So when you think about today's 

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business landscape, right, 
especially like in a post COVID 

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world, a lot of companies are 
looking to rein in their 

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pricing. 
Right. 

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There's a lot of dynamic 
conditions now. 

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They want to achieve pricing 
parity across their different 

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business channels, increased 
profits, right, gain market 

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share, bringing new customers. 
But you really saw a lot of 

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companies weren't able to react 
fast enough with their current 

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systems during COVID, right when
all those changes happen and 

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then afterwards, right. 
So companies are looking to move

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toward a towards a more 
frictionless, seamless and 

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digital experience throughout 
their entire organization. 

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Nice, nice, OK, which makes 
sense. 

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I mean that's kind of the way 
the future is taking us now. 

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When when you think about the 
path of digital transformations,

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what does it typically look 
like? 

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Or what should someone who has 
is not familiar? 

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What should they expect to 
encounter? 

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Yeah. 
So on that, on that path right 

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there, there's a series of steps
as as we like to think of it, 

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right, it's a pricing, pricing 
journey and so. 

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Most customers, right, There's 
the first phase and there's the 

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idea of reactive pricing. 
And that's when a customer is 

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working out of Excel 
spreadsheets or companies 

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working out of Excel 
spreadsheets, right. 

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They're very reactive on their 
pricing. 

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They don't, they they can't be 
proactive and strategic. 

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And then so you think of the 
next step beyond that okay, how 

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do I grow, how do I get better? 
And that's where you do the 

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initial price management. 
So you start to apply some 

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rules, some constraints, some 
methodology into how you're 

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pricing. 
And so now you have more of a 

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structure. 
After that, as you grow in your 

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journey towards that maturity 
model, you introduced the idea 

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of price guidance, right. 
And so this is you know would be

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like a I powered price 
optimization where you're 

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looking at your customers and 
their willingness to pay and how

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you can use that to help your 
sales team and your pricing 

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teams strategize and execute on 
pricing. 

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And then after that you can move
into the idea of integrated 

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ecommerce, right, so. 
Now you can bring in your 

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ecommerce platform ensuring that
your, your price is holistic 

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throughout your entire business 
and which leads us to the final 

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step of Omni channel 
optimization. 

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And so now all of your business,
it's in harmony in terms of how 

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the pricing is executed, right. 
You've got the different silos 

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all working together to ensure 
that the execution of that price

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is is, is, is powerful and and 
consistent. 

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Yeah, that's a lot of pathways 
to travel to make sure 

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everything is all synced and you
know, kind of flowing together 

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in unison. 
Who Who makes this possible? 

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You know, how does it happen? 
Who makes this possible? 

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Yeah, I know that that's a 
really good question. 

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I mean, when you think about 
pricing, you think about these 

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digital transformations, right? 
Everyone's first thought is, oh,

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it's just a pricing team, but 
that's not necessarily true, 

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right, because in any kind of 
digital transformation. 

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You're going to have at least 
five key functional areas that 

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are going to be most affected by
pricing. 

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And of course, the 1st is 
pricing, the 2nd is the sales 

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team. 
Then you have the executive 

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team, the finance team, and then
your IT team, right? 

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And so alignment across these 
different stakeholders is key 

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and critical, right, in order to
make sure that the project is a 

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is a success and that, you know,
everything can work seamlessly. 

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Okay. 
Yeah, that makes sense. 

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That's a lot of different 
departments to make everything 

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work seamlessly, which, you 
know, it takes a lot of minds, a

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lot of hands to make everything 
kind of flow smoothly, 

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especially in regards to 
pricing. 

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You know, why Is it important 
for organizations really in any 

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kind of industry to consider 
these different 5 essentially 

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slices of the pie when thinking 
about digital transformation? 

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Yeah, No. 
That's, that's an excellent 

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question, Terrence. 
And so if you think about it, 

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pricing is one of the most 
important decisions a business 

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can make, right. 
And it's going to have a 

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significant impact on 
profitability, market share, 

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customer satisfaction, it's 
going to, you know, impact your 

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overall revenue, your 
integrations as an IT team. 

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So at the end of the day, if all
of these five slices are 

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considered, you'll have a higher
chance of success on your 

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transformation and you'll have 
buying and adoption from from 

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the entire organization, Okay 
good, which makes perfect sense.

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Now when you think about these 
pricing pathways and just five 

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slices, these five different 
departments coming together to 

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make everything flow smoothly in
unison, what are some of the 

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most common pricing mistakes 
that businesses often, you know,

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find themselves in or they tend 
to make? 

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No. 
So that's a good question, 

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Terrence, right. 
So the most common pricing 

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mistakes that you know 
businesses can make, I'd say the

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first one. 
Is siloing where they're not 

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working together with those 
other slices of the pie, right, 

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because that's going to lead to 
reduced adoption and decrease 

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the the odds of success for this
transformation. 

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All right. 
And then the the second one 

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would be to consider the 
importance of IT when making 

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these decisions, right, because 
they're the ones that are going 

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to have to own the product at 
the end of the day. 

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So you want to make sure that 
they're bought in, they 

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understand what's at stake, 
who's going to, you know, own 

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what that way. 
You have everything you need to 

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ensure the pipes are clean to 
get the data to have accurate 

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pricing. 
That's interesting from the IT 

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aspect. 
I have a question I want to ask 

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about the IT aspect, but before 
I ask that I have one more, I 

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want to kind of ask that's still
related to the digital 

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transformations. 
And in this realm, how can 

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pricing help to optimize the 
organization's revenue and 

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margins and essentially their 
centric pricing process? 

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So pricing can help because 
first you want to determine 

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right, what the right price, 
right price for the right 

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product is. 
And so if you don't have the 

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proper data to make those 
decisions, then you're putting a

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lot of guesswork with your 
pricing. 

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And if you aren't intelligent 
with those pricing decisions, 

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then you could be leaving a lot 
of money on the table right when

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you think about pricing. 
There's a lot of factors that go

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in if I have a glass of water, 
right? 

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And and you know, I'm like, hey 
Terrance, or I got a bottle of 

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water, right? 
I'm gonna sell to you right now.

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What would you pay for it for a 
bottle of water? 

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Yeah, right now, now we're 
talking regular prices or 

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airport prices, regular prices. 
Yeah, $200.00, Two or three 

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bucks. 
Exactly. 

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OK, it's 110 outside and you 
know, we've been hiking for, you

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know, six hours and you haven't 
had water. 

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How much would you pay for that?
I pay more if I feel like I need

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it. 
I'll pay more, yes. 

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I wouldn't deprive you of water 
in that situation. 

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So I just give it to you. 
But that's a good point. 

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Yeah, the idea is that people, 
there's different factors that 

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go into the perceived value or 
what people are willing to pay 

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or customers are willing to pay 
for anything, right. 

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So if you think about that 
right, you have the right data. 

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You now have a system that can 
use, you know, a I and machine 

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learning to optimize the pricing
and not necessarily say this is 

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the only price it's going to be.
But hey, here's a range of, you 

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know how, you know what, what's 
possible in the price, right? 

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And here's your success on that 
price then that can help you 

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have a better understanding of 
what's going to impact your 

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revenue and margin. 
That's good. 

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That makes a lot of sense and 
the analogy kind of puts it into

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perspective as well. 
You know, if you feel like you 

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hiking prices makes more sense 
if people are in a more demand 

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of whatever the product or 
services. 

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I mean or or you know very real 
situation which you brought up, 

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which is the airport you. 
Go through the security line. 

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You don't have water anymore. 
It's like, exactly. 

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Yeah. 
And I'm out. 

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I'm based out of Atlanta, so we 
have Hartsfield Jackson which is

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one of the busiest and the most 
populated. 

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So the prices over there are a 
little bit different than some 

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other airports. 
I would, I would say I want to 

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steer the question over towards 
regarding the IT department. 

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You know obviously the IT team 
is responsible for providing the

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technology and data that a 
pricing team needs to make 

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informed decisions. 
What are some of the key IT 

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considerations for digital 
transformation? 

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You kind of alluded to it a 
little earlier in the 

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conversation, but because you 
brought that once before, I want

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to kind of switch gears from the
pricing aspect and kind of move 

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it towards it aspect, yeah. 
So that's a good question, 

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Terrence. 
So ultimately, right, the IT you

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want them to ensure that the 
organization's data is secure 

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and compliant, right? 
And then you know as I stated 

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earlier, they want to consider 
the overall systems 

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architecture. 
So how our price is going to get

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from the pricing team to the 
sales team? 

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How are the analytics going to 
get from pricing to finance? 

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How can the executive team get a
view? 

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An understanding of everything 
that's happening with those 

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other slices of the pie and 
that's what comes down to that 

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systems architecture. 
Cool. 

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So the five slices of the pile, 
the pricing team, the sales 

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team, executive team, finance 
and the IT team. 

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I wanna ask you a bit of off 
script question. 

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I wanna ask you this question as
well. 

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Who takes the reins? 
Where does the conversation 

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begin when considering changes 
in pricing, Considering things 

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like inflation, pricing, trends,
who starts the conversation 

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amongst these these five 
different departments? 

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Yeah, it could come from the 
scenarios that you give. 

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You can come from primarily like
the pricing team, the executive 

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team sometimes financed. 
It could come from the sales 

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team, right? 
Where they wanna, what they 

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wanna increase their sales, 
right? 

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And starts from there and how? 
What can we do to be more 

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competitive with pricing, But 
typically it'll be the executive

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in, in context of pricing, it'll
be the executive team or the 

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pricing team whether it's sales 
that originates the that pursuit

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or it's a pricing team. 
They're both going to have to 

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come together in in that 
decision ultimately. 

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So and the executive team, right
they they want to, they have a 

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strategy, they have a vision, 
they have a direction they want 

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to go and so okay. 
We want to execute and achieve a

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certain amount of margin within 
you know the next three to four 

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years for instance or for five 
years. 

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Great. 
Well, how do you do that? 

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That's that's the next question.
So the how will come down to the

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pricing, how are we pricing 
today, how often are we changing

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prices? 
You know, are we able to incur 

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costing data into our pricing 
and and execute on as quickly as

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possible, right. 
So that's where the pricing team

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will come in and start. 
Looking at how they can be 

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better at pricing and be faster.
And then of course you know I'd 

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mentioned sales. 
Sales will then be the ones that

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have to go out to the market and
say all right, this is what 

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we're offering at this price, 
yes or no. 

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And if there's negotiation 
involved right then that then 

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you want to know how far can you
go in either direction, right 

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when it's the the, the the 
where, where's your floor, 

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where's your, your, your expert 
price, right? 

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Things like that. 
So okay. 

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So essentially it can come from 
almost any direction. 

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It's situational, what it sounds
like. 

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It is. 
You did break it down. 

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If it's from especially like the
how, how we're gonna how we're 

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gonna communicate this price to 
our customers, how are we gonna 

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make this shift and make it 
reasonable and smooth. 

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So it's I'm glad you broke it 
down in the way you did cuz it 

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really can't come from any 
direction. 

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Cool, nice. 
So George Garza everybody, 

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Strategic Consultant for PROS, 
want to thank you so much for 

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your time today. 
Good Sir. 

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Friendly reminder, Pros will be 
at our Fall Conference in 

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October, October 10th through 
the 13th in Atlanta, GA Now one 

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more question for for you 
George, before I let you go, 

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where can listeners go to learn 
more about the different 

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00:13:21,440 --> 00:13:25,880
resources you know you or pros 
have to offer or just to learn 

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00:13:25,880 --> 00:13:30,290
more about you all in general? 
Just head on over to pros.com, 

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pros.com and we've got a number 
of assets and resources there 

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for people to get to know more 
about what we do. 

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Okay, cool. 
Sounds good. 

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00:13:40,450 --> 00:13:42,530
Well, thank you so much for your
time today, good Sir, and until 

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00:13:42,530 --> 00:13:44,050
next time, we will speak to you 
all later.