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Well, all right. 
Thank you all so much for tuning

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in and joining us for another 
PPS podcast. 

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We have a very special guest 
with us today. 

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His name is Frederico Zornig. 
He's actually going to be one of

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our guest speakers that are 
upcoming Atlanta conference this

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October, October 10th through 
the 13th. 

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To be specific for our Atlanta 
conference Fall conference, very

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excited to have you today. 
Frederico, how are you doing 

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today? 
I'm doing fine, Terence. 

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Thanks for the invitation. 
Good. 

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Absolutely. 
I'm glad you're here with us. 

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Now you're gonna be speaking 
with us about a complete pricing

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journey. 
That's what today's topic is 

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about. 
If you don't mind, go ahead and 

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elaborate on what this is gonna 
be about and why this excites 

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you. 
Sure. 

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Actually we are going to bring a
very broad perspective in terms 

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of pricing. 
We are going to discuss. 

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The prices strategies that we 
might think about, usually 

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people are always thinking of 
premium price or low price and 

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definitely we have to go beyond 
that. 

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We have to think about product 
life cycle, we have to think 

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about short term and long term 
pricing. 

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What does that mean in terms of 
strategy? 

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We also have to think about our 
prices if you're going to be. 

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Publishing those prices to the 
consumer or to your customers or

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if you're going to negotiate 
those prices. 

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So for each and every decisions 
that you have to make regarding 

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to your prices strategy, there 
are outcomes that you have to 

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think about on how you're going 
to manage those. 

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So that's the first step then we
are going to think about 

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customer segmentation. 
Definitely, most companies do 

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that. 
But usually what I have found is

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that companies are segmenting 
their customers based on 

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characteristics of that 
customers. 

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What I'm saying, oh, those are 
the distributors and those are 

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the retailers or those are my 
customers that are doing 

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business with me for a long term
or something like that. 

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And we want to go a little bit 
beyond that thinking about 

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customer behavior. 
And what I'm saying about 

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customer behavior is that you 
might. 

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Find on your database customers 
that are really loyal to your 

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business and they're paying 
higher price than average and 

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they're coming back every month 
for every week for some 

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purchases. 
And thinking about this 

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direction, you may identify 
different types of customers and

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how they behave to your company.
And that's the idea about 

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customer segmentation that 
you're going to bring. 

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Next steps going to be how you 
define your prices. 

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So we are talking about pricing 
methods here. 

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Definitely many companies are 
using the standard method which 

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is the cost plus. 
So they figure out how much it 

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costs to buy or to manufacture 
their goods or services and then

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they estimate a profit that they
want to make and you have your 

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price set. 
But the idea is to go beyond 

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that as well, so. 
We are going to bring approaches

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like value based pricing, how we
can really identify what are the

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value drivers that you are 
offering if you have 

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differential value to capture 
into the market. 

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And we are going to show a 
little bit on how we do that, 

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examples, cases that we have 
implemented successfully, new 

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approaches to capture value in 
the market through pricing 

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methods. 
Well, with pricing methods, 

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you're going to define your 
price list. 

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But that's not enough. 
So we have to go one step 

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further, which we call 
commercial policies. 

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And by commercial policies, what
do we wonder that what we 

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understand about that is the 
incentives or discounts or how 

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we are going to negotiate your 
prices if your prices are 

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negotiated into the market. 
And to think about that, you 

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have to also link your 
commercial policy to your 

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strategy. 
What I'm saying here, let's say 

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you want to. 
To increment the frequency of 

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purchases of your customers, 
let's say that that's important 

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for you to increase loyalty or 
to have more interactions to 

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your customer. 
So can you think about an 

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incentive that every time your 
customer's coming back, they're 

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getting a better deal, a bigger 
discount or something like that?

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What can you make in terms of 
incentives to change customer 

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behavior? 
And that's what we are going to 

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explain how we can create. 
Really strategic commercial 

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policies that can influence your
customer behavior and it's going

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to be a win, win situation 
rather than just a price 

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negotiation which is a 0 sum 
game. 

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Every dollar that I give to you,
let's say that I'm the seller, 

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you are the buyer, every dollar 
I give to you, I'm losing. 

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So that's what we call a 0 sum 
game. 

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It's every dollar I give you, 
I'm losing $1.00. 

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So you're going to? 
Change that scope and try to 

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create ways of both of us to win
a win, win situation, you know, 

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so that's the idea on commercial
policies then we are going to 

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move to price elasticity, that's
a very hot topic. 

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So it's important for companies 
to understand how sensitive are 

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their products and services in 
terms of price. 

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So we are going to bring 
concepts like pricing power and 

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actually we are going to show. 
Some methods that we use to 

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estimate price elasticity. 
There are many alternatives out 

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there. 
You can use variation of volume 

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against variation of price. 
This is the simplest one, but we

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are going to go beyond that. 
We are going to show some 

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methods that we use in our 
projects to illustrate how you 

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can estimate price elasticity. 
With that information what you 

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can do, you can try to go 
towards price optimization, 

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which is the next topic. 
So how can we manage a more 

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volatile market condition really
changing prices in a more 

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frequently away. 
So that's the idea here to to 

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bring the price application 
piece to the session as well. 

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We are also going to show some 
of the methods we use in 

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developing our projects in that 
direction. 

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And finally, we are going to 
mention about price 

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implementation, governance and 
how you change the change 

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management to to make. 
That possible, I mean people are

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very resistant in terms of 
changing behavior. 

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They believe what they do is 
correct. 

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That's the way they have been 
doing for a long time. 

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So the idea here is also to show
some examples on how it can make

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people jump in in terms of price
management or price strategic 

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management if you will. 
That's the idea of the 

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recession. 
Yes, sure, sure. 

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You give us a lot there, which 
is great. 

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You're going to have a very 
interesting jam packed session 

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when you do visit us in Atlanta 
and you're covering a number of 

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topics related to this whole 
concept of the complete pricing 

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journey. 
Now is it okay if I ask you 

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specific questions, maybe one or
two of about each kind of 

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component? 
You mentioned best pricing 

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strategies. 
Is there something similar like 

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a best pricing strategy? 
Well, that's a great question. 

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It's really depends on your 
business. 

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So there is no solution that 
it's going to fit for every 

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company. 
So the best pricing strategy I 

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would say is the one that fits 
your objectives of your 

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business. 
So you have to take into 

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consideration many aspects 
before you define your price 

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strategy. 
Definitely you have to start 

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with what your company is. 
What you are looking for? 

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Are you the? 
Volume leader of your market or 

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are you a niche player where 
premium price is more important 

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for you, but that's just the 
basics. 

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And then you have to go to check
very different aspects of your 

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strategy before you say, yes, 
that's the right strategy for 

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me. 
Another piece is that you may 

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have different strategies for 
different products, for 

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different channels, for 
different regions and that's the

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beauty of a pricing strategy. 
The more fragmented you make it,

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the better it is. 
That's our strong recommendation

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to really go further on that, 
not have one, just one price 

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strategy for the entire business
or your product line. 

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You have to segment your price 
strategy as well. 

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Good, good. 
OK. 

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So so just kind of having an 
open strategy and this, this and

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you know pricing strategies can 
work for all different 

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industries according to 
yourself, which is good. 

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So just being intentional about 
building that is what's gonna 

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help you go, in your words, 
beyond and go further than I 

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would suppose the average 
company would. 

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Now you also mentioned customer 
segmentation. 

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How should companies segment its
customers and its clients? 

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Well, good question. 
I mentioned a little bit about 

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it when I was explaining the 
complete pricing. 

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Yeah, you do. 
But the idea here is. 

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To go beyond just the 
characteristic of your customer,

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like if you're thinking about 
the consumer, you're not just 

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saying that's a male female that
certain age, no you. 

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Okay, you can do that, but have 
to go beyond that, have to think

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about how they relate their 
relationship with your company. 

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So are they loyal customers? 
Are they customers that are just

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coming to My, My store to buy on
promotion? 

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The same thing for the B2B site.
Oh, those are distributors, 

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those are retailers, Those are 
large accounts what have you. 

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But then again inside each and 
every profile that you may 

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segment, you may have different.
Behaviors you may have like a 

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very clear example, we're 
working with a company that one 

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of their segments was large 
retailers, but inside that we 

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have large retailers that were 
very loyal to the company that 

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we're working with. 
On the other side of the 

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spectrum, we have customers that
were just buying when we were 

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making very strong discount on 
our products. 

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So completely different. 
Buying behaviors from our 

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company, even though they were 
all the same segment in terms of

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characteristics of the business.
So the idea here is really to 

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understand customer behavior and
you you should segment based on 

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that and then create commercial 
policies for each and every 

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segment based on their behaviors
and not more towards their 

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characteristics. 
That's the idea of the concept 

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here. 
OK, good, OK, interesting. 

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Now there's a lot of different 
components to your speaking 

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engagement and you covered a lot
of that in the when we were 

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discussing this as our 
introduction. 

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Moving into this conversation 
today, I want to ask you one 

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more question about one of the 
components of your speaking 

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engagement. 
If they want to ask another 

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question that's more so 
specifically pertaining to 

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yourself. 
But before I get there, when it 

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comes to value based pricing, is
this a strategy that's supposed 

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to work for everybody? 
That's a great question. 

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I would say it's not for 
everyone. 

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It depends on how much 
differentiation you have when 

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you compare it to the next best 
alternative in the market. 

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So there are different steps 
here. 

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The first one is do I have? 
Differentiation against what the

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marketing is offering and by the
market is offering, you usually 

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have to go to what is the next 
best alternative of my product 

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or my service. 
And then you have to be very 

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frank and honest and see if 
there is any differentiation. 

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If so, and if it's important, 
then you may be able to really 

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capture value and go to value 
based pricing. 

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Otherwise, I don't feel that 
that's the best way or the best 

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pricing method for you to follow
because you're going to be 

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frustrated. 
You may spend a lot of time 

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trying to to show value to the 
customer, but if that's not the 

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case, it's impossible to go in 
that direction. 

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So I have seen many companies 
getting frustrated out of that 

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because there's actives believe 
that their products were better 

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or they were performing a little
better. 

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But if that's not the issue for 
the consumer or the customer if 

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it's a B2B company? 
There's no value and you cannot 

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go into that direction. 
So it depends and we are going 

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to discuss when it's, I mean 
when a company is able to really

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implement a full value based 
pricing approach and when it's a

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waste of time and money for the 
company to try to do so sure, 

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Okay. 
So value based pricing is not 

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one of those one fit only fit 
like a glove for everybody and 

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every different company out 
there. 

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So yeah, so you're gonna have a 
lot of different components 

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about the best pricing strategy,
customer segmentation, value 

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based pricing, commercial 
properties, price elasticity and

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of course price optimization 
approaches. 

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So you're gonna be covering a 
lot of ground and you're 

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speaking engagement your 
speaking session during this 

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fall conference. 
Now I want to mention this, you 

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were with us in our spring 
conference when we were in 

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Dallas, TX back in May of 2023. 
What are you most excited about 

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for this upcoming conference? 
Well. 

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I had a great time in Dallas. 
The room was full. 

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I think they had. 40 people. 
I think you remember that. 

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I was really pleasantly 
surprised with the audience that

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we got there. 
I hope to see as many people as 

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or even more people in Atlanta. 
What I really got excited was 

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actually the questions that were
made. 

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People are very engaged in my 
session. 

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They brought very good points. 
So we were able to exchange 

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knowledge and that was really 
rich I think for everyone that 

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was in the room. 
So I do expect to have a large 

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audience at the end and then 
good discussions out of the 

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session. 
So that's my expectation. 

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Good, good. 
Yeah, you were one of the more 

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popular speakers last spring and
we were very excited for you. 

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And So what I don't see that 
being any different this 

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upcoming fall for your, for your
speaking engagement. 

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So very excited to have you now.
One more thing for the listeners

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today, if those are there are 
people listening who are 

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interested in learning more 
about the complete pricing 

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journey, learning more about 
Frederico Zornig and you know 

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your your background, your 
expertise. 

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How can they find out, or 
discover you know any of your 

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resources or just learn more 
about you in general? 

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Good. 
Well, we have recently opened an

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office in the US if you want to 
check our website 

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isquantisinternational.com. 
So in there you're going to see 

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our contacts in the US, you have
my e-mail, my phone number and 

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you're ready to. 
It would be a pleasure to talk 

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to you or some of you that want 
to go further with us. 

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So sure. 
Thank you. 

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Also on social media. 
I think you are on LinkedIn as 

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well. 
Yes, I am at on LinkedIn. 

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My profile is F Zornig, so my 
first name initial and my last 

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name. 
You can find me there as well. 

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Sure Okay sounds good. 
Qantas International or 

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LinkedIn? 
Verrico Zornig, it was a 

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pleasure to speak with you 
today. 

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Good Sir, we can't wait to see 
you in Atlanta, GA. 

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For those who are interested in 
the conference, you can visit 

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our website pricessociety.com 
and go to the conference tab to 

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learn more about purchasing your
ticket for this, this fall, this

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fall gathering. 
Very excited for it. 

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Until next time, you all have a 
very safe day. 

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Bye, bye.