#267 - Sebastian Baier, CEO, Buynomics - on getting pricing right

This podcast interview focuses on product innovation that powers businesses to accurately answer the question: What will customers buy? My guest is Sebastian Baier, Founder, and CEO of Buynomics.Sebastian is a tech entrepreneur on a mission. He was a Director with Simon-Kucher & Partners, where I worked with leading international companies on pricing and portfolio structure. That's where the idea sparked for Buynomics.In July 2018, he co-founded Buynomics. Buynomics employs large-scale simulation technologies to digitize customers and predict their behavior. Their mission: to enable companies to answer all their market-facing questions, including pricing, product offers, and promotions.And this inspired me, and hence I invited Sebastian to my podcast. We explore why it is so hard to get pricing right. And then Sebastian digs into the different ways we have to approach it and why. He shares his first principles when it comes to product development and elaborates on what he learned from initially going to market with far too broad segmentation. Last but not least, he shares a do and a don't based on what he learned in the last 5 years.Here's one of his quotes:Key questions about revenue management are always the same. They're the same if you're Coca-Cola or if you're running a lemonade stand. But they are extremely hard to answer. What is the right price? What is the right promotion? And they have a gigantic impact. What makes it really difficult to think about it is one thing and one thing only: You don't know how your customers will react.During this interview, you will learn four things:His take on building a category-defining product What rules to apply before considering building a partner channelHis lessons learned from niching down towards the optimumWhy he didn't follow the guidance from VC and expert consultants to embrace a more aggressive go-to-market motionFor more information about the guest from this week:Sebastian BaierWebsite: Buynomics