Episodios

  • Episode 92: Pricing Strategy For Success – Part 2

    Episode 92: Pricing Strategy For Success – Part 2
    Jan 8 2026
    Episode Overview In this second episode of the pricing series, hosts David and Eric bridge from pricing theory into practical strategy and application. They explore the critical differences between cost-plus and value-based pricing, discuss price elasticity, and provide actionable frameworks for optimizing pricing in middle-market private companies. Key Topics Covered 1. Marginal Buyer Theory Recap The last buyer-seller transaction indicates market pricing potentialPrices function as market signals about resource valueIgnoring the marginal buyer leaves money on the table 2. Price Elasticity of Demand High Elasticity: Small price changes cause significant market share loss (e.g., hotdog industry – one penny change = major impact)Low Elasticity: Price changes have minimal impact on customer retentionRevenue optimization: Selling at 2x price with only 5% customer loss increases overall revenue and profit 3. Cost-Plus Pricing When It Makes Sense: Regulated industries (utilities, government contracts)Commoditized productsNew product launches (to establish break-even baseline) How to Calculate: Add all direct costs (materials, labor, freight)Allocate indirect costs (rent, depreciation, admin)Calculate total unit costApply markup based on contract requirements or industry standards Limitations: Focuses energy on cost side, not demand sideMisses shifts in market dynamics and pricing powerLeaves value on the table from marginal payersDoesn’t account for subjective customer value 4. Value-Based Pricing Core Principle: Maximize profitability by capturing the value created for customers Implementation Steps: Identify the specific problem your product/service solvesQuantify the cost of the problem to your customer Lost salesProduction inefficienciesHigher operational costs Calculate economic value created What would alternative solutions cost?What’s the total economic benefit? Set pricing below total value to ensure customer benefit Example: If your solution creates $100K/year in valuePricing at $100K = customer breaks evenPricing below $100K = customer realizes net benefitConsider multi-year value (Year 1: break-even, Year 2+: 100% profit to customer) 5. Pricing Optimization Strategies For Established Businesses: Run pricing experiments to optimize revenue and profitTest different price points carefully (consider elasticity)Create multiple proposal versions with different pricingDifferentiate by geography or market segmentTrack conversion rates and customer response Key Insight: Value pricing aligns your interests with customer interests – if you’re not bringing value, you shouldn’t be in business together. Action Items for Listeners Complete the homework from Episode 1 analyze your data using marginal buyer theory Quantify the economic value your product/service creates for customersCalculate what alternative solutions would cost your customersBegin pricing experiments in your business (if appropriate for your industry)Prepare for Episode 3 Coming Up Next Hourly pricing vs. value-based pricing for servicesComprehensive pricing strategy frameworkPutting all the pricing concepts together Key Quotes “A price is not something you set, even though yes, you do set them, it’s more of a signal of what the market is saying about the value of certain resources.” “Value pricing always aligns ourselves to the interest of the customer and the client. If we’re not bringing them value, then what the heck are we doing?” “When all of your pricing energy is going to the cost side, you’re paying less attention to the demand side.” Resources Episode 1: Pricing Theory & Marginal Buyer ConceptEconomist referenced: Ludwig von Mises
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    20 m
  • Episode 91: Pricing Strategy to Optimize Success – Part 1

    Episode 91: Pricing Strategy to Optimize Success – Part 1
    Nov 18 2025

    David and Eric 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:

    • 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 (wisdom from Ludwig von Mises)
    • 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:

    1. Adopt a “price as signal” mindset—every price is a signal of value.
    2. Experiment and gather data: try changing a product’s price and observe the results.
    3. Beware of over-reliance on cost-plus pricing; focus on value.
    4. Understand the role of marginal buyers and sellers in price setting.
    5. 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.
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    25 m
  • Episode 90: Something That Rarely Gets Headlines, But Quietly Builds Empires

    Episode 90: Something That Rarely Gets Headlines, But Quietly Builds Empires
    Aug 21 2025

    Summary

    In this episode of the Emerge Dynamics podcast, David and Eric discuss the critical role of operational efficiency in business success. They explore the often-overlooked tweaks in daily processes that can lead to significant growth and impact. They use just one of the numerous possible examples to demonstrate their point: The order-to-cash-cycle. The conversation covers practical steps for improving the order-to-cash cycle, identifying pain points, measuring workflow efficiency, and implementing quick wins. They emphasize the importance of testing changes and documenting improvements to ensure sustainable growth and efficiency in business operations.

    Takeaways

    -Operational efficiency is crucial for business growth.
    -Small tweaks in processes can lead to significant improvements.
    -Mapping out workflows helps identify inefficiencies.
    -Measuring the order to cash cycle is essential for cash flow management.
    -Identifying pain points can reveal opportunities for improvement.
    -Quick wins can be achieved by streamlining processes.
    -Testing changes in a pilot program is important before full implementation.
    -Documentation of processes aids in training new employees.
    -Continuous improvement is key to operational success.
    -Every business can benefit from focusing on efficiency.

    Chapters

    00:00 Introduction to Emerge Dynamics Podcast
    01:39 The Importance of Operational Efficiency
    03:05 Mapping the Order to Cash Cycle
    05:40 Identifying Pain Points in Processes
    12:00 Measuring Workflow Efficiency
    17:01 Identifying Quick Wins for Improvement
    18:15 Testing and Piloting Changes
    20:19 Documenting Improvements for Future Reference
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    24 m
  • Episode 88: Want to get more when you sell your company?

    Episode 88: Want to get more when you sell your company?
    Jul 9 2025

    Because of their recent projects, David and Eric give some updates on the current dynamics they are seeing in middle market mergers and acquisitions (M&A). They emphasize factors that influence business valuations and sale-ability. They discuss how external risks like geopolitical tensions and tariffs impact M&A, but stress the importance of focusing on controllable internal factors to maximize business value. There are key strategies for business owners to prepare for a successful exit, regardless of market conditions.

    • Over-reliance on the owner: Buyers discount businesses where the owner is too involved in daily operations, as it raises concerns about continuity post-sale. Building a strong team and processes mitigates this risk.
    • Customer and supplier concentration: High dependence on a few customers or suppliers reduces valuation. Diversification and long-term contracts help stabilize revenue streams.
    • Recurring revenue models: Businesses with predictable, recurring revenue (e.g., subscriptions or contracts) command higher valuations due to lower cash flow risk.
    • Market timing vs. controllable factors: While external conditions influence M&A activity, improving business fundamentals ensures better outcomes in any market.

    Visit us to learn more about Business Value Acceleration.
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    18 m
  • Episode 87: Know the problem you are solving or someone else will

    Episode 87: Know the problem you are solving or someone else will
    Jun 16 2025
    In this episode David and Eric focus on the importance of businesses identifying and understanding the specific problems they solve for their customers. They emphasize how this clarity drives purpose, improves marketing, and differentiates businesses in competitive markets. They also discuss the balance between passion-driven purpose and addressing real societal needs, using examples like Apple’s iPhone to illustrate innovation that meets unexpressed desires. Introduction and podcast mission: Highlighting the value of sharing insights for business owners.Core topic: The necessity of defining the problem a business solves and its impact on purpose and marketing.Purpose vs. business viability: Distinguishing between passion-driven causes and sustainable business models.Innovation and market education: Examples like the iPhone show how businesses can address unarticulated needs.Differentiation and competition: Avoiding price wars by solving unique problems and creating customer loyalty.Call to action: Encouraging listeners to engage with the podcast and suggest topics or guests. Timestamps 00:01 Emerge Dynamics: Unveiling Middle Market Champions This podcast spotlights the risk-takers and innovators in the multi-trillion dollar middle market, exploring how they outperform peers to deliver both financial returns and community impact. Through their stories, we uncover the unseen forces driving economic and social transformation. 00:38 Podcast Reunion: David and Eric Return After a brief hiatus, hosts David Cusimano and Eric reunite with palpable excitement, signaling fresh episodes ahead. Their camaraderie hints at engaging discussions to come, like old friends picking up where they left off. 00:58 Passion Over Profit: The Heart Behind Emerge Dynamics While business growth has stolen their recording time, the hosts reveal their podcast thrives on pure passion—no ads, no profits, just a shared mission to empower entrepreneurs and sprinkle wisdom like ‘nuggets’ into the world. 01:53 Current Events with a Business Twist: Upcoming Podcast Series Instead of just rehashing headlines, Eric and David are crafting a multi-episode deep dive into news that actually helps entrepreneurs make smarter decisions—because running a business isn’t about noise, it’s about actionable insights. 02:37 The Core Question Every Business Must Answer Entrepreneurs often get lost in selling products without realizing the deeper problem they solve—like selling widgets without understanding how they improve lives. This oversight not only drains purpose but also weakens marketing. When businesses grasp the real value they provide, it ignites team motivation and crafts authentic customer connections. The key? Constantly asking: ‘Why do we exist?’ 03:58 Purpose vs. Business: Why Not All Passions Pay A heartfelt purpose like filling the world with pink teddy bears might ignite your soul, but without solving real problems, it’s a charity—not a viable business. The key? Aligning passion with societal needs to create value that others will pay for. 05:26 Innovation Before Demand: The Art of Solving Unasked Problems Like Apple’s iPhone revolutionizing life before anyone knew they needed it, true innovators identify latent desires—creating solutions for problems society hasn’t even articulated yet. This paradox of ‘building what people don’t know they want’ separates visionaries from followers, proving demand often follows invention rather than precedes it. 07:02 Pitching with Purpose: How to Frame Problems and Solutions The key to a compelling pitch lies in balancing problem awareness with solution clarity—whether it’s as obvious as a hangover cure or as niche as serving 5 million underserved customers. While some audiences need no education on the problem (like hangovers), others require data-driven proof of an unmet need. The most effective pitches start by highlighting a tangible gap and immediately presenting a viable solution, turning skepticism into curiosity. Surprisingly, even non-innovative companies can craft compelling narratives by focusing on specific, underserved markets rather than trying to mimic industry giants like Apple. 08:59 The Power of Purpose: Why Your Business Must Solve a Real Problem Forget competing on price—businesses thrive when they identify and solve a unique problem. Like a lighthouse in a storm, differentiation guides customers to you, not just to the cheapest option. When your team wakes up to change the world, not just collect a paycheck, magic happens. The alternative? A race to the bottom where the ‘winner’ is the one who earns the least. 12:14 More to Come: Stay Tuned for Future Episodes
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    13 m
  • Episode 86: AI Leverages Your Mind. Stick Your Head In The Sand If You Want To, But When You Pull It Back Out… AI Will Still Be Here

    Episode 86: AI Leverages Your Mind. Stick Your Head In The Sand If You Want To, But When You Pull It Back Out… AI Will Still Be Here
    Mar 3 2025

    In this episode of the Emerge Dynamics podcast, David Eric discuss the transformative impact of artificial intelligence (AI) on various industries, particularly focusing on knowledge work. They explore how AI is reshaping business processes, the importance of identifying unique value in a commoditized landscape, and the responsibilities that come with leveraging AI technology. The conversation emphasizes the need for businesses to adapt to these changes and harness AI as a tool for good, while also being mindful of the ethical implications and societal responsibilities associated with its use.

    Takeaways

    Just like the steam engine leveraged man’s muscles to create exponential productivity gains, AI leverages our minds to create exponential productivity gains. Those who embrace this will benefit incredibly.

    AI is not going away; it’s transforming business.
    The efficiency gains from AI are unprecedented.
    Knowledge workers face significant disruption from AI.
    Identifying the unique value in a commoditized landscape is crucial.
    AI can enhance decision-making in healthcare.
    AI is a tool that can be used for good or bad.
    Businesses must adapt to the changing landscape of AI.
    The societal responsibility of programming AI correctly is vital.
    AI has the potential to leverage human intellect significantly.
    Embracing AI can lead to leadership opportunities in the future.

    Links

    https://finance.yahoo.com/news/goldman-sachs-ceo-says-ai-192852635.html

    https://www.mckinsey.com/capabilities/mckinsey-digital/our-insights/superagency-in-the-workplace-empowering-people-to-unlock-ais-full-potential-at-work

    Ranking

    Many thanks for Feedspot for acknowledging the work Eric and David have been putting in and recognizing the Emerge Dynamics Podcast as one of the top “Business Podcasts to Listen to In 2025”

    https://podcast.feedspot.com/business_podcasts
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    18 m
  • Episode 85: Perseverance When The World Is Shifting… And Will Interest Rates Go Any Lower?

    Episode 85: Perseverance When The World Is Shifting… And Will Interest Rates Go Any Lower?
    Feb 21 2025

    In this episode of the Emerge Dynamics podcast, hosts David Cusimano and Eric Wingerter discuss the importance of perseverance in entrepreneurship, especially in light of current economic trends and challenges. They explore recent data on CPI and Fed rates, emphasizing the need for business owners to adapt to changing circumstances. The conversation highlights personal stories of overcoming adversity and the significance of having a purpose-driven approach in business.

    Takeaways

    Perseverance is essential for business owners and entrepreneurs.
    Current economic trends, such as rising CPI, impact small businesses.
    Adapting to change is crucial in a rapidly evolving market.
    Personal experiences of struggle can strengthen resolve and purpose.
    Having a clear purpose can drive motivation beyond financial success.
    Historical examples of perseverance, like Milton Hershey, inspire current entrepreneurs.
    Success and failure are not permanent states; learning is key.
    Emotional resilience helps navigate business challenges.
    Focus on logical choices amidst external noise and distractions.
    A purpose-driven business is more adaptable to change.

    Links

    https://data.bls.gov/timeseries/CUSR0000SA0&output_view=pct_1mth

    https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html

    https://www.businessinsider.com/fedex-saved-from-bankruptcy-with-blackjack-winnings-2014-7?op=1

    Episode 72: Understanding Price Controls: From Hurricanes to Global Tariffs

    Many thanks for Feedspot for acknowledging the work Eric and David have been putting in and recognizing the Emerge Dynamics Podcast as one of the top “Business Podcasts to Listen to In 2025”

    https://podcast.feedspot.com/business_podcasts
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    20 m
  • Episode 84: Ali Beck of HollaEx explains why main street business owners should start paying attention to the blockchain

    Episode 84: Ali Beck of HollaEx explains why main street business owners should start paying attention to the blockchain
    Jan 20 2025

    In this episode of Emerge Dynamics, we welcome Ali Beck, a blockchain and Bitcoin expert.

    In previous episodes, we discussed the necessity of understanding Bitcoin and bringing in knowledgeable guests. Ali Beck, who co-founded HollaEx and did his master’s thesis on cryptography and Bitcoin security using elliptical curve cryptography, certainly qualifies. This episode promises to be enlightening for anyone who has yet to pay attention to the Web3.0 tsunami that is rapidly changing the business landscape.

    Ali explains how emerging technologies like blockchain create new foundations for financial activities, moving beyond traditional banking systems that have been in place for the past century. Ali elaborates on the many use cases for blockchain, including the tokenization of real-world assets such as real estate, stocks, artwork, and even wine. He emphasizes the simplicity and opportunities that tokenization brings, allowing for automated and programmable money transfers without the need for traditional intermediaries. Ali shares fascinating real-world examples of tokenization, such as a client who tokenized premium wines for easier and more secure international trading, and an art museum raising funds to purchase artwork through fractional ownership tokens. These examples illustrate how blockchain is merging physical and digital worlds, offering new ways to manage and trade assets.

    Ali’s company, HollaEx, addresses these opportunities by providing white-label crypto and blockchain solutions for businesses looking to integrate these technologies. HollaEx offers an interactive platform that allows businesses to create and manage digital assets, build trading platforms, and offer secure digital wallets to their users without understanding all the technical details of blockchain. We also explore how different regions across the globe are adopting blockchain technology.

    Ali concludes with insights into the rapid advancements in AI and blockchain, predicting that 2025 will be a pivotal year for these technologies. He advises business owners to pay close attention to these trends and modernize their practices to stay competitive in a fast-evolving landscape. Listeners can learn more by visiting https://www.hollaex.com/.

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    32 m
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