Jon Manning, likes to think of his Pricing bio as a journey through various pricing methodologies, rather than the more traditional journey through employers and job titles. The first methodology he was exposed to was a bit of a mystery though. He started his pricing career at Mobil Oil, pricing petrol (or gas, as the Americans like to call it), bitumen, AvGas and 20W50. But after three years, he realised he was never going to understand where these prices were coming from (the industry and its customers still can’t figure that out, to this day), so he moved on to his next pricing methodology.
In Inflight Services, Jon came to grips with cost-plus pricing, as he priced catering for airlines picking up slices of olives and tiny bags of peanuts from Ansett Australia’s seven flight kitchens around Australia. Recognising that cost-plus pricing was a relic from the past with little or no future, Jon then moved on from pricing the fayre passengers eat, to pricing the fares passengers pay (and his third pricing methodology, revenue / yield management).
Following a relocation to London, and a couple of years away from Pricing, Jon started suffering “PWS” (Pricing Withdrawal Syndrome). Fortunately, a dynamic pricing opportunity (Methodology #4) was just around the corner in the role of inaugural Revenue Manager for Sir Stelio Haj-Iannou’s chain of dynamically priced internet cafes, easySomethingOrOther. In 22 months, the business grew to 22 stores, pricing 8,831 workstations in 8 currencies, available 24 hours a day, 7 days a week (or 1.5mill available hours / 89mill available minutes, if you like big numbers) serving 1.5mill customers per week.
Returning to Melbourne in 2002, Jon started consulting more by accident than design. Utilising Value-Based Pricing (Methodology #5), he overhauled the pricing of an online advertising portal (why should a submarine painter in Alice Springs pay the same price for their advertising as a real estate agent in Sydney?), resulting in a $A17.3mill revenue uplift in 12 months.
Value-Based Pricing has now become Jon’s standard operating procedure, regardless of the industry (and he has worked in many). Even this website, PricingProphets, applies value-based pricing, charging for the value provided (answers to your questions), rather than each and every six minutes of our time.