Pricing as a Strategic Lever with Peter Moot

Introduction and Peter’s Journey into Pricing

Rina Alexin | 00:00–00:50

Hi everyone, and welcome to *Productside Stories*, the podcast where we reveal the very real and raw lessons learned from product leaders and thinkers all over the world. I’m your host, **Rina Alexin**, CEO of Productside, and today I have the pleasure of speaking with **Peter Moot**, Co-founder of **Promi**, a Y Combinator–backed company that automates pricing in e-commerce.

Peter Moot | 00:47–02:14

Thanks for having me, Rina! My journey into pricing wasn’t planned. I studied economics in college and found myself drawn to the quantitative side of tech. Pricing product management became a natural fit — it was the perfect blend of numbers, experimentation, and business impact. My early work at **Jet.com** and later at **Uber** made me realize how pricing shapes both customer behavior and company growth.

Designing Promi and Data-Driven Pricing Decisions

Peter Moot | 02:41–05:02

At **Promi**, we’re trying to bring the scientific rigor of big-company pricing into the hands of smaller merchants. Pricing is both art and science, but with data and automation, you can make smarter, faster decisions. Even small e-commerce brands can leverage contextual, personal, and product-level data to predict conversion likelihood and elasticity — without massive datasets like Uber’s.

Understanding Buyer Profiles and Predictive Data

Peter Moot | 05:02–07:37

We collect data in three main categories: **contextual**, **personal**, and **product**. Contextual includes things like time of day and referral source. Personal data includes purchase and view history, while product data includes margins and pricing metadata. Combining these helps us predict how likely a person is to buy — even in low-data environments.

Ethics and Personalization in Pricing

Peter Moot | 08:20–09:22

Personalized pricing raises ethical questions — why should one customer see a different price? At Uber, we debated this often. Ultimately, personalization increased **discount efficiency by 35%**, so the business value was undeniable. But every company must decide where it draws the line between personalization and fairness.

Applying B2C Insights to B2B Pricing

Peter Moot | 10:03–12:00

Many B2B principles mirror B2C. In B2B, you might have fewer customers but higher touchpoints. Tiered pricing, segmentation, and understanding buyer psychology all apply. Even at Promi, we use personalized tiering for different business sizes — small businesses can’t afford what enterprises can, but both expect value alignment.

The Financial Impact of Pricing Optimization

Rina Alexin | 13:42–14:27

A study we reference in our courses shows that a **1% improvement in pricing** can yield a **12%+ boost in profitability**. Pricing optimization matters more than acquisition — yet many teams only revisit pricing once a year.

Why Companies Struggle to Revisit Pricing

Peter Moot | 14:27–17:03

It’s complex. Even at Uber, we struggled to measure pricing changes properly. Sometimes you see a short-term bump in revenue but worry about long-term customer lifetime value. Pricing is a balancing act between short-term gains and lasting trust.

When Price Changes Go Wrong

Peter Moot | 17:03–18:44

When pricing backfires, you treat it like an experiment. At Uber, we used an investment framework to evaluate ROI. Sometimes lowering prices works; other times, promotions are more efficient. It’s all about finding your most effective lever.

Common Pricing Mistakes and Misconceptions

Peter Moot | 19:31–23:21

The biggest mistake? **Relying on intuition**. PMs often assume discounts should reward loyalty — but that can eat into margins. Loyal customers would buy anyway. Discounts are best for hesitant, new customers who need motivation to convert.

Early-Stage Pricing Strategy for New Products

Peter Moot | 23:21–25:01

If you’re launching something new, don’t overthink pricing. Start with competitor benchmarks or cost-plus, then iterate. Price is a two-way door — experiment, measure, adjust.

Why Product Managers Need a Seat at the Pricing Table

Peter Moot | 25:08–27:03

PMs must own pricing decisions because they directly reflect product value. At Uber, PMs led pricing experiments, which accelerated innovation and decision-making. Involving PMs keeps strategy tied to customer value, not just finance metrics.

Building Influence and Leadership in Pricing Decisions

Peter Moot | 27:08–28:49

If you’re not yet part of pricing discussions, show leadership through experimentation. Run small pilots, share data-driven wins, and demonstrate the product team’s strategic value.

The Future of AI in Pricing

Peter Moot | 28:49–31:47

AI will democratize personalization. It’s already helping small businesses run smarter tests and make dynamic decisions that once required entire data science teams. The future is **AI-enhanced intuition** — not replacing PMs but empowering them.

The Psychology of Pricing and Consumer Trust

Peter Moot | 33:00–33:52

The “$19.95 vs. $20” debate is still alive. Some studies say it matters, others don’t. What truly matters is **trust** — whether your customers feel respected and see real value.

Final Advice for Product Managers

Peter Moot | 33:52–34:46

Be **data-driven**, test your intuition, and iterate. Don’t stick with a pricing strategy just because it “feels right.” Experiment often and let results guide you.

How to Connect with Peter Moot

Peter Moot | 34:54–End

Connect with me on **LinkedIn** or at **usepromi.com** to learn more about AI-powered pricing strategies.