What is it really worth? How much will customers pay? Where will our competitors respond?
A McKinsey survey of 2500 companies calculated that a 1% increase in price improves operating profit by 11.1% - greatly exceeding the impact of a 1% improvement in volume or costs.
From airline tickets to bottled water, health clubs to student textbooks; price can have a profound impact in the market. Pricing decisions, right or wrong, can change buying behaviours, drive the profitability of businesses and even transform competitive landscapes.
For the price of a flexible economy ticket to Warsaw with British Airways, a traveller could buy 8 return flights with Air Polonia. Value players like Blockbuster, Ryanair and Toys R Us are rapidly growing their market share around the world. How can companies fight back?
With profitability and competitive stakes high, pricing decisions are too important to leave to rules of thumb. Managers everywhere are devoting more attention to the art and science of pricing.
Smarter Pricing helps managers to make more intelligent pricing decisions, implement pricing strategies and structures more effectively in the market and capture more value for their business. Using real-world, international examples from a wide range of industries Smarter Pricing explores: low price propositions; premium pricing; price sensitivity; incentivising customers to make profitable purchases; the rise of discounters and how to face the threats; the creative communication of pricing; and bundling, promotions and the benefits of non-comparability.
Smarter Pricing is a short, sharp guide to practical techniques and innovative approaches to intelligent pricing. Built around three core elements: customer insights (chapters 2-6), competitive value strategies (chapters 7-9) and tools & techniques (chapters 10-11), the book focuses business readers on profitable possibilities, helping them determine the right price structure.
If you want to develop a keener sense of the value of your products and services, and then capture as much of that value as possible, an investment in Smarter Pricing will generate a profitable return.
"Downward pressure on prices has rarely been stronger. A slogging global economy has had an impact, but so have fundamental changes in the marketplace, including stronger buyers, more transparent markets, and the emergence of low-cost manufacturing powerhouses such as China. In this environment, managers may shy away from even thinking about raising prices, but the need to get price management right could scarcely be more urgent. " THE POWER OF PRICING - McKinsey Quarterly, Jan 05
Product Description
From airline tickets to bottled water, health clubs to student textbooks; price can have a profound impact in the market. Pricing decisions, right or wrong, can change buying behaviours, drive the profitability of businesses and even transform competitive landscapes.
For the price of a flexible economy ticket to Warsaw with British Airways, a traveller could buy 8 return flights with Air Polonia. How do companies like British Airways fight back against the value players? With profitability and competitive stakes high, pricing decisions are too important to leave to rules of thumb. Managers everywhere are devoting more attention to the art and science of pricing.
Smarter Pricing helps managers to make more intelligent pricing decisions, implement pricing strategies and structures more effectively in the market, and capture more value for their business. Using real-world international examples from a wide range of industries, Smarter Pricing explores: low price propositions, premium pricing, price sensitivity, incentivising customers to make profitable purchases, the rise of discounters and how to face the threats, the creative communication of pricing and bundling, promotions and and the benefits of non-comparability.
Downward pressure on prices has rarely been stronger. A slogging global economy has had an impact, but so have fundamental changes in the marketplace including stronger buyers, more transparent markets, and the emergence of low-cost manufacturing powerhouses such as China........the need to get price management right could scarcely be more urgent. THE POWER OF PRICING-McKinsey Quarterly, Jan 05.
Backcover
Are your prices too low?
Some of your customers would pay more, and there are times and places where you could charge more. Of course none of your customers will tell you this, as competitors tempt them with promises of lower prices and the media trains them to be bargain-hunters.
All this price pressure is one way. Downwards. This book will help you to move your customers and your business in the other direction. Upwards.
Its all about commanding the right price, and the right price is, more than you would imagine possible, a higher one.
This is Smarter Pricing, and these are the rules of commanding a higher price and capturing more value.
Smarter Pricing
How to capture more value in your market
Contents
1. Pricing by voodoo or bingo? theres a better way.
CUSTOMERS - SMARTER WAYS TO UNDERSTAND THEM
2. When they say price, they really mean value
3. What would you pay for this? perils and pitfalls of pricing research
4. Price discrimination segmenting by price sensitivity
5. Customers behaving badly how price can help
COMPETITORS - SMARTER WAYS TO OUTWIT THEM
6. Standing out from the crowd pricings role in positioning and differentiation
7. Competing with value players hit back with benefits
8. Fighting price wars planning to escape pain
COMPANY SUCCESS SMARTER WAYS TO CAPTURE VALUE
9. Fixing the right price structures, segments and stairways
10. Communicating prices creating positive perceptions
11. Why pay more? how to get higher prices
12. Pricing success keeping discipline, measuring results
EXECUTIVE SUMMARY & LAST WORD
13. Smarter pricing the five minute version
The last word on price
A McKinsey survey of 2500 companies calculated that a 1% increase in price improves operating profit by 11.1% - greatly exceeding the impact of a 1% improvement in volume or costs.
From airline tickets to bottled water, health clubs to student textbooks; price can have a profound impact in the market. Pricing decisions, right or wrong, can change buying behaviours, drive the profitability of businesses and even transform competitive landscapes.
For the price of a flexible economy ticket to Warsaw with British Airways, a traveller could buy 8 return flights with Air Polonia. Value players like Blockbuster, Ryanair and Toys R Us are rapidly growing their market share around the world. How can companies fight back?
With profitability and competitive stakes high, pricing decisions are too important to leave to rules of thumb. Managers everywhere are devoting more attention to the art and science of pricing.
Smarter Pricing helps managers to make more intelligent pricing decisions, implement pricing strategies and structures more effectively in the market and capture more value for their business. Using real-world, international examples from a wide range of industries Smarter Pricing explores: low price propositions; premium pricing; price sensitivity; incentivising customers to make profitable purchases; the rise of discounters and how to face the threats; the creative communication of pricing; and bundling, promotions and the benefits of non-comparability.
Smarter Pricing is a short, sharp guide to practical techniques and innovative approaches to intelligent pricing. Built around three core elements: customer insights (chapters 2-6), competitive value strategies (chapters 7-9) and tools & techniques (chapters 10-11), the book focuses business readers on profitable possibilities, helping them determine the right price structure.
If you want to develop a keener sense of the value of your products and services, and then capture as much of that value as possible, an investment in Smarter Pricing will generate a profitable return.
"Downward pressure on prices has rarely been stronger. A slogging global economy has had an impact, but so have fundamental changes in the marketplace, including stronger buyers, more transparent markets, and the emergence of low-cost manufacturing powerhouses such as China. In this environment, managers may shy away from even thinking about raising prices, but the need to get price management right could scarcely be more urgent. " THE POWER OF PRICING - McKinsey Quarterly, Jan 05
Product Description
From airline tickets to bottled water, health clubs to student textbooks; price can have a profound impact in the market. Pricing decisions, right or wrong, can change buying behaviours, drive the profitability of businesses and even transform competitive landscapes.
For the price of a flexible economy ticket to Warsaw with British Airways, a traveller could buy 8 return flights with Air Polonia. How do companies like British Airways fight back against the value players? With profitability and competitive stakes high, pricing decisions are too important to leave to rules of thumb. Managers everywhere are devoting more attention to the art and science of pricing.
Smarter Pricing helps managers to make more intelligent pricing decisions, implement pricing strategies and structures more effectively in the market, and capture more value for their business. Using real-world international examples from a wide range of industries, Smarter Pricing explores: low price propositions, premium pricing, price sensitivity, incentivising customers to make profitable purchases, the rise of discounters and how to face the threats, the creative communication of pricing and bundling, promotions and and the benefits of non-comparability.
Downward pressure on prices has rarely been stronger. A slogging global economy has had an impact, but so have fundamental changes in the marketplace including stronger buyers, more transparent markets, and the emergence of low-cost manufacturing powerhouses such as China........the need to get price management right could scarcely be more urgent. THE POWER OF PRICING-McKinsey Quarterly, Jan 05.
Backcover
Are your prices too low?
Some of your customers would pay more, and there are times and places where you could charge more. Of course none of your customers will tell you this, as competitors tempt them with promises of lower prices and the media trains them to be bargain-hunters.
All this price pressure is one way. Downwards. This book will help you to move your customers and your business in the other direction. Upwards.
Its all about commanding the right price, and the right price is, more than you would imagine possible, a higher one.
This is Smarter Pricing, and these are the rules of commanding a higher price and capturing more value.
Smarter Pricing
How to capture more value in your market
Contents
1. Pricing by voodoo or bingo? theres a better way.
CUSTOMERS - SMARTER WAYS TO UNDERSTAND THEM
2. When they say price, they really mean value
3. What would you pay for this? perils and pitfalls of pricing research
4. Price discrimination segmenting by price sensitivity
5. Customers behaving badly how price can help
COMPETITORS - SMARTER WAYS TO OUTWIT THEM
6. Standing out from the crowd pricings role in positioning and differentiation
7. Competing with value players hit back with benefits
8. Fighting price wars planning to escape pain
COMPANY SUCCESS SMARTER WAYS TO CAPTURE VALUE
9. Fixing the right price structures, segments and stairways
10. Communicating prices creating positive perceptions
11. Why pay more? how to get higher prices
12. Pricing success keeping discipline, measuring results
EXECUTIVE SUMMARY & LAST WORD
13. Smarter pricing the five minute version
The last word on price