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Product details
File Size: 1586 KB
Print Length: 281 pages
Publisher: Kogan Page; 1 edition (July 3, 2013)
Publication Date: July 3, 2013
Sold by: Amazon Digital Services LLC
Language: English
ASIN: B00DJACXIU
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Amazon Best Sellers Rank:
#1,466,545 Paid in Kindle Store (See Top 100 Paid in Kindle Store)
For those who does not have extensive experience with pricing it will be a well recommended book. However, for more experienced readers it is rather a basic stuff and concepts. That is why I give 3 stars only.
What is “the right price?â€Pricing is one of the trickiest elements of any business. Price too high and you risk losing business you want to win. Discount too often or too much, and you risk people thinking your product is cheap or you’re for sale. The other problem with a poor pricing strategy is that you will go broke selling to the wrong customers.Peter Hill wants to help you.In Pricing for Profit, Hill argues that “most businesses are already worth more than they have the courage to charge.â€What I love about Pricing for Profit is that Hill talks about the value scale and why pricing is really about what the value is to each customer or client. For example, I often shop at Whole Foods because it’s convenient (quick) and the quality is good. But it’s certainly not cheap. I shop at Amazon, on the other hand, because it is good and cheap. But it’s takes longer to get a new product in my hands than if I just walked into my neighborhood Best Buy.Like the best business books, Pricing for Profit is meant to be actionable. Chapters on creating packages, choices, and options offer new ways to think about what you’re offering and how you’re selling. And the entire book is filled with action steps to think through how to implement a smarter pricing strategy for your business. Unless you have the whole pricing equation nailed down, you’re going to find something in this book that you can put to use in your business.
The quickest and most effective way to improve the profitability of your business is to raise your prices, according to Peter Hill in this book. You should also be aiming to increase the number of customers, the frequency of transactions, the average value of each transaction, and the efficiency of the business, but price rises have the fastest and most direct effect on your profits.The problem is that most business owners find it very difficult to raise prices. People naturally want to please others and avoid the risk of complaints and confrontation, so they find it much easier to pursue almost any other course of action. Accordingly, the author provides numerous different suggestions of ways in which prices can be increased in a manner which minimises the amount of stress and the fear of losing valuable customers, including:* Limit discounts, for example by requiring timely payment in exchange* Replace all discounts with cash-back offers, as the cash is not given back until payment is made and it is more painful to give cash than a discount, so that the total amount given away is likely to reduce over time* Use prices which are not round numbers, because they are less likely to attract bargaining* Instead of giving discounts, add more value to your offering* Make sure you communicate the value which you are providing* Build future contact into the deal for the initial sale* Have a very top-of-the-range option that is significantly more expensive than any other option; this will make your other offerings appear to have better value* Ask customers for permission to increase prices* Offer a money-back guarantee to justify a higher priceThe contents of the book are easily understandable by a business person who has no training in financial management. I did not find anything particularly new while reading, but by the end of the book the author had thoroughly persuaded me that trying to win customers by offering bigger and bigger discounts is not likely to lead to a profitable outcome. I highly recommend the book for anyone who runs a business.
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