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Bad pricing is a great way to destroy your company's value, revenue, and profits. With 10 simple rules, this book shows you how to deliver both healthy profit margins and robust revenue growth while kicking the dreaded discounting habit. The authors destroy the conventional wisdom that you have to trade margins for revenues and show you how to fully exploit the value your company offers customers. This is a proven plan for increasing sales without sacrificing profits.
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Publisher's Summary
In Smart Pricing, Wharton professors and renowned pricing experts Jagmohan Raju and Z. John Zhang draw on examples from high tech to low tech, from consumer markets to business markets, and from the U.S. to abroad, to tell the stories of how innovative pricing strategies can help companies create and capture value as well as customers. They teach the pricing principles behind those innovative ideas and practices.
Smart Pricing introduces to marketing and product executives, along with corporate strategists, many innovative approaches to pricing, as well as the research and insights that went into their creation. Filled with illustrative examples from the business world, listeners will discover restaurants where customers set the price...learn how Google and other high-tech firms have used pricing to remake whole industries...and understand how executives in China successfully start and fight price wars to conquer new markets.
Smart Pricing goes well beyond familiar approaches like cost-plus, buyer-based pricing, or competition-based pricing, and puts a wide variety of pricing mechanisms at your disposal. This book helps you understand them, choose them, and use them to win.
What the critics say
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- Nick Clark
- 2018-09-25
It's ok
Found the book got a little in the weeds with some of its examples - but overall it provided some solid strategies and when to use them.
#Audible1
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- Olaf
- 2010-12-28
Broadens your perspective on pricing; not a how-to
This book broadened my thinking about pricing strategies by dedicated one chapter to an alternative pricing method (alternative to cost plus pricing). One of the authors' key points is that pricing does not arise from the "invisible hand of the market" but is a deliberate choice on the part of a business owner. They also point out that a good pricing strategy is aligned with the type of customer you are serving.The book is really a set of separate chapters dedicated to nine pricing methods (e.g., freemium, pay as you wish, premium pricing, price wars), and doesn't really have a summary or culminating insight other than the two mentioned previously. This book is not a "how to" so it won't help you devise a pricing strategy for your business; rather, it will help you "think outside the box" in terms of what is possible and what other people have made work for their businesses. The narrator is pretty good and engaging.
6 of 6 people found this review helpful
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- Michael
- 2011-06-21
Fantastic content...poor narration
I can't say enough about how valuable this book is from a content perspective. However, the narration really needs some work. The narrator's voice is great, but he reads it in a halting robotic fashion. Many times there are long pauses mid-sentence that makes one believe the sentence or thought is complete. This really gets in the way of the true meaning of the sentence. I'm not referring to comma or semi-colon pauses, but pauses that occur at other times. I am not trying to be too critical, but it definitely takes away from the listening experience. However, the audiobook is still worth buying despite the narration issues.
2 of 2 people found this review helpful
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- Nilsson Denver
- 2010-09-12
Breaks your mindset
This book is book of simple ideas. It makes you think about multiple pricing strategies. It also explains why some pricing methods work and why others don't.
I am not a pricing expert, but having worked with many businesses, I now see how wrong some of their pricing strategies are. Who would believe that a price war can be good for your long term business, or increasing your prices could make your goods more valuable and your business more profitable for the long term. It happens all the time and your business might just benefit.
This book is ideal for people who want to learn about pricing and/or get you to think about how your product should be priced.
This was a great buy for me who knew nothing about pricing. But this book confirmed to me some of my gut feelings I had about pricing and gave me more confidence in how to use pricing in the future.
5 out of 5
5 of 6 people found this review helpful
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- Omar
- 2012-03-08
Amazing but..
The book is truly magnificent but if you are trying to find something here that would fit to your own business (like I was doing) you might get a bit frustrated. Most of the pricing strategies apply only to a narrow niche
1 of 1 people found this review helpful
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- Anonymous User
- 2019-01-29
Call to Action
A real call to action if you're in a business and price is not arrived at in an intentional way. The author framed it as such (and I paraphrase): A farmer instinctively knows that when it is time to harvest the crops, you don't spend less time working. Rather, they will work even harder to ensure that every last viable crop that they have painstakingly raised from the dirt has been gathered. Companies that don't work hard and thoughtfully to price effectively are like farmers that toil all year long, and then start sleeping in when the time arrives to reap the rewards of all their cultivation, allowing much of the potential harvest to go to waste.
Great mixture of explanations and examples, without getting too far into the weeds on any one topic. If you're looking for a how-to-implement book, this isn't it, but if you're looking for a primer or "quick read" to enhance your understanding on the different ways that companies arrive at their prices, this book is a good fit.
(note: the primary focus of this book is B2C, not B2B, so you will have to use your brain to draw parallels if that's your area of interest, as it was mine. I would still recommend it.)
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- abdullah
- 2018-10-12
i like the book , but it is hard to follow
You might download the supporting material. It is hard to find a book about pricing ,but this book is good enough.
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- Kindle Customer
- 2018-07-24
ok just ok
love all of the examples. thought it was going to get into a little more details.
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- Jeffrey Cottle
- 2018-04-04
great book
Has great pricing strategies, when to use them, with what type of products, how to compete against them. it is very well explained, easy to digest and it uses cases. The only thing is that you can tell us that it needs a little update.
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- Michael Fontanez
- 2018-02-12
Pricing Practitioners Avoid
What could have made this a 4 or 5-star listening experience for you?
Starting the book with anecdotes of nontraditional pricing strategies stumbling into success seems to push a social cause rather than arm pricing practitioners. As a pricing practitioner, I would be laughed at if I recommend a "pay what you'd like" strategy, or recommend we deliberately start a price war - and for good reason. These are outlier pricing strategies (I struggle to call them strategies) that deter the task of communicating a transactions value through price. I'd recommend starting the book with examples of more common pricing strategies done right. I stopped listening when the author applauded a pricing strategy of a Boston firm's flagship store that could not replicate its pricing strategy in other markets and (I infer) eventually led to its bankruptcy. Practitioners are better left with this one piece of advice - price higher.
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- Joshua Flowers
- 2018-01-03
A book of case studies
This isn’t really a book about pricing strategy. It just lists historical case studies and explains why they worked. Most of the case studies are fairly edge case examples though, so the usefulness in comparison to your own business is probably limited.