The book presents the theory of value long established in economicsand details how any business can use various pricing strategies to create, communicate, and capture the value of their products and services. It takes a new approach of focusing on the external value as perceived by the customer and advocates matching price to value. Written in everyday language so it's valuable to beginning executives as well as professional pricers and marketers, it covers:
- What and how people buy
- The fallacy of commodity thinking
- The five Cs of value
- The market share myth
- The difference between cost-plus pricing and value pricing
- A comparison of the Subjective Theory of Value and the Labor Theory of Value
- Customer segmentation strategies
Complete with examples from a multitude of industries and successful entrepreneurs and peppered with quotes from business experts as well as economists, the book is not a dry treatise on an ethereal economic theory. It's lively and down-to-earth, using examples such as the high cost of popcorn in movie theaters, 99? pricing, and the way love-struck couples purchase engagement rings. It gets down-to-business, providing proven strategies and tactics CEOs, CFOs, marketing managers, and professional pricers can implement as a part of a value-based pricing architecture. If the purpose of your business is to add value to customers in order to earn profits, Pricing on Purpose can be incredibly valuable to your business!
—Reed Holden, founder, Holden Advisors Corp., www.holdenadvisors.com coauthor, The Strategy and Tactics of Pricing: A Guide to Profitable Decision Making
, Third Edition
"With Pricing on Purpose, Ron Baker had made an enormous contribution to the better understanding of pricing that will be accessible to anyone who wants to learn. People are intrigued by instances of what they see as idiosyncratic pricing. Sometimes it is idiosyncratic, but oft-times it is fiendishly clever and well researched. So is this book. There are examples that at first sight seem to have nothing to do with the subject at hand, but the learning points are all made and explained in any number of interesting and memorable ways. Pricing on Purpose is a welcome and valuable addition to the learning on pricing and I recommend it to professional pricers, marketers, and anyone interested in capturing the value their business creates."
—Eric G. Mitchell, President, Professional Pricing Society, www.pricingsociety.com
"Ron Baker is what I'd call a 'thought giant.' In his first two books he literally began a revolution in the accounting and legal professions. Thousands of professionals in public practice now lead far better, more rewarding lives thanks to him. Now he's broadened his impact in a huge way. Read this book, implement the ideas and you'll never look at your prices or your pricing policies in the same way again. You'll be richer in many ways because of it."
—Paul Dunn, founder and CEO, ResultsNet Australia, coauthor, The Firm of the Future: A Guide for Accountants, Lawyers, and Other Professional Services, www.resultsnetaustralia.com
"As a reader of hundreds of business books, I am thrilled when I come across one that has something new to say. Pricing on Purpose does just that. Instead of presenting a set of feel-good items to check off a list, Ron Baker encourages us 'to think with him, not like him.' He methodically builds his argument leading us through the labyrinth of pricing theory and encourages us to look at pricing as the strategic tool that it is rather than taking the lazy cost-based tactical approach of most businesses. To paraphrase Karl Marx in terms of Baker's book, 'Cost-based pricing is the opium of business.'"
—Ed Kless, Director, Partner Development and Recruitment, Sage Software
"Baker has done it again! Building on the core principles that he advanced in Professional's Guide to Value Pricing and The Firm of the Future, Ron Baker has again evolved thought leadership on the critical dynamics of value and pricing. Baker's latest work, Pricing on Purpose: Creating and Capturing Value, provides real-world examples and practical strategies that provide a framework for pricing optimization. His clarity of purpose and passionate call to action resonates in today's intellectual capital economy."
—Thomas Finneran, Executive Vice President, American Association of Advertising Agencies
"We love this book! With detailed research, thorough references, and recommendations for further reading, this could be considered a textbook. That it is so readable and engaging is a triumph. The chapter providing the epitaph for cost-plus pricing is worth many times the price of this book. 'Got price-sensitive customers? Wonder why? Read and stop weeping. Who's in charge of value in your company?' Baker asks. If you can't immediately answer, you'd better read this book. Bravo, Baker!"
—Paul O'Byrne and Paul Kennedy, partners, O'Byrne and Kennedy LLP, Chartered Accountants, United Kingdom, www.obk.co.uk
"Ron Baker is nothing short of brilliant, and his enthusiasm for pricing is contagious. Pricing on Purpose will add more value to your firm than anything else you could do. As usual in Ron's books, he presents cutting-edge ideas. There is no greater value to your company than to read Pricing on Purpose and implement its ideas."
—Scott Abbott, entrepreneur, former regional business development, manager, BDO Dunwoody, LLP, Manitoba, Canada