The 1% Windfall: How Successful Companies Use Price to Profit and Grow [Hardcover]

Rafi Mohammed (Author)

Book Description

Release date: March 16, 2010

“This breakthrough ‘how to’ book offers a practical and comprehensive framework that shows companies how to use price to drive profits from diverse customer segments in offensive and defensive (recession, inflation, and new competitor) situations.” — Richard Spaulding, Member of the Board of Directors, Scholastic Corporation

Rafi Mohammed, author of The Art of Pricing, shows businesses how to reap financial windfalls and sustain growth using the underexploited and often overlooked strategy of setting prices.

Editorial Reviews

From Booklist

Pricing consultant Mohammed highlights ideas and tactics that build a foundation to create a pricing strategy for every global company, answering the question, How would a 1% increase in price affect operating profits? We learn about the author’s concept of value pricing, which is based on how customers make purchase decisions and involves setting prices that capture the value customers place on the product rather than what it costs to manufacture it. The author tells a compelling story of Southwest Airlines and how it has increased revenue by charging more for an added feature that a certain customer segment values. With a goal of win-win for both a company and its customers, the author shares his success story interviews with managers in a wide variety of industries. He concludes with an action plan for a comprehensive pricing strategy and observes, The financial benefits of a 1% price increase . . . illustrate the power of pricing and its direct link to the bottom line. This is an excellent book. --Mary Whaley

Review

“The Art of Pricing is an entertaining primer on how to unlock ‘hidden profits’ and growth by aligning your product’s price with the value customers place on it.” (BusinessWeek SmallBiz )

“A valuable insight into the strategic importance of pricing.” (Peter W. Olson, Senior Lecturer - Harvard Business School and former Chairman and CEO of Random House )

“This breakthrough “how to” book offers a practical and comprehensive framework that shows companies how to use price to drive profits from diverse customer segments in offensive and defensive (recession, inflation, and new competitor) situations.” (Richard Spaulding, Member of the Board of Directors, Scholastic Corporation )

“Pricing volatility will likely be the greatest challenge management will face in the next decade. Rafi Mohammed provides pricing guidance that equips readers to successfully navigate and profit in these uncertain times.” (George Stalk, Senior Advisor and Fellow, The Boston Consulting Group )

“Rafi Mohammed uses insightful real-world examples to show how small changes in a company’s pricing tactics can lead to big profits. You will profit from this book - and enjoy every minute reading it!” (Michael R. Baye, Bert Elwert Professor of Business Economics at Indiana University & former Director of the Bureau of Economics at the FTC )

“This is a rich resource for not-for-profits. Rafi Mohammed shows how smart pricing tactics can distribute educational and cultural benefits as widely as possible, yet still balance the books. It will change the way you think about pricing.” (Joseph C. Thompson, Director, MASS MoCA )

“Pricing consultant Mohammed highlights ideas and tactics that build a foundation to create a pricing strategy for every global company, answering the question, ‘How would a 1% increase in price affect operating profits?’ This is an excellent book.” (Booklist )

“The book offers practical guidelines that any sized company can follow to create a comprehensive pricing plan and increase profits without sacrificing customer loyalty. It’s a tricky equation, but Mohammed offers a strategic solution.” (Consulting Magazine )

See all Editorial Reviews

Product Details

• Hardcover: 256 pages
• Publisher: HarperBusiness; 1 edition (March 16, 2010)
• Language: English
• ISBN-10: 0061684325
• ISBN-13: 978-0061684326
• Product Dimensions: 6 x 1 x 9 inches
• Shipping Weight: 14.4 ounces (View shipping rates and policies)
• Average Customer Review: 4.5 out of 5 stars  See all reviews (21 customer reviews)
• Amazon Best Sellers Rank: #190,733 in Books (See Top 100 in Books)
  • #25 in Books > Business & Investing > Management & Leadership > Pricing
  • #63 in Books > Business & Investing > Skills > Business Mathematics

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Most Helpful Customer Reviews

13 of 14 people found the following review helpful

5.0 out of 5 stars If you run a business you need this book. April 28, 2010

By Reg Nordman

Format:Hardcover

Rafi is the guru on pricing as he has been consulting on it for over 20 years. His previous book , The Art of Pricing, was a good book, but this one goes much further into the topic with great examples , worksheets and a step by step plan for a pricing strategy . Did you know that when it comes to pricing there are :

* Four fundamental pricing strategies
* Fifty pricing tactics
* Two offensive pricing blossom (his model) strategies
* Six defensive pricing blossom strategies and
* Thirteen culture-of-profit principles?

This is a very thorough study and it is so clearly written that you can read it like a novel. I could not put this one down. It is the best writing on pricing I have ever come across. if you run a business you need this book.

8 of 9 people found the following review helpful

5.0 out of 5 stars Finally, someone to help rationalize pricing from a customer-value perspective! June 21, 2010

By Grant LeMahieu

Format:Hardcover

"Challenges the concept of what most firms default to...The good, ol' Cost-Plus methodology.
While Cost-Plus has its merits, author now directs us to refocus on "Value-Based Pricing" and to create "pricing blossoms" that allow us to have inplace strategies for decreased demand, or inflationary situations.
A great resource to keep around because I guarantee that many of your key players are not aware of your pricing strategy and are not able to effectively communicate that in the marketplace!"

7 of 8 people found the following review helpful

5.0 out of 5 stars Every business owner needs to read this! April 6, 2010

By Michael B. Wilke

Format:Hardcover|Amazon Verified Purchase

Very insightful. As a CFO and business consultant, I am thrilled to see such a comprehensive and well written book on the subject of pricing. The fundamentals, calculations and insights into human behavior are revealing. Great lessons to be learned.