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85 of 86 people found the following review helpful
5.0 out of 5 stars Superb guide to pricing as business strategy,
This review is from: The Strategy and Tactics of Pricing: A Guide to Profitable Decision Making (Hardcover)Written with great clarity, "The Strategy and Tactics of Pricing" is a phenomenal book. It begins with an explanation of strategic pricing, and proceeds to cover competition in the market place, segmentation of buyers, pricing and the marketing mix for industrial and consumer goods, as well as the psychology of pricing. Also covered are models for determining price sensitivity, implications of sales staff price setting and negotiation, and finally, legal aspects of pricing.
After reading this book, you will understand the pitfalls of pursuing market share at all costs and common mistakes businesses and sales people make when setting or negotiating price. You will view your current pricing structure and strategy in a new light, and be able to spot the weak spots. You'll have a better picture of how to attract the right buyers, those that can be served profitably.
The book indirectly touches on topics covered in Co-opetition, and Thinking Strategically, as well as elements of the Theory of Constraints (see Eli Goldratt's "The Goal" and "It's Not Luck" or "Management Dilemmas" by Eli Schragenheim)
I can't recommend this book highly enough. As for the other reader who states:
"After reading this book, I was able to talk circles around the $20,000 "marketing consultant" we were considering."
believe it, it's that valuable!
28 of 29 people found the following review helpful
5.0 out of 5 stars Gem whose value is much higher than its sale price.,
This review is from: The Strategy and Tactics of Pricing: A Guide to Profitable Decision Making (Hardcover)Thomas Nagle and Reed Holden successfully demonstrate with practical examples that strategic pricers are diplomats rather than generals, contrary to common belief. Diplomats know that initiating price discounts can undermine the profitability of their business. Price cutting unduly focuses the attention of the customer base on their wallet rather than the value of the product offering to their life/business. Diplomats will carefully look not only at the short-term gain, but also at competitors' long-term reactions to measure the impact of such a move on the bottom line. Furthermore, diplomats do not share the misconception of generals that the ultimate winner must meet every challenge. Diplomats will integrate the product's relevant costs, the customer segments' price sensitivity and the behavior of the competition in their marketing plans. The analysis of those factors will then allow diplomats to weigh the costs and benefits of competition and only fight battles for which the likely benefits are greater than the likely costs. Nagle and Holden also stress the importance of establishing pricing policies consistent with the plans, especially when there is no fixed-price policy. Diplomats must give salespeople incentives to make profitable sales, not sales for their own sake. Salespeople will adapt their sales pitch to the different price sensitivity of price buyers, loyal buyers and value buyers. Nagle and Holden draw the attention of their readers to the fact that a product's price influences the market's perception of its features and benefits and those of other products with which it is sold, the effectiveness of its promotion, and the interest it generates in channels of distribution. They observe that the opposite is also true. Furthermore, Nagle and Holden look at the impact of the choice of an independent channel of distribution on corporate pricing policy. Diplomats must be attorneys specializing in legal pricing or at least hire one. They must consider not only what is profitable, but also what is legal and ethical in establishing pricing policies towards channels of distribution, end users, and competition. Pricing is such a legal minefield that both authors dedicate one chapter of their book to that delicate subject. Nagle and Holden also challenge another idea that many marketers share: The key to profitability is to achieve a dominant market share. Most companies in competitive markets try to be all things to all people rather than excel in serving the needs of particular customer segments. Both product differentiators and cost leaders have demonstrated that targeting a segment of customers and focusing on them pays off handsomely. A third edition of this book integrating the impact of the New Economy on pricing should be a welcome update to that masterpiece. To summarize, The Strategy and Tactics of Pricing is a must read for anyone involved or interested in pricing. The content is so rich that I am still discovering new aspects about pricing two years after I read the book for the first time.
58 of 65 people found the following review helpful
5.0 out of 5 stars Awesome - and I am NOT a finance guy,
This review is from: The Strategy and Tactics of Pricing: A Guide to Profitable Decision Making (3rd Edition) (Hardcover)Yes, I admit. I'm the guy who slouched in the back row of accounting classes, honestly never scoring higher than maybe a "D". Accounting is hard, dude. TCP/IP is fun; credits and debits aren't.
Eventually, however, life dragged me into situations that required an understanding of this stuff...not general theory: I needed to intelligently price my products and services. A friend recommended the book, and even though I initially found it hard, I can't stop referencing and re-reading it.
I had to re-read the first three chapters, to gain a growing awareness of just what the hell these guys were talking about, because at first their flavor of English was as impenetrable as legalese.
But man, what got me to re-read these chapters was a clear understanding that this book was going to provide immediate applicable benefit. It was therefore well worth the investment.
Now that I'm acquainted with what they call English I've found the book wicked powerful. The book features so many math tools I've found myself pulling this book off the shelf, sometimes daily when need be. And I sound smart, which is good for my fragile ego.
My friends have given me a rich share of hell for reading this baby. You may consider putting another cover on the book so you don't look like a goon, boning up on pricing strategies while your friends are fishing.
25 of 27 people found the following review helpful
5.0 out of 5 stars Outstanding guide to setting prices logically,
By A Customer
This review is from: The Strategy and Tactics of Pricing: A Guide to Profitable Decision Making (Hardcover)Highly, highly recommended. After reading this book, I was able to talk circles around the $20,000 "marketing consultant" we were considering. Explains how to appeal both to price-sensitive and insensitive clients and shows how this is done all the time. Warns about pitfalls of letting salespeople set price. Even shows how to "manage the competition" when it comes to pricing. This is by far one of the most valuable books I've bought for business managment.
19 of 21 people found the following review helpful
5.0 out of 5 stars Buy this book!,
This review is from: The Strategy and Tactics of Pricing: A Guide to Profitable Decision Making (3rd Edition) (Hardcover)For anyone involved in business this book gives very practical advice on not only the methodology for pricing new products but also changing the strategy of one's existing pricing policy.
Look for a sustainable competitive advantage, maximise contribution margin, concentrate on value and profitability and then market share will follow are some of the key philosophies contained in the text. Concerning the value of this book, it is worth the price alone just for the chapter on costings and formula for calculating what level of sales a company can afford to lose/must gain after a price increase/decrease in order to break even.
A common complaint about business books is that they are all OK in theeory but contain little in the way of explanations of how to implement - this book however offers not only theory and case study examples but also practical instructions on what needs to be done to improve pricing strategy. Overall very, very impressive and a must read for anyone involved in finance, sales or marketing functions. As someone has already said these guys really know their stuff and it works!!
13 of 14 people found the following review helpful
5.0 out of 5 stars A must-have for any serious marketing professional,
This review is from: The Strategy and Tactics of Pricing: A Guide to Profitable Decision Making (3rd Edition) (Hardcover)The Strategy and Tactics of Pricing stands out as one of the best business books I've read. The Nagle book elevates the subject of pricing to the level it deserves, and moves it from the realm of art, to science.
Oftentimes, business texts will represent themselves as technique guides, when in reality, they do nothing more than introduce concepts. Not true here. There's nothing fluffy or superficial about Strategy and Tactics of Pricing. You'll want to immediately put this stuff into practice. Loads of solid, thought-provoking material.
The authors move methodically through the subject matter, which contains both exhaustive explanations and formulas that the reader can apply when analyzing or setting price. There's even a chapter devoted to the legal aspects of pricing.
This is a practical text that the marketing pro will reference again and again.
8 of 8 people found the following review helpful
5.0 out of 5 stars Scholarly and comprehensive,
"Winning the Profit Game. Smarter Pricing, Smarter Branding" by Docters, et al) I think Prof. Nagle has the definitive treatise. For those who like a more prescriptive discussion of price, and some leading edge ideas, "Winning the Profit Game" might be a better read. Power
Pricing is perhaps better at organizational issues. The Docters book is the easiest read, with some humor along the way.
15 of 18 people found the following review helpful
5.0 out of 5 stars Both academically sound and extremely practical,
4 of 4 people found the following review helpful
5.0 out of 5 stars Outstanding!,
By A Customer
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3 of 3 people found the following review helpful
5.0 out of 5 stars Right on target,
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The Strategy and Tactics of Pricing: A Guide to Profitable Decision Making by Reed K. Holden (Hardcover - May 1994)
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