Confessions of the Pricing Man: How Price Affects Everything 1st ed. 2015 Edition
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“This is the best book I know to open your mind to the practical problems in setting your prices.” (Prof. Philip Kotler, S.C. Johnson & Son Distinguished Professor of International Marketing, Kellogg School of Management, Northwestern University)
“Hermann Simon is ‘The Pricing Man’ and a giant within our discipline. With more than 40 years of experience in pricing research and practice with companies across the globe and across all major industries, he possesses the know-how to help organizations large, medium-sized, and small to improve their pricing acumen. This book will help you improve your pricing management skills, strategies, and tactics – and it will help your company also.” (Kevin Mitchell, President, The Professional Pricing Society, Inc.)
“Hermann Simon is a man who can get upset about being offered a 35 percent discount on a new digital camera. His fascination with ‘willingness to pay’ is infectious. As much as any individual, he is behind the professionalization of pricing in the past couple of decades.” (William Poundstone, Author of Priceless: The Myth of Fair Value (and How to Take Advantage of It))
From the Back Cover
The world’s foremost expert on pricing strategy shows how this mysterious process works and how to maximize value through pricing to company and customer.
In this engaging and practical narrative, Hermann Simon leaves nothing out of the pricing cocktail, explaining each ingredient through dozens of stories collected over four decades in the trenches and behind the scenes. A world-renowned speaker on pricing and a trusted advisor to Fortune 500 executives, Simon’s lifelong journey has taken him from rural farmers’ markets, to a distinguished academic career, to a long second career as an entrepreneur and management consultant to companies large and small throughout the world. Along the way, he has learned from Nobel Prize winners and leading management gurus, and helped countless managers and executives use pricing as a way to create new markets, grow their businesses, and gain a sustained competitive advantage. Here, for consumers and business people alike, he reveals the secrets of successful pricing practices, and shares the wisdom and common sense that will forever change the way you thinking about pricing.
“This is the best book I know to open your mind to the practical problems in setting your prices.”
PHILIP KOTLER, S.C. Johnson & Son Distinguished Professor of International Marketing at the Kellogg School of Management, Northwestern University.
“Hermann Simon is ‘The Pricing Man’ and a giant withinour discipline. With more than 40 years of experience in pricing research and practice with companies across the globe and across all major industries, he possesses the know-how to help organizations large, medium-sized, and small to improve their pricing acumen. This book will help you improve your pricing management skills, strategies, and tactics – and it will help your company also.”
KEVIN MITCHELL, President, The Professional Pricing Society, Inc.
“Hermann Simon is a man who can get upset about being offered a 35 percent discount on a new digital camera. His fascination with ‘willingness to pay’ is infectious. As much as any individual, he is behind the professionalization of pricing in the past couple of decades.”
WILLIAM POUNDSTONE, Author, Priceless: The Myth of Fair Value (and How to Take Advantage of It)
- Item Weight : 12.8 ounces
- Paperback : 236 pages
- ISBN-10 : 3319203991
- ISBN-13 : 978-3319203997
- Product Dimensions : 6.1 x 0.55 x 9.25 inches
- Publisher : Springer; 1st ed. 2015 Edition (October 27, 2015)
- Language: : English
- Best Sellers Rank: #76,731 in Books (See Top 100 in Books)
- Customer Reviews:
Top reviews from the United States
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There are a few things to ponder for those who would jump on this bandwagon without a consideration for their own business model.
I will just share one regarding the “every day low prices" (EDLP) model. It is not a model for every business and every market. Despite what is claimed in the book, there are legitimate uses of alternative or even existing pricing strategies simply because they sometimes work much better in the real world.
To give you an example - in Australia it's very entertaining and enjoyable to see direct quotations from this book to be spearheaded in the Australian WSJ, called the Australian Financial Review, as state-of-the-art management practice. Specifically, as applied to the duopoly in the groceries market controlled by Coles and Woolworths. Seeing these ‘educational’ articles time and again on how the EDLP must be adopted in the industry to optimize their profitability is a naturally satisfying feat.
Why? Well, the EDLP model would not work in the real world of Australian duopolistic groceries market. People shop for a large number of SKUs every week usually in shopping malls where Coles and Woolies sit side by side. I understand that Simon thinks it’s wasteful to allow a consumer to stock up on those deep-sale discounted deodorants, but he forgets that those are called loss leaders used to confuse customers and lure them from the rival chain.
The two chains compete ONLY on cost of essentially commoditised perfectly substitutable products, there’s Pepsi and Coke in both. Which means that over time static prices would simply reveal to a customer who offers a better deal – you just go to two different stores on alternate weeks and see which one is cheaper for your basket. All these smoke and mirrors non-stop weekly promos play an essential business role of creating price confusion. Without them an objective quantifiable dollar differential between the two chains will become evident.
Imagine what is going to happen when neither of the supermarkets has any difference in their value proposition i.e. selection, instore experience, customer service, locations and so on! This is the worst case scenario for Simon – the commoditised market where the only way you can extract premium from the consumers is by confusing them. Removing the confusion by introducing EDLP is NOT what those business really want. This is one of the main problems I found in the book.
Although this book is - in my opinion - colossal, it cannot substitute for a solid business sense. There are no simple recipes in this world.
I give it 4star because there are editing issue in Kindle edition. many words with "... s" are white spaced and sometimes it can be very bothersome.
I really have to say that the book is extraordinary and eye-opening. I would not have bought such an expensive book normally, but a different author pointed to this book as one of his top 50. And I know that I'll re-read this book over and over again just to absorb the different lessons.
It also made me think about how I price my own products. It was a great nudge to carefully consider all the factors before pricing anything.
Top reviews from other countries
You can read the book like literature almost. The title itself "Confessions..." indicates some personal and emotional aspect for the author. All this makes the book really worth reading by everybody.