Pricing on Purpose: Creating and Capturing ValueJohn Wiley & Sons, 2010 M06 10 - 400 pages Pricing on Purpose explores the importance of pricing, one of the four Ps (product, promotion, place, and price) of marketing, that is largely ignored in business literature. Pricing is the opportunity for a business to capture the value of what it provides to the customer, and deserves as much attention as promotion, product and place in the marketing strategy of any business. This book calls attention to the market share fallacy, explains the difference between cost-plus pricing and value pricing, and provides best-practice pricing examples. It presents the theory of value—long established in the economics profession—and how any business can use various pricing strategies to communicate and capture the value of their products and services. |
From inside the book
Results 1-5 of 49
Page i
... cost - plus pricing method for a formula that better fits the 21st Century business . He combines his 20+ years of pricing research with proven economic theo- ries , and sprinkles it with historical references and fun anecdotes . Pricing ...
... cost - plus pricing method for a formula that better fits the 21st Century business . He combines his 20+ years of pricing research with proven economic theo- ries , and sprinkles it with historical references and fun anecdotes . Pricing ...
Page ii
... cost-plus pricing, which is totally inefficient compared to the new business model of value pricing offered. If the reader just read the quotes and examples they would remind the reader of the basic and successful business models. But ...
... cost-plus pricing, which is totally inefficient compared to the new business model of value pricing offered. If the reader just read the quotes and examples they would remind the reader of the basic and successful business models. But ...
Page iii
... pricing strategies and uncover the true value of their prod- ucts and services . Pricing on Purpose provides a ... cost - plus pricing model that has so dominated our industry for much too long . " -Steven Koskela , CPA , Chief ...
... pricing strategies and uncover the true value of their prod- ucts and services . Pricing on Purpose provides a ... cost - plus pricing model that has so dominated our industry for much too long . " -Steven Koskela , CPA , Chief ...
Page ix
... Pricing , Engagement Rings , and the Assumption of Rationality 41 7 The Invisible Hand : No One Person Knows How to Make a Pencil 49 8 A Tale of Two Theories 63 9 Cost - Plus Pricing's Epitaph 87 10 The Wrong Mistakes 103 11 Price-Led ...
... Pricing , Engagement Rings , and the Assumption of Rationality 41 7 The Invisible Hand : No One Person Knows How to Make a Pencil 49 8 A Tale of Two Theories 63 9 Cost - Plus Pricing's Epitaph 87 10 The Wrong Mistakes 103 11 Price-Led ...
Page xii
... cost-led pricing completely around by showing that the latter is internally ... plus pricing on the trash heap” and moving toward a better understand- ing ... pricing committee to the " pricing cartel " in the firm xii Foreword.
... cost-led pricing completely around by showing that the latter is internally ... plus pricing on the trash heap” and moving toward a better understand- ing ... pricing committee to the " pricing cartel " in the firm xii Foreword.
Contents
1 | |
7 | |
15 | |
25 | |
31 | |
41 | |
CREATING AND CAPTURING VALUE CHAPTER 7 THE INVISIBLE HAND NO ONE PERSON KNOWS HOW TO MAKE A PENCIL | 49 |
CREATING AND CAPTURING VALUE CHAPTER 8 A TALE OF TWO THEORIES | 63 |
CREATING AND CAPTURING VALUE CHAPTER 14 THE CONSUMER SURPLUS AND PRICE DISCRIMINATION | 175 |
CREATING AND CAPTURING VALUE CHAPTER 15 CUSTOMER SEGMENTATION STRATEGIES | 197 |
CREATING AND CAPTURING VALUE CHAPTER 16 PRICE DISCRIMINATION IN PRACTICE | 213 |
CREATING AND CAPTURING VALUE CHAPTER 17 THERE IS NO SUCH THING AS A COMMODITY | 235 |
CREATING AND CAPTURING VALUE CHAPTER 18 BAKERS LAW BAD CUSTOMERS DRIVE OUT GOOD CUSTOMERS | 249 |
CREATING AND CAPTURING VALUE CHAPTER 19 ETHICS FAIRNESS AND PRICING | 269 |
CREATING AND CAPTURING VALUE CHAPTER 20 ANTITRUST LAW | 283 |
CREATING AND CAPTURING VALUE CHAPTER 21 WHO IS IN CHARGE OF VALUE? | 307 |
CREATING AND CAPTURING VALUE CHAPTER 9 COSTPLUS PRICINGS EPITAPH | 87 |
CREATING AND CAPTURING VALUE CHAPTER 10 THE WRONG MISTAKES | 103 |
CREATING AND CAPTURING VALUE CHAPTER 11 PRICELED COSTING REPLACES COST ACCOUNTING | 121 |
CREATING AND CAPTURING VALUE CHAPTER 12 WHAT AND HOW PEOPLE BUY | 129 |
CREATING AND CAPTURING VALUE CHAPTER 13 THE VALUE PROPOSITION | 143 |
CREATING AND CAPTURING VALUE CHAPTER 22 PRICING ON PURPOSE GETTING PAID FOR THE VALUE YOUR COMPANY CREATES | 333 |
CREATING AND CAPTURING VALUE BIBLIOGRAPHY | 343 |
CREATING AND CAPTURING VALUE SUGGESTED READING | 355 |
CREATING AND CAPTURING VALUE INDEX | 367 |
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Common terms and phrases
activity-based costing airline antitrust laws behavior better brand buyers capacity capture Chapter charge commodity company’s competency competition competitors consumer surplus cost accounting cost-plus pricing create customer’s customers demand curve determine developed different prices discount Disney economic economists effect efficiency equation exist experience explain firm firm’s flight free market George Gilder higher price human ibid ideas important industry innovation intellectual capital iPod knowledge learning loyalty marginal market share million Nagle and Holden needs Neiman-Marcus offering organization penetration pricing percent Peter Drucker premium price discrimination price sensitive price theory Pricing on Purpose pricing strategies profit purchase revenue risk segments sell social sold Stanley Marcus Steven Landsburg subjective theory team members theory of value things Thomas Sowell tickets tion tomers understand utility value proposition wealth yield management
Popular passages
Page xv - THE ROAD NOT TAKEN Two roads diverged in a yellow wood, And sorry I could not travel both And be one traveler, long I stood And looked down one as far as I could To where it bent in the undergrowth...
Page xv - I shall be telling this with a sigh Somewhere ages and ages hence: Two roads diverged in a wood, and I— I took the one less travelled by, And that has made all the difference. —ROBERT FROST Chapter 2 Energy Strategy: The Road Not Taken?
Page 49 - I have never known much good done by those who affected to trade for the public good. It is an affectation, indeed, not very common among merchants, and very few words need be employed in dissuading them from it.
Page 49 - By preferring the support of domestic to that of foreign industry he intends only his own security; and by directing that industry in such a manner as its produce may be of the greatest value, he intends only his own gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention.
Page 50 - How selfish soever man may be supposed, there are evidently some principles in his nature, which interest him in the fortune of others, and render their happiness necessary to him, though he derives nothing from it except the pleasure of seeing it.
Page 66 - There are some commodities the value of which is determined by their scarcity alone. No labour can increase the quantity of such goods, and therefore their value cannot be lowered by an increased supply. Some rare statues and pictures, scarce books and coins, wines of a peculiar quality...
Page 65 - Labour alone, therefore, never varying in its own value, is alone the ultimate and real standard by which the value of all commodities can at all times and places be estimated and compared.
Page 119 - Friends, Romans, countrymen, lend me your ears; •> I come to bury Caesar, not to praise him. The evil, that men do, lives after them; The good is oft interred with their bones; \ So let it be with Caesar.
Page 65 - The value of any commodity, therefore, to the person who possesses it, and who means not to use or consume it himself, but to exchange it for other commodities, is equal to the quantity of labour which it enables him to purchase or command.