Setting Profitable Prices: A Step-by-step Guide to Pricing Strategy - without Hiring a Consultant + Website
By: Marlene Jensen (author)Paperback
1 - 2 weeks availability
Time-tested strategies for making the best possible pricing decisions and gaining an unbeatable competitive advantage Pricing is one of the most important and difficult marketing problems companies face when launching new products. Unfortunately, the research that goes into making optimal pricing decisions is a very time-consuming process unless, that is, you can afford to pay a consultant or outside agency to do it for you. But if you're like most small- to medium-sized business owners and managers, time and money are two things you absolutely don't have to spare. Problem solved: Written by a nationally recognized pricing expert, this book arms you with proven strategies for guaranteeing that you'll never again leave money on the table when determining prices. And you'll spend the least possible time setting your more profitable prices.
* Packed with valuable worksheets and other valuable tools to help guide your research and your pricing decision-making * A goldmine of expert tips for pricing in any specialty market, it offers a highly effective way to market your company's product more effectively and profitably * Shows you how to avoid making your competitors' pricing mistakes and gain a powerful competitive edge in the process * The author uses examples drawn from her years of consulting work with companies large and small, including Food Network, American Express Publishing, and Playboy
Dr. MARLENE JENSEN is a pricing strategy and marketing/new business expert. Her decades of consulting work with companies, large and small including the Food Network, American Express Publishing, and Playboy are consolidated in this powerful book/website combo. In addition to consulting, Dr. Jensen has performed pricing tests for companies such as CBS Publishing, her own launches (Sportswoman magazine, Ancillary Profits and Media Marketing newsletters, and Jensen-Fann Publishers) and in numerous academic research studies. Dr. Jensen has taught marketing and pricing at Western Connecticut State University, and currently at Lock Haven University.
Preface xv Author Credentials xv If You Can Afford a Pricing Consultant ... xvi Don t Have the Cash to Invest? xvii How Big of a Rush Are You In? xvii Chapter Summaries xviii Acknowledgments xxi PART 1 HOW TO SET PRICES FOR MAXIMUM PROFITS 1 Chapter 1 Why Pricing Is the Key to Your Success 3 Raise Prices or Sell More Products? 3 Big-Company Case History 5 Tiny-Company Case History 5 Chapter 2 Why Most Companies Stink at Pricing (and How You Can Do Better!) 7 The Myth of Creating Demand Curves 8 How Your Competitors Are Setting Prices 9 Cost-Plus Pricing 9 Match-Your-Competitors Pricing 11 PART 2 HOW THE MARKET WILL VALUE YOUR NEW PRODUCT 13 Chapter 3 Analyzing Your Competitors Prices 15 You Do So Have Competitors! 15 How to Pick Your Competitors 16 Direct vs. Indirect Competitors 16 How Consumers Evaluate Prices 18 How to Get Profitable Ideas from Your Competitors 19 Chapter 4 Environmental Factors That Can Affect Your Pricing 21 Environmental Factors Overview 21 The Economy 21 Competitors 24 Government Regulation and Legal 24 Social Trends 25 Technological Change 26 Chapter 5 Pick the Positioning of Your New Product 29 There Are Only 3 Choices! 29 The Psychology of Price Positioning 30 Penetration Price Positioning 31 Skimming (or Premium) Price Positioning 35 Competitive Price Positioning 38 Learning More about Competitive Pricing 40 Chapter 6 Analyzing Your Buyer Benefits/Drawbacks Relative to Your Competitors 43 Uncovering What Buyers Really Value/Hate about Products in Your Marketplace 44 Learn More about Calculating Buyer Valuation of Different Features 44 Chapter 7 Picking a Ballpark for Your Best Price 47 You Will Not Be Stuck with Your Decision! 48 Can t Make a Profit at that Price Range? 49 Not Sure about Your Results? 49 Learn More about Buyers Reactions to Price Ranges 50 PART 3 YOUR COST ANALYSIS 53 Chapter 8 Evaluating Your Costs 55 The Ideas Behind Target Costing and Target Engineering 55 Types of Costs 56 The Hardest Part of Calculating Costs 57 Reasons for Launching a Product that Doesn t Cover Overhead 58 PART 4 FINE-TUNING YOUR PRICE 59 Chapter 9 Is Your Profit Potential Acceptable? 61 If You re Happy with Your Potential Profits 61 If You re Not Happy with Your Potential Profits 62 Next Step 66 Chapter 10 Psychological Adjustments to Your Price 67 Understanding Barriers in Prices 68 Staying below Barriers 68 Increasing Prices up to Barriers 69 Numbers that Say Discount to Buyers 70 Test Your Knowledge! 71 Visually Appealing Prices 72 Selling to Businesses 73 Learn More about Thresholds 74 Learn More about the Effect of Numbers 75 PART 5 TESTING YOUR PRICES 77 Chapter 11 Testing Prices 79 The Psychology of You in Setting Prices 79 Can You Test? 81 The Difference between Testing and Research 81 Chapter 12 Using Google to Test Prices for Free (or Almost Free) 83 Two Methods for Almost-Free Testing!! 83 Using Google Optimizer to Test Multiple Things 87 PART 6 PRICING IN SPECIAL SITUATIONS 91 Chapter 13 Pricing Services 93 Imagine No Chapter 13! 93 The Complications of Setting Prices for Services 94 The Myth of Pricing Based on What You Want to Earn 94 Pricing by the Hours versus the Job 94 Finding What Service Competitors Charge 96 Picking Your Price Positioning 97 What Your Price Says about Your Firm 97 How to Charge Higher Prices to Those Willing to Pay More 98 Chapter 14 Pricing New Products/Services, Part 1: When Your Brand Is Unknown 101 The Problems in Pricing Something New 101 Price Equals Quality Buyer Perception 102 Does Quality Equal Likelihood-to-Buy? 102 Understanding Bargain Hunters 103 Price Preferences by Product Type 103 Detailed Research on Buyer Price Position Preferences 104 Additional Research on Preferred Prices 107 Learn More about Risk and Pricing 110 Chapter 15 Pricing New Products/Services, Part 2: Competing with Established Brands 113 When Your Competitors Are Established Brands 113 Risk Avoidance 116 Price Premiums for Known Brands 117 Discounting Differences 120 What Causes Customers to Switch to a New Brand? 124 What Happens after Buyers Switch? 126 Shocking Findings on Brand Names 127 So What Does it All Mean for Pricing a New Product/Service? 127 Chapter 16 Pricing with Discounts 129 Discounts: A Double-Edged Sword 129 When Discounts Worry Consumers 130 Determining Best Discount Levels 136 Discounts Effect on Quality Ratings and Purchase 137 Concluding Thoughts on Pricing, and Especially on Testing Prices 139 Appendix of Worksheets 141 Bibliography 157 About the Author 171 About the Companion Web Site 173 Index 175
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