The 1% Windfall

How Successful Companies Use Price to Profit and Grow

• Author(s): Rafi Mohammed,
• Publisher: Harper Collins
• Pages: 256
• ISBN_10: 0061985279
  ISBN_13: 9780061985270
  
• Language: en
• Categories: Business & Economics / Commercial Policy , Business & Economics / Consumer Behavior , Business & Economics / Economics / Social & Behavioral , Business & Economics / Accounting / General , Business & Economics / Commerce , Business & Economics / E-Commerce / General , Business & Economics / Personal Finance / Money Management , Business & Economics / Personal Finance / Investing , Business & Economics / Reference , Business & Economics / Sales & Selling / Management ,

Description:...

Leading pricing expert Rafi Mohammed shows businesses how to reap a financial windfall and foster growth using the underutilized and often overlooked strategy of setting prices.

The 1% Windfall reveals how modest incremental changes to an everyday business practice—pricing—can yield significant rewards. Illustrating the power of pricing, a study of the Global 1200 found that if companies raised prices by just 1%, their average operating profits would increase by 11%. Using a 1% increase in price, some companies would see even more growth in percentage of profit: Sears, 155%; McKesson, 100%; Tyson, 81%; Land O'Lakes, 58%; and Whirlpool, 35%.

The good news is that better pricing is more than simply raising prices. Instead, the key is to offer customers a variety of pricing options. This strategy is win-win: profits to companies and choices for consumers.

But how do executives and managers set the right price? Underpinned by sound empirical research and real-life anecdotes, The 1% Windfall addresses this fundamental question. This book offers guidelines that any company—whether a multinational conglomerate, a small business, or even a nonprofit—can follow to create a comprehensive pricing strategy for any product or service. In addition, these versatile techniques and tools provide solutions to avert a slump in a recession, offset the impact of inflation, or battle a new competitor.

The result is a mind-opening, clear blueprint for com-panies to price for profit and growth.