"This book is a treasure—a practical yet intellectually sound guide to pricing that is applicable to both large and small companies. Frankly, in all my years writing about economics and covering corporate decision making, I have not seen pricing strategy and tactics explained so clearly as in this book."
Michael Mandel, former chief economist, BusinessWeek, and Editor-in-Chief, Visible Economy LLC

"This book is both insightful and ...

See more details below
The Price Advantage

Available on NOOK devices and apps  
  • NOOK Devices
  • Samsung Galaxy Tab 4 NOOK
  • NOOK HD/HD+ Tablet
  • NOOK
  • NOOK Color
  • NOOK Tablet
  • Tablet/Phone
  • NOOK for Windows 8 Tablet
  • NOOK for iOS
  • NOOK for Android
  • NOOK Kids for iPad
  • PC/Mac
  • NOOK for Windows 8
  • NOOK for PC
  • NOOK for Mac
  • NOOK for Web

Want a NOOK? Explore Now

NOOK Book (eBook)
BN.com price
(Save 42%)$80.00 List Price
Note: This NOOK Book can be purchased in bulk. Please email us for more information.



"This book is a treasure—a practical yet intellectually sound guide to pricing that is applicable to both large and small companies. Frankly, in all my years writing about economics and covering corporate decision making, I have not seen pricing strategy and tactics explained so clearly as in this book."
Michael Mandel, former chief economist, BusinessWeek, and Editor-in-Chief, Visible Economy LLC

"This book is both insightful and practical. Many companies overlook the substantial profit opportunities from smart pricing. The authors show you not only where to look for, but also how to capture and sustain those opportunities."
James M. Kilts, former chairman and CEO, The Gillette Company

"The Price Advantage is very straightforward and direct, with concise and easily applied coverage of each and every topic."
David J. Reibstein, Marketing Professor, The Wharton School

The Second Edition of The Price Advantage, written by three preeminent experts at McKinsey & Company, is the most pragmatic and insightful book on pricing available.

Based on in-depth, firsthand experience with hundreds of companies, as well as significant investments in new pricing research, this book is designed to be a comprehensive guide for managers through the maze of pricing issues.

The authors examine state-of-the-art approaches for analyzing and improving pricing performance, demonstrate those approaches with real case studies, and draw a pricing excellence blueprint for companies to follow. In good economic times or bad, achieving the price advantage is critical to corporate performance and profitability.

Read More Show Less
  • Craig C. Zawada
    Craig C. Zawada  

Product Details

  • ISBN-13: 9780470633007
  • Publisher: Wiley
  • Publication date: 7/15/2010
  • Series: Wiley Finance , #535
  • Sold by: Barnes & Noble
  • Format: eBook
  • Edition number: 2
  • Pages: 384
  • Sales rank: 907,967
  • File size: 4 MB

Meet the Author

WALTER L. BAKER is a partner in the Atlanta office of the international consulting firm of McKinsey & Company. Since joining McKinsey in 1998, he has worked with clients across multiple industries in the areas of pricing, sales, marketing, and strategy. With particular focus on the technology and industrial sectors, he has authored articles on pricing in CMO magazine, the McKinsey Quarterly, and the Harvard Business Review.

MICHAEL V. MARN is a partner in the Cleveland office of McKinsey & Company. He joined McKinsey in 1977 and has developed some of the most widely used analytic approaches for identifying and capturing opportunities in pricing. He has written articles on pricing that have appeared in publications including the Wall Street Journal, the New York Times, and the Harvard Business Review.

CRAIG C. ZAWADA is a partner in the Calgary office of McKinsey & Company. Since joining McKinsey in 1997, he has worked with companies across multiple industries, helping them to identify and capture improvements in pricing. He is widely published in the area of pricing strategy, with articles appearing in the Harvard Business Review, Mergers & Acquisitions, and the McKinsey Quarterly.

Read More Show Less

Table of Contents



PART ONE: Pricing Fundamentals.

CHAPTER 1: Introduction.

The Power of 1 Percent.

The Price/Volume Tradeoff.

Market Forces Add Pressure.

The Nobility of Pricing Excellence.

Why the Price Advantage Is So Rare.

CHAPTER 2: Components of Pricing Excellence.

An Integrated Approach.

An Interdependent Hierarchy.

Applying to Your Company—Pinpointing the Opportunity.

PART TWO: Exploring the Levels.

CHAPTER 3: Transactions.

The Pocket Price Waterfall.

The Pocket Price Band.

The Soundco Radio Company Case.

Pocket Margin Waterfall and Band.

Alen Glass Company Case.

CHAPTER 4: Customer Value.

Mapping Value.

Creating a Value Map.

Making Moves on the Value Map.

Putting Customers on the Value Map.

Value Profiling.

CHAPTER 5: Market Strategy.

Profiting from Better Price Predictions.

Planning for an Expected Price Change.

Maintaining Optimal Production and Capacity.

Improving Pricing Conduct.

Influencing the Elements of Pricing Conduct.

A Word on Followership.

CHAPTER 6: Pricing Infrastructure.

Processes—What Are the Most Critical Types of Pricing Decisions for Your Business?

Organization—Who Is Running the Pricing Profit Center?

Performance Management—How Should We Recognize and Reward Pricing Performance?

Systems and Tools—No Magic Bullet Exists.

PART THREE: Unique Events.

CHAPTER 7: Postmerger Pricing.

A Temporary Window of Opportunity.

Tremendous Opportunities at Each Pricing Level.

Avoiding Common Postmerger Traps.

Antitrust Laws.

CHAPTER 8: Price Wars.

Why Price Wars Should Be Avoided.

What Really Causes Price Wars.

Staying Out of Price Wars.

Getting Out of Price Wars.

When a Price War Might Make Sense.

PART FOUR: Expanding the Boundaries.

CHAPTER 9: Legal Degrees of Freedom.

Pricing Decisions That Raise Red Flags.

Minimizing Risks While Meeting Pricing Objectives.

Calling in the Attorneys.

CHAPTER 10: Lifecycle Pricing.

What Makes Lifecycle Pricing Tough.

The Three Phases of Product Lifecycle Pricing.

Sustaining Returns Across the Lifecycle.

CHAPTER 11: Pricing Architecture.

Managing Price Perception.

Influencing Customer Behavior.

Price Architecture Based on Supplier Role.

PART FIVE: Advanced Topics.

CHAPTER 12: Complexity Management.

Section One: Custom-Configured Products.

Section Two: High-Count Product Lines.

Section Three: Distributed Sales Models.

CHAPTER 13: Tailored Value.

Section One: Price Segmentation.

Section Two: Tiered Products and Services.

Section Three: New Products.

Section Four: "Razor/Razor Blades" Offerings.

Section Five: Solutions.

CHAPTER 14: Software and Information Products.

Unique Characteristics That Impact Pricing.

Exploring the Elements of Pricing.

PART SIX: Making Change Happen.

CHAPTER 15: Pricing Transformation.

Designing a Clear Change Program.

Accelerating and Embedding Change.

CHAPTER 16: The Monnarch Battery Case.

The Monnarch Battery Company.


Customer Value.

Market Strategy.

Capturing the Monnarch Pricing Opportunity.

Hard-Wiring the Change.


APPENDIX 1: Pocket Price and Pocket Margin Waterfalls.

APPENDIX 2: Antitrust Issues.

U.S. Pricing Law.

EU Pricing Law.

Antitrust Information Sources.

APPENDIX 3: List of Acronyms and Abbreviations.

APPENDIX 4: About the Web-Based Tool: Periscope.

About the Authors.


Read More Show Less

Customer Reviews

Be the first to write a review
( 0 )
Rating Distribution

5 Star


4 Star


3 Star


2 Star


1 Star


Your Rating:

Your Name: Create a Pen Name or

Barnes & Noble.com Review Rules

Our reader reviews allow you to share your comments on titles you liked, or didn't, with others. By submitting an online review, you are representing to Barnes & Noble.com that all information contained in your review is original and accurate in all respects, and that the submission of such content by you and the posting of such content by Barnes & Noble.com does not and will not violate the rights of any third party. Please follow the rules below to help ensure that your review can be posted.

Reviews by Our Customers Under the Age of 13

We highly value and respect everyone's opinion concerning the titles we offer. However, we cannot allow persons under the age of 13 to have accounts at BN.com or to post customer reviews. Please see our Terms of Use for more details.

What to exclude from your review:

Please do not write about reviews, commentary, or information posted on the product page. If you see any errors in the information on the product page, please send us an email.

Reviews should not contain any of the following:

  • - HTML tags, profanity, obscenities, vulgarities, or comments that defame anyone
  • - Time-sensitive information such as tour dates, signings, lectures, etc.
  • - Single-word reviews. Other people will read your review to discover why you liked or didn't like the title. Be descriptive.
  • - Comments focusing on the author or that may ruin the ending for others
  • - Phone numbers, addresses, URLs
  • - Pricing and availability information or alternative ordering information
  • - Advertisements or commercial solicitation


  • - By submitting a review, you grant to Barnes & Noble.com and its sublicensees the royalty-free, perpetual, irrevocable right and license to use the review in accordance with the Barnes & Noble.com Terms of Use.
  • - Barnes & Noble.com reserves the right not to post any review -- particularly those that do not follow the terms and conditions of these Rules. Barnes & Noble.com also reserves the right to remove any review at any time without notice.
  • - See Terms of Use for other conditions and disclaimers.
Search for Products You'd Like to Recommend

Recommend other products that relate to your review. Just search for them below and share!

Create a Pen Name

Your Pen Name is your unique identity on BN.com. It will appear on the reviews you write and other website activities. Your Pen Name cannot be edited, changed or deleted once submitted.

Your Pen Name can be any combination of alphanumeric characters (plus - and _), and must be at least two characters long.

Continue Anonymously

    If you find inappropriate content, please report it to Barnes & Noble
    Why is this product inappropriate?
    Comments (optional)