Pricing on Purpose: Creating and Capturing Value / Edition 1

Pricing on Purpose: Creating and Capturing Value / Edition 1

by Ronald J. Baker
     
 

The book presents the theory of value— long established in economics—and details how any business can use various pricing strategies to create, communicate, and capture the value of their products and services. It takes a new approach of focusing on the external value as perceived by the customer and advocates matching price to value. Written in everyday

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Overview

The book presents the theory of value— long established in economics—and details how any business can use various pricing strategies to create, communicate, and capture the value of their products and services. It takes a new approach of focusing on the external value as perceived by the customer and advocates matching price to value. Written in everyday language so it's valuable to beginning executives as well as professional pricers and marketers, it covers:

  • What and how people buy
  • The fallacy of commodity thinking
  • The five Cs of value
  • The market share myth
  • The difference between cost-plus pricing and value pricing
  • A comparison of the Subjective Theory of Value and the Labor Theory of Value
  • Customer segmentation strategies

Complete with examples from a multitude of industries and successful entrepreneurs and peppered with quotes from business experts as well as economists, the book is not a dry treatise on an ethereal economic theory. It's lively and down-to-earth, using examples such as the high cost of popcorn in movie theaters, 99? pricing, and the way love-struck couples purchase engagement rings. It gets down-to-business, providing proven strategies and tactics CEOs, CFOs, marketing managers, and professional pricers can implement as a part of a value-based pricing architecture. If the purpose of your business is to add value to customers in order to earn profits, Pricing on Purpose can be incredibly valuable to your business!

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Product Details

ISBN-13:
9780471729808
Publisher:
Wiley
Publication date:
02/03/2006
Edition description:
New Edition
Pages:
400
Product dimensions:
9.21(w) x 6.14(h) x 0.88(d)

Table of Contents

Foreword.

Preface.

Acknowledgments.

About the Author.

1. Why Is Movie Theater Popcorn So Expensive?

2. Why Are We in Business?

3. Mind Over Matter.

4. The Old Business Equation.

5. The New Business Equation.

6. Ninety-Nine-Cent Pricing, Engagement Rings, and the Assumption of Rationality.

7. The Invisible Hand: No One Person Knows How to Make a Pencil.

8. ATale of Two Theories.

9. Cost-Plus Pricing’s Epitaph.

10. The Wrong Mistakes.

11. Price-Led Costing Replaces Cost Accounting.

12. What and How People Buy.

13. The Value Proposition.

14. The Consumer Surplus and Price Discrimination.

15. Customer Segmentation Strategies.

16. Price Discrimination in Practice.

17. There Is No Such Thing as a Commodity.

18. Baker’s Law: Bad Customers Drive Out Good Customers.

19. Ethics, Fairness, and Pricing.

20. Antitrust Law.

21. Who Is in Charge of Value?

22. Pricing on Purpose: Getting Paid for the Value Your Company Creates.

Bibliography.

Suggested Reading.

Index.

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