The 1% Windfall: How Successful Companies Use Price to Profit and Grow

The 1% Windfall: How Successful Companies Use Price to Profit and Grow

by Rafi Mohammed

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Overview

The 1% Windfall: How Successful Companies Use Price to Profit and Grow by Rafi Mohammed

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.

Product Details

ISBN-13: 9780061985270
Publisher: HarperCollins Publishers
Publication date: 03/16/2010
Sold by: HARPERCOLLINS
Format: NOOK Book
Pages: 256
Sales rank: 933,903
File size: 359 KB

About the Author

Rafi Mohammed has been working with pricing issues for the last twenty years. He is the founder of Culture of Profit LLC, a Cambridge, Massachusetts-based company that consults with businesses to help develop and improve their pricing strategy. Born in Milwaukee and raised in Cincinnati, he is the author of The Art of Pricing and an economics graduate of Boston University, the London School of Economics, and Cornell University, where he received his Ph.D.

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