Smarter pricing: how to capture higher margins from your market

Cover......Page 1
Smarter Pricing......Page 2
Contents......Page 8
Acknowledgements......Page 10
Upwards, not downwards......Page 12
Pricing by voodoo or bingo? – there’s a better way......Page 14
 It’s important, so how well are we doing it?......Page 17
 Smarter pricing......Page 19
 Chapter takeaways......Page 20
 Going further – references and additional reading......Page 21
Part1:  Customers: smarter ways to understand them......Page 22
 When they say price, they really mean value......Page 24
  What did they get right?......Page 25
  The tipping point of value......Page 28
  The value proposition......Page 30
  The target group: what does it need? What can it afford?......Page 32
  Dynamic propositions and value innovation......Page 33
  Management questions for your business......Page 34
  Going further – references and additional reading......Page 35
 What would you pay for this? Perils and pitfalls of pricing research......Page 36
  Serious price research – done by the few......Page 39
  Perils of price questions......Page 46
  Chapter summary......Page 49
  Management questions for your business......Page 50
  Going further – references and additional reading......Page 51
 Price discrimination – segmenting by price sensitivity......Page 52
  Price–volume relationship......Page 53
  Buying as the price rises!......Page 54
  Driving miles to buy cheap petrol......Page 55
  Nine effects to reduce price sensitivity......Page 56
  Different customers, different sensitivity......Page 61
  The answer is price discrimination......Page 63
  Different segments, different brands......Page 68
  Chapter summary......Page 69
  Going further – references and additional reading......Page 70
 Customers behaving badly – how pricing can help......Page 72
  Pricing that brings unsatisfactory behaviour......Page 73
  Charge them for what they don\'t eat!......Page 74
  Mini-bar barrier lifted......Page 75
  Pricing that impacts consumption......Page 76
  Early payment, less commitment......Page 77
  Men don’t read price tags......Page 78
  Chapter takeaways......Page 79
  Going further – references and additional reading......Page 80
Part 2:  Competitors: smarter ways to outwit them......Page 82
 Standing out from the crowd – pricing’s role in positioning and differentiation......Page 84
  Up-market or down-market?......Page 85
  What is positioning?......Page 86
  Price – a quality indicator . . . and more......Page 87
  Dynamic market . . . relativities change......Page 94
  You’ve got to be different: ban commodity thinking......Page 95
  Differentiation is the lifeblood – there are three types......Page 97
  Chapter takeaways......Page 100
  Going further – references and additional reading......Page 101
  New threat – deep discount......Page 104
  No room for haughty brand supremacy......Page 105
  Fight back with benefits......Page 107
  Ten strategies to beat the value players......Page 108
  You cannot hold all the business......Page 116
  Management questions for your business......Page 117
  Going further – references and additional reading......Page 118
 Fighting price wars – planning to escape pain......Page 120
  What is a price war, where do they happen?......Page 122
  Does a price war make sense?......Page 124
  Volume increases rarely match the original profit foregone......Page 125
  Any advantage is short-lived......Page 126
  Strategic shakeouts don’t happen......Page 127
  How price wars really start......Page 128
  Avoid, avoid, avoid......Page 129
  Kick ’em with non-price responses......Page 130
  Fear and emotion to fight price cuts......Page 131
  Be creative and selective in your responses......Page 132
  Retreating may be the most profitable strategy......Page 133
  Prepare now......Page 134
  Management questions for your business......Page 135
  Going further – references and additional reading......Page 136
Part 3 Company success: smarter ways to capture value......Page 138
 Fixing the right price – structures, segments and stairways......Page 140
  How could we set the price?......Page 141
  Life-cycle pricing......Page 145
  Next step: develop a price structure......Page 148
  Reward high users with multi-dimensional prices......Page 150
  It’ll cost you more later......Page 151
  Leading customers up price stairways......Page 152
  Block out competitors – pair up product and system......Page 155
  Hot sauce calls for a refreshing bundle......Page 156
  When they bundle, I’ll be different......Page 157
  Confused by prices? That’s the intention......Page 158
  End confusion, risk a price war......Page 159
  Price structure gets golfers out on the links......Page 160
  It’s new, what should I charge?......Page 161
  Chapter takeaways......Page 162
  Going further – references and additional reading......Page 163
  Pricing cues – the magic of 99p......Page 166
  Err . . . I don’t know how much it is normally......Page 168
  Seeing something else pricey loosens the wallet......Page 170
  Threshold price points......Page 171
  Price presentation......Page 173
  Divide and conquer......Page 174
  Love discounts, hate surcharges......Page 175
  What a rising price says about you......Page 176
  Chapter takeaways......Page 177
  Going further – references and additional reading......Page 178
 Why pay more? How to get higher prices......Page 180
  Iffy invoicing – throwing advantages away......Page 188
  Take a bravery pill – announce a price increase......Page 189
  How to increase prices paid, without imposing a price increase......Page 193
  Price-cut perils......Page 194
  Management questions for your business......Page 195
  Going further – references and additional reading......Page 196
Part 4 Pricing success and executive summary......Page 198
  Higher prices (but higher discounts)......Page 200
  Co-ordinating pricing decisions – how does it happen?......Page 201
  Sales force giving it away?......Page 203
  Managing pricing discipline......Page 206
  Prevent profit leakage......Page 207
  When ‘strategic’ really means loss-making......Page 208
  How do you measure success?......Page 209
  Chapter takeaways......Page 211
  Going further – references and additional reading......Page 212
 Smarter pricing – the five-minute version......Page 214
 The last word on price......Page 218
  Going further – references and additional reading......Page 219
Index......Page 220