The 1% Windfall: How Successful Companies Use Price to Profit and Grow
Pricing consultant Mohammed highlights ideas and tactics that build a foundation to create a pricing strategy for every global company, answering the question, How would a 1% increase in price affect operating profits? We learn about the author’s concept of value pricing, which is based on how customers make purchase decisions and involves setting prices that capture the value customers place on the product rather than what it costs to manufacture it. The author tells a compelling story of Southwest Airlines and how it has increased revenue by charging more for an added feature that a certain customer segment values. With a goal of win-win for both a company and its customers, the author shares his success story interviews with managers in a wide variety of industries. He concludes with an action plan for a comprehensive pricing strategy and observes, The financial benefits of a 1% price increase . . . illustrate the power of pricing and its direct link to the bottom line. This is an excellent book. --Mary Whaley