The Pricing Compass

Finding the Solution to Your Pricing Puzzle

verfasst von: Jan Y. Yang

Verlag: Springer Nature Switzerland

Buchreihe : Business Guides on the Go

Enthalten in: Springer Professional "Wirtschaft+Technik" , Springer Professional "Wirtschaft"

Einloggen, um Zugang zu erhalten

Über dieses Buch

This book provides business owners and practitioners with a comprehensive and pragmatic guide to pricing, which lays out the essential steps to professionalizing pricing from day one all the way to a more mature stage. It not only details the key activities leading to result-driven pricing strategies and execution but also addresses the most important pillars of good pricing governance. To do so, the book covers a broad range of pricing topics relevant at different stages of business evolution, e.g. determining the starting point of the pricing journey, identifying unique selling propositions, gauging willingness to pay (WTP), conducting effective customer profiling, improving promotions, and managing distribution from a pricing standpoint.

The book fills a gap in the current pricing literature, which largely consists of descriptive and retrospective narratives cataloging past pricing strategies and tactics that never delve into the underlying rationale and methodologies. It provides readers with clear, actionable insights on how to price their own products and services.

Inhaltsverzeichnis

Frontmatter

1. Pricing Is Not What You Think

Abstract

Price is everywhere. However, people usually do not think about pricing until the moment that they are compelled to do so. Product managers and pricing practitioners, most of all, have the pleasure of pricing encounters. Pricing should be both strategic (concerning value proposition and creation) and tactical (concerning value extraction).

Jan Y. Yang

2. There Is a Solution to Every Pricing Puzzle

Abstract

Pricing is a puzzle. Compared to other business functions, pricing has one distinctive disadvantage, namely, that the outcome of pricing work is subject to many unknowns. Good pricing needs to begin at the top. It needs to improve with time and calls for diligence and teamwork.

Jan Y. Yang

3. Let Us Get Started

Abstract

There is only one definition of business purpose: to create a customer. Businesses must turn a profit to live up to their purpose. Product-market-fit is nice to have. Only a product-market-price fit will result in a viable business case. The value creation journey begins and ends with the customer, whose willingness-to-pay determines the destiny of the journey. There are different routes to reach a pricing decision, while one principle should always apply, i.e., the coarse-to-fine principle.

Jan Y. Yang

4. Keep the Ball Rolling

Abstract

Customers’ needs tend to change and diversify over time. Regular updates of customer profiles are beneficial for achieving better financial results. As the product becomes more sophisticated to keep abreast of diversifying customer needs, pricing also needs to evolve toward a higher level of differentiation. In this context, price elasticity is of particular importance. If you know your price elasticity and cost information, you can nail down the price that results in profit optimum.

Jan Y. Yang

5. Maneuver Shades of Pricing

Abstract

Without enough maintenance, pricing is destined to spiral out of control as businesses grow. Complexity management, promotions, distribution pricing, price increase campaigns, price wars, dynamic pricing, and behavioral pricing are some of the pricing issues that demand extra attention from management.

Jan Y. Yang

6. Embark on the Pricing Journey

Abstract

Finding the price point where customers are satisfied, and the business is most profitable is the duty of top management. The founder/CEO’s roles and responsibilities in pricing change over the course of the pricing journey. Price takers are doomed. Now is the moment to be price setters.

Jan Y. Yang

Backmatter

Titel: The Pricing Compass
verfasst von: Jan Y. Yang
Verlag: Springer Nature Switzerland
Electronic ISBN: 978-3-031-52060-0
Print ISBN: 978-3-031-52059-4
DOI: https://doi.org/10.1007/978-3-031-52060-0