The 1% Windfall
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%, 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 multi-national conglomerate, small business, or even a non-profit - can follow to create a comprehensive pricing strategy for any product or service. In addition, these 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 companies to price for profit and growth.