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.


"This breakthrough 'how to' book offers a practical and comprehensive framework that shows companies how to use price to drive profits from diverse customer segments in offensive and defensive (recession, inflation, and new competitor) situations."
Richard Spaulding, Member of the Board of Directors, Scholastic Corporation
"A valuable insight into the strategic importance of pricing."
Peter W. Olson, Senior Lecturer at Harvard Business School and Former Chairman and CEO of Random House
"Pricing volatility will likely be the greatest challenge management will face in the next decade. Rafi Mohammed provides pricing guidance that equips readers to successfully navigate and profit in these uncertain times."
George Stalk, Senior Advisor and Fellow at The Boston Consulting Group
"This is a rich resource for not-for-profits. Rafi Mohammed shows how smart pricing tactics can distribute educational and cultural benefits as widely as possible, yet still balance the books. It will change the way you think about pricing."
Joseph C. Thompson, Director, Massachusetts Museum of Contemporary Art
"Rafi Mohammed uses insightful real-world examples to show how small changes in a company's pricing tactics can lead to big profits. You will profit from this book - and enjoy every minute reading it!"
Michael R. Baye, Bert Elwert Professor of Business Economics at Indiana University & the Former Director of the Bureau of Economics at the Federal Trade Commission
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