Pricing Power
The practical guide to profitable growth
A rock-solid pricing policy is the key to profitable growth. Don’t let the market determine your prices and make sure that customers are willing to pay what you ask.
Price is the main profit driver. A percent price increase yields much more than a percent cost reduction or a percent volume increase. But how do you know what the right price is? In this book you will discover step by step how to set attractive prices based on the value you provide to your customers. This will give you pricing power and ensure that you’re no longer at the mercy of the vagaries of the market.
Pricing Power is the first book that makes pricing simple, practical and immediately applicable. Whether you’re an entrepreneur or leading a multinational, this book is a must-read for anyone looking to grow their business in a profitable way. Joris Smits shares his knowledge and experience, using dozens of recognizable practical examples.
Praise for pricing power
“With Pricing Power, Joris Smits will give you and your organization a thorough introduction to the strategies, tactics, and next steps you need to take to improve company results. His experience as a senior manager who has demonstrated great results makes this book a great way to start elevating profits.”
Kevin Mitchell, President, The Professional Pricing Society Inc.
“Joris Smits has written the pricing book that we have all been waiting for. Pricing Power is complete, accessible and pragmatic; it offers many tools for pricing professionals.”
Gert Jan van der Hoeven, Founder and Managing Partner, H2 Equity Partners“Pricing policy is often insufficiently seen as integral part of the overall business strategy and will also in your company undoubtedly still have improvement potential. With this interesting, compact and above all practical book, Joris succeeds in taking the reader on a journey in this important domain. It all sounds very logical, as the author himself puts it, but the combination of theories and techniques, recognizable examples, useful tips and provocative questions makes Pricing Power very useful. The book is well worth its price. After reading it, you will definitely feel more empowered to further mature your pricing policy.”
Niels Willems, CFO, United Dutch BreweriesPraise for pricing power
"Joris Smits has done an excellent job of bringing the genuine talents of a pricing expert to life in a straightforward and practical manner. In the commercial world, the importance of pricing as a business lever is widely known. However, it is critical for commercial people to recognize that smart pricing is about bringing together a bouquet of multiple tools in the correct business context, rather than a single silver bullet! This book goes into great detail on it, with simple examples, activities, and questions for readers to consider!"
Divyangana Kumar, Global Strategic Pricing Leader - Food Ingredients and Edible Oils, Cargill Inc.
"Joris masters the art of explaining simply how you can increase your profitability through pricing, while also increasing value for your customer"
Tom Arends, Co-Founder & CEO, Peaks
Content
Preface
Justification- Price, the main profit driver
- The foundation: Value-based pricing
- Differentiate your prices
- Use price anchors to be relatively cheap
- Use charm pricing and other psychological pricing techniques to appear cheaper
- Implement volume tiers to generate more revenue
- Bundle your prices to boost your customers' average spend
- Get the last drop with dynamic pricing
- Innovate your price model to stay relevant
- Boost conversion with value-based price communication
- Big deals should be a big deal
- Prioritize pricing power in your long term business strategy
- Get your pricing operating model right
Epilogue: towards a 50/50 culture
About the author
Bibliography
© Pricing Power 2020