Summary of Pricing on Purpose
Creating and Capturing Value
How to create and capture more value by pricing your product carefully – just let your customers pay you more.
Ronald J. Baker makes a sound economic case that the traditional method of generating prices by calculating costs and figuring in an acceptable profit is outdated and unsuitable for today’s knowledge-based business world. Price differentiation and value-based costing have been around for a while, but Baker’s explanation is useful and nicely written. He explains how different customers will value your product their own way, and how to use that differentiation to make money. In 22 concise chapters, he shows you how to understand your customers better and how to create value that they will buy. By capturing a share of that value you earn profits. Baker has a knack for explaining economic concepts in plain English rather than abstruse textbook jargon – and that’s valuable, right there. Get it, read it, use it and make more money. getAbstract recommends it in particular to marketing and product management professionals (or anyone who is interested in the subject of pricing).
In this summary, you will learn
- What value-based pricing is and why you should use it
- How prices allocate resources more efficiently than regulations
- Why customer segmentation and price discrimination are profitable
Comment on this summary
Contained in Knowledge Pack:
Knowledge PackPricing StrategiesWhen you set that price, are you considering every single profit-factor, from cost to value? Here's how to take it all into account.
Customers who read this summary also read
Peter Sheahan and Julie Williamson
Kogan Page, 2015
Kyle B. Murray
University of Toronto Press, 2016
Career Press, 2016