About the Book:
Price is the most significant factor affecting the profitability of every business, profit centre or department. When the pressure is on to perform or grow, your instinct may be to discount, undercut your competitors, cut costs and promote through price. Yet these are often the last things you should do. Pricing for Profit is the most practical guide on pricing available. Using a firm, profit-focused framework developed running real projects for real businesses, this book shows you how by getting your pricing structures right you can make a huge difference to your bottom line with almost immediate effect. It gives business owners, managers and leaders simple, achievable pricing strategies that will deliver sustainable business growth. Can you afford to leave money on the table? If not, Pricing for Profit is the guide for you.
About the Author:
Peter Hill is a qualified accountant (both Chartered and Certified) with 30 years experience. He is a partner at Mark Holt and Co Chartered Accountants and Healium LLP business growth specialists. He has worked as a business consultant for over 15 years, driving up the financial performance of businesses of all sizes. Peter is also a sought-after business speaker and runs business seminars on pricing and profit improvement across the UK and internationally, for most of the major banks (Lloyds, Barclays, HSBC), for the Ran One accountancy network, and for SWAT, the largest UK trainer of accountants.
Contents:
Chapter 1: Pricing in context
How any business can improve its bottom line
The Five Ways to Grow a business
Why people fail to see the problem as a price issue
Summary
Action points
Reader challenge.
Chapter 2: Why is pricing so difficult?
The importance of knowledge and training
How to avoid the impact of your bad experiences
Blindly copying the big retailers
Limited financial understanding of how profits are made
Peoples desire to please, and their freedom to do so
People need to be properly motivated to change
Summary
Action points.
Chapter 3: The remarkable benefits of getting pricing right
Understanding what you actually charge at the moment
Increasing the headline price (but with added value)
How you can charge more when you guarantee value
Making sure your frontline people understand the profit equation
Summary
Action points.
Chapter 4: How most businesses price and why these methods are wrong
Cost plus pricing - the fundamental flaw
Undercutting competitors - it simply cuts your profits
Last years pricing plus a bit - the bit is never enough
Best guess pricing - its just a stab in the dark
Value to each customer - the only pricing strategy that really works
Summary
Action points.
Chapter 5: Understanding value versus cost
The Value Scales
What happens when the scales dont balance?
How to balance the scales
The dissipation of value over time
The importance of discussing value with customers
Summary
Action points.
Chapter 6: Packaging for higher prices
The four ways to maximize each sale
Using price to up-sell and cross-sell
Offering choices increases the value of the sale
Alternative price options affect the perception of value of all
options
Setting price differentials properly
The price of pain
Summary
Action points.
Chapter 7: Customers dont always want the cheapest
Increasing prices doesnt automatically mean losing customers
Summary
Action points.
Chapter 8: Exploding all of the myths about pricing
Myth: Customers only want the cheapest
Myth: Loss leaders work
Myth: A per cent off sale is a per cent off sale
Myth: Presentation of the price doesnt matter
Myth: All prices should end in a
Myth: The best person to set the price is the salesperson
Myth: Setting prices is a once a year decision
Myth: Every customer is worth having and every sale
matters
Myth: Raising prices loses customers
Summary
Action points.
Chapter 9: Using guarantees to get increased prices
Risk versus reward
Price-match guarantees
Using guarantees to add value to your side of the Value Scales
Offering options with and without guarantees
Customers are fundamentally honest
Offering a guarantee as an extra
Summary
Action points.
Chapter 10: Discounting
Who is affected by poor discounting practices
The financial dynamics of discounting
The impact of a small change in discounts
Discounting prices to win customers is a myth
The top four reasons people discount
How to limit discounts
When discounting is right
Summary
Action points.
Chapter 11: Presenting the price properly
The impact of the price ticket
The significance of clarity
Accuracy is key
The importance of the actual numbers
Presentation of price on bundled items
When to reveal your prices
Using words for impact
Summary
Action points.
Chapter 12: Directional pricing
The advantages of moving customers to alternative options
The pizza example
The critical issues to know
Setting extreme prices to make other offers seem comparatively attractive
Summary
Action points.
Chapter 13: Dealing with the human factor
Most people running a business are untrained for that role
Conscious competency
Dont be afraid to get external input
The key people in the profit equation
Handling your teams need to please customers
Helping your team focus on profit
Dealing with the human factor in your customers
Fear!
Summary
Action points.
Chapter 14: Getting financial clarity
You need to know the numbers
Not all customers make you money
Steps in the profit calculation
Summary
Action points.
Chapter 15: Your action plan
Have a vision for the future
Build your team and allocate resources
Set smart goals
Just do stuff!
Two questions, with answers.
Chapter 16: The final word on pricing for profit.
Index
About the Book:Price is the most significant factor affecting the profitability of every business, profit centre or department. When the pressure is on to perform or grow, your instinct may be to discount, undercut your competitors, cut costs and promote through price. Yet these are often the last things you should do. Pricing for Profit is the most practical guide on pricing available. Using a firm, profit-focused framework developed running real projects for real businesses, this book shows you how by getting your pricing structures right you can make a huge difference to your bottom line with almost immediate effect. It gives business owners, managers and leaders simple, achievable pricing strategies that will deliver sustainable business growth. Can you afford to leave money on the table? If not, Pricing for Profit is the guide for you.About the Author:Peter Hill is a qualified accountant (both Chartered and Certified) with 30 years experience. He is a partner at Mark Holt and Co Chartered Accountants and Healium LLP business growth specialists. He has worked as a business consultant for over 15 years, driving up the financial performance of businesses of all sizes. Peter is also a sought-after business speaker and runs business seminars on pricing and profit improvement across the UK and internationally, for most of the major banks (Lloyds, Barclays, HSBC), for the Ran One accountancy network, and for SWAT, the largest UK trainer of accountants.Contents:Chapter 1: Pricing in context How any business can improve its bottom line The Five Ways to Grow a business Why people fail to see the problem as a price issue Summary Action points Reader challenge.Chapter 2: Why is pricing so difficult? The importance of knowledge and training How to avoid the impact of your bad experiences Blindly copying the big retailers Limited financial understanding of how profits are made Peoples desire to please, and their freedom to do so People need to be properly motivated to change Summary Action points.Chapter 3: The remarkable benefits of getting pricing right Understanding what you actually charge at the moment Increasing the headline price (but with added value) How you can charge more when you guarantee value Making sure your frontline people understand the profit equation Summary Action points.Chapter 4: How most businesses price and why these methods are wrong Cost plus pricing - the fundamental flaw Undercutting competitors - it simply cuts your profits Last years pricing plus a bit - the bit is never enough Best guess pricing - its just a stab in the dark Value to each customer - the only pricing strategy that really works Summary Action points.Chapter 5: Understanding value versus cost The Value Scales What happens when the scales dont balance? How to balance the scales The dissipation of value over time The importance of discussing value with customers Summary Action points.Chapter 6: Packaging for higher prices The four ways to maximize each sale Using price to up-sell and cross-sell Offering choices increases the value of the sale Alternative price options affect the perception of value of all options Setting price differentials properly The price of pain Summary Action points.Chapter 7: Customers dont always want the cheapest Increasing prices doesnt automatically mean losing customers Summary Action points.Chapter 8: Exploding all of the myths about pricing Myth: Customers only want the cheapest Myth: Loss leaders work Myth: A per cent off sale is a per cent off sale Myth: Presentation of the price doesnt matter Myth: All prices should end in a Myth: The best person to set the price is the salesperson Myth: Setting prices is a once a year decision Myth: Every customer is worth having and every sale matters Myth: Raising prices loses customers Summary Action points.Chapter 9: Using guarantees to get increased prices Risk versus reward Price-match guarantees Using guarantees to add value to your side of the Value Scales Offering options with and without guarantees Customers are fundamentally honest Offering a guarantee as an extra Summary Action points.Chapter 10: Discounting Who is affected by poor discounting practices The financial dynamics of discounting The impact of a small change in discounts Discounting prices to win customers is a myth The top four reasons people discount How to limit discounts When discounting is right Summary Action points.Chapter 11: Presenting the price properly The impact of the price ticket The significance of clarity Accuracy is key The importance of the actual numbers Presentation of price on bundled items When to reveal your prices Using words for impact Summary Action points.Chapter 12: Directional pricing The advantages of moving customers to alternative options The pizza example The critical issues to know Setting extreme prices to make other offers seem comparatively attractive Summary Action points.Chapter 13: Dealing with the human factor Most people running a business are untrained for that role Conscious competency Dont be afraid to get external input The key people in the profit equation Handling your teams need to please customers Helping your team focus on profit Dealing with the human factor in your customers Fear! Summary Action points.Chapter 14: Getting financial clarity You need to know the numbers Not all customers make you money Steps in the profit calculation Summary Action points.Chapter 15: Your action plan Have a vision for the future Build your team and allocate resources Set smart goals Just do stuff! Two questions, with answers.Chapter 16: The final word on pricing for profit.Index