Includes bibliographical references (p. [203]-212) and index.

The 1% windfall -- I: The foundation of pricing: value-based pricing -- Capture value by thinking like a customer -- II: The strategy of pricing -- Pick-a-plan -- Versioning -- Differential pricing -- III: Implementation: use price to profit and grow -- Offensive pricing: create a pricing blossom strategy -- Defensive pricing: recession, inflation, and new competitors -- Create a culture of profit -- Make a pricing action plan.

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, !00%; Tyson, 81%; Land O'Lakes, 58%; and 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 multinational conglomerate, a small business, or even a nonprofit--can follow to create a comprehensive pricing strategy for any product or service. In addition, these versatile 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.

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