Pricing Done Right

Book description

Practical guidance and a fresh approach for more accurate value-based pricing

Pricing Done Right provides a cutting-edge framework for value-based pricing and clear guidance on ideation, implementation, and execution. More action plan than primer, this book introduces a holistic strategy for ensuring on-target pricing by shifting the conversation from 'What is value-based pricing?' to 'How can we ensure that our pricing reflects our goals?' You'll learn to identify the decisions that must be managed, how to manage them, and who should make them, as illustrated by real-world case studies. The key success factor is to build a pricing organization within your organization; this reveals the relationships between pricing decisions, how they affect each other, and what the ultimate effects might be. With this deep-level insight, you are better able to decide where your organization needs to go.  

Pricing needs to be done right, and pricing decisions have to be made—but are you sure that you're leaving these decisions to the right people? Few managers are confident that their prices accurately reflect the cost and value of their product, and this uncertainty leaves money on the table. This book provides a practical template for better pricing strategies, methods, roles, and decisions, with a concrete roadmap through execution.

  • Identify the right questions for pricing analyses
  • Improve your pricing strategy and decision making process
  • Understand roles, accountability, and value-based pricing
  • Restructure perspectives to help pricing reflect your organization's goals

The critical link between pricing and corporate strategy must be reflected in the decision making process. Pricing Done Right provides the blueprint for more accurate pricing, with expert guidance throughout the change process.

Table of contents

  1. Preface
    1. Company J versus Company K
  2. Acknowledgments
  3. CHAPTER 1: The Value-Based Pricing Framework for Getting Pricing Done Right
    1. Embedding the Culture of Value-Based Pricing
    2. Overarching Pricing Decision Areas
    3. Analytical Routines
    4. Decision Teams
  4. CHAPTER 2: Value-Based Pricing
    1. The Purpose of Firms: Serve Customer Needs Profitably
    2. Value Engineering
    3. Value-Based Pricing
    4. Differential Benefits
    5. Differential Price
    6. Exchange Value to Customer
    7. Design Costs against Price to Profit
    8. References
  5. CHAPTER 3: Business Strategy Alignment
    1. Business Strategy
    2. Customers
    3. Competitors
    4. Company
    5. References
  6. CHAPTER 4: Pricing Strategy
    1. Price Positioning
    2. Price Segmentation
    3. Competitive Price Reaction Strategy
    4. Pricing Capability
    5. References
  7. CHAPTER 5: Price Management
    1. Market Pricing
    2. Price Variance Policy
    3. Price Execution
    4. Pricing Analysis
  8. CHAPTER 6: Defining the Pricing Decision Team
    1. Marketing
    2. Sales
    3. Finance
    4. Pricing
    5. References
  9. CHAPTER 7: Pricing Continuous Improvement and Analytics
    1. Continuous Improvement Process
    2. Offering Innovation and Pricing Decisions
    3. Price Variance Policy Continuous Improvement
    4. Market Pricing Continuous Improvement
    5. References
  10. CHAPTER 8: Organizational Design of the Pricing Specialist Function
    1. Pricing Community Distribution
    2. Pricing Reporting Structure
    3. Pricing Talent
    4. References
  11. CHAPTER 9: A Decision You Control
    1. References
  12. Appendix A: Economic Origins of Competitive Advantage
  13. Appendix B: Getting Pricing Done with Jesse Finch Gnehm of GE Oil & Gas
    1. The Value-Based Pricing Journey
    2. Context of Subsea Systems within GE
    3. Pricing Community Cultivation
    4. Focal Contributions of the Pricing Experts
    5. Pricing Framework
    6. Pricing Analysis Techniques
    7. Price Automation and Analytical Tools
    8. External Resources
  14. Appendix C: Getting Pricing Done with Robert Smith of Eastman Chemical Company
    1. Pricing Organizational Design
    2. Pricing Mission
    3. Pricing Functional Architecture
  15. About the Author
  16. Index
  17. EULA

Product information

  • Title: Pricing Done Right
  • Author(s): Tim J. Smith
  • Release date: July 2016
  • Publisher(s): Wiley
  • ISBN: 9781119183198