Read Online and Download Ebook Power Pricing: How Managing Price Transforms the Bottom Line, by Robert J. Dolan Hermann Simon
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Product details
Hardcover: 384 pages
Publisher: The Free Press (February 19, 1997)
Language: English
ISBN-10: 068483443X
ISBN-13: 978-0684834436
Product Dimensions:
6.1 x 1.3 x 9.2 inches
Shipping Weight: 1.2 pounds (View shipping rates and policies)
Average Customer Review:
3.6 out of 5 stars
11 customer reviews
Amazon Best Sellers Rank:
#502,958 in Books (See Top 100 in Books)
Good
If you want to get an idea about the different ways and aspects of pricing you can analyze in a/your company in order to increase profits, this book gives you a good overview.
Pricing is a key topic for modern marketing practitioners, especially with the generalization of data collection and simplification of transactions. This book gives a good overview of the general methods used by pricing managers to adjust prices. However the treatment is outdated and a bit superficial - bringing a deluge of examples and few fundamental principles. In the end it makes for a good casual read but can hardly be recommended as a guidebook to pricing. For a more in-depth analysis, see instead The Strategy and Tactics of Pricing (Nagle, Thomas).
Need 1. and MBA and 2. knowing how many units will sell at what price. If I knew I wouldn't need the boo.
As a pricing expert and author of Strategic Pricing for Medical Technologies: A Practical Guide to Pricing Medical Devices & Diagnostics, I found many parts of this book helpful, but it is incomplete if you are looking for a business-to-business (B2B) pricing book. First the good parts:Chapter 6 - International Pricing is a helpful guide that discusses the issues, implications, and fixes for dealing with international pricing. With globalization, the internet, and price transparency, firms of all types have to be careful about how pricing is managed around the world. This chapter provide a nice overview that is not found in many other pricing books.Chapter 12 - Organizing for Power Pricing provides some good concepts and an overview for organizing the company for becoming better at pricing. When I first started out in pricing in a large company years ago, I found this to be a useful reference.Chapter 13 Becoming a Power Pricing is a helpful reference for thinking about the various organization elements that need to be addressed to improve pricing. These include the company mindset, processes, and the scope of understanding. It also includes a simple diagnostic.The other parts of the book around price customization and product-line pricing are interesting. They are heavily B2C oriented.Now the areas for improvement:From a B2B pricing perspective, the book really doesn't address a number of critical issues such as:(1) Quantifying customer value: the book discusses market research and other techniques for estimating customer perceived value, but does not address how to actually estimate the real economic value of a product or solution.(2) Value communication: The book doesn't address how to use value communications to influence and shape customer value perceptions, particularly in a B2B selling environment.(3) Offering strategy: chapter 8 on product line pricing is interesting, but doesn't address the issues B2B companies face in needing to adapt their product line strategy to target and serve different buyer types(4) Rise of the economic buyer: the past decade has brought on the rise of the economic buyer in many B2B purchases. There is little in the book to help with this.I went back and forth on how many stars to give it. In the end, I gave the book 4-stars. It's a worthwhile purchase and read, but wouldn't be the first pricing book I would buy.
Why does there exist such a variety of pricing schemes for different products and why do we see different prices for the same product, depending on who buys it when, where, and how? This is a branch of microeconomics called price discrimination. Price discrimination questions are among the most directly observable ones for students, particulary those who are unlikley to study more economics or business. I therefore focus on these questions in teaching managerial economics in an organizational management graduate program.Dolan's and Simon's book is therefore of some interest to me. These two management consultants have written an extremely practical and non-academic book which explores the actual practice of business pricing with greater sophistication than found in most standard applied micreconomics texts or many business marketing texts. The main markets for this book, I suspect, are students, having graduated but still disatisifed with the overly theoretical approach in their microeconomics classes, and business managers, especially in medium to large companies, for whom pricing is a very dynamic and strategic issue.I doubt this book is used as a main teaching text, nor would I recommend it. Its basic concepts are hardly novel and are found in any microeconomics or marketing text.The presentation of the basic concept of price elasticity is somewhat long and tedious (it is usually done in less than a page in a standard microeconomics text). However, the application of this concept -and illustrations of how businesses can use it practically - makes for a very rich discussion.What is useful in their book is the variety of examples of actual business settings where practical pricing decisions have to be made which can apply several different concepts. How globalization affects pricing decisions is given considerable attention in this book. I did not find the final section on implementation of priing strategy in organizations as insightful as the middle chapter which is more analytical.For teaching and learning purposes, this could be a useful back-up resource, if used judiciously with a more standard text.
I work in the small appliance business. Price is one of the largest issues facing our industry. Dolan combines textbook economic theory, practical applications and real world examples to spin an enticing web of price application. This is a must read for : former economics majors who wish they had pursued a graduate degree, marketing people who have pricing authority (or wish they did) and sales people. The underlying message is reinforced by example.. price on customer perceived value. A great "pass around" text for co-workers, its not terribly academic, but you must keep with it in the slow chapters.
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