Setting Profitable Prices + Website
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Setting Profitable Prices + Website A Step-by-Step Guide to Pricing Strategy--Without Hiring a Consultant

By Marlene Jensen
John Wiley & Sons January 2013

Specifications

ISBN-13
9781118430767
Publisher
John Wiley & Sons
Publication
January 2013
Format
Paperback , 186 pages
Jurisdiction
International ? Countri(es) for reference only

Details

Time-tested strategies for making the best possible pricing decisions and gaining an unbeatable competitive advantage

Pricing is one of the most important—and difficult—marketing problems companies face when launching new products. Unfortunately, the research that goes into making optimal pricing decisions is a very time-consuming process—unless, that is, you can afford to pay a consultant or outside agency to do it for you. But if you're like most small- to medium-sized business owners and managers, time and money are two things you absolutely don't have to spare. Problem solved: Written by a nationally recognized pricing expert, this book arms you with proven strategies for guaranteeing that you'll never again leave money on the table when determining prices. And you'll spend the least possible time setting your more profitable prices.

  • Packed with valuable worksheets and other valuable tools to help guide your research and your pricing decision-making
  • A goldmine of expert tips for pricing in any specialty market, it offers a highly effective way to market your company's product more effectively and profitably
  • Shows you how to avoid making your competitors' pricing mistakes and gain a powerful competitive edge in the process
  • The author uses examples drawn from her years of consulting work with companies large and small, including Food Network, American Express Publishing, and Playboy

Table of Contents

Preface

Author Credentials

If You Can Afford a Pricing Consultant…

Don’t Have the Cash to Invest?

How Big of a Rush Are You In?

Chapter Summaries

Acknowledgments

Section One: How to Set Prices for Maximum Profits

Chapter One Why Pricing is the Key to Your Success

Raise Prices -- or Sell More Products?

Big-Company Case History

Tiny-Company Case History

Chapter Two Why Most Companies Stink at Pricing (and How You Can Do Better!)

The “Myth” of Creating Demand Curves

How Your Competitors are Setting Prices

Cost-Plus Pricing

Match-Your-Competitors Pricing

Section Two: How the Market Will Value Your New Product

Chapter Three Analyzing Your Competitor’s Prices

You DO SO Have Competitors!

How to “Pick” Your Competitors

Direct vs. Indirect Competitors

How Consumers Evaluate Prices

How to Get Profitable Ideas from Your Competitors

Chapter Four Environmental Factors That Can Affect Your Pricing

Environmental Factors Overview

The Economy

Competitors

Governmental Regulation & Legal

Social Trends

Technological Change

Chapter Five Pick the Positioning of Your New Product

There Are Only 3 Choices!

The Psychology of Price Positioning

Penetration Price Positioning

Skimming (or Premium) Price Positioning

Competitive Price Positioning

Learning More about Competitive Pricing

Chapter Six Analyzing Your Buyer Benefits/Drawbacks Relative to Your Competitors

Uncovering What Buyers REALLY Value/Hate about Products in Your Marketplace

Chapter Seven Picking a “Ballpark” for Your Best Price

You Will Not Be “Stuck” with Your Decision!

Can’t Make a Profit at that Price Range?

Not Sure About Your Results?

Learn More on Buyer’s Reactions to Price Ranges

Section Three: Your Cost Analysis

Chapter Eight Evaluating Your Costs

The Ideas Behind “Target Costing” and “Target Engineering”

Types of Costs

The Hardest Part of Calculating Costs

Reasons for Launching a Product Which Doesn’t Cover Overhead

Section Four: Fine-Tuning Your Price

Chapter Nine Is Your Profit Potential Acceptable?

If You’re Happy with Your Potential Profits

If You’re NOT Happy with Your Potential Profits

Next Step

Chapter Ten Psychological Adjustments to Your Price

Understanding “Barriers” in Prices

Staying BELOW Barriers

Increasing Prices UP TO Barriers

Numbers Which Say “Discount” to Buyers

Test Your Knowledge!

Visually Appealing Prices

Selling to Businesses

Learn More about Thresholds

Learn More about the Effect of Numbers

Section Five: Testing Your Prices

Chapter Eleven Testing Prices

The Psychology of YOU – in Setting Prices

CAN You Test?

The Difference between “Testing” and “Research”

Chapter Twelve Using Google to Test Prices for Free (or Almost Free)

How to Test – for FREE!

Using Google Optimizer to Test Multiple Things

Section Six: Pricing in Special Situations

Chapter Thirteen Pricing Services

Imagine No Chapter 13!

The Complications of Setting Prices for Services

The “Myth” of Pricing Based on What You Want to Earn

Pricing by the Hours versus the Job

Finding What Service Competitors Charge

Picking Your Price Positioning

What Your Price Says about Your Firm

Chapter Fourteen Pricing New Products/Services, Part 1 When Your Brand is Unknown

The Problems in Pricing Something New

Price Equals Quality Buyer Perception

Does Quality Equal Likelihood-to-Buy?

Understanding “Bargain-Hunters”

Price Preferences by Product Type

Detailed Research on Buyer Price Position Preferences

Additional Research on Preferred Prices

Chapter Fifteen Pricing New Products/Services, Part 2 Competing with Established Brands

When Your Competitors are Established Brands

Risk Avoidance

Price Premiums for Known Brands

Discounting Differences

What Causes Customers to Switch to a New Brand?

What Happens AFTER Buyers Switch?

Shocking Findings on Brand Names

So What Does it all Mean for Pricing a New Product/Service?

Chapter Sixteen Pricing with Discounts

Discounts: A Double-Edged Sword

When Discounts Worry Consumers

Determining Best Discount Levels

Discounts Effect on Quality Ratings & Purchase

Concluding Thoughts on Testing Prices

Appendix of Worksheets

About the Author

About the Companion Website

Bibliography

About the Author

Dr. MARLENE JENSEN is a pricing strategy and marketing/new business expert. Her decades of consulting work with companies, large and small–including the Food Network, American Express Publishing, and Playboy–are consolidated in this powerful book/website combo. In addition to consulting, Dr. Jensen has performed pricing tests for companies such as CBS Publishing, her own launches (Sportswoman magazine, Ancillary Profits and Media Marketing newsletters, and Jensen-Fann Publishers) and in numerous academic research studies. Dr. Jensen has taught marketing and pricing at Western Connecticut State University, and currently at Lock Haven University.

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