<p><b>A Groundbreaking Pricing Model for the New Business Landscape</b></p> <p><i>Why would any customer choose Brand X over Brand Y, regardless of price? In a word: Value.</i></p> <p>When customers feel they are getting good value from your product or service, they are more than happy to pay more&#
Pricing on Purpose: Creating and Capturing Value
โ Scribed by Ronald J. Baker
- Publisher
- Wiley
- Year
- 2006
- Tongue
- English
- Leaves
- 402
- Edition
- 1
- Category
- Library
No coin nor oath required. For personal study only.
โฆ Synopsis
โReed Holden, founder, Holden Advisors Corp., www.holdenadvisors.com coauthor, The Strategy and Tactics of Pricing: A Guide to Profitable Decision Making, Third Edition"With Pricing on Purpose, Ron Baker had made an enormous contribution to the better understanding of pricing that will be accessible to anyone who wants to learn. People are intrigued by instances of what they see as idiosyncratic pricing. Sometimes it is idiosyncratic, but oft-times it is fiendishly clever and well researched. So is this book. There are examples that at first sight seem to have nothing to do with the subject at hand, but the learning points are all made and explained in any number of interesting and memorable ways. Pricing on Purpose is a welcome and valuable addition to the learning on pricing and I recommend it to professional pricers, marketers, and anyone interested in capturing the value their business creates."โEric G. Mitchell, President, Professional Pricing Society, www.pricingsociety.com"Ron Baker is what I'd call a 'thought giant.' In his first two books he literally began a revolution in the accounting and legal professions. Thousands of professionals in public practice now lead far better, more rewarding lives thanks to him. Now he's broadened his impact in a huge way. Read this book, implement the ideas and you'll never look at your prices or your pricing policies in the same way again. You'll be richer in many ways because of it."โPaul Dunn, founder and CEO, ResultsNet Australia, coauthor, The Firm of the Future: A Guide for Accountants, Lawyers, and Other Professional Services, www.resultsnetaustralia.com"As a reader of hundreds of business books, I am thrilled when I come across one that has something new to say. Pricing on Purpose does just that. Instead of presenting a set of feel-good items to check off a list, Ron Baker encourages us 'to think with him, not like him.' He methodically builds his argument leading us through the labyrinth of pricing theory and encourages us to look at pricing as the strategic tool that it is rather than taking the lazy cost-based tactical approach of most businesses. To paraphrase Karl Marx in terms of Baker's book, 'Cost-based pricing is the opium of business.'"โEd Kless, Director, Partner Development and Recruitment, Sage Software"Baker has done it again! Building on the core principles that he advanced in Professional's Guide to Value Pricing and The Firm of the Future, Ron Baker has again evolved thought leadership on the critical dynamics of value and pricing. Baker's latest work, Pricing on Purpose: Creating and Capturing Value, provides real-world examples and practical strategies that provide a framework for pricing optimization. His clarity of purpose and passionate call to action resonates in today's intellectual capital economy."โThomas Finneran, Executive Vice President, American Association of Advertising Agencies"We love this book! With detailed research, thorough references, and recommendations for further reading, this could be considered a textbook. That it is so readable and engaging is a triumph. The chapter providing the epitaph for cost-plus pricing is worth many times the price of this book. 'Got price-sensitive customers? Wonder why? Read and stop weeping. Who's in charge of value in your company?' Baker asks. If you can't immediately answer, you'd better read this book. Bravo, Baker!"โPaul O'Byrne and Paul Kennedy, partners, O'Byrne and Kennedy LLP, Chartered Accountants, United Kingdom, www.obk.co.uk"Ron Baker is nothing short of brilliant, and his enthusiasm for pricing is contagious. Pricing on Purpose will add more value to your firm than anything else you could do. As usual in Ron's books, he presents cutting-edge ideas. There is no greater value to your company than to read Pricing on Purpose and implement its ideas."โScott Abbott, entrepreneur, former regional business development, manager, BDO Dunwoody, LLP, Manitoba, Canada
โฆ Table of Contents
PRICING ON PURPOSE: CREATING AND CAPTURING VALUE......Page 7
CONTENTS......Page 11
FOREWORD......Page 13
PREFACE......Page 17
ACKNOWLEDGMENTS......Page 21
ABOUT THE AUTHOR......Page 27
CHAPTER 1: WHY IS MOVIE THEATER POPCORN SO EXPENSIVE?......Page 29
MY COVENANT WITH YOU......Page 33
CHAPTER 2: WHY ARE WE IN BUSINESS?......Page 35
YOU ARE WHAT YOU CHARGE......Page 41
CHAPTER 3: MIND OVER MATTER......Page 43
THE PHYSICAL FALLACY......Page 44
THE THREE TYPES OF INTELLECTUAL CAPITAL......Page 47
NEGATIVE INTELLECTUAL CAPITAL......Page 50
CHAPTER 4: THE OLD BUSINESS EQUATION......Page 53
โANALYZINGโ THE PREDOMINANT BUSINESS EQUATION......Page 54
CHAPTER 5: THE NEW BUSINESS EQUATION......Page 59
COGNITIVE DISSONANCE......Page 62
WHERE DO PROFITS COME FROM?......Page 65
CHAPTER 6: NINETY-NINE-CENT PRICING, ENGAGEMENT RINGS, AND THE ASSUMPTION OF RATIONALITY......Page 69
CHAPTER 7: THE INVISIBLE HAND: NO ONE PERSON KNOWS HOW TO MAKE A PENCIL......Page 77
THE ROLE OF PRICES IN SOCIETY......Page 83
CHAPTER 8: A TALE OF TWO THEORIES......Page 91
THE LABOR THEORY OF VALUE......Page 92
KARL MARX, FALSE PROPHET......Page 95
THE MARGINALIST REVOLUTION......Page 98
WHY ARE DIAMONDS MORE EXPENSIVE THAN WATER?......Page 105
THE MARSHALLIAN SCISSORS......Page 107
TIME IS MONEY?......Page 110
WE LIVE IN A BARTER ECONOMY......Page 111
WRONG THEORY, SUBOPTIMAL RESULTS......Page 112
CHAPTER 9: COST-PLUS PRICINGโS EPITAPH......Page 115
A TALE OF TWO AUTOMOBILES......Page 117
WISDOM IS TIMELESS......Page 120
MORE LESSONS IN THE SUBJECTIVE THEORY OF VALUE......Page 124
LESSONS FROM JAPAN......Page 126
COST-PLUS PRICING, RIP......Page 128
CHAPTER 10: THE WRONG MISTAKES......Page 131
THE ALMIGHTY HOURLY RATE......Page 134
IS ACTIVITY-BASED COSTING ANY BETTER?......Page 137
MAKING THE WRONG MISTAKES......Page 138
SCIENCE OR AN ART?......Page 145
CHAPTER 11: PRICE-LED COSTING REPLACES COST ACCOUNTING......Page 149
TOYOTAโNO COST ACCOUNTING?......Page 151
THE PRICE-LED COSTING REVOLUTION......Page 153
CHAPTER 12: WHAT AND HOW PEOPLE BUY......Page 157
THEREโS NO SUCH THING AS A โMARKETโ......Page 164
HOW PEOPLE BUY......Page 167
CHAPTER 13: THE VALUE PROPOSITION......Page 171
MOMENTS OF TRUTH......Page 175
WHAT IS BEYOND TOTAL QUALITY SERVICE?......Page 178
IS BEING TRUSTED ENOUGH?......Page 184
FROM ZERO DEFECTS TO ZERO DEFECTIONS......Page 186
WHY COMPANIES LOSE CUSTOMERS......Page 190
CUSTOMER COMPLAINTS......Page 192
THE 100 PERCENT MONEY-BACK GUARANTEE......Page 195
CAN CUSTOMER SERVICE BE RESUSCITATED?......Page 199
CHAPTER 14: THE CONSUMER SURPLUS AND PRICE DISCRIMINATION......Page 203
PRICE ELASTICITY......Page 205
TEN FACTORS OF PRICE SENSITIVITY......Page 208
CONSUMER SURPLUS......Page 215
PRICE DISCRIMINATION PRINCIPLES......Page 217
THE USE OF KNOWLEDGE IN SOCIETY......Page 222
CHAPTER 15: CUSTOMER SEGMENTATION STRATEGIES......Page 225
SEARCH, EXPERIENCE, AND CREDENCE ATTRIBUTES......Page 229
PRICE PSYCHOLOGY AND RISK......Page 230
UNDERSTANDING CUSTOMER RISK......Page 233
PRICING AND THE COMPETITION......Page 236
CHAPTER 16: PRICE DISCRIMINATION IN PRACTICE......Page 241
CHAPTER 17: THERE IS NO SUCH THING AS A COMMODITY......Page 263
THE PERILS OF BENCHMARKING......Page 271
COMPETITIVE RESPONSES......Page 272
PURGING THE COMMODITY WORD......Page 274
CHAPTER 18: BAKERโS LAW: BAD CUSTOMERS DRIVE OUT GOOD CUSTOMERS......Page 277
THE ADAPTIVE CAPACITY MODEL......Page 278
GRADING YOUR CUSTOMERS......Page 282
THE CONCIERGE SERVICE MODEL......Page 284
THE FORCED CHURN......Page 289
THOUGHTS ON REQUESTS FOR PROPOSALS......Page 291
CHAPTER 19: ETHICS, FAIRNESS, AND PRICING......Page 297
THE MORALITY OF PRICE DISCRIMINATION......Page 303
PROSPECT THEORY......Page 306
CHAPTER 20: ANTITRUST LAW......Page 311
ANTITRUST ENFORCEMENT AND THE CONSUMER......Page 312
THE SHERMAN ANTITRUST ACT, 1890......Page 315
THE FEDERAL TRADE COMMISSION ACT, 1914......Page 319
THE CLAYTON ACT, 1914......Page 320
THE ROBINSON-PATMAN ACT OF 1936......Page 321
PRICE DISCRIMINATION AS PROHIBITED BY THE ACTS......Page 323
CRITICISMS OF ANTITRUST POLICY......Page 326
THE CASE AGAINST MICROSOFT......Page 330
THE PROBLEM WITH ANTITRUST LAWSโTHE WRONG THEORY......Page 332
CHAPTER 21: WHO IS IN CHARGE OF VALUE?......Page 335
THE MARKETING CONCEPT......Page 337
THE WORLDโS FIRST CVO......Page 338
VALUE, NOT COST, DETERMINES PRICE......Page 341
FRAMEWORK FOR THE CHIEF VALUE OFFICER......Page 343
LEADERSHIP......Page 344
ATTITUDE......Page 353
COMMITMENT......Page 355
EXPERIMENTATION......Page 356
YOUTH......Page 357
NOT FINAL THOUGHTS......Page 360
THE DIFFUSION OF AN IDEA......Page 361
DNA......Page 363
WOULD YOU WANT YOUR SON OR DAUGHTER TO WORK THERE?......Page 366
BIBLIOGRAPHY......Page 371
ANTITRUST LAW......Page 383
ECONOMICS......Page 384
MANAGEMENT CONSULTANTS AND CONSULTING......Page 387
MARKETING AND SELLING......Page 388
MORALITY, ETHICS, CAPITALISM, AND PROFITS......Page 389
PRICING......Page 390
TOTAL QUALITY SERVICE, AUTOBIOGRAPHIES AND BIOGRAPHIES......Page 392
INDEX......Page 395
๐ SIMILAR VOLUMES
Examples of the value that can be created and captured through crowdsourcing go back to at least 1714 when the UK used crowdsourcing to solve the Longitude Problem, obtaining a solution that would enable the UK to become the dominant maritime force of its time. Today, Wikipedia uses crowds to provid
Recognizing the unique needs of the technology startup, Duening focuses on intellectual property development, funding, and marketing/selling more than other texts in this market. Extensive use of technology examples, case studies, and assignments keeps the book relevant and motivating for engineeri
Recognizing the unique needs of the technology startup, Duening focuses on intellectual property development, funding, and marketing/selling more than other texts in this market. Extensive use of technology examples, case studies, and assignments keeps the book relevant and motivating for engineeri
<p><span>Digital Pricing Strategy</span><span> provides a best-practice overview of how companies design, analyze, and execute digital pricing strategies. Bringing together insights from academic and professional experts globally, the text covers essential areas of the value and pricing of data, pla
<p><span>Leading a company that employs over forty thousand team members and serves more than forty - five thousand residents, Wellner understands that real culture transformation takes great effort, intention, and courage and also humility and generosity. </span><span>Leading with Humanity: Marryin