The 1% Windfall by Rafi Mohammed
How Successful Companies Use Price to Profit and Grow

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Synopsis

Leading pricing expert Rafi Mohammed shows businesses how to reap a financial windfall and foster growth using the underutilized and often overlooked strategy of setting prices.

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, 100%; 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 com-panies to price for profit and growth.

 

About Rafi Mohammed

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Rafi Mohammed has been working with pricing issues for the last twenty years. He is the founder of Culture of Profit LLC, a Cambridge, Massachusetts-based company that consults with businesses to help develop and improve their pricing strategy. Born in Milwaukee and raised in Cincinnati, he is the author of The Art of Pricing and an economics graduate of Boston University, the London School of Economics, and Cornell University, where he received his Ph.D.
 
Published February 27, 2010 by HarperCollins e-books. 259 pages
Genres: Business & Economics. Non-fiction

Unrated Critic Reviews for The 1% Windfall

Harvard Business Review

And finally, it’s important to remember that the scalping market, while generally people think of it as a way to capture higher prices, the scalping market also does set lower prices when demand is low, and that’s a good way for ticket prices to be lowered.

Jul 28 2011 | Read Full Review of The 1% Windfall: How Successf...

Harvard Business Review

And finally, it’s important to remember that the scalping market, while generally people think of it as a way to capture higher prices, the scalping market also does set lower prices when demand is low, and that’s a good way for ticket prices to be lowered.

Jul 28 2011 | Read Full Review of The 1% Windfall: How Successf...

Harvard Business Review

To do this, Groupon will likely have to waive fees to offer deals from marquee companies or even pay for opportunities to provide limited quantity "treasure hunt" deals.

Nov 07 2011 | Read Full Review of The 1% Windfall: How Successf...

Harvard Business Review

Prices will also now end in "0" instead of "99" and price tags will list just one price (instead of including the de rigueur "previously sold at a higher price" convention).

Jan 30 2012 | Read Full Review of The 1% Windfall: How Successf...

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