The Art of Pricing, New Edition: How to Find the Hidden Profits to Grow Your Business

Want to make a bad year better or turn a good year into a blockbuster? Improve your pricing strategy and discover the untapped gold mine that exists in your products and services.

Whether you are in marketing, a manager, on the salesforce, in finance, or the CEO/CFO, pricing your products matters to you. The Art of Pricing is a practical guide for solving one of the most important dilemmas in business: how to use price to uncover hidden profits and find new opportunities for growth.

This roadmap to pricing illustrates and explains:

• The financial windfall that can be reaped from small changes in price
• Methods to derive the “right price” for your product or service
• How a series of easy-to-implement strategies enables companies to serve and profit from the largest possible customer base
• How new pricing strategies can activate dormant customers
• Why the key to better pricing is to provide customers with options – different prices, versions, and opportunities to purchase – to best meet their needs.

Using a range of examples, from small businesses to big companies like Ford, Rafi shows how expanding your vision of pricing can accelerate profits and growth at your company.

Critical Reviews

When The Art of Pricing first came out, The New York Times named it among those business books that “should have been best sellers” but got lost “in the shuffle.”

“The key to getting that additional profit, Mr. Mohammed contends in a clear, conversational tone, is to offer customers a variety of pricing options and allow them to pick the one that works best for them…What is clear from Mr. Mohammed’s book is that it might be easier to produce greater margins by concentrating on the numerator (price) – what you charge – instead of obsessing about costs.” The New York Times

“The Art of Pricing is an entertaining primer on how to unlock ‘hidden profits’ and growth by aligning your product’s price with the value customers place on it.” BusinessWeek SmallBiz

“This conversational, easy and informative read is worth paying attention to.” Entrepreneur Magazine

“Here is a book that is really ‘where the rubber meets the road’ pricing…I enjoyed this book because the author wrote a book full of real world examples.” A Jack Covert Monthly Selection, 800CEOREAD

Included in the Forbes’ Entrepreneurial Library (10 books that no entrepreneur should be without). “Pricing products and services is one of the most crucial, and difficult, decisions that an entrepreneur will make…he (Mohammed) finds psychological and macroeconomic rules to help readers set prices effectively as they enter the marketplace.” Forbes.com

Testimonials

“A lighthearted, anecdotal, but theoretically sophisticated primer on pricing, highly personal and readable, with abundant illustrations.” Alfred E. Kahn, Robert Julius Thorne Professor of Political Economy, Emeritus, at Cornell University, and former chairman of the Civil Aeronautics Board

“The Art of Pricing is a ‘must read’ for every manager; it will help you better serve your customers as well as make you more money.” Irving Azoff, CEO of TicketMaster and CEO of Frontline Management

“This book is richly illustrated with stories that show how pricing is as much disciplined science as art, and that masters of this discipline can reap profit while delighting customers. Rafi Mohammed is the da Vinci of pricing!” Robert G. Cross, Chairman and CEO of Revenue Analytics

Rafi Mohammed has been working on pricing issues for over 25 years. He is the founder of Culture of Profit, a Cambridge, Massachusetts-based company that consults with businesses to help develop and improve their pricing strategies. He also holds the title of Batten Fellow at the University of Virginia’s Darden Graduate School of Business.

Rafi is the author of The 1% Windfall: How Successful Companies Use Price to Profit and Grow and has written over 80 digital articles on innovative pricing strategies for the Harvard Business Review. He is a frequent commentator and contributor on pricing strategy issues to the media including Bloomberg Business Television, CNBC, Fox Business News, Today Show, National Public Radio, New York Times, Wall Street Journal, and BusinessWeek.

Rafi was born in Milwaukee and raised in Cincinnati. He is an economics graduate of Boston University, the London School of Economics & Political Science, and Cornell University (Ph.D.). He is an avid Bruce Springsteen fan.