The 1% Windfall: How Successful Companies Use Price to Profit and Grow

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 the Author :
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.

Review :
"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 "A valuable insight into the strategic importance of pricing." - Peter W. Olson, Senior Lecturer - Harvard Business School and former Chairman and CEO of Random House "This breakthrough "how to" book offers a practical and comprehensive framework that shows companies how to use price to drive profits from diverse customer segments in offensive and defensive (recession, inflation, and new competitor) situations." - Richard Spaulding, Member of the Board of Directors, Scholastic Corporation "Pricing volatility will likely be the greatest challenge management will face in the next decade. Rafi Mohammed provides pricing guidance that equips readers to successfully navigate and profit in these uncertain times." - George Stalk, Senior Advisor and Fellow, The Boston Consulting Group "Rafi Mohammed uses insightful real-world examples to show how small changes in a company's pricing tactics can lead to big profits. You will profit from this book - and enjoy every minute reading it!" - Michael R. Baye, Bert Elwert Professor of Business Economics at Indiana University & former Director of the Bureau of Economics at the FTC "This is a rich resource for not-for-profits. Rafi Mohammed shows how smart pricing tactics can distribute educational and cultural benefits as widely as possible, yet still balance the books. It will change the way you think about pricing." - Joseph C. Thompson, Director, MASS MoCA "Pricing consultant Mohammed highlights ideas and tactics that build a foundation to create a pricing strategy for every global company, answering the question, 'How would a 1% increase in price affect operating profits?' This is an excellent book." - Booklist "The book offers practical guidelines that any sized company can follow to create a comprehensive pricing plan and increase profits without sacrificing customer loyalty. It's a tricky equation, but Mohammed offers a strategic solution." - Consulting Magazine