How to develop a powerful pricing strategy for your business
Price is the most significant factor affecting the profitability of a business, profit centre or department. When the pressure is on to perform or grow, your instinct may be to discount, undercut your competitors, cut costs and promote through price. Yet these are often the last things you should do.
Pricing for Profit is a practical guide on pricing. Using a firm, profit-focused framework developed by running real projects for real businesses, this book shows you how by getting your pricing structures right, you can make a huge difference to your bottom line with almost immediate effect. It gives managers, leaders and business owners the simple, achievable pricing strategies that will deliver sustainable business growth.
Here are your free worksheets
Profit Potential
This worksheet is a tool to help you explore the profit improvement potential of your business.
If you are unable to complete each section with the correct data, it is still worth exploring by adding your best estimates.
The intention of this worksheet is to help you consider the 5 ways to grow your profit:
- Increasing the rate at which you win customers
- Decrease the rate at which you lose customers
- Increase the number of times customers buy from you
- Increase the average value of each sale by increasing the amount of items they buy and
- increasing the amount they pay
Download your free worksheet notes.
Explore your attitude to pricing
If you were challenged to increase your prices tomorrow by 10%, what are all of the reasons that you may believe would make that action difficult? Why would you resist it?
Identify your fears and how you can overcome them.
Extra free resources just for you
The majority of consumers would suggest that the dominance of prices ending in ‘9’ is some form of subtle psychology, where the price is set by a desire to appear to just below a key price point. I.e. £99.99 seems significantly cheaper than saying £100.
Find out how your numbers have a impact on whether your customers buys from you or not.
It is perhaps reasonable to see every single customer as a contributor to profit. As long as they are buying at a price higher than the raw cost of the product or service it is fair to suggest that they are making some small contribution to the general overheads of the business and adding, however marginally, to profits.
At a pure numbers level this may well be true. Even the lowest value customer generating a gross profit of say £5 does add to the bottom line. But this doesn’t tell the full story.
Your customers really do want to pay you more, you just don’t make it easy enough.
Really? Yes!
Read on to see how giving your customers a range of options could help your customers spend more.
Want to find out more?
Here's how you can get a copy of the book
If you like these materials but don’t have a copy of the book, you can purchase your next best read on Amazon today.
If you still need a little convincing, take a look at these reviews:
“If profit improvement is your goal then this book is the best guide I have come across.”
Mike Sturgess, Chairman of SWAT UK
“Hill discusses common pricing myths, explains how pricing works best and offers easy-to-implement pricing recommendations that could increase your profits. getAbstract recommends this smart, pragmatic manual to ‘CEOs, finance directors, sales managers, marketing analysts, accountants and strategic planners,’ and to anyone who sells a product or service.”
getAbstract, Inc.
How we can help you with profit improvement
We will help analyse your business and its financial performance to identify all the profit drivers of your business. This tailored approach will help you focus on where profits leak from the business and produce a summary to show you how you can wok on your key profit drivers to increase the overall profitability. This is not a lesson in economics, but a practical ‘hands on’ approach that is tried and tested.