|Kindle Price:||CDN$ 96.00|
Download the free Kindle app and start reading Kindle books instantly on your smartphone, tablet, or computer – no Kindle device required. Learn more
Read instantly on your browser with Kindle Cloud Reader.
Using your mobile phone camera, scan the code below and download the Kindle app.
Enter your mobile phone or email address
By pressing "Send link", you agree to Amazon's Conditions of Use.
You consent to receive an automated text message from or on behalf of Amazon about the Kindle App at your mobile number above. Consent is not a condition of any purchase. Message and data rates may apply.
The Price Advantage (Wiley Finance Book 535) 2nd Edition, Kindle Edition
A comprehensive look at creating pricing strategies that work in both good economic times and bad
Written by three preeminent pricing experts at McKinsey & Company, the Second Edition of The Price Advantage is a practical pricing guide for the executive or pricing practitioner who wants to identify, capture, and sustain substantial pricing gains in their business.
Pricing is by far the most powerful profit lever that managers can influence. Yet few companies approach pricing in a way that fully capitalizes on its value. This Second Edition, a major revision and extension of the first book, shows you what it takes to achieve the price advantage in today's competitive and complex business environments. Based on in-depth, first-hand experience with thousands of companies, this book provides managers with a pragmatic guide through the maze of pricing issues. It reinforces why pricing excellence is more critical than ever today and then explains state-of-the-art approaches to analyzing and improving your own pricing strategy and execution.
- Explores the fundamental role of pricing infrastructure in achieving the price advantage
- Includes new topics such as software and information products pricing, lifecycle pricing, custom-configured products pricing, pricing of high-count product lines, pricing in distributed sales environments, "razor/razor blades" pricing, and tiered products and services pricing
- Revisits the full range of classic McKinsey pricing tools, including the pocket price waterfall and value maps
Engaging and informative, the Second Edition of The Price Advantage will put this essential discipline in perspective.
From the Back Cover
About the Author
ERIC V. ROEGNER is a partner in the Cleveland office of McKinsey & Company. Since joining McKinsey in 1994, he has served clients in all major markets on a wide range of pricing and marketing issues. In addition, he has published several articles on pricing and marketing strategy in journals including Marketing Management, the OESA Journal, and The McKinsey Quarterly.
CRAIG C. ZAWADA is a partner in the Pittsburgh office of McKinsey & Company. Since joining McKinsey in 1997, he has worked with companies across a wide range of industries, helping them to identify and capture improvements in pricing. He is widely published in the area of pricing strategy, with articles appearing in the Harvard Busin ess Review, Mergers and Acquisitions, and The McKinsey Quarterly.--This text refers to the digital edition.
- ASIN : B003YL4MVK
- Publisher : Wiley; 2 edition (Aug. 3 2010)
- Language : English
- File size : 7276 KB
- Text-to-Speech : Enabled
- Screen Reader : Supported
- Enhanced typesetting : Enabled
- X-Ray : Not Enabled
- Word Wise : Enabled
- Print length : 533 pages
- Best Sellers Rank: #815,379 in Kindle Store (See Top 100 in Kindle Store)
- Customer Reviews:
About the authors
Top review from Canada
There was a problem filtering reviews right now. Please try again later.
Unfortunately it turns out to be something of a one-trick pony, and a pony pretty long in the tooth at that. About half of it talks about the well-known price-benefit map. No question it's a fundamental idea, but hardly leading edge. Plus you need a McKinsey team to execute it. Given the pedigree of the authors I was hoping for more. A lot of the book just repeats McKinsey's early work on price wars, postmerger pricing, and overall strategy--good stuff but again nothing new.
If you're interested in pricing, in my opinion there are better options than this. ...
Top reviews from other countries
The authors are McKinsey consultants (one has recently moved to the pricing software vendor PROS Software) and they bring a great deal of consulting experience to the book which greatly enriches the case studies. Pricing excellence is divided into three elements, Market Strategy, Customer Value and Transactions and tools, advice and examples are provided for each element. This book provides the best introduction to the Pocket Price Waterfall (and its extension the Pocket Margin Waterfall), which is not surprising as the authors are the people who developed this framework. Appendix 1, which provides numerous examples of waterfalls is a great thing for them to have shared and is itself worth the price of the book. The book also has the best presentation I have seen of Value Maps and the Value Equivalence Line and how they are relevant to strategy. Even though I have problems with this approach (see below) it is important foundational reading for anyone interested in pricing and pricing strategy. The extended case study on Monarch Battery provides a good summary of the ideas in the book and how they can be applied. This is a great way to pull things together at the end of a book and it also provides a touchstone for people involved in pricing that we can refer to in conversations.
I do have three problems with this book.
The Value Mapping approach has been criticized by Gerald Smith and Tom Nagle (see "Pricing the Differential" by Gerald Smith and Tom Nagle, published in Marketing Management in the May/June 2005 issue and available on the Resources page of the LeveragePoint website). In short, value maps tend to over estimate the contribution to price of shared (commoditized) benefits and to understate the potential contribution of differentiated benefits. Value models like Nagle's Economic Value Estimation are a far more powerful way to understand the economic impact of a product for a customer and how to use this in setting and communicating price. Baker, Marn and Zawada do not mention value modeling or respond to the well known criticisms of value maps. This is part of a wider problem with the book, it is narrowly depended on the McKinsey approach and experience and does not engage the wider conversations taking place in the pricing community.
The book also fails to relate pricing concepts and frameworks to other work. For example, on Page 229 they discuss new product launches and characterize these as Revolutionary, Evolutionary and Me To. This discussion would be greatly enriched by putting it in the context of Clayton Christensen's work, see The Innovator's Dilemma: The Revolutionary Book that Will Change the Way You Do Business (Collins Business Essentials) and subsequent books. This is actually a general problem in the pricing community, which tends to be inward focused and caught up in its own role and frameworks. But pricing will only show its full potential to transform business when it is connected to other parts of the business: product development, marketing, sales and finance. This will only happen when pricing frameworks are related to the frameworks used by people in other functional areas. There is a special need for someone to put pricing in a context meaningful to sales, so that sales can stop seeing pricing as "the sales prevention department."
The Pricing Advantage does not address emerging opportunities from two-sided markets. Two-sided markets, or platforms, are becoming more and more common and surface all sorts of important pricing and competitive strategy issues. If you have a conventional business model, and you are caught on the wrong side of a two-sided market, you are basically done for unless you can find a new business model. To get insight into two-sided markets, their challenges and huge opportunities, see Catalyst Code: The Strategies Behind the World's Most Dynamic Companies by David S. Evans and Richard Schmalensee and Free: The Future of a Radical Price by Chris Anderson.
- Overall framework: the overal generic framework for thinking about pricing from an industry strategy; product/market strategy; and transactional pricing perspective is a helpful way to attack many pricing problems.
- Post-merger pricing: Having lived through a merger and worked through the pricing challenges, I thought it was good that the book addressed this topic. It's not covered as widely in other pricing books.
- Driving price change: This is another topic that is not widely addressed in other pricing books. I've led pricing transformations and thought this topic was well covered in the book.
From a B2B perspective, it would be helpful for the authors to address quantifying economic value to customers, and using unbundling and offering strategies to compete. All in all, it's a good book that complements other pricing books on the market.