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I was looking for a book that instead of taking me through boring math and process behind pricing, give me a big picture view on this matter, and insight and hints about pitfalls, common mistakes different approaches and etc. This is the book that exactly does that.
The book was ok, however nothing new in my opinion. I was expecting more from a pricing expert, but there was little i didn't already know. This book is best suited for those who have never considered the strategic importance of pricing.
This book is in my top 10 business books of all time. We run great businesses but our pricing has been wrong for years. This has transformed our businesses already. If you have a business and feel that you make a difference to your clients, but you always seem to just break even or make a small profit then read it. This book has transformed our businesses. This should be part of an Economics or Business class room and it goes beyond supply and demand. It shown me why we have broken even some years and made a profit in other years. Without pricing your products properly how will you ever make a profit.
What I like, is for example: indicators, reffering to revenue, profit et., giving comparisons for different industries, next to number of real life examples of companies and their pricing strategy. You can read the book like literature almost. The title itself "Confessions..." indicates some personal and emotional aspect for the author. All this makes the book really worth reading by everybody.
Definitely one of the best books I’ve ever read. Clear, simple and addictive reading. The author knows his subject and what’s more important he ensures that the reader knows it too. Definitely recommend.
This is a terrific book, packed with insights and certainly the learnings of a lifetime. I am grateful to Dr Hermann Simon for sharing his learnings in a wider forum.
The book is structured in the following manner.
Chapter 1 tells us about how Dr Simon was initiated into the world of pricing. Chapters 2-4 offer a bird's eye view of pricing including how pricing is central to the economy, the psychology of pricing, and how pricing and strategy are interlinked. Chapters 5-7 cover the inner mechanics of pricing. Chapters 8-9 cover pricing innovations as well as pricing applications in real life scenarios including crises. Chapter 10 details how a CEO should approach the topic of pricing.
The key learnings for me were undoubtedly around 1) how price cuts can severely damage profitability, illustrated well through examples of a fictional co in pgs 88-90. In fact those pages alone are well worth the price of the book 2) how performance incentives for sales guys can be aligned to the quantum of discounting that they offer to consumers. This alone can effectively increase your yield by 1-2% according to Dr Simon 3) how 2-dimensional pricing can help businesses segment market (enabling price discrimination) and thereby driving up your yields.
I encourage every strategy officer, product manager, and well anyone interested in enhancing profits to read this book.