Book Review - Confessions of the Pricing Man
The Ultimate List of Great Books on Pricing
Individual Book Review:
Confessions of the Pricing Man: How Price Affects Everything
Book Author: Hermann Simmon
One of the World´s leading experts on pricing strategy breaks down the process and how to maximize value through pricing to company and customer.
Confessions of the Pricing Man is one of the books selected from The Ultimate List of Great Books on Pricing we have compiled. Pick up a book or two - to help you charge the right price for your products or services.
Continue reading through our review for Confessions of the Pricing Man below!
Sooner or later, profit is the only accurate metric to use for guiding your business and there are only three ways to influence profit: Volume, cost and price.
Price is often overlooked but has the greatest impact. Price is the place where value and money meet. The customers willingness to pay and therefore the price the business can achieve is a direct reflection of the perceived value of your product/ service in the eyes of the consumer.
Hermann Simon highlights, through dozens of practical case studies, how to set pricing and gives you a deeper understanding of " how price affects everything"
He explains the benefits of strategic pricing clearly and in a simple and engaging narrative. You will never look at pricing the same way.
Key learnings from ´Confessions of the Pricing Man´ Include:
- Never run a business in which you have no influence on the prices you charge.
- Prices are the central hinges of a market economy.
- There is always an optimal price or pricing structure and a multitude of "wrong" ones.
- The Customer´s vlaue perception of your brand reflects their willignness to pay.
- The process of price setting should begin at the conception of the product idea.
- Businesses should try to communicate their value through hard data esspecially in B2B.
- Price can be an indicator of quality in the customers eyes.
- A customer which is unaware of th price range for a product category will tend to choose a price towards teh middle of the range.
“The choice of the price position affects the overall business model, the product quality, branding, and the company’s innovation activities. It also determines which market segments the company will serve and what channels it will use to reach them.”
― Hermann Simon
ABOUT THE AUTHOR:
Hermann Simon: Confessions of the Pricing Man.
Hermann Simon is founded, was CEO, and is now chairman of Simon-Kucher & Partners Strategy & Marketing Channels. He is the worlds leading authority on pricing. Simmon has been a professor of business administration and marketing at the Universities of Mainz (1989-1995) and Bielefeld (1979-1989). He has also been a visiting professor at Harvard Business School, Stanford, London Business School, INSEAD, Keio University and MIT. Hermann has recieved numerous international awards and honorary doctorates and was voted the most influential thinker in German-speaking countries. Simmon has published over 30 books in 26 languages, including the worldwide bestsellers Power Pricing( 1997).