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Book Review - The ROI of Pricing: Measuring the Impact and Making the Business Case

Posted by PriceBeam on April 21, 2021

The Ultimate List of Great Books on Pricing 

Individual Book Review:

The ROI of Pricing: Measuring the Impact and Making the Business Case                  

ROI

Book Author: Stephan Liozu and Andreas Hinterhuber

This book, edited by globally renowned thought leaders Andreas Hinterhuber and Stephan Liozu, is the first to outline contemporary theories and best practices of documenting pricing ROI. It provides proven methods, practices and theories on how to calculate the impact of pricing activities on performance. Marketing ROI is now a common concept: this collection proves to do the same for pricing.

The ROI of Pricing 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 of The ROI of Pricing below!

The authors introduce the concept of pricing ROI, under a theoretical perspective and a managerial perspective, and bring clarity to this subject which is widely ignored and is so significant in profit generation potential of effective pricing! Liozu and Hinterhuber bring to attention to the tools required to manifest the substantial impact that pricing has on an organization´s bottom line and make the case for pricing investments by providing the calculation of pricing ROI.

Key topics discussed in ´The ROI of Pricing´ include:

  • Current research and Tools used to calculate ROI at present.
  • Pricing Strategy:
    - The authors explore three value-based pricing methods: price performance, total cost of ownership and trade-off analysis, and explore some of the steps and the ROI of each method.
    - Hinterhuber introduces the area of cannibalization with market expansion and a changing baseline and price promotions.
    - Price modelling as a strategic leverage for knowledge-intensive start-ups
  • Pricing Tactics: 
    - The authors look at evaluating the impact of pricing actions to drive further actions. 
     - Using VOC to ensure product success.
    - The power and impact of quick wins and the illuminating value capture with return on pricing investment.
  • Pricing Organization: The authors provide specific guidance on what metrics managers should use to assess pricing software investments.

The ROI of Pricing is a great book for students and specialists of marketing and sales, pricing managers alike. It is easy to understand and provides a framework and best practices on how to measure the impact of pricing projects and the pricing function. This is key to driving organisational performance through pricing.

Happy Reading!

Price Beam.

ABOUT THE AUTHORS: Stephan M. Liozu

Stephan LiozuStephan M. Liozu is Founder of Value Innoruption Advisors, a consulting boutique specializing in industrial, digital, and value-based pricing. Stephan has worked for both Fortune 500 companies and family-owned businesses, and with over 20 years of experience in business he now focuses on design and creativity in value and pricing strategies. He is a Certified Pricing Professional (CPP), a Prosci Certified Change Manager, and a Strategyzer Certified Business Model Innovation Coach. Stephan sits on the advisory boards of the Professional Pricing Society and Leverage Point Innovation.

AndreasAndreas Hinterhuber is an Associate Professor of Marketing at Ca' Foscari University of Venice. He is a partner at Hinterhuber & Partners, a strategy, pricing, and leadership consultancy based in Innsbruck, Austria. Kennedy information, a Bloomberg business, ranks Hinterhuber & Partners among the top consulting companies globally in pricing strategy consulting.


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Topics: pricing books

Written by PriceBeam

PriceBeam
PriceBeam posts regular guides, articles and news related to pricing and strategy. Go have a look!