Pricing For Profit Book Summary - Pricing For Profit Book explained in key points
Listen to the Intro
00:00

Pricing For Profit summary

Peter Hill

How to Develop a Powerful Pricing Strategy for Your Business

3.5 (52 ratings)
8 mins

What is Pricing For Profit about?

Pricing For Profit (2013) is a practical strategy guide for pricing. These blinks use real world business examples to paint a comprehensive picture of how to optimize your pricing and maximize your profits.

Table of Contents

    Pricing For Profit
    summarized in 4 key ideas

    Audio & text in the Blinkist app
    Key idea 1 of 4

    A price raise is the simplest and most effective way to increase profits.

    Most business owners are skeptical of the notion that raising prices will boost growth. But in fact, there are four common ways to grow your business and a price hike is a pretty good choice.

    The four most popular strategies for growth are increasing your customer base, increasing the value or rate of transactions, achieving greater operational efficiency, and, finally, increasing your prices. So, while many businesspeople think that hiking prices will lead to fewer customers, that’s not quite the reality.

    For instance, one survey that compared the reasons customers ceased purchasing a product found that 68 percent of those surveyed stopped because of what’s known as perceived indifference. This means that they felt they weren’t being cared about enough, as evidenced by things like poor customer service. Not just that, but only 10 percent said they stopped purchasing because of higher prices.

    So, why wouldn’t you increase your prices when it’s such a simple way to grow?

    After all, even making small price increases can significantly impact your company’s growth. For instance, investing in greater marketing efforts takes longer and costs more than a simple price raise. That’s because marketing investment might require lots of new print materials, staff or technological purchases.

    On the other hand, just a minor price increase can mean huge benefits at a fraction of the cost. For example, say you’re selling 5,060 used phones a year at an average of $198.45 per phone. If you raise your price per phone by just 2 percent, or $3.969, your annual profit will rise from $1,004,157 to $1,024,240. That’s about $20,000 added profit!

    That being said, there are some important considerations to make when setting a price, which is exactly what we’ll explore next.

    Want to see all full key ideas from Pricing For Profit?

    Key ideas in Pricing For Profit

    More knowledge in less time
    Read or listen
    Read or listen
    Get the key ideas from nonfiction bestsellers in minutes, not hours.
    Find your next read
    Find your next read
    Get book lists curated by experts and personalized recommendations.
    Shortcasts
    Shortcasts New
    We’ve teamed up with podcast creators to bring you key insights from podcasts.

    About the Author

    Peter Hill is an accountant with over 30 years of experience, a popular speaker and a host of seminars on pricing and profit for clients like Lloyds and HSBC.

     

    © Peter Hill, 2013. This Summary of Pricing For Profit is published by arrangement with Kogan Page.

    Who should read Pricing For Profit?

    • Any business owner who is concerned about their company’s lackluster growth
    • Every entrepreneur and anyone who sells anything

    Categories with Pricing For Profit

    Books like Pricing For Profit

    People ❤️ Blinkist
    Sven O.

    It's highly addictive to get core insights on personally relevant topics without repetition or triviality. Added to that the apps ability to suggest kindred interests opens up a foundation of knowledge.

    Thi Viet Quynh N.

    Great app. Good selection of book summaries you can read or listen to while commuting. Instead of scrolling through your social media news feed, this is a much better way to spend your spare time in my opinion.

    Jonathan A.

    Life changing. The concept of being able to grasp a book's main point in such a short time truly opens multiple opportunities to grow every area of your life at a faster rate.

    Renee D.

    Great app. Addicting. Perfect for wait times, morning coffee, evening before bed. Extremely well written, thorough, easy to use.

    People also liked

    Start growing with Blinkist now
    26 Million
    Downloads on all platforms
    4.7 Stars
    Average ratings on iOS and Google Play
    91%
    Of Blinkist members create a better reading habit*
    *Based on survey data from Blinkist customers
    Powerful ideas from top nonfiction

    Try Blinkist to get the key ideas from 5,500+ bestselling nonfiction titles and podcasts. Listen or read in just 15 minutes.

    Start your free trial