New Book Review: "Pricing Done Right"
New book review for Pricing Done Right: The Pricing Framework Proven Successful by the World's Most Profitable Companies, by Tim J. Smith, Wiley (Bloomberg Press), 2016:
Copy provided by Kyle Thompson-Westra at Wiglaf Pricing.
As the author (founder and CEO of Wiglaf Pricing) mentions at the outset, every offering of a given firm and every transaction a given firm has with its customers has a price. Somehow, all of these offerings and transactions have prices. Either these prices are the result of lengthy deliberations consisting of market research, competitive dynamics, highly researched algorithms, intense customer negotiations, and torrid management discussions, or just numbers that popped out of someone's head. In one way or another, pricing decisions get made. But how should prices be determined? What should inform pricing decisions? And who should be engaged in those pricing decisions? While the managerial challenges of of pricing are well known, what isn't so well known is how these challenges should be addressed. The author argues that executives need a framework that will help them shape their organizations, routines, staff, information management, and analytical tools that will guide the organization toward making better pricing decisions. This book presents the Value-Based Pricing Framework as a template for executives to use in managing pricing decisions throughout the organization. This framework codifies best practices for managing prices in profit-seeking competitive businesses, and was developed through direct interviews with practicing executives, reviews of the academic literature, and implementations of this framework in numerous firms.