Contents
Part 1: How to Set Prices for Maximum Profits
Chapter 1: Why Pricing Is the Key to Your Success
Raise Prices—or Sell More Products?
Chapter 2: Why Most Companies Stink at Pricing (and How You Can Do Better!)
The “Myth” of Creating Demand Curves
How Your Competitors Are Setting Prices
Match-Your-Competitors Pricing
Part 2: How The Market Will Value Your New Product
Chapter 3: Analyzing Your Competitors’ Prices
How to “Pick” Your Competitors
Direct vs. Indirect Competitors
How to Get Profitable Ideas from Your Competitors
Chapter 4: Environmental Factors That Can Affect Your Pricing
Environmental Factors Overview
Government Regulation and Legal
Chapter 5: Pick the Positioning of Your New Product
The Psychology of Price Positioning
Skimming (or Premium) Price Positioning
Learning More about Competitive Pricing
Chapter 6: Analyzing Your Buyer Benefits/Drawbacks Relative to Your Competitors
Uncovering What Buyers Really Value/Hate about Products in Your Marketplace
Learn More about Calculating Buyer Valuation of Different Features
Chapter 7: Picking a “Ballpark” for Your Best Price
You Will Not Be “Stuck” with Your Decision!
Can’t Make a Profit at that Price Range?
Learn More about Buyers’ Reactions to Price Ranges
Chapter 8: Evaluating Your Costs
The Ideas Behind “Target Costing” and “Target Engineering”
The Hardest Part of Calculating Costs
Reasons for Launching a Product that Doesn’t Cover Overhead
Part 4: Fine-Tuning Your Price
Chapter 9: Is Your Profit Potential Acceptable?
If You’re Happy with Your Potential Profits
If You’re Not Happy with Your Potential Profits
Chapter 10: Psychological Adjustments to Your Price
Understanding “Barriers” in Prices
Increasing Prices up to Barriers
Numbers that Say “Discount” to Buyers
Learn More about the Effect of Numbers
The Psychology of You—in Setting Prices
The Difference between Testing and Research
Chapter 12: Using Google to Test Prices for Free (or Almost Free)
Two Methods for Almost-Free Testing!!
Using Google Optimizer to Test Multiple Things
Part 6: Pricing in Special Situations
The Complications of Setting Prices for Services
The Myth of Pricing Based on “What You Want to Earn”
Pricing by the Hours versus the Job
Finding What Service Competitors Charge
Picking Your Price Positioning
What Your Price Says about Your Firm
How to Charge Higher Prices to Those Willing to Pay More
Chapter 14: Pricing New Products/Services, Part 1: When Your Brand Is Unknown
The Problems in Pricing Something New
Price Equals Quality Buyer Perception
Does Quality Equal Likelihood-to-Buy?
Understanding “Bargain Hunters”
Price Preferences by Product Type
Detailed Research on Buyer Price Position Preferences
Additional Research on Preferred Prices
Learn More about Risk and Pricing
Chapter 15: Pricing New Products/Services, Part 2: Competing with Established Brands
When Your Competitors Are Established Brands
Price Premiums for Known Brands
What Causes Customers to Switch to a New Brand?
What Happens after Buyers Switch?
Shocking Findings on Brand Names
So What Does it All Mean for Pricing a New Product/Service?
Chapter 16: Pricing with Discounts
Discounts: A Double-Edged Sword
When Discounts Worry Consumers
Determining Best Discount Levels
Discounts’ Effect on Quality Ratings and Purchase
Concluding Thoughts on Pricing, and Especially on Testing Prices