Pricing Done Right: The Pricing Framework Proven Successful by the Worlds Most Profitable Companies

Praise for PRICING DONE RIGHT

"Essential reading the key to profitable growth is capturing price. While many books cover the concepts of pricing, Pricing Done Right goes the additional step of applying the concepts in the real world. Smith′s ability to educate and drive to results quickly makes him unique in the pricing world."
Dennis Stone, CEO and President, Overhead Door Corporation

"Are you concerned about pricing? You need two things: a courage pill and a process. Courage pills are not available by prescription, but processes don′t miss Smith′s book. Logical, methodical, and close to earth."
Ignacio Dominguez, Global Chief Commercial Officer, Adama Agricultural Solutions, Ltd

"With its strong focus on organizational acumen, change management, and analysis along with cross–departmental tactics and strategies Pricing Done Right will connect you and your company with the tools needed to raise profitability and performance. Tim Smith′s experience in pricing can help you achieve tough goals."
Kevin Mitchell, President, The Professional Pricing Society, Inc.

"Pricing Done Right makes the current pricing theory understandable and easy to implement. Smith provides excellent counsel and wisdom in helping pricing leaders drive margin in the organization a must have resource for any pricing leader."
Lee A. Halverson, Vice President, Pricing and Business Intelligence, SiteOne Landscape Supply

"Marketing, Sales, and Finance should always be part of the pricing process. Any decision that implies only part of those functions would be biased. Pricing Done Right explores the roles and responsibilities of each of them in pricing decisions, from strategy to execution. A must–read book for all executives."
Michal Nacasch, Head of Global Pricing, Adama Agricultural Solutions, Ltd

Preface

Acknowledgments

Chapter 1: The Value–Based Pricing Framework for Getting Pricing Done Right

Embedding the Culture of Value–based Pricing

Overarching Pricing Decision Areas

Analytical Routines

Decision Teams

Chapter 2: Value–Based Pricing

The Purpose of Firms: Serve Customer Needs Profitably

Value Engineering

Value–Based Pricing

Differential Benefits

Differential Price

Exchange Value to Customer

Design Costs against Price to Profit

References

Chapter 3: Business Strategy Alignment

Business Strategy

Customers

Competitors

Company

References

Chapter 4: Pricing Strategy

Price Positioning

Price Segmentation

Competitive Price Reaction Strategy

Pricing Capability

References

Chapter 5: Price Management

Market Pricing

Price Variance Policy

Price Execution

Pricing Analysis

Chapter 6: Defining the Pricing Decision Team

Marketing

Sales

Finance

Pricing

References

Chapter 7: Pricing Continuous Improvement and Analytics

Continuous Improvement Process

Offering Innovation and Pricing Decisions

Price Variance Policy Continuous Improvement

Market Pricing Continuous Improvement

References

Chapter 8: Organizational Design of the Pricing Specialist Function

Pricing Community Distribution

Pricing Reporting Structure

Pricing Talent

References

Chapter 9: A Decision You Control

References

Appendix A: Economic Origins of Competitive Advantage

Appendix B

Getting Pricing Done with Jesse Finch Gnehm of GE Oil & Gas

The Value–Based Pricing Journey

Context of Subsea Systems within GE

Pricing Community Cultivation

Focal Contributions of the Pricing Experts

Pricing Framework

Pricing Analysis Techniques

Price Automation and Analytical Tools

External Resources

Appendix C

Getting Pricing Done with Robert Smith of Eastman Chemical Company

Pricing Organizational Design

Pricing Mission

Pricing Functional Architecture

About the Author

Index

TIM J. SMITH, PHD, is the founder and CEO of Wiglaf Pricing, where he helps executives manage price better. Also an adjunct professor of marketing at DePaul University, he began his career as a research scientist in quantum mechanics before pursuing business strategy. He is the author of Pricing Strategy and Hawks, Seagulls, and Mice.