Pricing with Confidence: 10 Ways to Stop Leaving Money on the Table Review

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Pricing with Confidence: 10 Ways to Stop Leaving Money on the Table Review
I liked this book a lot. I thought it was well outlined and well written. The book's overall message is that the small business owner should link prices to the value delivered. The reader should be able to optimize pricing for her services or products after considering the 10 rules of pricing presented in this book:
1. Generally, don't let the customer talk you down in price
2. Price your service or product at a level that a customer is willing to pay if they understand the value of your service or product
3. Know which of three pricing strategies you are using and stick to it
4. It's OK to negotiate price with customers, but make sure you win
5. It's OK to lower prices, but only in order to increase profits
6. Expand your offerings so you aren't locked into one price for one product
7. Great pricing will often force your competition to react to your pricing
8. Your company's sales force has to be expert at why and how you priced your services or products
9. Set prices based on value - not on cost-plus
10. Always keep in mind you are in business to make a profit without leaving money on the table
I loved the instruction that the author provides regarding how an owner of a small business has to be willing (and able) to fire unprofitable clients and customers. Business people who compete on price are playing a fool's game. Smart business owners understand that value is the basis for business exchange and that to be successful at business one must FULLY understand value. This book puts forth a pretty good effort to help the reader fully understand value, or at least how to go about fully understanding value after doing a little investigation and research of the market.
Pricing goods and/or services is far from simple. And setting an optimal price is one of the most difficult decisions to make when starting a business. Furthermore, as a business grows and matures pricing at an optimal level continues to be difficult. Prices never stay the same because demand never stays the same. To do this well one must know the market (competitors & customers), know the costs, know the perceived value, and know the actual value.
Getting a handle on all this is not particularly easy. This is especially true because customers are often times very hard to figure out. Some are price buyers, some are value buyers, some are relationship buyers, and some are poker-playing buyers. Knowing these four types of buyers is a heads up for the small business person. But he or she still has to read the customer and figure out which one of these four the customer is before negotiations can be performed in favor of the seller. Read this book and start on your path of being a better pricer of your services or goods. 5 stars!Pricing with Confidence: 10 Ways to Stop Leaving Money on the Table Overview

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