This is a subscriber-only article. Join Entrepreneur+ today for access

Learn More

Already have an account?

Sign in
Entrepreneur Plus - Short White
For Subscribers

Stop on a Dime Pick the right price point to pull in profits.

By Mark Henricks

Opinions expressed by Entrepreneur contributors are their own.

Forget about searching for that one perfect price for yourproduct. Instead, says pricing expert Rafi Mohammed in The Art of Pricing (Crown Business, $25),aim to find approximately right prices for several of your majorcustomer groups. Offer discounts to some; charge premiums toothers. Bundle to create high-priced packages for those who valuethem; use bare-bones bargains to attract new customers. Urgeemployees to sell higher-profit items, and limit their ability togive price breaks.

If you've been consumed by cost control, consider thinkingabout pricing instead. Moham-med cites a cross-industry study whereraising average prices by 1 percent meant 11 percent higherprofits, while a 10 percent average price hike increased profits100 percent. This conversational, easy and informative read isworth paying attention to.

Get Out the MagnifyingGlass
When one window in a building gets broken and stays that way, soonall the windows will be broken. That's the idea behind Broken Windows, Broken Business (WarnerBusiness Books, $21.95) by PR executive Michael Levine. Levinewarns that every detail is critical. As a warning, he points toKmart, which alienated once-loyal shoppers with poor goods and onlymoderately low prices. On the other hand, pampering passengers withleather seats and personal TVs has helped JetBlue soar. Is it theend of the big idea? Not quite, but the little things count,too.

The rest of this article is locked.

Join Entrepreneur+ today for access.

Subscribe Now

Already have an account? Sign In