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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.

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