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