Pricing and Pricing Power

A one percent rise in realised price adds more to operating profit than a one percent rise in volume or a one percent cut in cost, yet most companies still set prices from cost plus a margin and discount whenever a salesperson asks. Simon and Nagle teach the alternative, which is to measure what the customer gains, segment by willingness to pay, and design the offer and the discount rules around that. Poundstone collects the psychology of anchors, reference points and decoy options that make the same number read as cheap or dear. Kapferer and Bastien explain why luxury houses raise prices to raise demand and refuse the discounting that other consumer businesses depend on, Helmer identifies where durable pricing power comes from in the first place, and Simon's Hidden Champions shows mid-sized specialists charging premiums in narrow global niches.

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