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The 1% Windfall: How Successful Companies Use Price to Profit and Grow – A Practical Pricing Strategy Framework
Leading pricing expert Rafi Mohammed shows businesses how to reap a financial windfall and foster growth using the underutilized and often overlooked strategy of setting prices.The 1% Windfall reveals how modest incremental changes to an everyday business practice—pricing—can yield significant rewards. Illustrating the power of pricing, a study of the Global 1200 found that if companies raised prices by just 1%, their average operating profits would increase by 11%. Using a 1% increase in price, some companies would see even more growth in percentage of Sears, 155%; McKesson, 100%; Tyson, 81%; Land O'Lakes, 58%; and Whirlpool, 35%.
The good news is that better pricing is more than simply raising prices. Instead, the key is to offer customers a variety of pricing options. This strategy is profits to companies and choices for consumers.
But how do executives and managers set the right price? Underpinned by sound empirical research and real-life anecdotes, The 1% Windfall addresses this fundamental question. This book offers guidelines that any company—whether a multinational conglomerate, a small business, or even a nonprofit—can follow to create a comprehensive pricing strategy for any product or service. In addition, these versatile techniques and tools provide solutions to avert a slump in a recession, offset the impact of inflation, or battle a new competitor.
The result is a mind-opening, clear blueprint for com-panies to price for profit and growth.
259 pages, Kindle Edition
First published March 16, 2010
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Displaying 1 - 22 of 22 reviews
August 3, 2016
I borrowed this book from a colleague. She said she only skimmed it because she wasn't in the right frame of mind to read it. This probably should have been a clue that it wasn't a great read but I actually like reading about pricing so I took it up anyway - bad move.
This is about 20 pages of content put into 200 pages. The first chapter or two are fairly interesting but I learned very little that was new. I may have come away with different terminology but no new ideas.
The remaining 180 pages were basically the first 20 pages in different formats. The book even includes a one or two page summary at the end of every chapter. And the chapters aren't even that long!
Disappointed. 1.5 stars.
This is about 20 pages of content put into 200 pages. The first chapter or two are fairly interesting but I learned very little that was new. I may have come away with different terminology but no new ideas.
The remaining 180 pages were basically the first 20 pages in different formats. The book even includes a one or two page summary at the end of every chapter. And the chapters aren't even that long!
Disappointed. 1.5 stars.
January 5, 2020
This book strikes the right balance between depth and width. Covering everything concerning the pricing of retail goods but not going to deep into any of them. This makes the book a great introduction to a strategic approach to pricing. I would've loved to see more attention to services and b2b environments but that would've probably been to 'wide' an approach for this book. Perhaps he has a seperate book on that subject? I will read it as well if he does.
October 20, 2014
I choose to recommend it because it deals with a topic that is a mystery to many in my world. While it may not be a need for all who are reading this, for those of you who do need it, I strongly recommend you read it.
The book is based on two basic premises:
The best pricing approach is based on value (and there are many types of value people see in any potential purchase).
Changing your pricing upward in even a small way – say 1% – can have a drastic impact on your bottom line.
- See more at: http://blog.kevineikenberry.com/leade...
The book is based on two basic premises:
The best pricing approach is based on value (and there are many types of value people see in any potential purchase).
Changing your pricing upward in even a small way – say 1% – can have a drastic impact on your bottom line.
- See more at: http://blog.kevineikenberry.com/leade...
May 27, 2019
Business is not a field where it takes exceptional experience, technical training, or intelligence to understand what works and what doesn't. The very life that we live is often the best training grounds for a common sense intuition about how people will react to the decisions we make and this in turn informs the best business decisions.
For these reasons, I often avoid reading books like "The 1% Windfall: How Successful Companies Use Price to Profit and Grow" -- they err on the side of selection basis (talking about successful applications of a strategy only), limited and unconvincing case examples, and a structure that would fit better as bullet points on a PowerPoint slide than in a book. This book falls victim to much of that, but Rafi Mohammed does do something very special in his take on the art of pricing -- he introduces his target audience, business managers who have never thought long and hard about the principles upon what their pricing strategy should be based or can't even articulate what their pricing strategy is, to an actionable plan to build a culture around pricing for profits and growth as well as both strategies and tactics for a wide variety for both offensive and defensive purpose.
To someone looking to enter the profession of pricing analysis, interested in management consulting (or thinking of doing case interviews), or a manager hoping to expand their scope of business skills -- this book is a useful and insightful read. It's greatest value is in helping to articulate why so many companies (my own firm is guilty of this) pursue un-thoughtful pricing strategies and might just give you the nudge to initiate changes that will reap great dividends for your company and career in the years to come.
For these reasons, I often avoid reading books like "The 1% Windfall: How Successful Companies Use Price to Profit and Grow" -- they err on the side of selection basis (talking about successful applications of a strategy only), limited and unconvincing case examples, and a structure that would fit better as bullet points on a PowerPoint slide than in a book. This book falls victim to much of that, but Rafi Mohammed does do something very special in his take on the art of pricing -- he introduces his target audience, business managers who have never thought long and hard about the principles upon what their pricing strategy should be based or can't even articulate what their pricing strategy is, to an actionable plan to build a culture around pricing for profits and growth as well as both strategies and tactics for a wide variety for both offensive and defensive purpose.
To someone looking to enter the profession of pricing analysis, interested in management consulting (or thinking of doing case interviews), or a manager hoping to expand their scope of business skills -- this book is a useful and insightful read. It's greatest value is in helping to articulate why so many companies (my own firm is guilty of this) pursue un-thoughtful pricing strategies and might just give you the nudge to initiate changes that will reap great dividends for your company and career in the years to come.
January 2, 2019
When pricing products there are more dimensions to consider than simply a price on a tag. From variable pricing, price choices and financing the savvy businessperson will understand that the levers to pull to create a 1% increase in pricing that yields a disproportionate impact on profits.
I had to pull out from this one. The ideas were great, the presentation I found difficult. The concept of a "price blossom" is clever. I will keep this as a reference but can't recommend it as a breezy read.
Recommend with caution.
I had to pull out from this one. The ideas were great, the presentation I found difficult. The concept of a "price blossom" is clever. I will keep this as a reference but can't recommend it as a breezy read.
Recommend with caution.
March 18, 2020
Pricing summary
Read this if you are interested in pricing models. This won't be an easy read. It requires focus to get the details from this book, since it has many strategies and tactics of pricing. The main premise of this book is that many businesses still using very arcane ways to set prices and by implementing these models that can reap great reward.
Read this if you are interested in pricing models. This won't be an easy read. It requires focus to get the details from this book, since it has many strategies and tactics of pricing. The main premise of this book is that many businesses still using very arcane ways to set prices and by implementing these models that can reap great reward.
February 12, 2022
Agree with other reviewers: 20 pages of content stretched to 200. Had the hardest time getting through this book. Read this as part of the Personal MBA list and feel that there must be a better book out there than just a retitled Econ 101 book.
December 28, 2017
Started OK, but ran out of steam quickly. Could have been booklet.
January 2, 2019
A absolutely first rate primer on pricing.
December 25, 2019
An interesting book on strategy if you are willing to assume a firm already has pricing power, and can set prices irrespective of competition. But most don’t. A better book would have looked at why.
July 21, 2019
as always, wonderful in this contemporary with no fantastic or elements but a surprise in the ending!
August 12, 2019
It is OK if you are new to the subject. It is nothing new if you have studied it before. The book could have been written much better, as it is not very engaging and very dry. And it stays at very basic level. Overall, it is OK as an introductory book.
October 27, 2015
Quite an interesting read. I have listened to the audio version on Blinkist.
A few things I have learned:
1) A 1% increase in selling price would lead to 11% more for operation cost; and
2) How to actually price your product using appropriate market research;
However, this book does not address how you should price commodities like spot oil. Partly because prices for commodities are determined by Mercantile Exchanges (of the likes of NYMEX) and also because this book is mainly about the strategic part of determining prices.
You should be reading this book if you are into marketting and trying to determine what's the best price for your product.
A few things I have learned:
1) A 1% increase in selling price would lead to 11% more for operation cost; and
2) How to actually price your product using appropriate market research;
However, this book does not address how you should price commodities like spot oil. Partly because prices for commodities are determined by Mercantile Exchanges (of the likes of NYMEX) and also because this book is mainly about the strategic part of determining prices.
You should be reading this book if you are into marketting and trying to determine what's the best price for your product.
This entire review has been hidden because of spoilers.
May 1, 2014
It's a 3/5 for the same reason most "business" books are a 3/5 -- while it has a lot of fantastic information, after reading, I felt like it was twice as long as it needed to be, filling the blanks with enough examples to make you wan to gouge your eyes out.
The introduction and Chapters 1 through 4 are great. Rafi provides a really good overview of the foundations of value pricing and some basic strategies for formulating a pricing plan. Highly recommend reading through this portion.
The rest of the book is a little less applicable, though the notes at the end of the chapter are solid.
The introduction and Chapters 1 through 4 are great. Rafi provides a really good overview of the foundations of value pricing and some basic strategies for formulating a pricing plan. Highly recommend reading through this portion.
The rest of the book is a little less applicable, though the notes at the end of the chapter are solid.
May 8, 2011
I wanted more from this pricing books. There are lots of descriptions of the type, methods and options for pricing. The end provided more specifics for various industries but I never really found that crucial nugget to tackle a pricing conundrum.
August 7, 2013
You must read this book if you want to price your product or service. It´s amazing the range of strategies and tactics available to price something and to have more revenues and profits. Fundamental reading to entrepeneurs
July 7, 2015
Finding the ideal price is a struggle for many companies. Find out what strategies can you use to think ahead and plan for every market eventuality so your profits keep you growing even in the worst of times!
April 7, 2025
Tuli mieleen yläasteen kirjoitustehtävä, jossa samaa asiaa jaaritellaan edestakaisin, jotta tietty sanamäärä tulee täyteen. Tämän kirjan ei ikinä pitäisi olla 200 sivun pituinen, enkä voi suositella sen lukemista kenellekkään, joka arvostaa aikaansa.
August 31, 2013
It'll get you thinking about your pricing.
January 18, 2016
A practical, plainspoken guide to pricing strategy and tactics.
March 29, 2016
Helpful to understand the impact and power of pricing
Displaying 1 - 22 of 22 reviews