What do you think?
Rate this book
The Art of Pricing: How to Find the Hidden Profits to Grow Your Business
Want to make a bad year better or turn a good year into a blockbuster? Stop leaking profits and discover the untapped gold mine that exists in your products.
The Art of Pricing is the first practical, easy-to-understand guide to solving one of the most important dilemmas in how to use price to uncover a product’s hidden profits and find new opportunities for growth.
When it comes to setting prices for products and services, even the most sophisticated businesspeople often rely on formulas and seat-of-the-pants instinct, based on what the competition is charging, marking up costs, and doing things as they’ve always been done. The result is that businesses of all sizes, from start-ups to the Fortune 100, leave money on the table.
In The Art of Pricing , Rafi Mohammed, one of the world’s leading experts on pricing strategy,
• The astonishing impact that small changes to a pricing strategy can have on the bottom line
• How the right pricing strategy can boost profits and grow your customer base
• Why the right way to think about pricing is as a series of easy-to-implement strategies that allow companies to serve and profit from the largest possible customer base
• Why the art of pricing involves understanding and capitalizing on the fact that different customer segments are willing to pay different prices for the same product
• Why an effective pricing strategy is not about price gouging but one that incorporates fairness into every important pricing decision
The Art of Pricing will be the invaluable missing link for people running companies, departments, divisions, and product lines, as well as for those in sales and marketing. Dr. Mohammed shows that an effective pricing strategy helps complete the circle by reaping the rewards due for the enormous effort, creativity, and investment made in developing and marketing products and services. Using a range of examples, from neighborhood restaurants to huge companies like Ford, he shows the importance of not falling short—and shortchanging yourself—when it comes to the heretofore little understood art of pricing.
Also available as an eBook
The Art of Pricing is the first practical, easy-to-understand guide to solving one of the most important dilemmas in how to use price to uncover a product’s hidden profits and find new opportunities for growth.
When it comes to setting prices for products and services, even the most sophisticated businesspeople often rely on formulas and seat-of-the-pants instinct, based on what the competition is charging, marking up costs, and doing things as they’ve always been done. The result is that businesses of all sizes, from start-ups to the Fortune 100, leave money on the table.
In The Art of Pricing , Rafi Mohammed, one of the world’s leading experts on pricing strategy,
• The astonishing impact that small changes to a pricing strategy can have on the bottom line
• How the right pricing strategy can boost profits and grow your customer base
• Why the right way to think about pricing is as a series of easy-to-implement strategies that allow companies to serve and profit from the largest possible customer base
• Why the art of pricing involves understanding and capitalizing on the fact that different customer segments are willing to pay different prices for the same product
• Why an effective pricing strategy is not about price gouging but one that incorporates fairness into every important pricing decision
The Art of Pricing will be the invaluable missing link for people running companies, departments, divisions, and product lines, as well as for those in sales and marketing. Dr. Mohammed shows that an effective pricing strategy helps complete the circle by reaping the rewards due for the enormous effort, creativity, and investment made in developing and marketing products and services. Using a range of examples, from neighborhood restaurants to huge companies like Ford, he shows the importance of not falling short—and shortchanging yourself—when it comes to the heretofore little understood art of pricing.
Also available as an eBook
240 pages, Hardcover
First published September 20, 2005
51 people are currently reading
280 people want to read
Ratings & Reviews
Friends & Following
Create a free account to discover what your friends think of this book!
Community Reviews
Displaying 1 - 22 of 22 reviews
January 4, 2025
I applaud and appreciate the author’s attempt and effort to help people with such a difficult subject as pricing. However, this won’t be your holy grail to fixing your price.
————————————————————————
While the author knows his craft, there seems little to be gained from reading this book unless you’re completely clueless about pricing.
And even if you’re clueless about pricing, this book might not be for you. The author makes several points about pricing that have real merit, but they’re either obvious or easily missed to the untrained eye.
Some of the valid points for example are about his “multi-price mindset” and “fairness”. Those are fundamental concepts everyone should understand. However, I personally found he did it too little justice.
Taking a “multi-price mindset” -or in other words, intelligently packaging the same product to appeal to multiple segments- can realistically double or even triple revenue for companies that have yet to implement it. Yet, except for sharing examples he doesn’t really explain how to work it out for your product or service.
The notes on fairness are also missing some critical points. Mainly, other than the price point, you can leverage different pricing metrics/variables (e.g. monthly subscription, usage-based fees, etc.) to increase revenue while considered more fair in the eyes of the buyer.
Another example of failing to tell the whole story is when he’s talking about ‘value is in the eye if the beholder’. He’s exclusively talking about value in terms of willingness-to-pay. Products and services might solve entirely different jobs-to-be-done depending on the consumer/user. Only by mapping that can you truly price discriminately.
His model on how to set a price is both outdated and unusable. It’s supposedly a step-by-step guide, but then completely fails to explain where the actual numbers come from. It feels incredibly arbitrary.
I can go on, but I don’t want to be overly negative of someone trying to share valuable lessons.
My apologies for being this critical of his work. Pricing is an incredibly tough subject for most businesses and educating people on the matter is a bold venture. I applaud and appreciate his attempt and effort. However, it’s worth mentioning that this won’t be your holy grail to fixing your price.
————————————————————————
While the author knows his craft, there seems little to be gained from reading this book unless you’re completely clueless about pricing.
And even if you’re clueless about pricing, this book might not be for you. The author makes several points about pricing that have real merit, but they’re either obvious or easily missed to the untrained eye.
Some of the valid points for example are about his “multi-price mindset” and “fairness”. Those are fundamental concepts everyone should understand. However, I personally found he did it too little justice.
Taking a “multi-price mindset” -or in other words, intelligently packaging the same product to appeal to multiple segments- can realistically double or even triple revenue for companies that have yet to implement it. Yet, except for sharing examples he doesn’t really explain how to work it out for your product or service.
The notes on fairness are also missing some critical points. Mainly, other than the price point, you can leverage different pricing metrics/variables (e.g. monthly subscription, usage-based fees, etc.) to increase revenue while considered more fair in the eyes of the buyer.
Another example of failing to tell the whole story is when he’s talking about ‘value is in the eye if the beholder’. He’s exclusively talking about value in terms of willingness-to-pay. Products and services might solve entirely different jobs-to-be-done depending on the consumer/user. Only by mapping that can you truly price discriminately.
His model on how to set a price is both outdated and unusable. It’s supposedly a step-by-step guide, but then completely fails to explain where the actual numbers come from. It feels incredibly arbitrary.
I can go on, but I don’t want to be overly negative of someone trying to share valuable lessons.
My apologies for being this critical of his work. Pricing is an incredibly tough subject for most businesses and educating people on the matter is a bold venture. I applaud and appreciate his attempt and effort. However, it’s worth mentioning that this won’t be your holy grail to fixing your price.
October 28, 2017
Introductory pricing book. Very highly level and not useful for actual pricing decisions. If you have little or no background on this topic the book might be ok but I prefer The Strategy and Tactics of Pricing.
June 30, 2007
Clarifies pricing concepts for the layman. Makes me evaluate the value I place on products/ services actually.
April 20, 2009
Very useful when setting prices.
February 3, 2023
Do you own a business? This book is a must read. Rafi challenges every thought you have ever had on pricing. His complete goal is to make you the most money by changing your pricing metrics. Although at times it was a little repetitive, the book will make you think. Why do you price this way and not that way? Why not charge more? Why not charge less? What about bundling? What about value customers? He uses example after example to challenge your thoughts on profit. Rafi not only challenges you to considering raising prices, but he also challenges you to lower your prices. His goal is for you to gain the most customers and make the most money, from “value” customers to customers that really value your product/service.
Although I have a obscure business and a lot of this isn’t directly applied to my entertainment business, it still transfers over. I will make more money this year because of this book, and would recommend it to any small business or large business owner.
Although I have a obscure business and a lot of this isn’t directly applied to my entertainment business, it still transfers over. I will make more money this year because of this book, and would recommend it to any small business or large business owner.
September 16, 2018
Makes an effective case for the importance of charging different prices to different customers—and how this strategy could be integrated into any business to raise profits (from restaurants, to movie theaters, to airlines).
Where this book was lacking, was the psychological impact of pricing, which it only began to address in the last couple of chapters.
That being said, this book is a must read for anyone working on pricing-related activities.
Where this book was lacking, was the psychological impact of pricing, which it only began to address in the last couple of chapters.
That being said, this book is a must read for anyone working on pricing-related activities.
November 21, 2022
The book is good and nicely written. Rarely I finish a book in straight 2 days.
However, the book is old and doesn't cover lastest internet based pricing which is a combination of AI and data analytics. It also doesn't cover differential or variable prices of hotels and airlines, but just mentions them.
However, the book is old and doesn't cover lastest internet based pricing which is a combination of AI and data analytics. It also doesn't cover differential or variable prices of hotels and airlines, but just mentions them.
February 14, 2025
Read it thru once & learned some new things!
Read it a 2nd time, taking notes & jotting down ideas that could apply to the music store retail environment I've been working in since 1986.
We will be implementing some of these ideas immediately and I'll check back in here with an update at the end of 2025 to let you all know what we did, what worked, and what didn't!
Read it a 2nd time, taking notes & jotting down ideas that could apply to the music store retail environment I've been working in since 1986.
We will be implementing some of these ideas immediately and I'll check back in here with an update at the end of 2025 to let you all know what we did, what worked, and what didn't!
January 24, 2024
Bien estructurado,!
El ojo del comprador determina el valor, pero
también la forma y el relato utilizado para vender influye en la percepción de valor.
El precio no es una constante es un rango en el cuál tenemos oportunidad de alcanzar mejores resultados!
El ojo del comprador determina el valor, pero
también la forma y el relato utilizado para vender influye en la percepción de valor.
El precio no es una constante es un rango en el cuál tenemos oportunidad de alcanzar mejores resultados!
January 7, 2020
Don't read this book, read 1% Windfall by the same author.
September 13, 2019
Excellent read
October 28, 2020
This is an insightful book that every finance professional should read
I am from finance and pricing is looked at as a cost plus or to meet the customer expectation mostly. It is not thought about in such qualitative and interesting way.
I am from finance and pricing is looked at as a cost plus or to meet the customer expectation mostly. It is not thought about in such qualitative and interesting way.
December 22, 2016
Great overview of pricing strategies and how they work. Good read for the consumer and business owner.
August 3, 2016
Must have for any small business owner. The Art of Pricing was referred over from a Seth Godin marketing class. Rafi Mohammed breaks down the valuation of pricing structure in an easy to learn form. I checked this book out from the library but will most likely purchase it as reference for years to come.
November 3, 2018
It was thought provoking. He gathered and presented information that we are exposed to every day and gave us insight on how to use that in our own businesses. The most striking number is how much a 1% price increase or give away can affect your profit. I’ll let you read the book to be wowed by that.
July 29, 2011
Great resource for finding new and inventive ways of capturing profits within any business.
October 31, 2011
Surprisingly funny and interesting to read.
September 16, 2012
Totally de-mystifies the world of pricing by using real-world examples and a light touch. I interviewed the author. Highly recommended.
March 30, 2013
A should-read book on licensing and pricing for the knowledge worker, manager, executive, or entrepreneur.
October 4, 2014
Fascinating insight into pricing and psychology of price. Made so many notes I might as well re-read it. Rafi makes a dry subject totally entertaining and inspirational!
November 6, 2015
Very good book for people who make regular decisions on how to price their products
January 26, 2014
Good read, but basic
Displaying 1 - 22 of 22 reviews