Top 10 Pricing Books [Updated 2021]
We a collection of books on pricing which can set/advance the foundation on pricing. And that means, pick up a book or two or read all of them to ensure that you charge the right price for your products/services. Below is the list of such books on pricing that you must read in 2021 –
- No B.S. Price Strategy ( Get this book )
- The 1% Windfall ( Get this book )
- The Art of Pricing, New Edition ( Get this book )
- The Strategy and Tactics of Pricing ( Get this book )
- The Price Advantage ( Get this book )
- Power Pricing ( Get this book )
- Pricing with Confidence ( Get this book )
- Value-Based Pricing ( Get this book )
- Pricing Done Right ( Get this book )
- The Psychology of Price ( Get this book )
Let us discuss each of the pricing books in detail along with its key takeaways and reviews.
#1 – No B.S. Price Strategy
The Ultimate No Holds Barred Kick Butt Take No Prisoner Guide to Profits, Power, and Prosperity
by Dan S. Kennedy & Jason Marrs
This top pricing book is a no-brainer if you’re a business owner, and you shouldn’t charge any price without reading this book first.
The readers of this book have praised this book profusely. One of the readers mentioned that every chapter of this book should be read at least 3 times. The reason this book is so popular among the readers is its approach toward pricing. While most books are written from the perspective of theory, this pricing book is written from the account of experimentation. If you’re familiar with Dan S. Kennedy’s work, you would know that in every chapter, you would receive value. And the book is full of useful information, stories, examples, and lessons you can directly translate into your own business. From business coaches to sellers of lawns, from business owners to students who have been studying business management, this top book would add tremendous value to everyone who makes an effort to read the book. The only pitfall of this book is you need to read another book on pricing to create a strategy; because this book is all about the fundamentals of pricing. Read this book along with something focused on pricing strategy, and you would be on your way to becoming a pricing superstar.
- You will learn a lot from the book – the 9 ultimate price and fee failures, the trick about discounting without devaluing, the million-dollar secret behind “free,” the secret to price elasticity, and more.
- You will also receive access to the website – simplepricingsystem.com, which will provide tools and techniques to set a pricing strategy for your business.
#2 – The 1% Windfall
How Successful Companies Use Price to Profit and Grow
by Rafi Mohammed
This pricing book is a great foundational book on pricing.
If you are a first-time entrepreneur and need guidance on pricing and how to set the right pricing for your products/services, this book will be the right choice for you. Many readers who have gone through this book have remarked that this book has been their ultimate resource for creating pricing strategies. The book is actually written for big businesses, but small businesses can use the fundamentals easily and can improve their bottom lines. The author is a pricing consultant and knows his stuff. In every chapter, you will find great information equipped with relevant and meaningful examples. Many pricing books talk about how to price your products/services right, but this book approaches the concepts from the perspective of profit and growth, without which pricing strategies have no value at all. If you’re an entrepreneur for a long time, consider reading this book at least once. You will find new pieces of information that you can add to what you’re already doing. This book is a great refresher as well for business owners and for people who have been in business for a short/long time.
- This pricing book talks about a framework by using which you can bullet-proof your business. And as a result, you’ll continue to grow and profit from the favorable/adverse situations.
- This book also talks about how you can price the products/services in the case of recession, inflation, and the entry of new competitors.
#3 – The Art of Pricing, New Edition
How to Find the Hidden Profits to Grow Your Business
by Rafi Mohammed
Pricing isn’t only about a pricing strategy – you’ll get to know a lot of “behind-the-talk” about pricing.
If you like the 1% windfall, you would definitely like this top pricing book. From positioning to pricing, you will learn a great deal from this single book. According to a few readers, this book has been more valuable than even a 1% windfall. Many of the readers remarked that at each chapter, you would pause and say to yourself, that why didn’t you think about this idea before! Each chapter is filled with useful information that you can use in your pricing strategy right away. You will also learn the difference between perceived value and actual value and how these two affect every pricing strategy and, as a result, attract more/fewer customers. And this is not a technical book. It is for people who have been continuously struggling with setting the right price to attract more customers and to earn more revenue. You can be a business owner or a pricing professional, pick up this book, and all your worries about pricing will be gone.
- To set the right price, you need to find out the positioning of your products/services and how the customers are viewing your products/services in comparison with other products. You will find out how to set the right price.
- Along with providing easy-to-use strategies, this top pricing book gives a range of examples that help you find many options for your customers and activate any dormant customer base you have.
#4 – The Strategy and Tactics of Pricing:
A Guide to Growing More Profitably
by Thomas T. Nagle, John Hogan, and Joseph Zale
If you are a student and want to know about pricing and pricing strategy, this is the right book for you.
This top pricing book is one of the best books on pricing if you’re a student, and you’ve signed up for an Economics/Pricing course at your university. Even at MIT OpenCourseWare, this book has been mentioned as the must-read for understanding pricing. The best part of this book is the theories and concepts are laid out so well, that as a student, you don’t need to go to the next book for searching another concept on pricing. This book is comprehensive in itself, and you don’t need another textbook if you would like to pass the course. From product differentiation to pricing structures, from pricing in expanding the market to creating meaningful pricing strategies, you will learn all and more. After reading this book, you would be able to put yourself in the buyer’s position and could see why the stores you shop from the offer you discounts and how the whole thing of pricing works out in real life.
- Along with old examples of pricing, you will also receive examples of new pricing models. You would know how iPhone was priced, how new models for pricing music works, and how to strategize for services pricing.
- You will also learn a lot about value creation and managing price changes in terms of discounts, price reductions in the recession period, and an increase in cost-based pricesCost-based PricesCost-based pricing is a pricing strategy in which a certain percentage of the total cost is added to the cost of the product to determine its selling price. Simply put, it is a pricing method in which the selling price is decided by adding a profit percentage to the cost of making the product..
- You will also learn how to communicate value through your pricing, which is one of the biggest challenges of new entrepreneurs.
#5 – The Price Advantage
by Walter L. Baker, Michael V. Marn and Craig C. Zawada
This best pricing book primarily focuses on pricing strategies for both good and bad times.
If you always get confused about how you can clearly think about pricing, pick up this book. This book will teach you a framework of pricing that will solve all your pricing issues. To talk about the book; this book exactly teaches you three particular things. First, this book will teach you the framework of pricing strategy that will help you create a product/market strategy and will give you a transactional pricing perspective to attack many pricing challenges. Second, it’s a great book on the pricing challenges you face after going through a merger; very fewer books talk about this specific issue. Third, you will also learn about how to drive price change from this book, which is another valid topic but is not widely discussed. If you’re a student of Economics or a business owner or a pricing professional, this book should be in your “must-read” list. Moreover, for any giant company that wants to improve its bottom line, reading this book will certainly help the company take the leap.
- The authors are pricing experts at McKinsey & Company, and in this book, they have shown the way to identify, capture, and stick to substantial pricing gains in new businesses.
- You will also learn about product pricing, custom-configured products pricing, tiered products, and services pricing.
- Along with this book, you will also receive McKinsey pricing tools, pocket price waterfall, and value maps.
#6 – Power Pricing
How Managing Price Transforms the Bottom LineBottom LineThe bottom line refers to the net earnings or profit a company generates from its business operations in a particular accounting period that appears at the end of the income statement. A company adopts strategies to reduce costs or raise income to improve its bottom line.
by Robert J. Dolan and Hermann Simon
This top pricing book is slightly different than the rest of the books.
This best pricing book will certainly make your bottom line stronger, but this book isn’t a comprehensive guide on B2B pricing. Yes, it will serve the purpose of solving a few challenges of business that are not talked about widely. The best parts of this book are three chapters. In Chapter 6, the authors discuss international pricing. In international pricing, the authors talk about globalization, price transparency, the internet, the firms of all types, and how to set the price by taking into account all of these factors. In Chapter 12, the authors have become candid about how one can organize power pricing and how to understand the underlying concepts and overview. In Chapter 13, the authors talk about the basic elements required to improve pricing. For these three chapters only, you can buy the book. The rest of the chapters talk about value communication, quantifying customer value, offering strategy and the rise of the economic buyers, and so on and so forth. Use this book as a reference book for pricing, along with a textbook on pricing.
- The authors underline the main concept of pricing and how faulty pricing can make or break an organization’s bottom line in this hyper-competitive market.
- You will also get to know about a lot of concepts. For example, market segmentation, competitive strategic pricing, international pricing, non-linear pricing, time-customized pricing, and so on and so forth.
#7 – Pricing with Confidence
10 Ways to Stop Leaving Money on the Table
by Reed Holden and Mark Burton
This is a step-by-step guide to price your product without making any compromise.
There are three things about this book. This book on Pricing is very useful to those who have no management degree or business training and want to charge premium pricing on their products/services. Second, this book is very much easy to understand. Any layman who has an interest in knowing the subject will easily read through the entire book within a very short period of time. And third, this book is very much actionable. Most of the textbooks on pricing are filled with jargon, which makes things impossible to apply. This book has given the frameworks in such a manner that you can close a chapter and can immediately apply what you’ve learned. Pricing is not an easy subject to master. It’s often confusing to the business owners about how to charge the optimum pricing. This book has taken all the assumptions out of the way and gives you a step-by-step guide based on distilled information on pricing. Here the authors mentioned that good/optimized pricing is based on a good strategy, then segmentation, and then marketing, sales, competitors, processes, controls, tools, and lastly, organizational culture.
- If you can’t price your products/services well, you will ultimately destroy the values, revenues, and profits of your company. Before you ever set your price, give this book a read and stop assuming about optimum pricing.
- This top book on pricing isn’t based on conventional pricing methods; rather, the authors give you a proven plan for increasing your revenue without sacrificing profit marginsProfit MarginsProfit Margin is a metric that the management, financial analysts, & investors use to measure the profitability of a business relative to its sales. It is determined as the ratio of Generated Profit Amount to the Generated Revenue Amount. .
#8 – Value-Based Pricing:
Drive Sales and Boost Your Bottom Line by Creating, Communicating, and Capturing Customer Value
by Harry Macdivitt and Mike Wilkinson
Why should customers choose your brand and not others? Is it because you couldn’t price your products/services well? Let’s find out.
Today’s customers are wise. They know what they’re buying and what they’re leaving on the table. They also understand the opportunity cost. So, as business owners, you also need to uplift your game and offer customers exactly what they want. And a value-based pricing model will help you offer the exact pricing customers want. If you sell a product, there are also multiple brands around it other than yours. So, learning value-based pricing is essential for you to run your business smoothly. This book will teach you the exact process to develop a value-based pricing model with minimum risk. You will know how to set a selling distribution channel, how to provide the value proposition to the sales channel, and how to utilize revenue generation while reducing cost for the business and providing emotional value to customers. Moreover, this book isn’t about all theories and no practical application; rather, it’s quite the opposite. You will find a limited explanation and a plethora of strategies to apply immediately in your business.
- There are four things you will learn from this best pricing book – you will learn to understand your customers’ needs; you will get to know how you can make your company different; you will learn to quantify the differences of your business from other businesses, and build a value-based strategy; and finally, you will learn to communicate value directly to your customers.
- The whole book is based on three fundamentals that every business owner should learn – revenue gain, cost reduction, and emotional contribution, all at the same time.
#9 – Pricing Done Right
The Pricing Framework Proven Successful by the World’s Most Profitable Companies (Bloomberg Financial)
by Tim J. Smith
Getting a snapshot of the world’s best companies may guide you to do your pricing right. Here’s why.
There are few things that make a pricing strategy dynamic. These components of this dynamic pricing strategy are business strategy, pricing strategy, price variance policy, market pricing, and price execution. In this book, the author has explained why these components work in alignment with a dynamic pricingDynamic PricingDynamic pricing is a pricing strategy that ignores fixed pricing and instead uses variable pricing, or in other words, it is a strategy in which the price of a specific product changes in response to ongoing customer demand and supply. strategy and why value-based pricing triumphs over all other pricing strategies. For example, we use Parker pens regularly, even though it’s a luxury item. Why? Because Parker pens are very durable, write exceedingly well, and while refilling, we don’t need to incur a lot of costs. As a result, even if we pay a premium price for Parker pens, we regularly use these. This is the power of value-based pricing. Moreover, this book teaches a valuable lesson – pricing adjustments impact the bottom line in any organization drastically. Thus, if you ever set your foot forward in creating a pricing strategy, read this book and how things work for big organizations. No matter what sort of entrepreneur you are – a newbie or a big shot, this book will definitely teach you a great deal about pricing.
There are four most important things you will learn from this best pricing book –
- Before you ever do pricing analyses, identify the right questions.
- By applying the strategies mentioned in this book, you will be able to improve your pricing strategy and decision-making process.
- You will get to learn value-based pricing in detail, and
- Align the pricing strategy with your long-term organizational goals and vision.
#10 – The Psychology of Price
How to use price to increase demand, profit and customer satisfaction
by Leigh Caldwell
In this book, you will understand the psychology behind pricing and why few things work like magic, and few never do.
Simply put, this best pricing book is a great quick read on pricing. If you know a bit about pricing, this can be a great additional resource for pricing new products/services. There’s one issue with the book which the readers mentioned. The author explained the whole book by taking hypothetical situations instead of real incidents. However, that doesn’t make the book dull. The author wrote the book in a literary style while making every chapter interesting and sequential for the readers. You will learn a great deal about why pricing is one of the most important components of the business, why you can use price to dictate the market, what perceived value you can create for the customers, and how you can focus on the pricing to generate more revenue for your business. This book isn’t a comprehensive guide, and it doesn’t cover all aspects of pricing. But it does a great job of introducing the fundamentals to those who have had almost no experience in pricing. That means this book is perfect for beginners as well as for those who have had some experience in crafting pricing strategies for their businesses.
- Pricing is a practical science. This best pricing book will prove why. If you can understand the science behind pricing, you would be able to apply its components in any type of product/service.
- This book is for those who don’t want to wait to read the whole book before application. Just read one chapter and apply it and then repeat it. This book is arranged for people who love to experiment with what they learn.
This has been a guide to Top 10 Pricing Books to read in 2021. Here we discuss what these books propose, their reviews and key takeaways. You can learn more from the following books –
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