Confessions of the Pricing Man How Price Affects Everything
The world’s foremost expert on pricing strategy shows how this mysterious process works and how to maximize value through pricing to company and customer. In this engaging and practical narrative, Hermann Simon leaves nothing out of the pricing cockt
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Confessions of the Pricing Man How Price Affects Everything
Confessions of the Pricing Man
Hermann Simon
Confessions of the Pricing Man How Price Affects Everything
Hermann Simon Simon-Kucher & Partners Strategy & Marketing Consultants
ISBN 978-3-319-20399-7 ISBN 978-3-319-20400-0 DOI 10.1007/978-3-319-20400-0
(eBook)
Library of Congress Control Number: 2015950470 Springer Cham Heidelberg New York Dordrecht London © Springer International Publishing Switzerland 2015 This work is subject to copyright. All rights are reserved by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made. Adapted from Original German Language Edition Preisheiten: Alles, was Sie über Preise wissen müssen by Hermann Simon Copyright © Campus Verlag GmbH 2013 Printed on acid-free paper Copernicus is a brand of Springer Springer International Publishing AG Switzerland is part of Springer Science+Business Media (www.springer.com)
Preface: Confessions
Prices are ubiquitous. We pay them and charge them many times a day, often agonizing over them, often giving them barely a second thought. Managers who understand the underlying dynamics of price can turn that knowledge into higher profits and a strong competitive advantage. The challenge is that the game of “price” is becoming more and more complex. Intense competition, the maturing Internet, and increasing globalization are causing massive, disruptive changes in how consumers perceive values and prices, and thus how sellers need to set prices. Managers must remain vigilant and learn constantly. When I started digging into the mysteries of prices and pricing more than 40 years ago, I could never have imagined that this fascinating area would evoke so much curiosity, intrigue, and innovation. Pricing became my vocation and my life’s work. Over the span of four decades, my associates and I created a pioneering body of work which continues to guide price strategies and price setting for thousands of companies around the world. All this work has yielded an unrivaled store of accumulated experience, a treasure vault of pr
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