Leading rates expert Rafi Mohammed shows organizations how to gain a financial windfall and foster development utilizing the underutilized and often ignored technique of setting costs. The 1% Windfall reveals how modest incremental modifications to an everyday service practice– pricing– can yield significant benefits. Illustrating the power of pricing, a study of the International 1200 found that if business raised prices by simply 1%, their average operating profits would increase by 11%. Utilizing a 1% increase in price, some business would see much more development in percentage of profit: Sears, 155%; McKesson, 100%; Tyson, 81%; Land O’Lakes, 58%; and Whirlpool, 35%. Fortunately is that much better rates is more than just raising rates. Instead, the secret is to use customers a variety of pricing alternatives. This method is win-win: revenues to business and choices for consumers. However how do executives and supervisors set the best price? Underpinned by sound empirical research study and real-life anecdotes, The 1% Windfall addresses this basic question. This book uses guidelines that any business– whether an international conglomerate, a small business, and even a not-for-profit– can follow to create a thorough pricing strategy for any product and services. In addition, these flexible methods and tools supply solutions to avoid a depression in an economic crisis, balance out the impact of inflation, or battle a new rival. The outcome is a mind-opening, clear plan for com-panies to cost for earnings and growth.
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