Subjects:  1. Business & Economics    2. Business / Economics / Finance    3. Business/Economics    4. Capital asset pricing model    5. Finance    6. Investments & Securities - General    7. Portfolio management    8. Prices    9. Securities    10. Business & Economics / Finance    11. Corporate finance    12. Economic theory & philosophy    13. Economics    14. Investment & securities   

Reviews (27)

This book shows how pricing decisions should be made
Exhibit 1-3 on page 9 of this new edition identifies three guiding principles of strategic pricing: (1) it must be value-based, which puts customers' perceptions at the heart of the process; (2) it must be profit-driven, a vital element for any business; and (3) it must be proactive--meaning marketers should not simply react to competitors' pricing moves.
The Value-based Pricing Bible...
Nagle's book has become the defacto standard for value-based pricing.Prior to Nagle, value-based pricing was the holy grail of New Product Development.
Right on target
This book is packed with very useful advice. It forces you to consider aspects of pricing that would typically be ignored. As a bonus, the book doesn't read like a textbook. ... Read more

Subjects:  1. Business & Economics    2. Business / Economics / Finance    3. Business/Economics    4. Decision Making & Problem Solving    5. Decision making    6. Economics - Microeconomics    7. Marketing    8. Marketing - General    9. Price Theory    10. Pricing    11. Sales & Selling - Management    12. Business & Economics / Marketing / General    13. Sales & marketing   

Reviews (5)

A good book for the designer of energy risk managment tools
If you develop computer code in this field it could be a help, but if you are more interested in knowing more about the ways to avoid risk in the energy business I would recommend another book. There are also not enough practical examples to give a good understanding of the principles.
Not for the average industry professional
The authors have written a very detailed, well structured text on the different models and developments in the power and fuel markets.It's a very complex, mathematical analysis of the different techniques being used, and the text may lose a number of readers in the overly rigorous formulations.For those involved in risk management, market modeling, or asset management, the book would be a good secondary or tertiary read after you've established a sound understanding of stochastic models and current hedging and pricing techniques in the marketplace.For the layman in the industry, the book will be far too heavy and not worth the read.

Good overview
The management of risk in the context of energy or weather is quite different than in other contexts, due to the peculiarities of the data that occurs in energy prices. The high volatility of energy prices can range, as the authors of this book point out, between 50-100% for gas, to 100-500% for electricity. No doubt this kind of volatility, and other properties such as correlations and mean reversion, entails that some different mathematical strategies for modeling energy derivatives be devised. The authors give a good tour of some of these strategies, and anyone interested in energy derivatives will gain a lot of insight into their modeling when reading this book. Due to space constraints, only chapters 5 and 7, which this reviewer considered the most important of the book, will be reviewed here. Read more

Subjects:  1. Accounting - General    2. Business & Economics    3. Business / Economics / Finance    4. Business/Economics    5. Energy industries    6. Entrepreneurship    7. Finance    8. Industries - Energy Industries    9. Industries And Trades (Economic Aspects)    10. Investment Analysis    11. Portfolio management    12. Risk    13. United States    14. Business & Economics / Finance    15. Commodities   

Subjects:  1. Business & Economics    2. Business / Economics / Finance    3. Business/Economics    4. Finance    5. Business & Economics / Finance    6. Investment & securities   

Subjects:  1. Business & Economics    2. Business / Economics / Finance    3. Business/Economics    4. Capital assets pricing model    5. Corporate Finance    6. Corporations    7. Finance    8. Investment analysis    9. Mathematical models    10. Valuation    11. Budgeting & financial management    12. Business & Economics / Corporate Finance   

Reviews (8)

You Must read It
This book is an compilation of many paper published by Mckinsey. #1 Pricing Book on the Market!
The Price Advantage offers the most comprehensive roadmap to greater profits via pricing available on the market today.
Pricing Rock Stars!!!
If you are tasked with pricing and revenue optimization this book is a must read. As a pricing practitioner I have read just about all of the available material on the subject of pricing. This book clearly is the new standard.
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Subjects:  1. Accounting - General    2. Business & Economics    3. Business / Economics / Finance    4. Business/Economics    5. Finance    6. Prices    7. Pricing    8. Sales & Selling - Management    9. Budgeting & financial management    10. Business & Economics / Finance   

Reviews (6)

Excellent Book on Activity-Based Pricing

Activity Based Costing Success Story
We have used the concepts outlined in John Daly's book to develop an activity based costing model. In fact, it has proven to be so useful that we are in its third revision. It is has been a critical tool for us to remain profitable during these difficult economic times. I do not know how we got along with out it!

A Must Read for Manufacturers
Pricing for Profitability has allowed our company to intelligently quote new projects and answer a critical question during price negotiations - "Should I walk?".We have also found the activity based pricing concepts useful for evaluating the countless cost down requests we get from our customer and understanding what we can and cannot do.I would recommend this book to anyone in a highly competitive, tight margin business. ... Read more

Subjects:  1. Accounting - Managerial    2. Activity-based costing    3. Business & Economics    4. Business / Economics / Finance    5. Business/Economics    6. Cost Accounting    7. Entrepreneurship    8. Managerial accounting    9. Pricing    10. Sales & Selling - Management    11. Business & Economics / Accounting / Management    12. Business strategy    13. Management of specific areas   

Reviews (6)

good on theory
the book is good in price theory, but it needs material about practical cases of how to price porfessional projects.

Ron Baker shows us how to price on purpose and with purpose.
This is essential reading for any professional service provider.
you are what you charge.
Pricing on Purpose by Ron Baker is, quite simply, one of the best books on pricing on the market.It revolves mainly around the subjective theory of value as opposed to the theory of cost-plus pricing.Without encroaching on Baker's territory by going into too much detail (a task I fear I would fail horribly at anyway), the subjective theory of value states that price determines costs, and that costs do not determine price.The fact that this simple statement flies in the face of many classical economic theories and in the face of many companies' pricing strategies is well understood by Baker at the onset.As such, almost the first half of the book is devoted to laying the foundation for both value theories historically as well as on a practical level.The summation of this course of discovery, one which Baker himself had to learn the hard way while working as a CPA, is that cost-plus pricing does not optimize profits.The subjective theory of value, on the other hand, enables companies to "price on purpose," or put the customer at the front end of the value chain.The subjective value chain, as I call it, looks like this:
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Subjects:  1. Accounting - Managerial    2. Business & Economics    3. Business / Economics / Finance    4. Business/Economics    5. Pricing    6. Sales & Selling - Management    7. Business & Economics / Marketing / General    8. Sales & marketing   

Reviews (2)

Glad I found it
One of the author, Baz, gave me a copy of this book when it came out and it went to sleep in my library as I was not in a finance mood. I forgot about it until this week as I was stuck on a problem related to risk-neutral pricing and the Girsanov theorem concerning changes in probability measure. I looked at every passage on the the subject until I hit on it. Then I realized that I should have read it before: it is a condensed, but extremely deep , and complete exposition of the subject of theoretical finance.
A complete package for practice and theory
This book draws on the PhD course that Prof. Chacko teaches at Harvard Business School and the substantial real-world experience with derivatives of both authors to offer a solid package that is useful for both theory and practice. There are other books with clear and rigorous mathematics (e.g. Wilmott), variety of methodologies for pricing (e.g. Neftci) and guides to practical hedging (e.g. Taleb), but this one presents all three components and is therefore a must-have for any serious derivatives shop. Highly recommended. ... Read more

Subjects:  1. Business & Economics    2. Business / Economics / Finance    3. Business/Economics    4. Derivative securities    5. Economics - General    6. Finance    7. Investments & Securities - General    8. Business & Economics / Finance    9. Business & Management    10. Economics    11. Investment & securities   

Reviews (7)

painful and obscure
The mathematics of finance is not trivial, but neither is it really all that difficult; nevertheless, Duffie works to make you think that it is.
Finance for economists
This book provides the most elegant and coherent synthesis of finance theory, in a complete markets and frictionless settings.
Demanding but rewarding!
First of all, this book is for people with advanced mathematical preparation. Courses in functional analysis, measure theory, stochastic calculus and vector space optimization are in my opinion required for a deep understanding of the material in the book. Fortunately, the appendices are very good and provide many things that can help someone to follow the book.Read more

Subjects:  1. Business & Economics    2. Business / Economics / Finance    3. Business/Economics    4. Capital assets pricing model    5. Economics - General    6. Investments & Securities - General    7. Portfolio management    8. Uncertainty    9. Business & Economics / Economics / General    10. Economics    11. Finance    12. Investment & securities   

Reviews (2)

Pricing and Revenue Optimization
This is an excellent book and should be in every pricing professionals library.The only critisism I could make is that the author should be very explicit with the examples and walk the reader through the techniques used in detail.

Pricing and Revenue Optimization
Pricing and Revenue Optimizationfills the need for a rigorous yet accessible introduction to the field more commonly known as revenue management.The author presents key pricing decisions such as airline revenue management, markdown management, and customized pricing as constrained optimization problems.It is the only broadly accessible consistent treatment of these topics in one place.The intended audience is MBA and MS level students and managers with solid quantitative backgrounds.Linear programming, probabilistic modeling, and some calculus is used.This book neatly fills the space between the popular treatment in Cross's "Revenue Management" and the much more mathematical "Theory and Practice of Revenue Management" by Talluri and van Ryzin.The book iswell written and presents plenty of real-world grounding as well as the necessary mathematics.It is written as a textbook but would also serve for any quantitatively-oriented analyst or manager wanting to know how math models can be used to improve pricing.As a textbook, it is a little short of problems and I would have liked to see chapters on forecasting and price-response estimation. It is the best available introduction to this important topic for the MBA-level student or practitioner. ... Read more

Subjects:  1. Business & Economics    2. Business / Economics / Finance    3. Business/Economics    4. Corporate Finance    5. Operations Research    6. Pricing    7. Revenue management    8. Budgeting & financial management    9. Microeconomics   

Reviews (6)

Great material - poor presentation
I rate the book a 5 on content and timeliness but a 1 on presentation.
This book is the "missing link" you've been needing...
There are two types of people who want to absorb this book: salespeople and business owners or executives.
This book will pay for itself over and over!
This is an extremely well written book.Lots of Tips.Great insight into how buyers try to get you to reduce prices. I have purchased 5 copies of this book and given them to all of the people with direct influence on pricing, negotiation and financial decisions in the company. Once you understand and begin applying the principles,the margins just go up. The book will change your whole outlook such that you don't feel guilty turning down business that is only price based. This is probably the most significant business improvement book I have read in the last 5 years, ... Read more

Subjects:  1. Business & Economics    2. Business / Economics / Finance    3. Business/Economics    4. Marketing - General    5. Pricing    6. Profit    7. Sales & Selling - General    8. Sales & Selling - Management    9. Selling    10. Business & Economics / Sales & Selling    11. Sales & marketing   

Subjects:  1. Accounting - General    2. Business & Economics    3. Business / Economics / Finance    4. Business/Economics    5. Capital assets pricing model    6. Corporate Finance    7. Corporations    8. Economics    9. Economics - General    10. Finance    11. Managerial Economics    12. Business & Economics / Economics / General   

Reviews (8)

Gaining a strategic understanding of pricing in daily life
Why does there exist such a variety of pricing schemes for different products and why do we see different prices for the same product, depending on who buys it when, where, and how? This is a branch of microeconomics called price discrimination. Price discrimination questions are among the most directly observable ones for students, particulary those who are unlikley to study more economics or business. I therefore focus on these questions in teaching managerial economics in an organizational management graduate program. Generalista
Me parece que este libro da ideas b�sicas de las estructuras de precio usadas actualmente, sin embargo toca cada tema muy superficialmente y al menos en mi caso tuve necesidad de comprar otro libro sobre el tema con la idea de profundizar mas en las estructuras de precio no lineales.

Very Relevant Material
I work in the small appliance business. Price is one of the largest issues facing our industry. Dolan combines textbook economic theory, practical applications and real world examples to spin an enticing web ofprice application. This is a must read for : former economics majors who wish they had pursued a graduate degree, marketing people who have pricing authority (or wish they did) and sales people. The underlying message is reinforced by example.. price on customer perceived value. A great "pass around" text for co-workers, its not terribly academic, but you must keep with it in the slow chapters. ... Read more

Subjects:  1. Business / Economics / Finance    2. Business/Economics    3. Entrepreneurship    4. Management - General    5. Prices    6. Pricing    7. Sales & Selling - Management    8. Business & Economics / Marketing / General    9. Management & management techniques    10. Microeconomics    11. Sales & marketing   

Reviews (3)

Pricing Without Fear
It is a book for everyone who wants to know how to price their products. Saturated with examples of real successful biz. I would recommend the book.

Earning what you truly deserved
I'm french speaking and I am leaving in Montreal. Few years ago I had read � the business of sewing � by Barbara Wright Sykes, and I realized that this would have been my purpose in life, to become a professional seamstress.However,I felt that I needed more technics to do so professionally.So at the age of fifty, I am back to school and I am studying design & patternmaking, I will be done in a few more months.I have a few little sewing contracts to help me survive in the meantime. These little contracts are in home decor, made to measure pants, skirts, etc.However, I have realised that I was not able to charge the right amount for my services, especially to my relatives and my earliest friends at work.I had trouble charging the amount that I truly deserved. In reading this book, it helped me to calculate the right amount I should receive for my work, as well as how to explain to the customer how this worked in the custom making clothes business.It helped me tremendously and I am recommanding this book to everyone.
Best book on Pricing for Sewing For Profit!
I purchased Pricing Without Fear after reading The Business Of Sewing. This book is outstanding! It covered everything that I needed on pricing. I couldn't believe how complete and detailed the book is. I especially liked the examples and illustrations. That really helped me see how to calculate my prices. I couldn't believe how many price list were included in this book. It went into different types of pricing for all types of sewing. That was very surprising. Plus it even offered great inspiration for when things go wrong. I can't wait to read other books by Barbara Wright Sykes. I recommend this book highly to anyone who wants to start or already has a sewing business and is struggling with pricing. ... Read more

Subjects:  1. Business/Economics    2. Clothing trade    3. Crafts / Hobbies    4. Handicraft industries    5. Household linens industry    6. Management    7. Sewing   

Reviews (3)

The Best Option Pricing book I've read!,
After reading million books on derivative pricing, this one is the only one which defenitely combines a practical approach to it. You'll start learning about all the maths you need and all the building blocks, all by examples. And suddenly on Chapter 11, it puts it all together and effortless you can price any option with any payoff you can imagine, I got impress withmyself. I work at Credit Suisse First Boston and we have it in all the Quant's desks.

Hands-on & easy to read
This is a great little book. I would put it in my category of 'original' books on quant finance, which includes books written by Paul Wilmott, Mark Joshi, Rick Osband and Neftci. Very good coverage, practical orientation
Consider first, this book's subtitle, "Tools for Incomplete Markets."A "complete market" (the kind assumed by the Black-Scholes-Merton model) is one in which any derivative product can be dynamically replicated by means of cash and the underlying asset. An incomplete market, then, is one is which the world of derivatives and their underlyings do not match each other in the point-by-point replicable manner implied by that definition of completeness.This failure to match makes for a necessary imperfection in hedging. That, of course, is the real world, where traders practice, asScholes and Merton famously discovered in Greenwich, CT not long ago!Read more

Subjects:  1. Business & Economics    2. Business / Economics / Finance    3. Business Mathematics    4. Business/Economics    5. Derivative securities    6. Economics - General    7. Finance    8. Mathematical models    9. Pricing    10. Risk management    11. Business & Economics / Economics / General    12. Economics   

Reviews (9)

Outstanding help for professional services
The author Ron Baker get the point across well, that pricing by the hour is old fashioned to say the least and creates harm between you and the customer. He also shows clearly why value pricing is ethical and how to make the most of your marketing preactices. I would highly suggest this book. It is worth way more than the price!

The most important book to hit our profession in many years
Run, don't walk, to order your copy of this book. Ron Baker does for pricing our services what Montgomery did for Auditing.

Subjects:  1. Business & Economics    2. Business / Economics / Finance    3. Business/Economics    4. General    5. Sales & Selling - Management    6. Economics, Finance, Business and Industry   

Reviews (1)

Pricing Brick
It is a good one, it go in deep in all areas about pricing, analise microeconomy theory about pricing, customer behavior, cost structure, competence signalig, price wars,etc. is a must if you want to learn about pricing. ... Read more

Subjects:  1. Business / Economics / Finance    2. Business/Economics    3. Pricing    4. Sales & Selling - Management    5. Finance & Accounting    6. Sales & marketing   

Reviews (7)

READ THE BACK PAGE & PREFACE!
To all 1* reviewers, moaning about this being a "superficial" book - READ THE BACK PAGE, quote "...they offer you a LESS TECHNICAL look at how portfolio selection, risk management & option pricing modeling should and can be undertaken..."
Little Help For the Ordinary Investing Stiff
As a reader of Rachev and co's earlier work 'Stable Paretian Models in Finance' this work is admittedly about halfway down from the mathematical stratosphere where the former floated. If anyone knows of a work which can clearly and convincingly explainthe implications of this work for the mug punter please let me know at jenpalex@actapple.org.au.
Too superficial to be of any value.
I purchased this book because I was told that it "treated" important topics in the statistical analysis of fat-tailed distributions of price movements--namely, copulas, modeling of VaR under non-normal stable distributions, etc.Unfortunately, these topics are given little substantive coverage.The book is basically a long survey article with little practical instruction for HOW to deal with fat-tailed distributions.The one strong point of the book is the extensive list of references.Mainly though, the book suffers from the general sense of "math anxiety" that is so prevalent throught the population.Bottom line, if you don't know enough math to deal with the technicalities that the authors so studiously avoid, you can't do anything useful with the modeling of fat-tailed distributions.Consequently, I cannot think of any audience for whom this book would be useful, other than someone wishing to do a literature search of the substantive work in this area. ... Read more

Subjects:  1. Business & Economics    2. Business / Economics / Finance    3. Business/Economics    4. Finance    5. Investments & Securities - General    6. Portfolio management    7. Risk management    8. Business & Economics / Finance    9. Finance & Accounting   

Reviews (17)

Great book
I am a small business owner and get involved in pricing daily.This book provided extremely useful insight into how to make the most money from each deal.An easy read about a topic that is all too often neglected by the small business owner.

Advice that Can Instantly Increase Profits
Rafi's treatment of the subject of pricing was just what I needed to open my eyes to a whole new set of strategies for increasing profits.As a former Corporate Engineer and Manager turned entrepreneur, I needed a more thorough understanding of pricing and found exactly what I was looking for in The Art of Pricing.I appreciated the easy to read and entertaining writing style along with the many examples presented in the book.Books that make it easy for me to remember new concepts also make it easier for me to quickly apply those concepts in real world situations.I will be honing my new pricing skills for years to come.The Art of Pricing has become one of my favorite books to recommend to others.

Good Ideas for Novices!
Key to Mohammed's thinking is to set different prices for different customers having different valuations of what they are willing to pay - eg. matinee and evening prices for movies, early-bird prices at restaurants, discounts for those willing to order airline seats ahead of time.
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Subjects:  1. Business & Economics    2. Business / Economics / Finance    3. Business/Economics    4. Consumer satisfaction    5. Economics - Microeconomics    6. General    7. Marketing - Research    8. Marketing Management    9. Prices    10. Pricing    11. Strategic Planning    12. Business & Economics / General