Pricing for Profit
Book Details
Author(s)Len Rogers
ISBN / ASINB009HBY7N4
ISBN-13978B009HBY7N6
Sales Rank329,474
MarketplaceUnited States 🇺🇸
Description
There are two reasons why we put a price on something: to sell it, and to make a profit.
To make a large profit we set a high price but may find that it won’t sell.
To be reasonably sure we sell it we set a low price and the profit we get makes us wonder why we bothered.
Setting the price so low to be absolutely sure of making a sale, we lose money.
Whether we are a tiny one-person business or work in a large organisation, no matter how simple or elaborate the procedures, these two main aims―sales and profit―are fundamental in every pricing decision. Yet, selling and profit objectives are often in conflict.
Pricing for Profit, commissioned and first published by Blackwell in 1990, broke new ground and offered an entirely fresh approach to the resolution of the sales and profit conflict. After a quarter of a century, the tenets developed by Len Rogers are still being used throughout the world.
Basing his research on his active life in industry, commerce and academia, he explored the three main components of price―cost of producing, oncosts, profit―and the internal and external influences on each of these that enable or prevent the seller from developing a competitive advantage.
Today, approaching his centenary, he is still active as a professor with world-renown and internationally recognised university tutoring and supervising globally-located students working for their doctorates.
Pricing this e-book, and his others being converted into e-book format is a typical pricing problem. The major cost and time involved in creating a book for publication is research and writing of the text. Subsequent typesetting, proofing printing, binding, warehousing, distributing, retailing and publicising adds further costs resulting in a substantial consumer book price.
Now that legacy marketing has been overwhelmed by Internet channelling, e-books cost a fraction of hardback and paperback to produce. However, authors incur the same amount of time and energy irrespective of how their books are published. If the e-book is priced too low, intending readers might ignore it as being inconsequential, equating it with a lot of drivel that is available. If the price it too high, readers will be reluctant to buy or might prefer a solid hardcopy. Pricing for Profit was originally published at £35 with an author royalty of 10% of the actual price paid by distributors. Increasing transport and warehousing costs inevitably decreased this price often to £10. After allowing for literary agent’s 15% (plus VAT), a lot of books needed to be sold to reward the author.
So this e-book of some 200+ pages is priced at $4.50 (£3) and the author would be pleased to hear from readers after they have read the book whether they consider if it was priced correctly.
To make a large profit we set a high price but may find that it won’t sell.
To be reasonably sure we sell it we set a low price and the profit we get makes us wonder why we bothered.
Setting the price so low to be absolutely sure of making a sale, we lose money.
Whether we are a tiny one-person business or work in a large organisation, no matter how simple or elaborate the procedures, these two main aims―sales and profit―are fundamental in every pricing decision. Yet, selling and profit objectives are often in conflict.
Pricing for Profit, commissioned and first published by Blackwell in 1990, broke new ground and offered an entirely fresh approach to the resolution of the sales and profit conflict. After a quarter of a century, the tenets developed by Len Rogers are still being used throughout the world.
Basing his research on his active life in industry, commerce and academia, he explored the three main components of price―cost of producing, oncosts, profit―and the internal and external influences on each of these that enable or prevent the seller from developing a competitive advantage.
Today, approaching his centenary, he is still active as a professor with world-renown and internationally recognised university tutoring and supervising globally-located students working for their doctorates.
Pricing this e-book, and his others being converted into e-book format is a typical pricing problem. The major cost and time involved in creating a book for publication is research and writing of the text. Subsequent typesetting, proofing printing, binding, warehousing, distributing, retailing and publicising adds further costs resulting in a substantial consumer book price.
Now that legacy marketing has been overwhelmed by Internet channelling, e-books cost a fraction of hardback and paperback to produce. However, authors incur the same amount of time and energy irrespective of how their books are published. If the e-book is priced too low, intending readers might ignore it as being inconsequential, equating it with a lot of drivel that is available. If the price it too high, readers will be reluctant to buy or might prefer a solid hardcopy. Pricing for Profit was originally published at £35 with an author royalty of 10% of the actual price paid by distributors. Increasing transport and warehousing costs inevitably decreased this price often to £10. After allowing for literary agent’s 15% (plus VAT), a lot of books needed to be sold to reward the author.
So this e-book of some 200+ pages is priced at $4.50 (£3) and the author would be pleased to hear from readers after they have read the book whether they consider if it was priced correctly.
