Companies incorporate a variety of principles into their culture such as overall mission, excellence, how to treat colleagues, and customer pledges. But surprisingly, most companies drop the ball on emphasizing one of their most important goals: “we need to make profit.” Rafi highlights the key principles and steps necessary to create a culture focused on profiting from the value of your products and services.
Even the most sophisticated businesspeople often rely on “that’s the way we’ve always done it” formulas and seat-of-the-pants instinct to set prices for their products and services. The result is that businesses of all sizes, from start-ups to the Fortune 100, leave money on the table. With a focus on actionable insights, Rafi presents key pricing principles and strategies that allow companies to serve and profit from the largest customer base.
Bottom-line, successfully passing through a price increase involves far more than an “our prices are going up by 5%” press release.
With commodity prices surging, most companies have to implement price increases to cover higher input costs. Key challenges include ensuring positive customer (and competitor) reactions. If not done properly, a company faces negative perceptions and risks purchases. The upside of successful execution is higher profits that start accruing almost immediately.
Associations often undervalue the direct link between their pricing and profits. It’s this connection that makes pricing one of the most powerful strategies available to managers today. With debate about free vs paid membership, education, publications, and events, decisions around pricing are more controversial than ever. When do you charge? And when do you gift?
Even the most sophisticated business people often rely on the dartboard approach or gut instinct to set prices for their products and services. The result is that businesses of all sizes leave money on the table. With a focus on actionable insights, Rafi Mohammed presents key pricing principles and strategies that will allow you to serve and profit from your membership. This session will help you better weigh your options for pricing and will provide you with a better understanding of the true cost of free.
Rafi Mohammed has been working on pricing issues for the last 25 years. He is the founder of Culture of Profit, a Cambridge, Massachusetts-based company that consults with businesses to help develop and improve their pricing strategy. He also holds the title of Batten Fellow at the University of Virginia’s Darden Graduate School of Business (in residence, Spring 2001). A frequent commentator on pricing issues to the print media, Rafi has also made prime time appearances on Bloomberg TV, CNBC, MSNBC, Fox Business News, and the Canadian Broadcast Corporation as an expert pricing commentator. He is a regular contributor on pricing issues to the Harvard Business Review.
Rafi is the author of The 1% Windfall: How Successful Companies Use Price to Profit and Grow (HarperCollins, March 2010), which provides a blueprint for managers to create a comprehensive pricing strategy. His first pricing strategy book, The Art of Pricing (Crown Business, October 2005), has been translated into seven foreign languages. His article on setting prices during an economic recovery titled “Ditch the Discounts” was published in the January/February 2011 print edition of the Harvard Business Review.
Rafi’s doctoral dissertation focused on bundling, one of the most popular yet least understood pricing tactics. He developed a new theoretical bundling model and presented the first empirical test on the profitability of bundling using data from the rock concert industry. This research was published in the Rand Journal of Economics, a leading academic economics journal. Rafi has also worked on pricing issues at the FCC during the telecommunications deregulation and Monitor Group.
In 2017, Rafi released an updated version of The Art of Pricing.
Rafi was born in Milwaukee and raised in Cincinnati. He is an economics graduate of Boston University, the London School of Economics & Political Science, and Cornell University (Ph.D.).