HBR Tools - Pricing for Profit

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This article concerns: https://hbr.org/product/hbr-tools-pricing-for-profit/TLPFP1-ZIP-ENG

HBR Tools: Pricing for Profit

Written and developed by professors from Harvard Business School and Darden School of Business, HBR's Pricing for Profit Tool provides a systematic, trusted approach to determining the most profitable price for your product or service.

Learn how to turn your raw data into a clear analysis to make smart and informed pricing decisions with the HBR Tool: Pricing for Profit. Figuring out the best price for your product or service can be stressful. Your new product launch or marketing campaign's success--perhaps even your career advancement--may hinge on the price you choose. So how do you select a price that's attractive to customers and profitable for your company? The HBR Pricing for Profit Tool will help you confidently arrive at the most profitable price--by helping you answer a series of questions: How much does it cost to produce each product you sell? How are your competitors' products priced, and how valuable is your product or service relative to those competitors? How many customers will buy your product at various price points? What price maximizes your profitability?

Includes:

  • Read Me First guide (PDF
    • Explains what's included in the tool and how to proceed through files
  • Pricing for Profit Manual (PDF)
    • Explores the concepts of pricing while guiding you through the three steps of the tool. Within each step are two tutorial examples that walk you through the data gathering, calculations, and analyses to help you make more-informed pricing decisions.
  • Pricing for Profit Tool (Excel)
    • Enter your data into the tool, which provides a systematic way to figure out the best price for your product or service to maximize profits.
  • Arctic Water Example (Excel)
    • In this example, you're a senior marketer selling Arctic Spring Water, and you're expected to grow the profits of this mature product line in the face of stiff competition. You need to figure out if a price change would be a smart move.
  • iPad Example (Excel)
    • In this example you're at Apple, launching the first iPad in 2010. You're responsible for setting this new product's price, with no comparable products.
  • Glossary (PDF)
    • Defines the most common terms that are relevant to pricing 
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