Interviewer: What are the three things that are most important about this book to you?
Kevin: The best book I've ever read on pricing strategy was by a chap called Dan Kennedy.
Dan Kennedy is no longer with us today, but luckily his book, The No B.S. Price Strategy: The Ultimate No Holds Barred Kick Butt Take No Prisoner Guide to Power, Profits and Prosperity, lives on.
Dan Kennedy didn't write that mouthful for no reason, because he was one of the highest-paid writers that's ever walked the planet. Dan Kennedy started as a copywriter, and he ended up being able to earn 50 grand a day because what he wrote was magic for the companies that he wrote it for
He had extraordinary insights into the way business works.
Now, how does this affect price?
Well, today all businesses are online, whether you’re a B2C business or a B2B business, it doesn't matter. The customer goes there and they research price. They look at you, they look at competitors. They draw up a shortlist. Then they look to find the difference between you.
If they can't see any difference, they buy the cheapest.
Now, in this digital world, everybody's being crushed by discounts. There are so many players in the game because of the internet, that people are forcing price down, price down, price down, price down, and they don't realize what they're doing.
Now, Alan Sugar was a smart guy. He saw his competitors doing that way back in the '80s and he said, "Let them do it. They'll be bust in a year. All I've got to do is hold on."
We've all felt that. There's a rush of inexperienced business people on the Internet who are like a floating flotsam and jetsam. They're almost like a smog. They're around for a year or two, if that long, then they’ve discounted themselves out of business and they're no longer there.
But this cloud, this smog exists on the Internet. And companies that want to survive - and I know something about survival because I've been in business for 33 years, same business, doing the same thing - if you want to survive, you have to be able to make customers see you and see your price in the dark.
In the dark, you have to glow in some way.
It's not by giving money away.
Now, I'm just going to backtrack a minute and give you a simple example of what that means by giving money away. You've got a product, it cost you £7 to make, that's the cost of manufacture and distribution, marketing, etc.
You mark it up £3, around 42% percent. You sell it for a tenner.
Now, if you give a discount of a pound, it's only 10% and the customer thinks “Oh I got 10%. That's all right, I'll take that."
In fact, what you've done is give away a third of your profit because that £1 is a third of the £3 that’s your profit on this £10 solution that you are selling.
That means instead of selling three of them, you've got to sell four and a half to make the same money.
So you're galloping a lot faster just to stand still. All because you gave away £1, gave away 10%.
Now, how do you stop doing that?
Some companies don't want to. They just want to discount. They just want to be the cheapest. They're part of that smog that will fail.
But for the rest, who are in it for the distance, you need help. You need advice to understand what price is. And this is what Dan Kennedy's No B.S. Price Strategy book is all about.
It's absolutely loaded with 23 chapters looking at price from every perspective you ever knew. It will peel your brain open regarding price!
I'd never read anything that exciting on price.
This is why I'm recommending it to you today to read. I'm sharing something that I've gained.
Dan Kennedy himself, unfortunately, is no longer with us. Dan Kennedy died recently. I'm not surprised. He was a big man, very big. Gluttony was his fault, and I think he's paid for it.
But certainly, in terms of his knowledge, that's not dead.
23 chapters in a fairly cheap book you can buy on Amazon, The No B.S. Price Strategy, The Ultimate No Holds Barred, Kick Butt, Take No Prisoner Guide to Profits, Power, and Prosperity.
It'll cost you $15. Buy it.
Author Kevin Rossiter has been producing business video for 30 years, won 14 awards, worked in many countries around the World, and is a regular blogger on business video topics.
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