The Strategy And Tactics Of Pricing by Thomas Nagle and Reed Holden
Business Book Review - 5 Stars
Pricing is where your strategy is either tested and proven or fails. It is very much where the rubber meets the road and in "The Strategy and Tactics of Pricing: A Guide to Growing More Profitably" you have what is widely recognised as the world's best pricing book.
The authors, Thomas Nagle and Reed Holden walk the fine line that makes "The Strategy and Tactics of Pricing" work both as an academic textbook for MBA level students on a pricing module and as a guide for the serious practitioner of pricing.
My review is handicapped in that I have the third edition of the book and the fourth edition is now available.
But just looking at my copy, I read business books actively. I underline sections that I want to go back to and annotate in the margins. I don't think I have any book that has as much of the contents highlighted and The Strategy and Tactics of Pricing is a book I keep going back to.
I am struggling to see the difference between the third and fourth editions and Amazon have combined the reviews.
What's Included In The Strategy & Tactics of Pricing
My copy is a thorough review of pricing from an economic, marketing and profit perspective bringing in the current thinking on customer value and is packed with advice on:
- How to set prices
- How to change prices
- How to work out whether price changes will be profitable
- What to do if competitors change prices
- How to avoid a price war - and what to do if you find yourself caught in one.
Conclusion on The Startegy And Tactics Of Pricing
I have no hesitation in giving "The Strategy & Tactics of Pricing" by Thomas Nagle and Reed Holden the full FIVE Star recommendation.
It is a must read book for marketing VPs, marketing directors, marketing consultants and finance directors - in fact by anyone who is serious about understanding how pricing decisions impact on profit.
My only criticism is that while it has academic rigour, it is not an easy read. The book is well written and is much easier to read than say Kent Monroe's book on pricing but some will find it too dense. A lighter read and an introduction to pricing theory is "Smarter Pricing" by Tony Cram.
For people at the sharp end negotiating prices with customers, the book provides the theory for holding a firm line on pricing and explains why individual price negotiations are suboptimal but it doesn't give you the secrets of what to say when put under pressure. For that I recommend How To Sell At Margins Higher Than Your Competitors (affiliate link).
Buying The Strategy & Tactics Of Pricing by Thomas Nagle and Reed Holden
Reviewers on Amazon love The Strategy and Tactics of Pricing - 42 reviews of which 37 are Five stars and 3 at Four Stars.
The one dissenting voice is from a student who was forced to read the book and says it is tough going. I have some sympathy because until you have real world experience, you can't appreciate just how good this book is.
Have You Read The Strategy And Tactics Of Pricing?
I am always eager to encourage comments so if you have read this book, I will be very interested to see if you agree with the popular consensus that this is THE pricing book.