Pricing For Profit Book Review by Peter Hill


I read this book over my Christmas holiday last year and I immediately wanted to tell our clients to raise their prices. This book talks about selling at the price that you want through making sure that the product you offer is of huge value to your end customer

Are you sick of customers ‘umming and ahhing’ about your price? Price will always be a factor in sales. But you can make price less of a factor through structuring your service to offer huge value to your customers. Check out our Pricing For Profit book review below


Pricing for profit book review

Key messages from the book:

Below are some key messages from Pricing For Profit by Peter Hill

View on discounts

In Pricing For Profit, Peter argues that arbitrary discounts are the same as giving away profit. Peter talks about theories around discounts; How are discounts applied? How are prices justified? What value is given?

Make sure that discounts work well for you by

  • Having a clear idea of what the discount is going to do for you e.g. discounting because you know that you’ll be able to get more profit from up-selling ancillary products
  • Having set bottom prices that your sales team need to stick to ensure a good profit

Raise all of your prices through adding value

Your product is probably priced too low. Put prices up but have a safety net to catch any customers that object. Find clever ways of presenting a price increase, like adding value through what customers want

In Pricing For Profit, Peter gives an example of a local theme park structuring a price rise in a valuable way. The theme park owners knew that only a small amount of visitors returned the following day. They raised entry tickets from £5 per person to £8 per person, but you could re-visit the theme park the next day for free

This price rise was valuable to the customers because they could make a weekend activity out of the theme park. As well as giving more profit, this also rewarded customers for coming back which helped to boost their food & drink sales

How do you come up with a price?

Where possible, don’t do a simple cost of product + mark up % method. Actually see what value it gives. How do I reach the price? What value do I give? What’s the perceived value to the customer?

To help you out, what do you competitors offer? What value extra do we give compared with others? What additional value and up-sells can your offer?

Structure more value into the higher priced items in a really creative way e.g.

  • Better payment terms
  • Web chat support, personal support
  • What’s very valuable to your customer but is inexpensive for you to produce?


Check out the book here

I hope you found the Pricing for Profit Book Review useful! You can check out the book here