BENEFITS TO YOU
Understand how basic economic and accounting principles apply to pricing decisions. Assess the customer value of a product or service proposition and know what’s meant by different approaches such as cost plus and competition-based pricing.
You will be encouraged to share the pricing challenges you face and the particular pricing approaches adopted by your organisation, appreciating the arguments for and against. You will develop increased confidence when making pricing decisions supported in the knowledge that it will be more logical, more profitable and better informed.
WHO SHOULD ATTEND
This practical, no-nonsense course introduces pricing for marketing people. It assumes no specialist knowledge or experience in pricing. Sales, marketing, product management, accountants, operations and technical personnel will find this course helpful. General managers who want to get up to speed on current thinking or want to know what their pricing people do, will also find this course of beneficial.
WHAT YOU’LL LEARN
Principles of pricing
- Understand how basic economic and accounting principles apply to pricing decisions.
- How to assess customer value of a product or service proposition.
- Know what is meant by cost and competition-based pricing and when these methods are best applied.
- Recognise the factors to take into account when assessing profitability of pricing decisions.
- Be able to undertake simple pricing calculations
- Use simple price management methods.
Pricing pillars – key concepts
- Breakeven analysis, contribution, discounting and the price-contribution-volume relationship.
- Economics concepts especially demand and supply, elasticity, perfect and imperfect competition, commoditisation; Quick summary of pricing law.
Transactional pricing methods
- Description of cost and competition based pricing methodologies; Market based pricing – methodology and critique.
Value based pricing methods
– The central role of value in pricing decisions
– Value analysis using the value triad and value triangle; Pricing maturity model.
Understand market-based pricing methods including value-based pricing; Pricing on profitability; Dynamic pricing; Role of Sales and Selling.