Fundamentals of Pricing

Overview

In this highly practical event we focus on delivering a sound understanding of contemporary pricing tools and methodologies. We will dispel some of the myths and fears of pricing and present the subject in a logical, easy to understand and, above all, highly practical manner.  This course will provide a sound footing for anyone wishing to understand pricing more fully.

Benefits to you and your organisation

You will get a practical framework to help you understand the value of your product from a customer point of view. You will learn about the most popular methods of pricing - cost-based, competition-based, market-based and value-based approaches – and be shown how to develop a simple pricing approach.

There is much confusion and uncertainty surrounding pricing and pricing decisions in most companies. However, after your attendance on this course, your organisation will benefit by a new understanding of pricing and pricing principles which should result in a much more sound approach to pricing.

Who this course is for

No specialist knowledge or experience is necessary, other than a basic understanding of marketing and commercial principles and some familiarity with spreadsheets.  Individuals who have an input into the pricing process – sales, marketing, product management, accountants, operations and technical personnel – will find this course especially helpful.  General managers who need a quick tactical overview, and want to get up to speed on current thinking, will also find this course of benefit.

What you will learn

• Apply basic economic and accounting principles 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.
• Understand market-based pricing methods including value-based pricing.
• Recognise the factors to take into account when assessing profitability of pricing decisions.
• Use simple price management methods.

Course content

• Breakeven analysis, contribution, discounting and the price-contribution-volume relationship.
• Economics concepts especially demand and supply, elasticity, perfect and imperfect competition, commoditisation.
• Value analysis using the value triad and value triangle.
• Description of cost and competition based pricing methodologies.
• Market based pricing - methodology and critique.
• An introduction to value based pricing.
• Price building.
• Price management.
• Pricing on profitability.

Learning approach

Primarily training is delivered by a combination of lecture, discussions and case work.  Delegates will be encouraged to raise issues for class discussion provided that no confidentiality is being breached.