DAY 1

TIME
DAY 1 - 21 April 2008

LEARNING OUTCOME

0900

 

INTRODUCTION 

 

Know The Power Of Pricing

  • The 4 levers of financial success
  • Effectiveness vs. Efficiency strategies
  • The relative power of Price & Volume compared with cost saving

Exercise 1 - Use the rough demonstration P&L ratios to calculate what these may be for your patch

 

  • The elements of P&L and the relationship between them
  • The power of revenue vs. the power of the rest of the P&L
  • How to calculate these ratios from their own P&L
  • Appreciate the insights of the Price/Profitability stratogramme
  • How this affects us in the feild!

 

1015
COFFEE BREAK

1030

 

 

Break Even Analysis & The Ways To Do It

  • The different ways it can be expressed, the calculations and their benefits
  • Price Elasticity’s & How to use them

Exercise 2 - ‘Would you take-up the offer?’ Using the ratios supplied? If not why ?

 

Exercise 3 - ‘Would you do the deal?’ Using the Case P&L Calculate the outcomes and attractiveness of several proposals.

 

 

  • The concepts of Break Even (B/E)
  • How to calculate this numerically
  • How to calculate volumes to restore B/E after a price rise of a price decrease.
  • The extra benefits to be had from a numerical vs. a graphic analysis.
  • How this affects us in the feild!

1300
NETWORKING LUNCH

1400

Getting Into The Mind Of The Buyer

 

Exercise 4 - ‘How good a buyer are you?

  • The classic three types of buyer approaches to their task
  • Their motives, tactics & the Ten Lies they admit to
  • Where we stand with the buyer re the ‘Buyer’s Matrix’ – what it is and its implications for our strategies and tactics toward our buyers

 

 

  • The buyers imperative & strategies and tactics to achieve them
  • The 3 types of modern buyer, how to iddentify and deal with them
  • The 'Buyer Matrix' and how it can be of use.
  • The pressure buyers use to get a discount, and how to deal with them.
  • How this affects us in the feild!

 

1530

COFFEE BREAK

1545

Pricing Strategies Named & Explained

  • The basics of Strategy vs. Tactics
  • Targeting the Customers, and being clear as to the objectives The 12 Strategies for price explained

Exercise 5 - Six market situations – what strategy would you use and why?

 

 

  • The range of different Strategies and Tactics
  • The basic 11 Strategies, when & why used.
  • The pro's and con's of their application.

 
1730

END OF PROGRAMME
 

 

DAY 2

TIME
DAY 2 - 22 April 2008

LEARNING OUTCOME

0900

Recap Of Day One

 

The Dangers Of Discounting

  • How to calculate the dangers of discounting using the given three approaches
  • The Best Practice

The Dangers of Marginal Pricing

  • What it is, Why not to do it, and if you must thenHow? – The Best Practice

 

 

  • The damage and its extent that ill considered discounting can do.
  • How to calculate the minimum addition of volume ti cinoensate for the discount given..
  • What 'MArginal Pricing' is, why it is dangerous, and why it should never be used without explicit permission.
  • The use of the Price Landscape to envision relative Price/ Value relationship in your market..
1015
COFFEE BREAK

1030

Value Based Pricing

  • Using the tools of: ‘Price Landscape’
  • Using the ‘Levitt Construct’ and the ‘Spidergramme’
  • The QVSLP relationship for Value Based Pricing

Exercise 6 - Apply the Levitt construct to the course case

Exercise 6A - Use the data from above to communicate the findings using a Spidergramme.

 

 

  • The power of, and an oversight into Value Based Pricing, and the four tools used
  • The 'Value Triad' and its implications.
  • The Quality, Value, Satisfaction, Loyalty & Profit process.
  • The power of the Levitt construct and the 'Spidergramme'
1300
NETWORKING LUNCH

1400

Value Based Pricing - Continued  

  • Cost of acquisition vs. cost of ownership: Discounted Cash-Flow vs ‘Pay-back period’ to better communicate the value proposition.
  • Their motives, tactics & the Ten Lies they admit to
  • An introduction to ‘Conjoint analysis

Exercise 7 - ‘How good a buyer are you?

 

Pricing Tactics Overview  

  • The role of Pricing Tactics in support of pricing strategy

 

  • The principle of DCF calculations vs. Payback period.
  • Calculating the Cost of Acquisition vs the Cost of Ownership.
  • The use of 'Conjoint Analysis' and other ways of putting a metric on value.
  • Convert the values to something meaningful.
  • Framing the values for the customer.
  • The role of Tactics in support of Pricing Stratergy.
1530
COFFEE BREAK
1545

Pricing Tactics Overview – Continued

  • The proper Management of discounting practice
  • How to put up price ....... without actually increasing the price
  • Pricing in a declining Market:
  • The use of ‘Fighter Brands’ & ‘Diverters’;
  • Pricing a Tender & presenting same

 

Course ‘Wash-Up’

Certificate Presentation

 

  • Discounting and its management.
  • The 8 ways to put-up Prices.
  • The 11 ways to increase profit without putting-up price.
  • Pricing in a declining market; what are 'Fighter Brands' and how are they best used, & what is a diverter?.
  • Best practise for responding to an invitation to tender.
1730
END OF PROGRAMME