This course will give you alternatives to pricing your products and/or services based on customer-perceived value, rather than cost-plus pricing methods. By learning to avoid the deleterious consequences of cost-plus pricing, you will communicate better with customers, be able to discover their expectations up-front, enhance their loyalty and retention, and increase your profitability. Unless businesses adopt new and innovative pricing, rising costs, and increased competition will diminish profit margins and they will not be able to reap the full rewards of technological investments in productivity, quality, R&D, and customer service.
Pricers will learn:
- The genesis of cost-plus pricing––and why so many businesses still cling to it
- All customers are not created equal and the economics of price discrimination
- The First Law of Pricing: all value is subjective
- The Second Law of Pricing: all prices are contextual
- Why there is no such thing as a commodity
- The seven types of customer risk and their impact on value
- What is a “fair price?”—the ethics of price discrimination
Who Should Attend
Any executive who is interested in being among the leaders in the business world moving away from the cost-plus pricing method to achieve a competitive differentiation and who is tired of sacrificing profits on the altar of costs.