Learning Outcomes

The objectives of the course are to help the participants to:

• Master the principles of costing and pricing their products or services.
• Accurately calculate their fixed and variable costs.
• Understand different pricing strategies and models.
• Set a competitive yet profitable sales price by looking and quantitative and qualitative factors in price setting
• Analyse and control business costs to improve profitability

Content

• An introduction to the different types of business costs: fixed, variable, and direct/indirect and impact they have on costs and pricing
• A guide to calculating the true cost of a product or service.
• A review of various pricing models, including cost-plus, fixed-price, value-based, and competitor-based pricing.
• Price v Value – price positioning
• Is pricing as a science or an art – financial v marketing approach; impact of price points on buyer behaviour
• Non-financial considerations in setting price
• Setting your “Ideal” and “Resentment” prices
• Additional considerations when pricing for services
• Practical techniques for cost analysis and control.
• Establishing a breakeven point
• Use of pricing strategies such as discounting, bundling, tiered pricing, dynamic pricing, loyalty schemes, introductory offers, freemium offerings
• Price = cost + profit: What profit should we add? What is the difference between Mark-up v Margin; establishing a breakeven point
• Overcoming obstacles to raising prices
• Using AI tools to assist with setting the “right” price

Structure

• 1 x 6-hour session over 1 full day or 2 half-days/evenings
• Delivered in-person, online, or in a hybrid format

Delivery Methodology

The course will be delivered through a combination of theory and practical exercises.

Participants will use provided templates to calculate their own business costs and practice applying different pricing strategies.

Recognising that people learn in different ways, and the diversity of experiences, financial literacy and cognitive profiles of our attendees, we aim to create an inclusive environment in which the individual feels safe, supported and empowered to learn. We design and deliver our programmes with difference in mind. We offer multiple ways to participate, process and respond.

The workshop will include a Q&A session to address specific business pricing challenges. Attendees will receive a comprehensive with all the tools and examples covered in the session.