Brief Synopsis

The objective of this programme is to familiarise participants with how to design a practical, easily used method for costing their product/service. The main aims will are to demonstrate how to stay competitive in the marketplace yet ensure an adequate return for the owners and the business in general as well as showing how regular checks of the prices and price model pays dividends.

Participants will have an understanding of the techniques and methods for creating a clear price policy for their service, with an awareness of the numerous factors that can influence (positively and negatively) profitability through careful price creation. In particular the silent erosion of margin while not earning for those participants who are offering Services.

A brief introduction to margin and mark up Calculating

General Pricing philosophies

Bottom-up pricing

Planned Profit Pricing

Competitors pricing strategies

Customer Based Pricing

Discounting

Incentives other than price

Price increases

Effect of registering for VAT on price

Breakeven analysis, Break even Clock Model (for Services)

46/52 working year and how to cost for it

Breakeven analysis (for Products)

Purchasing costs and its effect on margin & Sales price