Provides entrepreneurs with a practical guide on how to set and manage the pricing of both products and services. It outlines the process of deriving a pricing strategy first, then monitoring the profit implications of the pricing decisions made. In a climate of market instability, the skilful use of pricing strategies has never been more important.
This book provides entrepreneurs with a practical guide on how to set and manage the pricing of both the products and services that they offer. It outlines the process of deriving a pricing strategy first, and then monitoring the profit implications of any pricing decisions made.
In a logical, sequential format, the author sets out basic financial tools such as the Profit and Loss Account, and explains how best to understand and negotiate within the business to business and business to consumer markets. In a climate of market instability, the book is a timely examination of pricing as an essential practical discipline in the business world.
CHAPTER ONE: AN OVERVIEW OF THE PRICING PROCESS
• Preparing the ground
• Who takes the overall responsibility for price in our firm?
• What is the firm’s cost structure and policy, re. overhead allocation?
• The firm’s marketplace
CHAPTER TWO: THE FOUNDATIONS OF THE PRICING DECISION
• Strategic focus
CHAPTER SIX: PRICING TACTICS – DEALING WITH THE DAY TO DAY PRESSURES ON PRICE
• Pricing a tender
CHAPTER SEVEN: PRICE WARS – ANTICIPATING/PREVENTING/FIGHTING THEM (BUT ONLY IF YOU HAVE TO)
• An example price war
• Dealing with extreme competition
• Key issues, re price wars etc.
• Why price wars must be avoided
• Know from where to expect the threat
• Characteristics of strong vs. weak rivals
• ‘Good’ vs. ‘dangerous’ competitors
• Root causes of price wars
CHAPTER EIGHT: THE ART OF PRICE NEGOTIATION
• Co-operative versus adverserial negotiation
• Price negotiation
• Issues when preparing to negotiate
• Analysis of potential trading chips/concessions
• Checklist for assessing buyers likely needs, strategies and tactics
• Decision-makers who make good partners
• Decision-makers who make difficult partners
• The language of negotiation
• Structure of the negotiating interview
• Defining the issues
• Refining the issues
PRACTICAL PRICING FOR RESULTS
• Defensive negotiating techniques
THE CALCULATIONS FOR PRICING
• Profit and loss account
• Break-Even (B/E)
Ian Ruskin-Brown is a highly experienced marketing consultant. For many years he was a member of the Faculty of the Chartered Institute of Marketing, its training arm. Until recently he was a member of the IBM International Business School and he is currently part of the faculties of Management Centre Europe in Brussels, the Singapore Institute of Management [International] and IIRme based in Dubai.He is the author of Marketing your Service Business and Mastering Marketing now in its 2nd edition, both published by Thorogood.