The “Pricing Effectively” program is designed for the understanding the complex environment of pricing products and services and how to go about doing so in a systematic manner so that there is maximization of financial goals and minimization of lost customers. In this program, managers learn to make informed decisions about what is Pricing Strategy and how to price their products and services effectively. They also learn how to communicate value to maximize their financial goals.
Most company executives follow a traditional approach of pricing their products and services. While the constraints of the past justified to some extent the traditional practices, new technology has changed this all. Now executives who rely on the older methods of pricing their products will lose opportunities to attract customers and may even leave their current customers irate and vexed. Even employees are confused with the way the pricing process is adopted and used in the organization.
Customers usually look at the “value” of the product/service before buying. Offerings that provide the highest value among the competing and substitute products are the ones which customers decide to buy. But, value is a perception. It is in the mind of the customer. It’s the responsibility of the organization to demonstrate value and create the right perception of value in the mind of the customer.
What is the role of Price in Value?
Customers do not buy products/services at any cost. Offerings that help in completing their “jobs to be done” at the lowest relative cost give them maximum value.
Hence, offerings need to be priced to provide and convey maximum value to the customers. Offerings need to be priced such that even non-consumers see value in the offering. Indirectly the offering moves from being a substitute to main product line for the non-customers.
Constantly changing market dynamics
Executives need to visit their pricing strategies continuously as the market dynamics change constantly. Customer’s preferences change, competitors react and new products enter the market. All these changes force senior executives to relook at their pricing analytics and strategies.
In many companies, executives are faced with multiple requests for a change in prices from their sales personnel. These requests could be for volume discounts, relationship discounts, promotional pricing, etc. And there seems to be no proper process to respond to such requests. There seem to be too many unique situations to deal with while there is no robust process that can take of these issues.
Anyone who thinks like an entrepreneur faces the challenge of pricing or displaying the value. Getting the strategy right is very crucial. Many leaders would prefer to not discuss the issue of pricing with their teams. They do not have a common taxonomy to discuss this and therefore it becomes challenging to understand each other’s viewpoints on pricing. In addition, the issues related to pricing strategy, the process and execution have become complex to be managed by only the C-suite executives. Organizations need specialists from this field to provide them with pricing inputs to make appropriate decisions.
Five Stage Model in Solving Organizational Issues
Ideate & Decide
Deploy & Review
Participants learn through conceptual understanding and practical applications.
Participants learn through conceptual understanding and practical applications of pricing products and services.
Experienced facilitators impart the concepts in a classroom discussion style with relevant examples that will highlight the crucial differences.
A “Learning by Doing” approach is adopted in all the programs.
Participants will learn about how products and services can be priced effectively.
They will learn to distill the organization and function strategies into their pricing programs and align them appropriately.
Participants will learn the new innovative pricing mechanisms and see which of these are relevant and useful for their organization.