Pricing your consultancy services

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© 2010 CapitalWave, Inc. | All rights reserved.

CapitalWave, Inc.

Pricing your Consultancy Services

Copyright © 2011 All Rights Reserved

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© 2010 CapitalWave, Inc. | All rights reserved.

CapitalWave, Inc.

Bryant Nielson CEO & Managing Director

[email protected]

http://www.CapitalWave.comhttp://www.FinancialTrainingSolutions.com

http://www.linkedin.com/in/bryantnielson

http://www.facebook/capitalwave

http://twitter.com/capitalwavehttp://twitter.com/LeadershipFX

http://www.yourtrainingedge.com

bryant.nielson

CapitalWave, Inc.Delivering Innovative Training Solutions

Bryant Nielson, CEO & Managing Director

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© 2010 CapitalWave, Inc. | All rights reserved.

CapitalWave, Inc.

AGENDA

Pricing Concepts

Factors affecting the Pricing Strategy

Penetrating Pricing

Pricing is too High

Difficulty in Pricing New Products

Pricing Methods in Strategic Marketing

Olympic Pricing Model

Pricing your Consultancy Services

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© 2010 CapitalWave, Inc. | All rights reserved.

CapitalWave, Inc.

Price of What?

Price to Whom?

Price from Where?

Price When?

Does it include free services?

Does it include a guarantee? If so, for how long?

Does this include the deluxe model?

Is the a basic cost?

Pricing Concepts

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© 2010 CapitalWave, Inc. | All rights reserved.

CapitalWave, Inc.

Demand Based Pricing

Competition Based Pricing

Cost Plus Pricing

Elements of a Retail Price Fixed Costs (rent, telephones, computers, insurance, utilities, etc) Variable Costs (compensation, raw materials, delivery)

Retail Price = Cost + Mark Up

Factors affecting the Pricing Strategy

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© 2010 CapitalWave, Inc. | All rights reserved.

CapitalWave, Inc.

Used to stimulate market and sales growth

Offering products at low prices

Acquire and hold market share

Simulate market growth to minimize competition

Price has to be set where there is value

Price must be in reach of the buyer

Targeted towards specific market segments

Walmart vs. Nordstroms

Penetrating Pricing

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© 2010 CapitalWave, Inc. | All rights reserved.

CapitalWave, Inc.

Full Cost Pricing

Marginal Cost Pricing

Price Discrimination

Multi-Product Pricing

Transfer Pricing

Pricing Methods in Strategic Marketing

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© 2010 CapitalWave, Inc. | All rights reserved.

CapitalWave, Inc.

1. Nothing we do deserves a Premium Price

2. Average Pricing seems Fair

3. Cost-based Pricing is easer to explain

4. Everyone else prices it that way

5. Our Sales Team incentives are driven by volume not value

6. Don’t step on anyone’s toes

7. The Customer ‘Tells-us-the-Price’

7 Mistakes of Poor Pricers

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© 2010 CapitalWave, Inc. | All rights reserved.

CapitalWave, Inc.

Fixed costs unknown

Variable costs unknown

Competition pricing unknown

UP

Difficulty in Pricing New Products

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© 2010 CapitalWave, Inc. | All rights reserved.

CapitalWave, Inc.

Olympic Pricing Model

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© 2010 CapitalWave, Inc. | All rights reserved.

CapitalWave, Inc.

Olympic Pricing Model

Gold Silver Bronze

Pre consultancy X X X

eLearning X X

Program Delivery X X X

Post Assessment X X X

Post Debrief X X

90 day follow up X

COST $5,000 $4,000 $3,500

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© 2010 CapitalWave, Inc. | All rights reserved.

CapitalWave, Inc.

Discussion

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© 2010 CapitalWave, Inc. | All rights reserved.

CapitalWave, Inc.

Proposals: Considerations and Presenting

Copyright © 2011 All Rights Reserved

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© 2010 CapitalWave, Inc. | All rights reserved.

CapitalWave, Inc.

Bryant Nielson CEO & Managing Director

[email protected]

http://www.CapitalWave.comhttp://www.FinancialTrainingSolutions.com

http://www.linkedin.com/in/bryantnielson

http://www.facebook/capitalwave

http://twitter.com/capitalwavehttp://twitter.com/LeadershipFX

http://www.yourtrainingedge.com

bryant.nielson

CapitalWave, Inc.Delivering Innovative Training Solutions

Bryant Nielson, CEO & Managing Director

Page 15

© 2010 CapitalWave, Inc. | All rights reserved.

CapitalWave, Inc.

So what considerations

should an Vendor think about for a

client proposal?

Considerations

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© 2010 CapitalWave, Inc. | All rights reserved.

CapitalWave, Inc.

Proposal Solicitation

ORAL PRESENTATIONS

• Oral presentations should inspire confidence• Oral Presentation should position the company’s capabilities• Oral Presentation should identify unique resources

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© 2010 CapitalWave, Inc. | All rights reserved.

CapitalWave, Inc.

WRITTEN PRESENTATIONS

• Detailed Written Proposals• Proposals should be Marketing Documents that describe Value

and Benefits

Proposal Solicitation

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© 2010 CapitalWave, Inc. | All rights reserved.

CapitalWave, Inc.

Supplier Selection

Supplier Selection Process

• Specify desired supplier attributes• Indicate the relative importance of those attributes• Understand VVA (Vendor Value Assessment)

• Delivery Selection• Reliability• Price Reputation

• Procedural Selection• Technical Service• Supplier Flexibility• Product Reliability

• Political Selection• Price• Reputation• Product Reliability• Service Reliability• Supplier Flexibility

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© 2010 CapitalWave, Inc. | All rights reserved.

CapitalWave, Inc.

Supplier Process

Supplier Selection Process

• Attempt to negotiate with Preferred Suppliers 1998 Purchasing Magazine Survey• Better pricing• Better terms

• Counter arguments• Show evidence on Total Cost of Ownership• Live-cycle Costs lower than competitors• Value that buyers receive• Superior offering over competitors

92%

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© 2010 CapitalWave, Inc. | All rights reserved.

CapitalWave, Inc.

Discussion