Pricing your consultancy services
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Pricing your consultancy services

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Considerations when pricing your consulting services: By Bryant Nielson, CapitalWave Inc.

Considerations when pricing your consulting services: By Bryant Nielson, CapitalWave Inc.

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Pricing your consultancy services Pricing your consultancy services Presentation Transcript

  • Pricing your Consultancy Services
    D E L I V E R I N G I N N O V A T I V E S O L U T I O N S ®
    Copyright © 2011 All Rights Reserved
  • Bryant Nielson, CEO & Managing Director
    http://www.linkedin.com/in/bryantnielson
    http://www.facebook/capitalwave
    http://twitter.com/capitalwavehttp://twitter.com/LeadershipFX
    Bryant Nielson CEO & Managing Directorbryant.nielson@capitalwave.com
    http://www.CapitalWave.comhttp://www.FinancialTrainingSolutions.com
    http://www.yourtrainingedge.com
    bryant.nielson
    CapitalWave, Inc.
    Delivering Innovative Training Solutions
  • Pricing your Consultancy Services
    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 Concepts
    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?
  • Factors affecting the Pricing Strategy
    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
  • Penetrating Pricing
    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
  • Pricing Methods in Strategic Marketing
    Full Cost Pricing
    Marginal Cost Pricing
    Price Discrimination
    Multi-Product Pricing
    Transfer Pricing
  • 7 Mistakes of Poor Pricers
    Nothing we do deserves a Premium Price
    Average Pricing seems Fair
    Cost-based Pricing is easer to explain
    Everyone else prices it that way
    Our Sales Team incentives are driven by volume not value
    Don’t step on anyone’s toes
    The Customer ‘Tells-us-the-Price’
  • Difficulty in Pricing New Products
    Fixed costs unknown
    Variable costs unknown
    Competition pricing unknown
    UP
  • Olympic Pricing Model
  • Olympic Pricing Model
  • Discussion
  • Proposals: Considerations and Presenting
    D E L I V E R I N G I N N O V A T I V E S O L U T I O N S
    Copyright © 2011 All Rights Reserved
  • Bryant Nielson, CEO & Managing Director
    http://www.linkedin.com/in/bryantnielson
    http://www.facebook/capitalwave
    http://twitter.com/capitalwavehttp://twitter.com/LeadershipFX
    Bryant Nielson CEO & Managing Directorbryant.nielson@capitalwave.com
    http://www.CapitalWave.comhttp://www.FinancialTrainingSolutions.com
    http://www.yourtrainingedge.com
    bryant.nielson
    CapitalWave, Inc.
    Delivering Innovative Training Solutions
  • Considerations
    So what considerations should an Vendor think about for a client proposal?
  • Proposal Solicitation
    ORAL PRESENTATIONS
    • Oral presentations should inspire confidence
    • Oral Presentation should position the company’s capabilities
    • Oral Presentation should identify unique resources
  • Proposal Solicitation
    WRITTEN PRESENTATIONS
    • Detailed Written Proposals
    • Proposals should be Marketing Documents that describe Value and Benefits
  • 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
  • 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%
  • Discussion