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Pricing your consultancy services
 

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