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The Price is Right Event 1st November 2011
 

The Price is Right Event 1st November 2011

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These are the presentations from the event today - enjoy!

These are the presentations from the event today - enjoy!

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    The Price is Right Event 1st November 2011 The Price is Right Event 1st November 2011 Presentation Transcript

    • How to Identify your Optimum Price An Introduction to Value Based PricingCopyright Margin2 2011 price at the moment of truth
    • Why is Pricing so important? Those companies that ‘achieved true excellence in their price execution capabilities . . . earned operating profits 24% higher than their industry peers’ Hogan 2011Copyright Margin2 2011 price at the moment of truth
    • The moment of truth In every sale, the The price you offer buyer makes a is thereforemental or physical fundamental to calculation of the Value Price your customersvalue they will gain value calculation, from making a it’s a moment of purchase truth where theory becomes practice Every purchase is therefore a balance between the price offered and the value delivered, there is the constant risk of losing the sale or missing out on vital profit. Copyright Margin2 2011 price at the moment of truth
    • So, if its about ‘Value’, what does that mean? • Its judged in unquantifiable terms • It is judged from a range of perspectives • It is always placed in the context of today’s saleCopyright Margin2 2011 price at the moment of truth
    • Strategic Price Positioning Customer Value Identify Strategic Price Competitive Minimum Position Anchors Price Sales ChannelSource: Hinterhuber 2010Copyright Margin2 2011 price at the moment of truth
    • Equation for Customer Value Benefit - Effort - Risk = Value PriceCopyright Margin2 2011 price at the moment of truth
    • Types of Customer Benefit Service Level + Economic Functional Intangible Commodities Uniqueness & Image, brand, with price ability to meet unique based appeal consumer experience needs + Price Sensitivity ‘They saved me ‘They processed ‘My friend £10,000 in tax’ my accounts in referred them 2 days’ to me’Copyright Margin2 2011 price at the moment of truth
    • Activity Value Mapping Value Integral Market Margin Destroyers Features Benefits Drivers High Value Cost Benefit Break Even Point Low Common Unique DifferentiationCopyright Margin2 2011 price at the moment of truth
    • price at the moment of truth
    • How much would you pay for this car? Ford Focus 1.6 Zetec 2007 45,000 milesCopyright Margin2 2011 price at the moment of truth
    • This Ford This Ford Focus 1.6 Focus 1.6 Zetec 2001 Zetec 2011 with 139,000 miles is with 22 miles is advertised for £695 advertised for £12,000 How much would you pay How much would you pay for this Ford Focus 1.6 for this Ford Focus 1.6 Zetec 2007 with 45,000 Zetec 2007 with 45,000 miles on the clock? miles on the clock?Copyright Margin2 2011 price at the moment of truth
    • How Coca Cola exploits different sales channels Price per 100ml 0.7 0.6 0.6 0.5 0.4 0.3 0.25 0.2 0.09 0.1 0 2 Litre in Tesco 500ml in Coop 250ml in a Pub £1.78 £1.25 £1.50Copyright Margin2 2011 price at the moment of truth
    • Understand your customers customer through sales chains e.g. Food & Drink Sales Channel Research, Marketing and Advertising Farmer Manufacturer Retailer Shopper Consumer Farmers MarketsCopyright Margin2 2011 price at the moment of truth
    • 3 Points to Remember about Pricing • Getting it right has a huge impact • Its about understanding what your Customers are willing to pay • To exploit the opportunity you need to understand your customers, competitors and channelsCopyright Margin2 2011 price at the moment of truth
    • Thank youCopyright Margin2 2011 price at the moment of truth