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Costing, pricing &
Value
Welcome
A Business Model?
Cost Structures
Pricing
Business Model
Inputs
Processes
Value
Reaching
your
audience
Cost structures Revenue models
Information
transfer
Learning by
telling
Interactive
technologies
Learning by
doing
Collaborative
technologies
Learning by...
Cost Structures
Development
Costs
Delivery Costs
Contribution to Over Head costs
Your Revenue
Model
How you will generate
revenues from your
course:
Direct Sales
Other sources of funding
Image from Henry...
“A pricing strategy takes into
account segments, ability to pay,
market conditions, competitor
actions, trade margins and ...
Signals
Pricing is part of your
marketing communications
Low price does not signal
quality
But pricing does influence
acce...
Pricing
Low price
No
possible
surplus at
this price
High price
No
possible
demand
at this
price
Product costs
Competitors’...
THANKS!
Any questions?
You can find me at:
peter.evans@ed.ac.uk
Resources
Business Model Canvas
A PDF template of the Canvas is available for the cost of an email at: http://www.business...
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Oplinc costing

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A presentation for an online workshop on costing and pricing considerations for online CPD courses

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Oplinc costing

  1. 1. Costing, pricing & Value
  2. 2. Welcome A Business Model? Cost Structures Pricing
  3. 3. Business Model Inputs Processes Value Reaching your audience Cost structures Revenue models
  4. 4. Information transfer Learning by telling Interactive technologies Learning by doing Collaborative technologies Learning by discussion & reflection Adapted from Tronsden 2003
  5. 5. Cost Structures Development Costs Delivery Costs Contribution to Over Head costs
  6. 6. Your Revenue Model How you will generate revenues from your course: Direct Sales Other sources of funding Image from Henry Moltke under CC BY2.0
  7. 7. “A pricing strategy takes into account segments, ability to pay, market conditions, competitor actions, trade margins and input costs, amongst others. It is targeted at the defined customers and against competitors.
  8. 8. Signals Pricing is part of your marketing communications Low price does not signal quality But pricing does influence access Pricing and your markets Market Who is paying? What are competitors charging? What will the customer pay?
  9. 9. Pricing Low price No possible surplus at this price High price No possible demand at this price Product costs Competitors’ prices & prices of substitutes Unique product features Kotler, P. Marketing Management. Pearson
  10. 10. THANKS! Any questions? You can find me at: peter.evans@ed.ac.uk
  11. 11. Resources Business Model Canvas A PDF template of the Canvas is available for the cost of an email at: http://www.businessmodelgeneration.com/ Other reading Miller, G.E. & Schiffman, S. (2006). ALN business models & the transformation of higher education. Journal of Asynchronous Learning Networks. 10(2), http://www.duc.auburn. edu/outreach/dl/pdfs/ALN_Business_Models_and_the_Transformation_of_Higher_Ed.pdf Kotler, P. et al. (2009). Marketing Management. Pearson Tronsden, E. (2003). E-Learning in Financial Services: a case based analysis. Menlo Park, CA: SRI Consulting Business Intelligence

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