Do You Know Your Pricing Philosophy?
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Perhaps you are not even sure what a pricing philosophy is? Then read this blog to understand how you approach pricing.
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Oh, the weather outside is frightful...
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I was so glad I took a chance on the floods, storms, plagues of locusts etc and battled my way to our second monthly meeting of 2020…
Read MoreWhat is a Pricing Process?
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Pricing is not the easiest issue a business has to face.
You’ve got a new product or service - what price will you charge for it? Or your margins are too low but there’s lots of competition, so how will you raise prices?
That’s where a pricing process comes in.
For many businesses a pricing process uses one of two methods.
The first is the cost-plus approach - add up all the costs for the product or service, then add a margin on top.
The second is to research what your competitors are charging, and then choose one of three positions: if you have a superior product or service, then you might charge a premium price; if you have a cost advantage, then you might choose a lower price; or you might go the easy route and just match the average price.
But neither of these is a ‘pricing process’. What does a proper pricing process look like?
The steps of a thorough pricing process are:
Decide on your pricing philosophy (which you can apply differently to different channels, products, markets etc).
Analyse your net margins; analyse what creates value for your customers, and how that value varies between different products or between your products and your competitors’; and analyse different buying processes.
Decide on your fundamental pricing strategies.
Consider different tactical approaches to pricing, such as short-term promotions.
Finally, think about how to communicate your price.
That’s a short list, but there is a huge amount of detail behind each step. So, week by week, we’ll explore each step in more detail. If you want to talk to me about any of this, then you can find me here: https://www.david-abbott-speaker.co.uk/ or here: https://consultyorkshire.com/our-consultants/david-abbott
Photo by Bec Ritchie on Unsplash
What a great meeting!
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This week saw the first of our monthly meetings in 2020, and I just felt compelled to journal (it’s all the rage) about what a fantastically valuable meeting this is for CY members like me – independent consultants and freelancers who love independent working but miss the support networks we used to have in our old corporate roles.
Read MoreIs Social Impact maturing into something more sensible now?
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Twenty years ago, someone had the bright, incisive idea that heart-warming stories coming out of charities and social enterprises were simply not enough information to inform any judgement on whether that organisation is any good at delivering its mission.
All charities and social enterprises claim to be able to turn money into social change.
But some are not as good as they say they are…
Read MoreMy key takeaways from October’s face-to-face networking session
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At October’s face-to-face networking session we were fortunate to have secured a speaker of the very highest calibre – Dr Calie Pistorius – thanks to our Hull ambassador, Ian Shepherd who works in the C4DI building that also houses Dr Pistorius’ consultancy, DeltaHedron. After years spent as vice-chancellor of various universities, Dr Pistorius described his latest role as “a proper job” and clearly one he enjoys! His was a fascinating Skills Session about the risks posed by emerging technologies for businesses and how DeltaHedron helps its clients to manage these risks.
Read MoreAre machines better than people at providing cognitive insight?
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Whilst it’s true that computers are able to do things at greater speed and with more reliability, Artificial Intelligence provides the next layer of capability to allow computers to continue this role. That said, we should still remember that computers do not program themselves (well, not yet anyway….).
Read MoreIR35 rule change coming soon: what you should know
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You may have heard that HMRC is extending its IR35 rules governing contractors to the private sector from next April, with typical apocalyptic suggestions that this may represent the death of contract work altogether as IT firms look to either reduce their use of contractors or force people to become permanent employees. A lot come downs to the working relationship that you establish with your clients. In getting your head around it, and the implications for you, this article may help
Read MoreDoes meditation have a role in the workplace?
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Yes — there is business value in workplace meditation
Most of us have been there; everyday challenges, from trying to get the kids to school on time, or battling through murderous commuter traffic, all of which ensure we arrive at work feeling a little stressed before the workday starts. And that is before …
Read MoreNEW: Making Tax Digital - everything you need to know
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Come to our January 2019 meeting to find out about time-saving Making Tax Digital software
Read MoreFour ways business consultants should be using social media
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Busy, time-starved consultant struggling to see the relevance of social media to your small business? Here are four ways I think you can benefit from allocating some time to Twitter and Linkedin. You don’t have to try all of them – perhaps only one of them is relevant to your current situation. But I challenge you to give yourself a month to try just one of them and then let me know whether or not it has been time well spent!
Read MoreUnlocking the power of "Ownership"
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I’m not talking here about company, asset or brand ownership. This is about ensuring that your business has clear job role and task “ownership” throughout the organisation. This clarity is absolutely crucial for productivity, morale and business growth and, not least, to liberate the valuable time of the MD/owner.
Read More'Leading', not 'Leadership'
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One of the biggest issues is that many leadership development programmes focus more on building the knowledge of leadershiprather than practicing the skills of ‘leading’. Have we got the balance wrong – and if so, how can we redress this?
Read MoreHow do you count the cost of returns?
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How do you count the cost of returns? In this guest blog, Angela and Paul Blackman, from u-look-i-c Business Growth Consultants, explain how your returns strategy should be part of your sales strategy and can be key to profitability!
Read MoreDear Sales Director, please delete the “info@” email account!
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If you don’t manage your info@ account with due diligence, then it’s probably just safer to delete it and replace with a phone number instead.
Read MoreNine steps to an ISO 9001 Transition
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I have uploaded a video that was taken when I presented this as a talk at the Sheffex Exhibition in Sheffield back in November 2017. I sincerely hope that most of you won’t have to read it because you will have transitioned or at least are on your way.
Read MoreWhy traditional PR skills are still important in our digital age
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You cannot help but notice it, the word “Digital” is increasingly becoming a prefix to “PR”, and as the scale and disruptive reach of social media and digital marketing channels grow and grow I am often asked if traditional PR skills are still important? I think they are - both for internal teams and also for agencies.
Read MoreHow to bridge the leadership gap
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A guest post by Andy Radka of Creative Partners innovation and enterprise ltd.
Which gap exactly? The gap between knowing what leading is all about, and putting this into practice! This is the critical space we need to work in to find ways to bridge the ‘knowing – doing gap’ which can plague both individuals and organisations seeking to strengthen their leadership capability.
Read MoreMy monthly fix - come and join me
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Independent consulting can be a lonely game ... but it does not have to be.
Find out why I get so much from this informal, friendly networking for independent consultants and freelancers.
Read MoreAre business processes boring?
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Absolutely ....until they go wrong!
Businesses often confuse the fact that they operate in a complex industry with the reality that they have allowed their own business to become complex. There are few things more frustrating, inefficient and value-sapping than poor business and management processes.
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