Pricing for Profit

Has there ever been a more important time to check if you are charging the right price for your product or service to maximise your profit?

Getting your pricing right is one of the most important cornerstones of a successful marketing strategy.

However, prices are often decided by simply adding a margin to costs, matching the competition, taking an educated guess or even just on ‘gut feel’.

Many business owners may say that these less than robust approaches have stood them in good stead. Indeed in a strong economy, good profits are easy to make but times have changed…

COVID 19 has changed the landscape and just about every business has been impacted in some way. Products and services that looked right from a marketing sense may no longer be fit for purpose.

Your business may be facing pressure on profit and margins for a variety of reasons:

  1. Delivery channels may have changed;
  2. New competitors may have entered your markets;
  3. Supply chains may now look radically different;
  4. And of course, most importantly, customer needs may have changed.

📉 If you make a mistake in pricing, you are eating into either your reputation or your profits.

With that in mind The Marketing Centre in conjunction with our UK Pricing Expert, Marketing Director David Abbott, has developed an interactive and methodical “Pricing for Profit,” workshop that provides businesses with a way of setting or adjusting their price without guessing.


 

Who is this workshop right for?

If you are a commercial organisation that charges for a product or service, why wouldn’t you want to maximise your profit?

📈 For every R1m of turnover, just a 1% improvement in price adds R10,000 to your profits.

If you can say ‘yes’ to any of the following questions, this support package could be of great value to your business:

  1. Has your market, client base or supply chain changed?
  2. Have your costs changed?
  3. Have you struggled to decide on the right price?
  4. Do you find yourself under constant pressure to discount?
  5. Do you need to consider new sales channels (e.g. online)?
  6. Has the competitive landscape changed?
  7. Do you need to rethink your product or service portfolio?
  8. Do you need to re-evaluate customer value?
  9. Do you have a good/better/best range but can’t sell anything other than the lowest priced ‘good’ option?

If you are a non-profit, then you should still talk to us because applying price communication concepts to your fundraising can make a dramatic improvement to their success.



What can I expect from the Pricing for Profit workshop package?

The top line is that you will take away clear choices and recommendations on pricing that have been derived from a deep collaborative workshop process led by us.

The process can be used to:

  • get the right prices for a product or service range with good/better/best options;
  • to compare your prices against the competition to optimise those prices
  • or a combination of both.

Improving your prices this will have a positive effect on profit.

How is the workshop delivered?

The workshop is delivered by two facilitators from our team of highly experienced and commercially focused Marketing Directors via Microsoft Teams or Zoom who will guide your team through a half-day session to allow time to thoroughly work through one product or service offer.

When lockdown rules are fully relaxed, and with appropriate distancing and personal protection, we will also be able to deliver the workshop at your premises.



How is the package structured?

We take your team through a well-structured and interactive workshop online which involves some pre-workshop prep by each attendee around your current pricing, competitors and critical sales factors. There are a number of exercises for participants to get involved with.

pricing process


As a follow-up to the workshop, we will deliver a report with:

  1. A fully worked through rationale for the agreed product/service price;
  2. Your competitive positioning with respect to competitor pricing and value metrics agreed during the workshop (and represented using graphs, tables and spider diagrams);
  3. An assessment of your ‘value gaps’ and suggestions on how to narrow these gaps;
  4. Recommendations for potential follow up work (e.g. other aspects of the marketing strategy and mix which need addressing in light of the workshop).

 


 

Fill out the form below to find out more about a pricing workshop and we will be in touch: