1 / 9

Pricing: Services & Products

Pricing: Services & Products. Class Group Activity. First Steps: ID “The Thing”. identify a passion, talent and/or need for service/product define boundaries: community, consumers research competition: nature, cost, quantity and quality of services/products; achievement stats

dwayne
Télécharger la présentation

Pricing: Services & Products

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Pricing: Services & Products Class Group Activity

  2. First Steps: ID “The Thing” • identify a passion, talent and/or need for service/product • define boundaries: community, consumers • research competition: nature, cost, quantity and quality of services/products; achievement stats • build a new model that innovates based on distinguishing characteristics • branding

  3. Next Steps: Prioritizing • timetable: realistically assess what's needed now vs. what can wait • subdivide primary, secondary, tertiary markets, etc.

  4. Service Pricing: Billable Hours Formula (determining hourly rate) • 1) determine annual salary ("take home" pay) • 2) calculate fixed costs ("overhead") - rent, utilities, phone, internet, etc. • 3) determine profit goal, expressed as percentage (Profits are for: bills, salary, reinvestment)

  5. Billable Hours Formula Desired annual salary + Annual fixed costs (overhead) + Profit goal, expressed as a percentage ÷ Your number of annual billable hours = Your Hourly Rate

  6. Your Price vs. Market Rate • compare this rate with Market Rate for your market, then justify difference in cost; or, redo Billable Hours Pricing accounting for the Market Rate • determine flexible pricing options to help reach hourly rate goal

  7. Product Pricing • research range of competitive rates as compared with standard of quality • research costs from supplier • determine markup percentage above cost and calculate price

  8. Next Steps • working budget • cash flow projection • profit/loss forecast

  9. Share Your Findings Sum up: "What I've learned and how I'll use it"

More Related