Mastering Value-Based Pricing

Mastering Value-Based Pricing
 
DURATION
01:23:39

Description

Pricing is a very important aspect of being able to sell a product or a service. I understand this even more after I started my own business. When I started initially, the only way I used to price for our products and services was to determine the cost incurred by us and then adding a suitable margin of profit on top of that. 

However, this is not always the best way to get returns for what we have worked for. A much superior way is to Price based on the Value of what we are offering as a Product or Service.

This course discusses the nuances of Value-Based Pricing.

While we try to examine all aspects discussed in this course from general perspective, I have focused on how a small firm should approach Pricing for its Products and Services. Further, while we also discuss general Consumer Products, I have focused on Products and Services offered by one Organisation to another Organisation.

I have tried to include a lot of examples so that it becomes easy to understand the discussions. The examples are taken from real situations and thus should help understand not only the concepts; but also the various practical implications and remedies.

Basic knowledge

• A brief knowledge of Economics will help (but not necessary)
• A brief knowledge of Costing will help (but not necessary)
• Some experience of doing business in any form would help (but not necessary)

What will you learn

• Cost-Based Pricing
• Value-Based Pricing

Course Curriculum

Introduction

• Introduction to the Course
• Course Contents
• About Me

Cost-Based Pricing

• Why do we need to learn about Pricing?
• What is Cost-Based Pricing?
• Example of Cost-Based Pricing
• Errata: One Omission in the Calculation of Implementation Cost
• Understanding Cost-Based Pricing

Case Study: Reliance Telecom Ltd Story

• Introduction to Reliance Telecom Ltd
• Introduction to the GPRS Billing Project
• Add-on: Understanding GPRS
• Price set by Siemens
• The Negotiation
• The Initial Delivery
• Add-on: Impact of adding/changing Rating System
• The Impact of our Strategy
• Value of the GPRS Billing System to RTL
• Reliance Story Quiz

Value-Based Pricing

• What is meant by Value-Based Pricing?
• What are the Pillars of Value-Based Pricing?
• Errata: Special Case in Price Economics
• A major challenge is to find something which will be of real value to Customers
• Add-on: Understanding Least Cost Routing
• Customer Insights
• Pricing Economics
• Pricing Management
• Pricing Psychology
• Errata: Herzberg stated as Heizenberg
• Add-On: eTOM
• Understanding Value-Based Pricing

A few Techniques for Selling

• Create separate Product Versions for Value-Takers and Price-Takers
• Always start selling from the highest option
• Never give a Discount for Free
• Always gather a fair idea of what the Product or Service means for the Customer
• Always create a higher Product Option for the Product Option you want to sell

Closing Note

• Course Summary
• Next Steps
• Thank You