The Arrow Group, Ltd

World Class Offerings > Management Development Programs > Pricing for Profits and Growth

Pricing for Profits and Growth (2 days)

During this program, we explore how to develop a pricing strategy that rewards an organization for the value it creates.

Many managers consider pricing one of the most difficult decisions in marketing. It is. It is also one of the most crucial decisions in marketing. If one could raise prices by just 1% without any loss in unit volume, what would it be worth?

Many managers feel they could do better with their pricing. They feel they are leaving money on the table or losing volume. They feel they should be doing something to "improve" their pricing and get more profits.

Meanwhile, pricing is becoming even more difficult due to changes in the economy and in technology, customers who are more demanding, and competitors who react more quickly.

Pricing decisions can be improved. What it takes is a thorough understanding of how price works and the six factors a manager must consider when determining price.

This program presents a systematic and practical pricing method – value\cost pricing – that can lead to improved profits, growth, and cash flow and, in turn, to increased shareholder value.

Learning Objectives
Participants will:

  • Examine how to set prices and how to negotiate prices.
  • Consider common approaches to pricing and the problems they cause.
  • Learn how to utilize value/cost based pricing to achieve business objectives by capturing the value provided the customer.

  • Understand the crucial role of customer value in pricing.
  • Determine which costs are relevant to pricing and which costs are not relevant and how to determine if a price is financially sound.
  • Explore the effects of competitors' actions on price and ways to defend against them.
  • Develop systematic approaches to formulating pricing strategies that are effective in meeting objectives over time.

Who can benefit

  • Business managers.
  • Product or service managers.
  • Marketing managers.
  • Brand managers.
  • Marketing communications managers.
  • Finance managers involved with marketing decisions.

Teaching Methodology
A variety of teaching techniques are employed during the program.

Lecture/discussions are designed to provide the participants with state-of-the-art concepts and techniques for developing pricing strategies. Many current illustrations from a variety of industries are used to make the conceptual points vivid and memorable. During workshop sessions, participants work in teams to apply proprietary techniques to specific pricing issues such as determining customer value or evaluating competitors. Participants often use these techniques to develop their own pricing plans. Case discussions engage the participants in examination of specific pricing problems.