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PRICING Roger Stone Roger Stone Consultancy Limited November 2009 1
2 Golden Rule –Never compete on pricing alone
Pricing  in your Business Context Desired growth Financial backing Product positioning: utility vs de luxe Aims Maximise profit Support a particular lifestyle 3
Price level Customer willing to pay PROFIT All your costs COST 0 4
Price level Aspirational level Customer willing to pay Competitive level PROFIT Utility level All your costs MARGINAL COST COST 0 5
Price sensitivity Volume Price 6
Pricing tips Positioning: “utility” vs “luxury” Understand your costs Pricing that makes sense to the customer Mainstream, offers and large contracts Review customer/product profitability Discount: more for the same price Discuss pricing last 7
Thank you for your attention 8
Feedback and questions to: roger@rogerstoneconsultancy.com or find out more about me: www.linkedin.com/in/rogerstone Twitter: rogerstone26 http://rogerstonemarketing.blogspot.com/ 9

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Pricing Presentation for Mayfield Business Forum 3rd November 2009

  • 1. PRICING Roger Stone Roger Stone Consultancy Limited November 2009 1
  • 2. 2 Golden Rule –Never compete on pricing alone
  • 3. Pricing in your Business Context Desired growth Financial backing Product positioning: utility vs de luxe Aims Maximise profit Support a particular lifestyle 3
  • 4. Price level Customer willing to pay PROFIT All your costs COST 0 4
  • 5. Price level Aspirational level Customer willing to pay Competitive level PROFIT Utility level All your costs MARGINAL COST COST 0 5
  • 7. Pricing tips Positioning: “utility” vs “luxury” Understand your costs Pricing that makes sense to the customer Mainstream, offers and large contracts Review customer/product profitability Discount: more for the same price Discuss pricing last 7
  • 8. Thank you for your attention 8
  • 9. Feedback and questions to: roger@rogerstoneconsultancy.com or find out more about me: www.linkedin.com/in/rogerstone Twitter: rogerstone26 http://rogerstonemarketing.blogspot.com/ 9