Best Practices of Service Pricing

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Workshop Syllabus
This class is designed for those who face the task of establishing or updating prices of high technology services. While pricing is covered in Hahn Consulting's Service Marketing Strategies and Techniques course, this class expands the time allotted to pricing from a few hours to two days. The course is primarily interactive lecture, with some time for workshop exercises and discussion of specific attendee issues. Attendees can expect to gain a strategic view of pricing, receive a complete picture of the common techniques employed, and to pick up some new ideas to improve revenues and margins. The course begins with establishing a context from which price can be put into its proper perspective. This includes Hahn Consulting&'s proprietary research into the effect of price on service buying behavior, the relationship with the other Ps of marketing, and pricing strategies. The course then moves through discussion of the many different techniques of pricing, noting their appropriate uses. Discounting practices and techniques complete the first day. The second day is mostly filled with presentation and discussion of industry prices for various types of services in different market segments. The class finishes with presenting the pricing and margin issues associated with professional services.

Putting Price into Context

Price is not well done when it is considered in a vacuum. It is critical to understand its impact on buying behavior. Hahn Consulting&'s research into the specific buying traits of service buyers is unique and provides valuable insight. It is also important that prices be synergistic and support the other Ps of marketing, as is explained in this morning session. Pricing can be strategic and this important topic is also explained in this section.

Pricing Technique
Everyone focuses on techniques and they certainly are important to understand and master. In this session, 6 different techniques are presented along with discussions of how and when they are each used to best effect.

Discounting
Discounting can drastically affect the actual prices realized by vendors. If used inappropriately, they can destroy a pricing strategy and the perceived value of a service. Different methods and techniques are presented and discussed, along with recommendations

Pricing Levels and Margins by Segment

Prices for different market segments and different types of service vary considerably. In this session hardware and software service prices and margins are discussed at a fairly detailed level, and trends are disclosed.

Professional Services – Managed Services and Custom
Professional services have unique challenges and they often fail to achieve their margin expectations. These issues are discussed in-depth in this presentation.

Schedule and Agenda

A tentative agenda and schedule follow. Starting, ending, break and lunch times are firm. Times for beginning and ending specific topics are approximate.

Agenda - Day One Agenda - Day Two
8:30 Putting price into context
Service Pricing and buying behavior
Pricing and the 4 Ps
8:30 Pricing levels & margins by segment
Hardware T & M & contracts
Desktop, Servers, High End, Mid-range
10:15 BREAK 10:15 BREAK
10:30 Pricing Strategies, Pricing Techniques and Market-Based, Competition-Based pricing 10:30 Software per-call & contracts, Desktop
Servers, Mid to High End, and Vertical applications
12:00 LUNCH 12:00 LUNCH
1:00 Percent-of-List based pricing
Cost-Plus pricing
Value-Based Pricing
1:00 Parts & Consumables
Flat price repairs & Depot contracts
Professional Services - Managed
Services & Custom Methods
2:30 BREAK 2:30 BREAK
2:45 Price Simplification 2:45 Pricing Levels, Margins
4:00 Discounting 4:00 END OF WORKSHOP
5:00 END of DAY ONE


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