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Best Practices of Service Pricing
Read comments from past attendees
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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