Strategic Pricing for the Training Industry

Paul Terlemezian404-252-8330

pault@ifivealliances.com

Twitter: iFiveAllianceshttp://ifivealliances.ning.com

August 12, 2009

616-597-8000

Code: 679699#

Commitments to ActionRelevance

What to do?

What obstacles to overcome?

What you will do to overcome the obstacles?

AccountabilityWhen will you begin to do this?

What will motivate you to complete this action?

How will you know you have been successful?

Think, Talk, Type & Tweet Time

Think

Introduction (talk)

Why are you attending? (talk, type)

Why am I offering this for free? (talk)

Questions and Comments

(chat, tweet #stratprice, Ning site)

Today’s Outline

Why do we have a price for our offerings?

Tactical vs. Strategic Pricing

The Bermuda Triangle of Pricing

Establishing a Pricing Discipline

Differentiating Your Offering

BreakCommitments to Action (and tools to help you)

Why do we have a price for our offerings?

What impact does price have on the learner/purchaser?

What impact does price have on the trainer/provider?

LinkedIn Group: Free Training Discussion Questions

Part 1: Purpose of price to learner/purchaserPart 2: Purpose of price to the trainer/provider

Tactical vs. Strategic Pricing

Tactical (2-4 times per hour of the labor cost) 1. Cover costs (hinders growth) 2. Achieve sales goals (undermines profits) 3. Competitive advantage (diminishes value)

Strategic1. What is the value to the client? (enables

growth)2. How much of the value do you provide?

(increase profit)3. What is the client’s buying attitude (price,

value, risk aversion) (increase focus on value)

The Bermuda Triangle of Pricing

Competitiveness (do nothing, do it themselves, buy from competitor, buy from you)

Profitability (For you and for your client)

Value (How does your client achieve what you offer? Why will they be better off with your services?)

Establishing a Pricing Discipline

Discipline of Market Leaders (Treacy and Wiersema)

Operational Excellence (low margin – high volume)

Product Leadership (high margin – low volume)

Customer Intimacy (high price – low volume)

Differentiating Your Offering

1. Capabilities

2. Risk Mitigation

3. Terms and Conditions

4. Convenience

5. Intangibles

6. Price

A Value Model

1. What to do2. How to do it

3. Doing it4. Getting the desired results

5. Sustaining the results

“Tools of the Trade”

1. Strategic Positioning2. Moments of Need (Mosher/Gottfredson)3. Setting the Table (i.e. Earning a Seat at the Table)4. The Training GridSM

5. An ROI Model (Value for the Client)6. Project Management

Break

Commitments to ActionRelevance

What to do?

What obstacles to overcome?

What you will do to overcome the obstacles?

AccountabilityWhen will you begin to do this?

What will motivate you to complete this action?

How will you know you have been successful?

Strategic Positioning

Other Party Interest

Decision Role Attitude

Product

(traditional)

Price Dependable Price

Process

(consultative)

Total Cost Consultant Risk Aversion

New Value

(collaborative)

Profit Expert Value

Copyright 2009 iFive Alliances, LLC

Moments of NeedMosher/Gottfredson

(remember the GPS)

1. Learning for the first time

2. Wanting to learn more

3. Trying to remember and/or apply

4. When things change

5. When something goes wrong

Setting the Table for Success

Business Driven InitiativesTechnology to Support Initiatives

“Big Picture” Model

Business DriversBusiness Drivers

Functional Management

Performance Consultant

Assessment

ASSESSMENT

ROI

MEASUREMENT

Content

Tools

Prerequisites, Retention, Performance Support

Copyright 2007 iFive Alliances, LLC

The Training GridSM

Decision Makers Managers Doers

Prerequisites 7 8 9

New Content 6 2 1

Reinforcers 5 4 3

Copyright 2007 iFive Alliances, LLC

An ROI Model

Funds

Description ROI

Alignment

Customization

Implementation

Assimilation

Self SufficiencySustainability = Relevance x

Accountability

Copyright 2007 iFive Alliances, LLC

Increasing Value via Project Management Services

Provider of Services Client U N E X P E C T E D

Increased Value Quadrant

U N E X P E C T E D

E X P E C T E D

E X P E C T E D

Copyright 2007 iFive Alliances, LLC

Commitments to ActionRelevance

What to do?

What obstacles to overcome?

What you will do to overcome the obstacles?

AccountabilityWhen will you begin to do this?

What will motivate you to complete this action?

How will you know you have been successful?

Questions and Answers?

Inspire Confidence in Others

Believe in Your Value to Them

Articulate Your Value to Them

Prove Your Value to Them

(try it in the reverse order)(What to do?)