Strategic Pricing for the Training Industry Paul Terlemezian 404-252-8330 [email protected]...
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Transcript of Strategic Pricing for the Training Industry Paul Terlemezian 404-252-8330 [email protected]...
![Page 1: Strategic Pricing for the Training Industry Paul Terlemezian 404-252-8330 pault@ifivealliances.com Twitter: iFiveAlliances .](https://reader035.fdocuments.in/reader035/viewer/2022062720/56649efe5503460f94c135a9/html5/thumbnails/1.jpg)
Strategic Pricing for the Training Industry
Paul Terlemezian404-252-8330
Twitter: iFiveAllianceshttp://ifivealliances.ning.com
August 12, 2009
616-597-8000
Code: 679699#
![Page 2: Strategic Pricing for the Training Industry Paul Terlemezian 404-252-8330 pault@ifivealliances.com Twitter: iFiveAlliances .](https://reader035.fdocuments.in/reader035/viewer/2022062720/56649efe5503460f94c135a9/html5/thumbnails/2.jpg)
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?
![Page 3: Strategic Pricing for the Training Industry Paul Terlemezian 404-252-8330 pault@ifivealliances.com Twitter: iFiveAlliances .](https://reader035.fdocuments.in/reader035/viewer/2022062720/56649efe5503460f94c135a9/html5/thumbnails/3.jpg)
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)
![Page 4: Strategic Pricing for the Training Industry Paul Terlemezian 404-252-8330 pault@ifivealliances.com Twitter: iFiveAlliances .](https://reader035.fdocuments.in/reader035/viewer/2022062720/56649efe5503460f94c135a9/html5/thumbnails/4.jpg)
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)
![Page 5: Strategic Pricing for the Training Industry Paul Terlemezian 404-252-8330 pault@ifivealliances.com Twitter: iFiveAlliances .](https://reader035.fdocuments.in/reader035/viewer/2022062720/56649efe5503460f94c135a9/html5/thumbnails/5.jpg)
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
![Page 6: Strategic Pricing for the Training Industry Paul Terlemezian 404-252-8330 pault@ifivealliances.com Twitter: iFiveAlliances .](https://reader035.fdocuments.in/reader035/viewer/2022062720/56649efe5503460f94c135a9/html5/thumbnails/6.jpg)
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)
![Page 7: Strategic Pricing for the Training Industry Paul Terlemezian 404-252-8330 pault@ifivealliances.com Twitter: iFiveAlliances .](https://reader035.fdocuments.in/reader035/viewer/2022062720/56649efe5503460f94c135a9/html5/thumbnails/7.jpg)
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?)
![Page 8: Strategic Pricing for the Training Industry Paul Terlemezian 404-252-8330 pault@ifivealliances.com Twitter: iFiveAlliances .](https://reader035.fdocuments.in/reader035/viewer/2022062720/56649efe5503460f94c135a9/html5/thumbnails/8.jpg)
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)
![Page 9: Strategic Pricing for the Training Industry Paul Terlemezian 404-252-8330 pault@ifivealliances.com Twitter: iFiveAlliances .](https://reader035.fdocuments.in/reader035/viewer/2022062720/56649efe5503460f94c135a9/html5/thumbnails/9.jpg)
Differentiating Your Offering
1. Capabilities
2. Risk Mitigation
3. Terms and Conditions
4. Convenience
5. Intangibles
6. Price
![Page 10: Strategic Pricing for the Training Industry Paul Terlemezian 404-252-8330 pault@ifivealliances.com Twitter: iFiveAlliances .](https://reader035.fdocuments.in/reader035/viewer/2022062720/56649efe5503460f94c135a9/html5/thumbnails/10.jpg)
A Value Model
1. What to do2. How to do it
3. Doing it4. Getting the desired results
5. Sustaining the results
![Page 11: Strategic Pricing for the Training Industry Paul Terlemezian 404-252-8330 pault@ifivealliances.com Twitter: iFiveAlliances .](https://reader035.fdocuments.in/reader035/viewer/2022062720/56649efe5503460f94c135a9/html5/thumbnails/11.jpg)
“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
![Page 12: Strategic Pricing for the Training Industry Paul Terlemezian 404-252-8330 pault@ifivealliances.com Twitter: iFiveAlliances .](https://reader035.fdocuments.in/reader035/viewer/2022062720/56649efe5503460f94c135a9/html5/thumbnails/12.jpg)
Break
![Page 13: Strategic Pricing for the Training Industry Paul Terlemezian 404-252-8330 pault@ifivealliances.com Twitter: iFiveAlliances .](https://reader035.fdocuments.in/reader035/viewer/2022062720/56649efe5503460f94c135a9/html5/thumbnails/13.jpg)
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?
![Page 14: Strategic Pricing for the Training Industry Paul Terlemezian 404-252-8330 pault@ifivealliances.com Twitter: iFiveAlliances .](https://reader035.fdocuments.in/reader035/viewer/2022062720/56649efe5503460f94c135a9/html5/thumbnails/14.jpg)
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
![Page 15: Strategic Pricing for the Training Industry Paul Terlemezian 404-252-8330 pault@ifivealliances.com Twitter: iFiveAlliances .](https://reader035.fdocuments.in/reader035/viewer/2022062720/56649efe5503460f94c135a9/html5/thumbnails/15.jpg)
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
![Page 16: Strategic Pricing for the Training Industry Paul Terlemezian 404-252-8330 pault@ifivealliances.com Twitter: iFiveAlliances .](https://reader035.fdocuments.in/reader035/viewer/2022062720/56649efe5503460f94c135a9/html5/thumbnails/16.jpg)
Setting the Table for Success
Business Driven InitiativesTechnology to Support Initiatives
“Big Picture” Model
![Page 17: Strategic Pricing for the Training Industry Paul Terlemezian 404-252-8330 pault@ifivealliances.com Twitter: iFiveAlliances .](https://reader035.fdocuments.in/reader035/viewer/2022062720/56649efe5503460f94c135a9/html5/thumbnails/17.jpg)
Business DriversBusiness Drivers
Functional Management
Performance Consultant
Assessment
ASSESSMENT
ROI
MEASUREMENT
Content
Tools
Prerequisites, Retention, Performance Support
Copyright 2007 iFive Alliances, LLC
![Page 18: Strategic Pricing for the Training Industry Paul Terlemezian 404-252-8330 pault@ifivealliances.com Twitter: iFiveAlliances .](https://reader035.fdocuments.in/reader035/viewer/2022062720/56649efe5503460f94c135a9/html5/thumbnails/18.jpg)
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
![Page 19: Strategic Pricing for the Training Industry Paul Terlemezian 404-252-8330 pault@ifivealliances.com Twitter: iFiveAlliances .](https://reader035.fdocuments.in/reader035/viewer/2022062720/56649efe5503460f94c135a9/html5/thumbnails/19.jpg)
An ROI Model
Funds
Description ROI
Alignment
Customization
Implementation
Assimilation
Self SufficiencySustainability = Relevance x
Accountability
Copyright 2007 iFive Alliances, LLC
![Page 20: Strategic Pricing for the Training Industry Paul Terlemezian 404-252-8330 pault@ifivealliances.com Twitter: iFiveAlliances .](https://reader035.fdocuments.in/reader035/viewer/2022062720/56649efe5503460f94c135a9/html5/thumbnails/20.jpg)
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
![Page 21: Strategic Pricing for the Training Industry Paul Terlemezian 404-252-8330 pault@ifivealliances.com Twitter: iFiveAlliances .](https://reader035.fdocuments.in/reader035/viewer/2022062720/56649efe5503460f94c135a9/html5/thumbnails/21.jpg)
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?
![Page 22: Strategic Pricing for the Training Industry Paul Terlemezian 404-252-8330 pault@ifivealliances.com Twitter: iFiveAlliances .](https://reader035.fdocuments.in/reader035/viewer/2022062720/56649efe5503460f94c135a9/html5/thumbnails/22.jpg)
Questions and Answers?
![Page 23: Strategic Pricing for the Training Industry Paul Terlemezian 404-252-8330 pault@ifivealliances.com Twitter: iFiveAlliances .](https://reader035.fdocuments.in/reader035/viewer/2022062720/56649efe5503460f94c135a9/html5/thumbnails/23.jpg)
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?)