Attendees will gain an understanding into how sellers evaluate markets, competitors, costs and buyers to arrive at a selling and pricing strategy for products and customers. This highly practical course will give attendees an insight into the factors that shape this key seller decision and in so doing move themselves to a position where they are managing their sellers and markets rather than reacting to their behaviours.
Costing systems
Breakeven analysis
Total absorption costing
Marginal costing
Estimated costs of ownership
How sellers set their prices
Strategies for market development share and ownership
The product life cycle and its impact on pricing decisions
Market competition
How sellers view their customer base
Deciding on a price
Managing price
Purchaser pricing methods, such as fixed, target costing, contract price adjustment and unitary pricing evaluation
Open book costing approaches to encourage the ‘should cost’ of bought out products and services
Understanding accounts- balance sheets, profit and loss statements
Using ratio analysis to understand suppliers pricing propositions
Understanding and Managing markets
The different market forms and how they operate
Monopoly, oligopoly and perfect markets
How elastic is price?
How commodity markets function
Models of markets
Porters five forces of market analysis
Understanding the balance of power between buyer and seller
Recognising the cost and value chains that you trade with
Selecting sourcing strategies based on market exposure
Compete or collaborate?
Choosing the best fit supplier for your needs
Encouraging new entrants
Joint buying
