Finding the right mix of volume and price to optimize profitability
Pricing is one of the most powerful ways to improve – or destroy – profits. This course can help you improve the pricing practices at your company or allow you to help your clients make better pricing decisions.
I'll begin by explaining cost-plus pricing. This is a popular pricing methodology but is fraught with some significant weaknesses. The next few lessons dive into the financial analysis of pricing decisions. The best pricing levels may be contingent on a company's production capacity.
Setting the price for a new product or in a new market can be very difficult. I'll offer some tips. Once we set that starting price point and begin selling at it, we gain knowledge of how prices, costs, and volumes interact. We can then begin adjusting prices to optimize profits. I'll offer some ideas on how to do this.
Finally, pricing is a team sport. Each part of a company has a different perspective and role in setting prices. I'll explain why some believe that Finance should lead pricing discussions.
This course is one of three video-based pricing courses. The other two courses are:
These courses focus on financial management and profitability analysis of pricing.A Deloitte pricing effectiveness benchmark study found that: "Companies that actively pursue pricing as an important part of their strategy typically outperform industry peers on several financial metrics… Companies that are pricing leaders are 26 percent better at managing true profitability."
Founder of CFO Perspective
Rob Stephens is the Founder of CFO Perspective, which provides continuing education courses for CPAs and financial management courses for business advisors and staff. He has been quoted in Forbes, U.S. News and World Report, Bloomberg Businessweek, and many other news sources. He is also the author of Key Performance Indicators and KPI Dashboards. Rob has a 30-year career that includes serving as a CFO, Director of Operations, and SVP of Finance. Rob is an adjunct instructor for the MBA program at Gonzaga University. Rob holds a Masters of Science in Personal Financial Planning and a Graduate Certificate in Financial Therapy from Kansas State University. He received a B.A. in Business Administration from the University of Washington.
This portal is provided as a training and development resource for City of Markham employees. Every course is delivered by a qualified subject matter expert or learning organization, is quantifiable in hours, and is verifiable — you receive a documented certificate of completion for every course you finish, stored on LearnFormula indefinitely.
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