Onsite Seminar

Cost & Price Strategies

Advanced Cost / Price Analysis

You Will Learn
  • How to implement a pricing program
  • How to establish target pricing objectives
  • How to create cost models
  • How to utilize cost, price and volume data
  • How to calculate the total cost of ownership
  • How to build cost profiles
Course Outline
  1. Understanding the purpose of using cost/price analysis
  2. Implementing a pricing program: Understanding the needs of the parties, what a formalized pricing program can mean to the organization, how to put this data to effective use, understanding the impact the market has on price, and converting the forecast to marketable data
  3. Establishing target pricing objectives: When to utilize target pricing, types of items requiring pricing targets, determining a sellers profit and loss, knowing a buyers acceptance levels and criteria, and modifying product or service parameters to fit a price point
  4. Creating cost models: understanding how a cost model works, applications in cost modeling, variables in cost models, how to utilize cost models in the purchasing arena, risks in applying a cost model, and how to utilize the data in negotiations
  5. Utilizing cost, price, and volumes: elements in a cost profile, cost deck information sources, how to apply cost data to challenge pricing points, and when to apply cost information over pricing data
  6. Calculating the total cost of ownership: annualizing costing, unit costing, life-cycle costing, other costing applications, and applying VA/VE principals
  7. Building cost profiles: elements and modeling for commodities, services, and intellectual property
Who Should Attend

Purchasing and supply managers, buyers, and other professionals seeking effective techniques to manage costs and improve profit margins.