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Strategic Pricing for the Training Industry
Paul Terlemezian404-252-8330
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?)
