the
{Price}is RIGHT
p r i c i n g f o r m a x i m u m i m p a c t
Michael Lowstetter
VP of Finance/CFO
{2008 Social Enterprise Summit}What do you Think, Feel, and Believe
when it comes to {price}?{Economics}ProfessorChief{Financial}OfficerPriceProfit
={Marketing}Specialistpromotion
product placement
price{Non-Profit}Manager{ }
YouWhat do {you} believe about price?customer
customer
customer
customer
customer
This is the {only} Thought, Feeling, or Belief that matters!analyzing
testing
vs.Exercise{#1}Products&{Services}costs are not as tangiblecosts are not as tangible boundaries are not as definedcosts are not as tangible boundaries are not as defined
specialties are not correctly valuedcosts are not as tangible boundaries are not as defined
specialties are not correctly valuedoptions are great because of flexibilityPricing{Objectives}Current {Profit} MaximizationCurrent {Profit} Maximization
{Revenue} MaximizationCurrent {Profit} Maximization
{Revenue} Maximization
Maximize {Quantity}Current {Profit} Maximization
{Revenue} Maximization
Maximize {Quantity}
{Quality} LeadershipCurrent {Profit} Maximization
{Revenue} Maximization
Maximize {Quantity}
{Quality} Leadership
Partial {Cost} RecoveryExercise{#2}Pricing{Methods}fixed costs
+
variable costs
{Cost} Plus Pricingfixed costs
+ total costs
variable costs
{Cost} Plus Pricingfixed costs
+ total costs desired margin
+
variable costs
$ %
{Cost} Plus Pricingfixed costs
+ total costs desired margin price
+ =
variable costs
$ %
{Cost} Plus Pricing{Target} Return Pricing{Value} Based Pricing
customer value
price{Psychological} Pricing
PositioningPopular Price {Points}Exercise{#3}{Questions}&Commentsthe
{Price}is RIGHT
p r i c i n g f o r m a x i m u m i m p a c t
Michael Lowstetter
VP of Finance/CFO
{2008 Social Enterprise Summit}