6 value based pricing - website download

Value based pricing – Facilitator notes © Copyright 2016 Courses You Present2

Value based pricing

Value generated by this module

Your team will:

• Know what a value-based approach to pricing is and why it has huge attractions.

• Appreciate the conditions that are necessary for a value based approach to pricing to succeed.

• Realise that a value based approach to pricing is deeply personal, evoking a lot of emotions and unless you work with those effectively you will always struggle with it.

• Articulate the value that your organisation brings to clients.

• Have a tool that helps them talk to clients about a value-based approach to pricing.

• Appreciate the range of pricing options available and the pros and cons of each.

Tools used in this module to support the transfer of learning into action:

1. Assessing the value you are adding to your clients – without this foundation, you haven’t got a chance of pricing on value generated.

2. How to talk to your client about value pricing – unless you position it well, you haven’t got a chance of your client accepting a value based approach to pricing.

3. Pricing options with pros & cons – helps you decide which pricing approach is the most appropriate for the situation.

To purchase a single user, editable, digital copy of all of these tools for £20, please click here. Please note that if you purchase the full courseware, the tools are included.

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Value based pricing – Facilitator notes © Copyright 2016 Courses You Present 3

How that value is generated: timetable

Elapsed time at start

Content

0

1. Introduction and context setting (5)• Explain course objectives and provide overview of session • Invite people to share progress in working with the material from previous

module

5

2. What is value based pricing? (10)• Definition of value based pricing • Examples of value based pricing

15

3. The conditions necessary for a value based approach to pricing to succeed (20) • Define ‘value’ • The link between value pricing, features, advantages, benefits and SPIN

questioning • Uniqueness and maturity of a service and its impact on ability to value price • Other factors that influence our ability to value price

35 4. The advantages of a value based approach to pricing (10)• Advantages of a value based approach to pricing

45

5. Assessing the value that we bring to clients (25)• Assessing the value we bring during the sales process • Assessing the value we bring during service delivery

1hour 10

6. How to explain to clients a value based approach to pricing for a particular engagement (25) • Importance of mindset • Roadmap of how to have a conversation with your client about a value based

approach to pricing • Application to live client situation

1hour 35

7. Pricing options (20)• Value based pricing options • Pros and cons of each


Elapsed time at start

Content

1hour 55

8. Close (5)• Summarise the content covered • Complete progress tracking tool


What you get in your facilitation manual

In addition to detailed speaker notes that guide you in leading this workshop, you also get the following sections that will help you with facilitating a brilliant workshop. They are:

1. Pre-workshop communications to send to your participants.

2. A list of all the handouts (referred to as tools on page 2) used during the workshop.

3. Resources to help you prepare to handle common presenting challenges.

4. A list of the things you need to do before the workshop.

5. A list of the things you need to bring to the workshop.

6. Presenters’ resources – these are materials and resources that participants do not receive but which may help you to lead certain sessions.

Icons & Symbols

The speaker notes contain visual symbols that show you at a glance what you need to do. Here are the symbols along with a description of what they mean. There are a different set of visual symbols for the virtual classroom delivery speaker notes:

Use flip chart/ slide Ask a question Analysis & reflection Writing

Give handout Refer to the course file or course workbook

Show slide Practice

Discuss in groups / in neighbours

Share an example Explain/tell

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Sample facilitator notes

Session: What is value pricing?

Session duration: 10 minutes

Elapsed time at start of session: 10 minutes

Read the following story

SAY: Let me start by reading a story1:

“A man was suffering a persistent problem with his house. The floor squeaked. No matter what he tried, nothing worked. Finally, he called a carpenter who friends said was a true craftsman.

The craftsman walked into the room and heard the squeak. He set down his toolbox, pulled out a hammer and pounded the nail into the floor with three blows.

The squeak was gone forever. The carpenter pulled out an invoice slip, on which he wrote the total of £45. Above the total were two items:

Hammering: £2.

Knowing where to hammer: £43.”

What is value pricing?

Pricing that is driven by the value we generate

Charging the

ASK: What do you understand by the term value pricing?

ACKNOWLEDGE responses.

Slide: What is value based pricing?

SAY: Here is what we mean by the term value pricing:

CLICK AND SAY: It is a basis of pricing that is driven by the value the client places on our solution as opposed to paying for the hours we put into delivering that solution.

CLICK AND SAY: Drawing on economics, value pricing is, “the maximum amount a given

1 Source: Beckwith H (1997:138) ‘Selling the invisible: A field guide to modern marketing.’ Warner Books, New York

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maximum amount that a client is prepared to pay

It happens in many walks of life e.g. securing a ticket for a sought after sporting event

customer is willing to pay for a particular service before the time of delivery.2”

SAY: Put another way, it is charging the maximum amount that a client is prepared to pay. This is also known as pricing on the margin. We experience this in many walks of life, for example just say we have one ticket for an important and sold-out sports event and we desperately need another. Somebody (who we don’t know) has a spare ticket. They sell it to us at double the face price and we are happy.

TRANSITION AND SAY: Let’s begin to bring this closer to home.

Examples of value pricing

Charge a client a fixed price

Reduced rate for our time but get paid a percentage of the savings

a success fee payment basis

Buy a branded perfume versus a cheaper store label

ASK: Do you have any personal or work examples of value pricing?

Answers may include:

• We charge a client a fixed price for a piece of work and that price is greater than the hours we spent on executing it.

• We do some cost management work for a client and we charge a reduced rate for our time but get paid a percentage of the cost savings.

• We do some acquisition search work for a client on a success fee payment basis.

• An estate agent charges a percentage of the price that they manage to sell your house for. No sale, no fee.

• On a personal front – we consider buying some M&S branded eau de toilette. We try a Celvin Klein branded eau de toilette which smells very similar, but it costs more than three times as much. We buy the CK one because we value the cache of the CK brand.

It can be complex SAY: Value pricing sounds great, but you may have noticed that very few professional service firms do it across all or even many of their

2 Source: Baker R J (2001:139) ‘Professional’s guide to value pricing.’ 3rd Edition, Aspen Law & Business, New York


Why do few firms value price extensively? Conversation in pairs

Debrief

service lines. By far the most pervasive approach to pricing is a time and materials based approach.

Slide: Very few firms value price

SAY: Turn to the person next to you and share your thoughts about why you think that is. Take a couple of minutes.

DO: Debrief by hearing people’s thoughts. Answers may include:

• It can be the easiest to justify to a client.

• Precedence – it’s always been done that way.

• The way you were trained.

• Some services don’t lend themselves to a value-based pricing approach - later we will be exploring the conditions that are necessary for value based pricing to work.

• A value based approach to pricing smokes out any chinks in the adviser’s self-esteem – if you are not convinced yourself on the value you bring, you haven’t got a hope of convincing a client to pay you on that basis!

SAY: Please capture the key points that stand out for you on your action planner.

SAY: In the next session we are going to dig into some of those complexities and begin to understand more fully some of the components that need to be present in order to be able to value price.

What do the virtual delivery Presenter and Host materials look like?

Click here to see a sample.


Ready to purchase or want to find out more?

To purchase an editable, digital copy of everything you need to run this module, or to find out more, please click here. The following is included in your purchase:

1. Permission for anyone in your organisation to use the materials.

2. The choice between in-person or virtual classroom delivery–similar content with the same objectives, but choice of delivery medium.

3. Full speaker notes.

4. Pre-work to send to participants.

5. All the handouts (referred to as tools on page 2) used during the module.

6. The slides that support this module.


The experience of someone that has used these modules 4

I recently had a request to provide Sales Training for a client and approached Courses YOU Present as I did not have a current, quality training offering in this area. As a facilitator, I often find using materials others have developed both difficult to use and frustrating and time consuming to customise to a client’s requirements. My experience using the courseware provided by Courses YOU Present was the opposite. It was both easy to use and seamless to customize. The following are the aspects that added the most value to me:

• Each module was very clearly laid out, indicating exactly what I needed to do to prepare beforehand.

• The icons identifying different parts of the course, e.g., reflection, questions, exercises were very easy to follow, so I could use the guide itself during actual facilitation of the course without having my make my own notes – a MASSIVE time saver.

• My classes were a mix of extraverted “A type” salespeople with short attention spans, and introverted “geeks”. This is a mix I usually find difficult to keep engaged at the same time, however the content and design appealed equally to both types because of the combination of theory, discussion, practical application and an opportunity to try things out. They particularly liked how they were able to easily relate it back to their own individual contexts.

• Having value adding questions to ask participants every step of the way to facilitate learning and accelerate discussion was invaluable, as this is often the most difficult part of a training course to prepare when one’s own depth of knowledge in a subject is limited.

• Participants from both groups provided excellent feedback about how quickly they were able to apply the tools and concepts back at work with an immediate impact on both confidence and performance.

In summary, my experience of using the Courses YOU Present Sales Programme was entirely positive. Not only did it make me look good in the eyes of my client, but it also gave me the confidence I needed to train concepts, tools, techniques and theory outside my area of expertise. I highly recommend that if you ever need quality, current, extremely well designed and practical training, these modules will meet that objective.

— Megan Anderson, Leadership Development Facilitator, Isongo Limited


Additional services

To request more information on the additional services we provide, click here.

Feedback from users of additional services

We can tailor the module content to include your tools, branding or strategy.

We can create content, working with you to design an entire module specifically for you.

We offer a Train the Trainer service - to get your team up to speed for successful delivery of the modules.

We offer a digital or hardcopy toolkit/ aide memoir that includes all of the tools and models covered in the modules - it is an excellent tool to help people embed their learning and lift performance.

We can provide highly experienced presenters to help get you started in using the modules.

We can support you in creating layout design in Adobe Connect.

We offer a variety of end of programme evaluation tools.

We offer consultancy support, such as how to integrate these modules or a digital approach into your learning architecture (70-20-10).

We offer a Presenting Virtual Courses training and accreditation programme - a multi-module programme that enables experienced trainers and facilitators to transition to successfully working in virtual classrooms, such as Adobe Connect.

5

Mathew worked with us to develop our Account Leader development programme and account management toolkit. He provided and produced high quality content and approaches that were seamlessly integrated with elements of our own approaches to create a bespoke and powerful Build Asset Consultancy approach to client development and relationship management. A pleasure to work with.

— Tim Neal, Global Director Buildings, ARCADIS

In response to the biggest strategic issue facing our business, Matthew, whilst employed by us, initiated a change programme, Impact to Win, which focused on enabling us to move upmarket. The solution was bold, brave and far reaching - it had a transformational impact on our business."

— Simon Collins, CEO, KPMG Corporate Finance

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6 value based pricing - website download

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