The document discusses various concepts and strategies related to pricing. It covers factors that influence pricing like demand, costs, and competition. It also describes different pricing strategies such as skimming, penetration, and intermediate pricing. Full-cost pricing strategies include markup, break-even, and rate-of-return pricing. Variable-cost pricing focuses on stimulating demand. The document advises managers to consider competitors' goals and industry characteristics to avoid price wars.
the presentation is about the six sourcing strategy in supply chain
it has included all type of sourcing strategies that are used in supply chain.
for example, few supplier, many supplier, joint venture, vertical integration, virtual companies and kereitsu network
The document discusses various pricing strategies used to determine the price of products and services. It explains penetration pricing, market skimming, value pricing, psychological pricing, price discrimination, tender pricing, destroyer pricing, full cost pricing, target pricing, marginal cost pricing, and cost plus pricing. Key factors considered in pricing include costs, demand, competition, market trends, and objectives. Pricing models aim to maximize profits, cover costs, attract customers, and eliminate competition.
The document discusses various principles of pricing, including:
1) Pricing is the assignment of value for a good or service that customers must pay to acquire it. Price captures some of the value created and is an important marketing lever.
2) Non-monetary costs like time, convenience and psychological factors influence customer perceptions of value and must be considered in pricing.
3) Developing pricing strategies requires understanding demand, costs, competitors and evaluating the business environment. Common strategies include cost-based, demand-based, yield management and competition-based approaches.
The document summarizes pricing considerations and approaches. It identifies internal factors like costs, organizational structure, and objectives, as well as external factors like demand, competition, and perceptions of value. It contrasts three general pricing approaches: cost-based pricing which adds a markup to costs; value-based pricing which considers customer perceived value; and competition-based pricing which matches competitors' prices.
The document discusses various pricing strategies and approaches. It covers factors that influence pricing decisions, both internal like costs and objectives, and external like competitors and consumer perceptions. It also describes three main approaches to determining prices: cost-based using costs of production, buyer-based using perceived value, and competition-based by considering competitors' prices. Specific pricing strategies are also outlined, like penetrating the market with low introductory prices or "skimming the cream" with high initial prices.
This document discusses best practices for establishing a transfer pricing function within a tax department of a multinational enterprise (MNE). It notes that transfer pricing policies aim to balance tax compliance with management control objectives. However, policies focused solely on compliance can unintentionally encourage suboptimal business decisions. The document provides case studies of policies that failed to align objectives and the solutions adopted, emphasizing the need for transfer pricing models to consider both compliance and behavioral incentives.
The document discusses various concepts and strategies related to pricing. It covers factors that influence pricing like demand, costs, and competition. It also describes different pricing strategies such as skimming, penetration, and intermediate pricing. Full-cost pricing strategies include markup, break-even, and rate-of-return pricing. Variable-cost pricing focuses on stimulating demand. The document advises managers to consider competitors' goals and industry characteristics to avoid price wars.
the presentation is about the six sourcing strategy in supply chain
it has included all type of sourcing strategies that are used in supply chain.
for example, few supplier, many supplier, joint venture, vertical integration, virtual companies and kereitsu network
The document discusses various pricing strategies used to determine the price of products and services. It explains penetration pricing, market skimming, value pricing, psychological pricing, price discrimination, tender pricing, destroyer pricing, full cost pricing, target pricing, marginal cost pricing, and cost plus pricing. Key factors considered in pricing include costs, demand, competition, market trends, and objectives. Pricing models aim to maximize profits, cover costs, attract customers, and eliminate competition.
The document discusses various principles of pricing, including:
1) Pricing is the assignment of value for a good or service that customers must pay to acquire it. Price captures some of the value created and is an important marketing lever.
2) Non-monetary costs like time, convenience and psychological factors influence customer perceptions of value and must be considered in pricing.
3) Developing pricing strategies requires understanding demand, costs, competitors and evaluating the business environment. Common strategies include cost-based, demand-based, yield management and competition-based approaches.
The document summarizes pricing considerations and approaches. It identifies internal factors like costs, organizational structure, and objectives, as well as external factors like demand, competition, and perceptions of value. It contrasts three general pricing approaches: cost-based pricing which adds a markup to costs; value-based pricing which considers customer perceived value; and competition-based pricing which matches competitors' prices.
The document discusses various pricing strategies and approaches. It covers factors that influence pricing decisions, both internal like costs and objectives, and external like competitors and consumer perceptions. It also describes three main approaches to determining prices: cost-based using costs of production, buyer-based using perceived value, and competition-based by considering competitors' prices. Specific pricing strategies are also outlined, like penetrating the market with low introductory prices or "skimming the cream" with high initial prices.
This document discusses best practices for establishing a transfer pricing function within a tax department of a multinational enterprise (MNE). It notes that transfer pricing policies aim to balance tax compliance with management control objectives. However, policies focused solely on compliance can unintentionally encourage suboptimal business decisions. The document provides case studies of policies that failed to align objectives and the solutions adopted, emphasizing the need for transfer pricing models to consider both compliance and behavioral incentives.
International sourcing involves identifying the best global supply sources regardless of location. It includes both shared services and outsourcing solutions that can be implemented domestically or offshore. Reasons for global sourcing include reducing costs, accessing new technologies, establishing alternative suppliers, and taking advantage of government incentives. However, there are also risks like the physical distance between buyers and suppliers, communication challenges, currency exchange rate fluctuations, quality issues, and inventory pipeline problems. When negotiating with offshore suppliers, considerations include material, transportation, tax and duty costs as well as supply and operational performance and risks. Counter trade is another form of trade where goods are exchanged for other goods in full or partial payment.
The document discusses inbound logistics, which refers to the process of procuring materials and bringing them into a company. It involves activities like sourcing suppliers, purchasing goods, transportation, receiving shipments, and inventory management. The document provides an example of how inbound logistics works for a fashion company procuring fabric and other supplies. It also outlines some common challenges in inbound logistics like shipping inefficiencies, lack of shipment visibility, demand fluctuations, and unreliable suppliers. The document concludes with recommendations for improving inbound logistics such as analyzing processes, developing strategies, strengthening supplier relationships, and implementing transportation and warehouse management systems.
There are several pricing methods used by firms in practice that do not always follow the microeconomic principle of setting price equal to marginal cost. These include cost-based pricing methods like full-cost pricing, cost-plus pricing, and marginal cost pricing. Competition-based methods include going rate pricing and sealed bid pricing. Demand-based pricing considers consumer perceptions and the intensity of demand, using methods like perceived value pricing and differential pricing. Strategy-based pricing for new products involves either skimming pricing to earn high initial profits or penetration pricing to gain market share through lower initial prices. In reality, firms adopt a mix of pricing methods rather than relying on just one.
This document discusses various pricing strategies and factors that companies consider when setting prices. It identifies consumer perception, supply and demand, costs, and competition as key pricing factors. It then outlines different pricing objectives and various pricing techniques including prestige pricing, target pricing, cost-plus pricing, price skimming, bundle pricing, loss-leader pricing, and yield management pricing. It also notes some regulatory factors around price fixing, price gouging, and price discrimination.
The document discusses strategic pricing and summarizes key lessons from pricing research. It finds that price has a greater impact on profits than other factors like costs. Setting the right price is important to influence sales volume, revenue, and profitability. Pricing research shows consumers are more sensitive to price decreases than increases. Promotions are on average 60% more effective at driving sales than price decreases. The type of promotion framing and tier distances impact effectiveness. Frequent promotions can increase fragility in terms of regular price and promotion sensitivity over time. In summary, strategic pricing research is important to set optimal prices, understand consumer sensitivity, and maximize profits through effective promotional strategies.
Product line,Product MIX,Product line pricing,
Product line pricing refers to the practice of reviewing and setting prices for multiple products in coordination with one another.)
It is the process that retailers use to separate goods into various cost categories creating different quality levels in the minds of their customers.
Product line pricing is more effective when there are ample price gaps between each category so that the consumer is well informed of the quality differentials.
Pricing different products within the same product range at different price points.
The greater the features and the benefit obtained the greater the consumer will pay. This form of price discrimination assists the company in maximizing turnover and profits.
Ex: Samsung offering different smart phones with different features at different prices.
This strategy is used for setting the price for entire product line.
In many companies now days develop product line instead of a single product so product line pricing is setting the price on the basis of cost difference between different products in a product line.
Marketer also keeps in mind the customer evolution of different features and also competitive prices.
The document discusses global sourcing, which involves identifying the best supplier regardless of location. Global sourcing includes shared services and outsourcing solutions that can be implemented domestically or offshore. Key factors to consider in global sourcing include material costs, transportation costs, inventory costs, taxes and duties, supply performance, and risks. There are also quantitative aspects like logistics and economics, and qualitative aspects such as political, legal, and cultural factors. Risks of global sourcing include distance from suppliers, communication challenges, currency fluctuations, quality issues, and staffing needs.
In This Time of Tranistion, What Do Customers Want?jeoff1
I gave this presentation to the Precision Metalforming Association. The audience consisted of Owners, CEO’s and other executives on their Automotive Parts Suppliers’ Council.
The presentation identifies what customers expect from suppliers during this time of financial instability and restructuring in the automotive industry.
At Advanced Purchasing Dynamics, Inc. we provide clients with resources and solutions that transform procurement organizations and supply bases into top performing groups.
In economic practices, there are several methods to determine the price and quantity of the goods and services. Determination of price and output depends on the objectives of the firm as well as competitors, the nature of the commodity, markets scope and so on. In these slides, I try to show, how price and output determine by using cost-plus and incremental cost techniques.
This document discusses various pricing strategies and concepts. It covers objectives like profit and sales volume. It discusses estimating demand, costs, and elasticity. It explains market skimming, penetration pricing, and discounts. It also outlines product line pricing, price bundling, differential pricing, advance selling, and yield management. It provides examples of pricing techniques used by companies and discusses how to increase prices while maintaining perceptions of fairness.
This is useful for educators and learners of MBA, which is made in lucid style for easier understanding and to be a handy tool before exams or while teaching.
1) P&G implemented a new sourcing approach called "Expressive Competition" using CombineNet's optimization software to allow for more flexible and collaborative bidding between suppliers and buyers.
2) This led to significant cost savings upwards of $100 million across multiple sourcing events while improving supplier relationships and satisfaction.
3) The new approach allowed suppliers to bid on packages of items, offer discounts, and express alternative options in a way that more accurately captured their costs and capabilities compared to traditional reverse auctions.
1. The document discusses various pricing strategies for products and services, including cost pricing, skim pricing, loss leader pricing, market-oriented pricing, penetration pricing, premium pricing, contribution margin-based pricing, pay what you want pricing, and Freedium pricing.
2. Groups brainstormed different pricing methods they have used and came up with names for each method.
3. The document outlines questions to consider when determining pricing, such as perceived value, customer budget and ROI, product costs, competition, and uniqueness. It also provides examples of how some strategies are implemented.
The document discusses several key points to consider when selecting pricing policies:
1) Determine the pricing objective such as profit maximization, market penetration, or maintaining quality leadership.
2) Estimate demand by analyzing factors like price sensitivity and developing demand curves.
3) Estimate costs such as fixed, variable, and average costs using approaches like experience curves.
4) Analyze competitors' costs, prices, and offers to understand the competitive landscape.
5) Select a pricing method then determine the final price based on objectives, costs, demand, and competitors.
This document discusses price analysis, which involves comparing a proposed price to other known price points to determine if it is fair without examining the vendor's specific cost calculations. It provides examples of price analysis techniques like comparing to previous prices paid, estimates, competitor quotes, and GSA prices. The document then discusses how price analysis applies differently to small purchases, competitive proposals, and non-competitive sole source contracts, noting cost analysis is more important without competition.
The document discusses pricing strategy and tactics. It argues that profitable pricing depends more on effectively communicating the value of products and services to customers rather than precise measurement. A customer-focused approach that understands customer values and needs is more effective than a product-focused approach. Key considerations for pricing include comprehending customer value drivers, creating and communicating value to convince customers of needing to pay for that value, and capturing value through effective pricing tactics.
- Product K is nearing the end of its lifecycle and should be priced at $75 per unit to maximize contribution during the maturity stage, allowing 480 units of Product L to be produced per week.
- Product L is in the growth stage and should be priced at $126 per unit to maximize contribution while meeting the 2,000 hour weekly production capacity.
- Product M is highly innovative and will change the market, making it well-suited for a market skimming pricing strategy during the introduction stage.
Success in global sourcing requires the know-how on international trade laws, culture and language barriers, global economy and logistics. This presentation shows you the five key stages of global sourcing.
Growing Your Business In A Hyper Competitive MarketAndrew Samrick
The keynote address at the 2011 TEANA conference, this presentation details the forward expectations of manufacturers and distributors, as well as the operating and commercial activities those in the transportation industry will need to master to remain competitive in a highly fragmented market space.
Introduction to Managerial Economics.pptxmarvin173254
This document provides an introduction to key concepts in managerial economics. It outlines 7 learning objectives, including understanding the nature of managerial economics and how it applies economic tools to business decision-making. Some key concepts covered are supply and demand analysis, cost analysis, pricing strategies, market structure, and risk analysis. It also discusses the scope of managerial economics, advantages like informed decision-making, and potential disadvantages like simplified assumptions. Important economic concepts for managers like marginal analysis, time value of money, incentives, and profits are explained.
International sourcing involves identifying the best global supply sources regardless of location. It includes both shared services and outsourcing solutions that can be implemented domestically or offshore. Reasons for global sourcing include reducing costs, accessing new technologies, establishing alternative suppliers, and taking advantage of government incentives. However, there are also risks like the physical distance between buyers and suppliers, communication challenges, currency exchange rate fluctuations, quality issues, and inventory pipeline problems. When negotiating with offshore suppliers, considerations include material, transportation, tax and duty costs as well as supply and operational performance and risks. Counter trade is another form of trade where goods are exchanged for other goods in full or partial payment.
The document discusses inbound logistics, which refers to the process of procuring materials and bringing them into a company. It involves activities like sourcing suppliers, purchasing goods, transportation, receiving shipments, and inventory management. The document provides an example of how inbound logistics works for a fashion company procuring fabric and other supplies. It also outlines some common challenges in inbound logistics like shipping inefficiencies, lack of shipment visibility, demand fluctuations, and unreliable suppliers. The document concludes with recommendations for improving inbound logistics such as analyzing processes, developing strategies, strengthening supplier relationships, and implementing transportation and warehouse management systems.
There are several pricing methods used by firms in practice that do not always follow the microeconomic principle of setting price equal to marginal cost. These include cost-based pricing methods like full-cost pricing, cost-plus pricing, and marginal cost pricing. Competition-based methods include going rate pricing and sealed bid pricing. Demand-based pricing considers consumer perceptions and the intensity of demand, using methods like perceived value pricing and differential pricing. Strategy-based pricing for new products involves either skimming pricing to earn high initial profits or penetration pricing to gain market share through lower initial prices. In reality, firms adopt a mix of pricing methods rather than relying on just one.
This document discusses various pricing strategies and factors that companies consider when setting prices. It identifies consumer perception, supply and demand, costs, and competition as key pricing factors. It then outlines different pricing objectives and various pricing techniques including prestige pricing, target pricing, cost-plus pricing, price skimming, bundle pricing, loss-leader pricing, and yield management pricing. It also notes some regulatory factors around price fixing, price gouging, and price discrimination.
The document discusses strategic pricing and summarizes key lessons from pricing research. It finds that price has a greater impact on profits than other factors like costs. Setting the right price is important to influence sales volume, revenue, and profitability. Pricing research shows consumers are more sensitive to price decreases than increases. Promotions are on average 60% more effective at driving sales than price decreases. The type of promotion framing and tier distances impact effectiveness. Frequent promotions can increase fragility in terms of regular price and promotion sensitivity over time. In summary, strategic pricing research is important to set optimal prices, understand consumer sensitivity, and maximize profits through effective promotional strategies.
Product line,Product MIX,Product line pricing,
Product line pricing refers to the practice of reviewing and setting prices for multiple products in coordination with one another.)
It is the process that retailers use to separate goods into various cost categories creating different quality levels in the minds of their customers.
Product line pricing is more effective when there are ample price gaps between each category so that the consumer is well informed of the quality differentials.
Pricing different products within the same product range at different price points.
The greater the features and the benefit obtained the greater the consumer will pay. This form of price discrimination assists the company in maximizing turnover and profits.
Ex: Samsung offering different smart phones with different features at different prices.
This strategy is used for setting the price for entire product line.
In many companies now days develop product line instead of a single product so product line pricing is setting the price on the basis of cost difference between different products in a product line.
Marketer also keeps in mind the customer evolution of different features and also competitive prices.
The document discusses global sourcing, which involves identifying the best supplier regardless of location. Global sourcing includes shared services and outsourcing solutions that can be implemented domestically or offshore. Key factors to consider in global sourcing include material costs, transportation costs, inventory costs, taxes and duties, supply performance, and risks. There are also quantitative aspects like logistics and economics, and qualitative aspects such as political, legal, and cultural factors. Risks of global sourcing include distance from suppliers, communication challenges, currency fluctuations, quality issues, and staffing needs.
In This Time of Tranistion, What Do Customers Want?jeoff1
I gave this presentation to the Precision Metalforming Association. The audience consisted of Owners, CEO’s and other executives on their Automotive Parts Suppliers’ Council.
The presentation identifies what customers expect from suppliers during this time of financial instability and restructuring in the automotive industry.
At Advanced Purchasing Dynamics, Inc. we provide clients with resources and solutions that transform procurement organizations and supply bases into top performing groups.
In economic practices, there are several methods to determine the price and quantity of the goods and services. Determination of price and output depends on the objectives of the firm as well as competitors, the nature of the commodity, markets scope and so on. In these slides, I try to show, how price and output determine by using cost-plus and incremental cost techniques.
This document discusses various pricing strategies and concepts. It covers objectives like profit and sales volume. It discusses estimating demand, costs, and elasticity. It explains market skimming, penetration pricing, and discounts. It also outlines product line pricing, price bundling, differential pricing, advance selling, and yield management. It provides examples of pricing techniques used by companies and discusses how to increase prices while maintaining perceptions of fairness.
This is useful for educators and learners of MBA, which is made in lucid style for easier understanding and to be a handy tool before exams or while teaching.
1) P&G implemented a new sourcing approach called "Expressive Competition" using CombineNet's optimization software to allow for more flexible and collaborative bidding between suppliers and buyers.
2) This led to significant cost savings upwards of $100 million across multiple sourcing events while improving supplier relationships and satisfaction.
3) The new approach allowed suppliers to bid on packages of items, offer discounts, and express alternative options in a way that more accurately captured their costs and capabilities compared to traditional reverse auctions.
1. The document discusses various pricing strategies for products and services, including cost pricing, skim pricing, loss leader pricing, market-oriented pricing, penetration pricing, premium pricing, contribution margin-based pricing, pay what you want pricing, and Freedium pricing.
2. Groups brainstormed different pricing methods they have used and came up with names for each method.
3. The document outlines questions to consider when determining pricing, such as perceived value, customer budget and ROI, product costs, competition, and uniqueness. It also provides examples of how some strategies are implemented.
The document discusses several key points to consider when selecting pricing policies:
1) Determine the pricing objective such as profit maximization, market penetration, or maintaining quality leadership.
2) Estimate demand by analyzing factors like price sensitivity and developing demand curves.
3) Estimate costs such as fixed, variable, and average costs using approaches like experience curves.
4) Analyze competitors' costs, prices, and offers to understand the competitive landscape.
5) Select a pricing method then determine the final price based on objectives, costs, demand, and competitors.
This document discusses price analysis, which involves comparing a proposed price to other known price points to determine if it is fair without examining the vendor's specific cost calculations. It provides examples of price analysis techniques like comparing to previous prices paid, estimates, competitor quotes, and GSA prices. The document then discusses how price analysis applies differently to small purchases, competitive proposals, and non-competitive sole source contracts, noting cost analysis is more important without competition.
The document discusses pricing strategy and tactics. It argues that profitable pricing depends more on effectively communicating the value of products and services to customers rather than precise measurement. A customer-focused approach that understands customer values and needs is more effective than a product-focused approach. Key considerations for pricing include comprehending customer value drivers, creating and communicating value to convince customers of needing to pay for that value, and capturing value through effective pricing tactics.
- Product K is nearing the end of its lifecycle and should be priced at $75 per unit to maximize contribution during the maturity stage, allowing 480 units of Product L to be produced per week.
- Product L is in the growth stage and should be priced at $126 per unit to maximize contribution while meeting the 2,000 hour weekly production capacity.
- Product M is highly innovative and will change the market, making it well-suited for a market skimming pricing strategy during the introduction stage.
Success in global sourcing requires the know-how on international trade laws, culture and language barriers, global economy and logistics. This presentation shows you the five key stages of global sourcing.
Growing Your Business In A Hyper Competitive MarketAndrew Samrick
The keynote address at the 2011 TEANA conference, this presentation details the forward expectations of manufacturers and distributors, as well as the operating and commercial activities those in the transportation industry will need to master to remain competitive in a highly fragmented market space.
Introduction to Managerial Economics.pptxmarvin173254
This document provides an introduction to key concepts in managerial economics. It outlines 7 learning objectives, including understanding the nature of managerial economics and how it applies economic tools to business decision-making. Some key concepts covered are supply and demand analysis, cost analysis, pricing strategies, market structure, and risk analysis. It also discusses the scope of managerial economics, advantages like informed decision-making, and potential disadvantages like simplified assumptions. Important economic concepts for managers like marginal analysis, time value of money, incentives, and profits are explained.
Source One is a procurement service provider that helps companies reduce costs through strategic sourcing. They have expertise in over 100 spend categories and can analyze a company's entire spending to identify savings opportunities. Source One works on a contingent fee structure and only gets paid if they deliver measurable cost savings to clients. They have achieved annual savings rates of over 20% for indirect spending and 12% for direct spending categories.
The document discusses pricing as the fourth P of the marketing mix. It covers various topics related to pricing such as introduction to pricing, case studies, questions to consider in pricing, functions of price, setting the price, estimating demand, and estimating costs. The key steps in setting price include selecting the pricing objective, determining demand, estimating costs, analyzing competitors, selecting a pricing method, and selecting the final price.
The document discusses pricing as the fourth P of the marketing mix. It covers introduction to pricing, setting price, factors affecting price, and pricing strategies for different products. The key points are:
1) Pricing is one of the four Ps of marketing along with product, promotion, and place. It is the process of determining what a company will receive in exchange for its products.
2) Setting price involves determining pricing objectives, estimating demand and costs, analyzing competitors, selecting a pricing method, and determining the final price.
3) Price should achieve financial goals, fit market realities, and support product positioning. It is influenced by other marketing mix elements.
1
MARGINS AND SALES VOLUME
Module 4 Case: Margins and Sales Volume
Margins and Sales Volume
Introduction
Pricing margins and markups are the first steps in determining how profitable a product or service is. Pricing margins are significant factors for the success of a business. Therefore, producers, manufacturers, or service givers consider the margin when determining how to price their products. A producer might wish to earn as much margin as possible, but the price must be at a competitive level.
Industry Description
The lead logistics provides comprehensive solutions to coordinate and integrate all supply chain members using information and communication technologies (ICT) and are often specialized consulting companies. Lead logistics industry manages supply chain solutions providing end-to-end logistics services. The lead logistics industry has experienced a paradigm shift over the last few decades. Revolutionary change has happened from how manual operations were done to more technology-based operations. Many companies have tapped into the innovation space to better services provided to customers, optimize investment, and cut unnecessary costs. These businesses can either be small establishments only serving the neighborhood, regional to serve a country and probably its strategic neighborhood, or global with footprints worldwide. Integration of Information Technology (IT) systems in the logistics industry has significantly improved efficiency. In lead logistics, a consultation can be sought and offered over the internet without necessarily physical presence.
Margins and Markups
The pricing margin of a product or service is the difference between the cost of the product or service is offered to customers and the cost of acquiring such product or service (Demuynck & Parenti, 2018). For example, if a service provider incurs $1500 to provide a service, then charges the service for $1800, the margin is $300, also referred to as profit margin. Markup is computed as a percentage difference between the selling price and a product or service cost. For example, if a service sells for $1800 and costs $1600, the additional price increase is ($1800 – $1600) / $1600) x 100 = 12.5%.
Lead logistics experience relatively large margins worldwide as compared to other industries. Being non-assets based, no revenues passed to the carrier, thus even higher margins. Per service rendered, the margins in the US are between 15 – 25%. It is worth noting that the jobs are not many and a quite time-consuming, limiting the number of contracts a company can take up over a specific period. In 2015, the average grocery industry margin was 16.5 percent (Tozanli, 2017).
Economic factors that affect Markups
In any industry, margins and markups are vital indicators of business performance. The business operators should therefore be able to interpret each of these indicators and make sound decisions correctly. Factors affecting markup include;
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The document introduces a new procurement model called The Print Co-operative that aims to lower costs, increase quality, and promote sustainability and ethics in the printing supply chain. It does this through collaboration between brands and suppliers, standardization of processes, transparency, and optimization of the entire supply chain. Key benefits mentioned are 30% lower costs, higher quality at lower cost, complete support and services, and financial rewards for brands that follow best practices. The model provides tools like online pricing, software, and support to brands to help manage their printing and marketing more efficiently.
This lecture slide was prepared for my guest lecture session in Bina Nusantara University's undergraduate program of International Business Management. It discussed the role of procurement function in an organisation, and how the function has been continuously evolved to meet market expectation by engaging business partners, as well as intra-company stakeholders. It shares top tips of how buyer can create value-add to the business from the book “Value-Added Purchasing” written by Eberhard E. Schening, PhD. Enjoy this as a part of your learning journey!
This document discusses the spend management process, which includes opportunity identification, category strategy, negotiations, contracting, and supplier performance management. It provides guidance on each step, such as helping to identify savings opportunities through spend analysis, developing category strategies to align with business goals, choosing the appropriate negotiation approach for each category, using contracts and metrics to formalize agreements, and managing ongoing supplier performance. Formalizing this process can significantly increase savings and reduce cycle times.
This document provides an overview of pricing strategies and concepts. It defines price and discusses factors to consider in pricing, such as product costs, company objectives, market demand, competition, and psychological factors. Various pricing strategies are outlined, including cost-based pricing, market-based pricing, competition-based pricing, and differential, competitive, and product line pricing approaches. International pricing, price elasticity, price expectations, and tools for understanding consumer price sensitivity are also summarized. The document concludes with criteria for determining when to charge lower or higher prices based on company objectives and product specifications.
The document provides an overview of promotion as part of the marketing mix for services. It defines promotion as advancement within an organization to a higher position with more pay, responsibility and status. Promotional methods for services are discussed, including personal selling, advertising, sales promotions, publicity, and the use of print media, television, radio, and celebrity endorsements. The purposes of promotion for employees are also mentioned, such as developing skills for higher level jobs and reducing employee turnover.
The document discusses various pricing strategies and concepts related to pricing decisions based on market structure. It covers pricing under perfect competition, monopoly, oligopoly and monopolistic competition. Some key points discussed include setting price based on marginal revenue and marginal cost, price discrimination strategies, factors that influence pricing objectives and steps to determine prices.
This document discusses pricing decisions and strategies. It covers understanding price, factors that affect pricing like costs and competition, methods for setting prices, and adapting prices over time and locations. The key steps in setting a price include selecting objectives, determining demand and costs, analyzing competitors, choosing a pricing method, and selecting the final price. Common pricing methods are markup pricing, absorption cost pricing, target-return pricing, and perceived value pricing. Companies also consider geographical pricing, discounts, promotional pricing, and price changes over time in response to costs or competitors.
This document summarizes procurement best practices for direct material sourcing in the industrial equipment industry. It discusses challenges like increasing technological complexity, strain on raw materials, and need for better risk management. It outlines differentiating sourcing strategies for high-tech vs low-tech parts, information sharing in the supply chain, efficient raw material management, and procurement risk management. Specific sourcing strategies are provided for electronics and molding categories based on their characteristics. Overall, the document advocates for optimized purchasing processes, supply base consolidation, ensuring supplier growth strategies align, active risk management, and category-specific sourcing approaches.
This document summarizes procurement best practices for direct material sourcing in the industrial equipment industry. It discusses challenges like increasing technological complexity, strain on raw materials, and need for better risk management. It outlines differentiating sourcing strategies for high-tech vs low-tech parts, information sharing in the supply chain, efficient raw material management, and procurement risk management. Specific best practices are provided for electronics and molding categories, focusing on leveraging supplier relationships, managing price fluctuations, calculating tooling costs, and understanding suppliers' constraints. The document emphasizes strategies like optimizing processes, consolidating the supply base, ensuring aligned growth strategies, collaboration, and risk management.
This document provides an overview of key concepts in managerial economics. It discusses how managerial economics uses economic analysis to help managers make optimal business decisions given scarce resources. Some key points covered include: the role of the manager is to make choices among alternatives to maximize firm value; firms must minimize costs and make rational investment decisions; microeconomics provides the methodology for analyzing supply, demand, production and costs. Porter's 5 forces framework is also introduced to analyze factors that impact industry profitability.
There are three major influences on pricing decisions: customers, competitors, and costs. Short-run pricing decisions have a time horizon of less than one year and consider relevant variable costs, while long-run decisions consider fixed costs and aim to earn a reasonable return on investment. Target costing sets a target price and derives the maximum allowable cost, while cost-plus pricing adds a markup to total costs to determine price.
This document provides an overview of developing commercial acumen as a business leader. It discusses the importance of understanding key cost drivers and business relationships. Commercial acumen involves thinking like a business owner and ensuring decisions align with strategy. The document recommends leaders embed commercial skills at all levels by promoting cost ownership and transparency. It also suggests focusing commercial training on understanding full costs, procurement strategies, and designing commercial conditions. Finally, it discusses the roles of finance, line management, and commercial managers in jointly developing effective commercial management.
1. Turning Overhead Expenses into Profits Prepared for the International Society of Industrial Fabric Manufacturers (ISIFM) Ralph W. Owens – Director Expense Reduction Analysts May 3, 2010