Considerations when pricing your consulting services: By Bryant Nielson, CapitalWave Inc.

1. Pricing your Consultancy Services D E L I V E R I N G I N N O V A T I V E S O L U T I O N S ® Copyright © 2011 All Rights Reserved

2. Bryant Nielson, CEO & Managing Director http://www.linkedin.com/in/bryantnielson http://www.facebook/capitalwave http://twitter.com/capitalwavehttp://twitter.com/LeadershipFX Bryant Nielson CEO & Managing Directorbryant.nielson@capitalwave.com http://www.CapitalWave.comhttp://www.FinancialTrainingSolutions.com http://www.yourtrainingedge.com bryant.nielson CapitalWave, Inc. Delivering Innovative Training Solutions

3. Pricing your Consultancy Services AGENDA Pricing Concepts Factors affecting the Pricing Strategy Penetrating Pricing Pricing is too High Difficulty in Pricing New Products Pricing Methods in Strategic Marketing Olympic Pricing Model

4. Pricing Concepts Price of What? Price to Whom? Price from Where? Price When? Does it include free services? Does it include a guarantee? If so, for how long? Does this include the deluxe model? Is the a basic cost?

5. Factors affecting the Pricing Strategy Demand Based Pricing Competition Based Pricing Cost Plus Pricing Elements of a Retail Price Fixed Costs (rent, telephones, computers, insurance, utilities, etc) Variable Costs (compensation, raw materials, delivery) Retail Price = Cost + Mark Up

6. Penetrating Pricing Used to stimulate market and sales growth Offering products at low prices Acquire and hold market share Simulate market growth to minimize competition Price has to be set where there is value Price must be in reach of the buyer Targeted towards specific market segments Walmart vs. Nordstroms

7. Pricing Methods in Strategic Marketing Full Cost Pricing Marginal Cost Pricing Price Discrimination Multi-Product Pricing Transfer Pricing

8. 7 Mistakes of Poor Pricers Nothing we do deserves a Premium Price Average Pricing seems Fair Cost-based Pricing is easer to explain Everyone else prices it that way Our Sales Team incentives are driven by volume not value Don’t step on anyone’s toes The Customer ‘Tells-us-the-Price’

9. Difficulty in Pricing New Products Fixed costs unknown Variable costs unknown Competition pricing unknown UP

10. Olympic Pricing Model

11. Olympic Pricing Model

12. Discussion

13. Proposals: Considerations and Presenting D E L I V E R I N G I N N O V A T I V E S O L U T I O N S Copyright © 2011 All Rights Reserved

14. Bryant Nielson, CEO & Managing Director http://www.linkedin.com/in/bryantnielson http://www.facebook/capitalwave http://twitter.com/capitalwavehttp://twitter.com/LeadershipFX Bryant Nielson CEO & Managing Directorbryant.nielson@capitalwave.com http://www.CapitalWave.comhttp://www.FinancialTrainingSolutions.com http://www.yourtrainingedge.com bryant.nielson CapitalWave, Inc. Delivering Innovative Training Solutions

15. Considerations So what considerations should an Vendor think about for a client proposal?

17. Oral Presentation should position the company’s capabilities

20. Indicate the relative importance of those attributes

21. Understand VVA (Vendor Value Assessment)

22. Delivery Selection

23. Reliability

24. Price Reputation

25. Procedural Selection

26. Technical Service

27. Supplier Flexibility

28. Product Reliability

29. Political Selection

30. Price

31. Reputation

32. Product Reliability

33. Service Reliability

35. Better pricing

36. Better terms

37. Counter arguments

38. Show evidence on Total Cost of Ownership

39. Live-cycle Costs lower than competitors

40. Value that buyers receive

41. Superior offering over competitors92%

42. Discussion