Workshop Seven - Pricing and Credit
- Welcome
- What kind of factors ought to be considered when setting prices?
- Competition
- Costs
- Value-Added Services
- Prestige/Brand
- Promotional Tactic
- Long-Range Strategy
- Product Positioning
- Product, Place, Promotion
- Markup Pricing
- Percentage of Selling Price or Cost
- Markup Versus Margin
- Pricing Strategies
- Prestige - Conveying an image of quality or uniqueness.
- Penetration - Attempting to gain or maintain market share.
- Skimming - Taking advantage of limited availability.
- Follow-The-Leader - Matching competition.
- Variable - Offering different prices to different customers.
- Flexible - Varying prices on the basis of marketing strategy.
- Price Lining - Varying product in order to support varying prices.
- What-The-Traffic-Will-Bear - Charge what the market will pay.
- Discount - Offer regular pricing below those normally in effect.
- Why Offer Credit? Small businesses don't offer consumer credit!
- Trade Credit - "2/10, Net 30 FOB Origin"
- Credit Management
- Evaluate Creditworthiness [Application, Credit Check, Low Amt.]
- Invoice Early and Often!
- Maintain a Detailed Aging Schedule
- Maintain a Rigorous Collection Process
- Send Periodic Statements, Maintain Regular Communications
- Always Obtain Signed Delivery Documents
- Follow Specific Schedule of Calls and Written Notices