Learn different price-setting strategies and review price and cost analysis to ensure you're creating the most value for your organization.
One of the most important and complex decisions a business or organization has to make is how much to pay for its items or services. The buying professional should be able to easily detect prices that are too high. Thus pricing decisions must be given careful consideration when buying industrial products and services. The price of a product or service should be expected to cover cost of production, promotion and distribution, plus reasonable profit. In order to obtain the most efficient and acceptable price the purchasing professional must make sure that they are aware of market conditions and prices associated with quality levels required for the buying firm's needs. The effective buyer must become an expert for the items that they purchase. The objective of price-cost analysis is not to get the lowest price, but to obtain the best value with consideration for delivering time, acceptable quality levels, in the appropriate quantities. In general price is important; however, remember it is only one of many variables that are included in purchasing decisions.
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Why Lorman?
Over 34 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.
Agenda
Price-Setting Strategy (Economic)
Price-Making Strategy (Psychological)
Discounts
- Cash
- Trade Discounts
- Quantity Discounts
Price Analysis
Cost Analysis
- Direct Material
- Direct Labor
- Tooling (If Relevant)
- Overhead (Manufacturing or Project)
- General and Administration
- Profit
The Learning Curve
- Direct Material Costs
- Direct Labor Costs
The Price/Cost Analysis Process
- Example
- Negotiations
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Why Lorman?
Over 34 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.
Credits
OnDemand Course
This course was last revised on October 26, 2018.
Call 1-866-352-9540 for further credit information.
This program does NOT qualify, nor meet the National Standard for NASBA accreditation.
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Why Lorman?
Over 34 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.
Faculty
W.C. Benton, Jr.
The Ohio State University
- The Edwin D. Dodd professor of management, and professor of operations and supply chain management in the Fisher College of Business at The Ohio State University
- Teaches courses in purchasing/supply management, manufacturing planning and control, operations analysis, facility design and the business of health care to M.B.A. and doctoral candidates
- Partner in W.C. Benton and Associates, a construction management consulting firm
- Published more than 200 articles in the areas of purchasing management, inventory control, supply chain management, quality assurance, materials management and health care
- Frequent speaker and recognized operations management researcher
- Worked as a sourcing consultant for companies throughout the world, including Australia, Canada, China, India, New Zealand, Korea, Taiwan, Hong Kong, Japan, Vienna, and the United States
- Served as an expert witness for the private and public sector procurement cases
- Doctorate in operations and systems management, and quantitative business analysis, Indiana University in Bloomington, Indiana
- Can be contacted at 614-292-8868, fisher.osu.edu/people/benton.1, or [email protected]
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Why Lorman?
Over 34 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.
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