Presentation prepared for the meeting of the Mayfield Business Forum (MBF) held at the Rose & Crown Mayfield on 3rd November 2009. The main topic of discussion was pricing and there are slides showing the main points

1. PRICING Roger Stone Roger Stone Consultancy Limited November 2009 1

2. 2 Golden Rule –Never compete on pricing alone

3. Pricing in your Business Context Desired growth Financial backing Product positioning: utility vs de luxe Aims Maximise profit Support a particular lifestyle 3

4. Price level Customer willing to pay PROFIT All your costs COST 0 4

5. Price level Aspirational level Customer willing to pay Competitive level PROFIT Utility level All your costs MARGINAL COST COST 0 5

6. Price sensitivity Volume Price 6

7. Pricing tips Positioning: “utility” vs “luxury” Understand your costs Pricing that makes sense to the customer Mainstream, offers and large contracts Review customer/product profitability Discount: more for the same price Discuss pricing last 7

8. Thank you for your attention 8

9. Feedback and questions to: roger@rogerstoneconsultancy.com or find out more about me: www.linkedin.com/in/rogerstone Twitter: rogerstone26 http://rogerstonemarketing.blogspot.com/ 9