Cost and Price Analysis - How to Achieve Best Value

Pricing is both an 'Art' and a 'Science' as well as being a valuable and flexible tool in the buyer/seller relationship.  It is essential that professional procurement and sales staff have a clear understanding of the various factors that determine how prices are set.
 
This course examines these issues in relation to the procurement of both goods and services ("contracts") and from the perspectives both of the buyer and the supplier.  Participants learn the tricks of the trade that buyers and sellers use to maximise profits.
 
Aims

• To provide participants with a thorough understanding of the difference between price and cost, value and reward, a 'good deal' versus a 'bad deal'. It takes into account all the factors involved such that the person can be confident of awarding the contract to the best supplier under the prevailing circumstances.
• To provide participants who come from contracting companies an understanding of how bid price and cost are unrelated. 

This course is designed for:  Staff in the procurement and contracting function(s) and for staff from suppliers and contractors. It is suitable for newcomers to the contracting environment ( management)  as well as for experienced staff, for whom it should open wider horizons beyond the traditional adversarial viewpoint.


At the end of the course the participants will have;

• The ability to understand the relationship between cost, price and benefits
• Understanding of fixed and variable costs.
• Familiarity with the basics of marketing - Product, Price, Place and Promotion, and how these affect them as corporate buyers
• Pricing strategies
• Knowledge of the Total Cost of Ownership model and how it can be applied in a range of procurement circumstances
• Ability to understand claims and variations and settle them with a favourable commercial outcome
• Understanding of how contractors arrive at the bid price
• Understanding of the principles of On-Line bidding
• Familiarity with the seller’s point of view, how he perceives the buyer in terms of being a "good" customer or otherwise, and how this might influence his pricing policy.

Open and in-company courses available in the UK or in your country