Decision Making on Advisors - Speed Networking EventDecision Making for Growth - Helen Lennie, Sales & Marketing Director, Signature PrintsWomen in Manufacturing Network Christmas ExpoReady to Grow? Understand the Fundamentals of Costs and PricesWestern Sydney Manufacturing Week - Women in Manufacturing Lunch Ready to Go: Exporting the GoodsReady to Let Go? Decision Making for ManufacturersReady to Know? A Fresh Approach to Identifying CustomersNetworking to the Next LevelUnleash the Creative Thinker in You: Innovative thinking for People and Product Development
On Wednesday 18 July, 2007 members and guests of the Women in Manufacturing Network braved one of the coldest mornings this winter to learn about the fundamentals of costing and pricing. While arguably not a very trendy topic to discuss, the room was warm and lively as the women confirmed that understanding pricing is vital to their businesses and the challenges they are facing every day.
Facilitated by Carolyn Evans, of ThinkEvans, a boutique management consultancy, the discussion focused on the economic levers of price and quantity by working through some examples to learn which lever to pull, depending on where each business sits in its particular market. When experience suggests that 80%-90% of new products are underpriced, setting prices appropriately in the first place to cover costs and reflect the true value of the product or service can be one of the single most important decisions that business owners make, yet there remains a reluctance by some business owners to discuss price rises.
Jo Buchanan, supply chain expert and director of Growth by Design, used three case studies to illustrate how organisations can stop growing if they do not understand the fundamentals of costs and prices. Jo shared her experience of advising clients in varied products and service businesses, in particular, to seek new resellers/clients if the resellers are not enthusiastic about our products, and to understand how to initiate price rise discussions with clients. Her advice was particularly relevant for many small and medium sized businesses for whom pricing their products is often a reflection of valuing themselves. Remaining passionate about your product, while at the same time being able to step back from it and price it appropriately, is a key skill to be mastered.
Carmen Almenara, managing director of Tejas del Solar, boutique chocolate manufacturer, shared her experiences as a fledgling business owner and operator and the decisions she has made either not to work with a potential client (if the conditions they wanted to impose were not consistent with the business objectives) or not to make a particular product solely for one client. Carmen is comfortable knowing she is in the wholesale business of a high-end product that she is passionate about. This means she focuses on keeping a firm grip on the exquisite quality of making Tejas, while at the same time understanding what her component costs are and charging her equally passionate resellers a fair price.
The true value of the network was revealed in the lively discussion with women business owners and operators in a range of industries who felt confident to share their ideas and to see if they were on the right track in pricing their products and services. Some very practical hints and tips were given by panellists and other members, making this workshop a very useful and relevant seminar in this series.
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