How can you successfully analyze real operating costs and position your company in the target market to ensure its profitability and longevity? To help you answer these questions, in this training course on pricing strategy, you'll cover the fundamental elements involved in defining a fair selling price in the decision-making ecosystem: - how to carry out a market and competitive analysis to identify your distinctive advantage (PESTEL approach and market segmentation) - how to take financial aspects into account (calculation of raw material and labor costs, management of fixed and variable costs) - the impact of decisions based on financial forecasts. Thanks to a pragmatic approach, this training course will help you develop key skills for analyzing breakeven points, managing working capital requirements and optimizing your pricing strategy.
Objectives
Understand the cost price analysis method.
Is it for you ?
Accountants and CPAs from existing companies experiencing pressure on their cost structure and the impact of inflation on profitability.
Prerequisite
Have already made a financial forecast
Your benefits
Content
What elements to consider when carrying out a cost analysis
The basics of calculating cost price are direct costs, indirect costs, and fixed manufacturing costs. The break-even point determines your working capital requirements, but forecasts are based on the assumption of expected sales volume and selling price.
Section 1
- The basis for calculating cost price
- Break-even threshold and break-even point
- Determining cost price using forecasts
- Necessity of data compilation and adjustment
- The different costs (example: R&D costs, production costs…)
- Marketing costs
Section 2
- Pricing strategy
- The six pricing methods
- Competitive differentiation
Conducting a proper market study
Participants will review the key elements to consider for a solid market study, competitor analysis, and how to carry out positioning analysis. This module will briefly cover segmentation/personas and how to evaluate efforts, tools, and effectively reach target customers.
- The market and its evolution
- PESTEL
- Knowing the right method for competitor analysis
- Finding your distinctive competence
- Customer motivation and segmentation
- Potential market (volume)
- Commercialization, a continuous process
- Commercialization strategy
- Sales action plan
- From sales budget to strategy
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Conducting market research
Participants will learn what they need to know to carry out a proper market study, the competition, and how to conduct a positioning analysis. This module will briefly cover segmentation/personas and how to evaluate efforts, tools and effectively reach target customers.
The market and its evolution
- PESTEL
- Cognizing the right way to analyze competitors
- Finding your distinctive competency
- Customer motivation and segmentation
- Potential market (volume)
- Marketing, a continuous process
- Marketing strategy
- Sales action plan
- From sales budget to strategy
How to estimate costs
In this module, participants will briefly explore the different aspects to be taken into account when analyzing costs, and which of the three methods covered is best suited to their needs. Particular attention will be paid to processing costs, essential for adding value to finished products, and to labor costs, the linchpin of human resources management.
Cost of raw materials and choice of suppliers
- Distinguishing between billable and non-billable tasks
- Managing labor costs for maximum efficiency
- Cost price and decision-making (the right price)
- Looking back at different costs
- Exercises
Planning and forecasting: strategies for optimal financial management
Participants will learn how to draw up financial forecasts for 2, 3 or 5 years, so as to have a clear, long-term vision of the financial health of their business.
They will also learn about the implications of profit management choices (dividends or future investments). Finally, they will look at the calculation of working capital requirements, crucial for maintaining sufficient liquidity.
The different types of accounting :
- General accounting
- Cost accounting
- Taxation
- Financial forecasting for a long-term vision
- Fixed and variable cost management for financial flexibility : The variable cost method, The full cost method, The activity-based costing method
- Use of break-even analysis to secure profitability
- Precise calculation of working capital requirements to support activity
- Exercises
How to plan your cost price
In this module, participants will focus on the need to make financial forecasts in order to plan prices and profits so as to pay decent dividends and have sufficient profits for future investments. They will also see how to absorb recurring losses to include R&D investments.
Evaluating results
- Analyzing variances
- How to adjust for estimated and actual volumes
- Estimated and actual profits.
💡 Useful information
Our training sessions are offered in Montreal or Quebec City, in person or in virtual format. Dates and locations are provided when you select your session below. If you have any questions regarding registration, schedules, the language of instruction, or cancellation policies, please consult our FAQ .
Trainers
Private or personalized training
Do you have several employees interested in the same training course? Whether in person at your offices or remotely in virtual mode, we offer private training courses tailored to your team's needs. Group rates are available. Contact us for more details or request a quote online.
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