Question

Topic: Strategy

Production Based Pricing

Posted by Anonymous on 4/10/2008 at 6:22 PM ET 250 Points
Any creative ideas out there of how to promote this?
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RESPONSES

  • Posted by Levon on 4/10/2008 at 11:06 PM Member
    Production Based Pricing sounds like a Cost Accounting Technique. What do you mean promote it?
  • Posted by adammjw on 4/11/2008 at 3:22 AM Member
    What do you mean by your term? Is it cost-plus pricing?
  • Posted on 4/11/2008 at 9:25 AM Author
    Not cost plus. We are a contractor and the amount of work we do in a given day varies. Unit cost goes down as volume of work goes up, and I really want to emphasize that this is good for all parties.
  • Posted by adammjw on 4/11/2008 at 9:43 AM Member
    I see.Don't you set prices as per job?
  • Posted by Levon on 4/11/2008 at 12:56 PM Accepted
    I think you said it best with your line:

    "Unit cost goes down as volume of work goes up"

    maybe re-phrase it in layman's terms.
  • Posted on 4/12/2008 at 9:11 AM Accepted
    Actually this is a great thing to do, introduce your customer to how you price jobs, making it transparent enough for him to feel that he is doing the pricing himself.

    That kind of transparency can earn you respect and trust.

    So, create documentation and promotional material that gives your customer this message, that he can define his own pricing. Create worksheets that make it easy for him to be able to do so.

    Fantastic! I can’t think of a batter branding and marketing strategy than giving your customer a sense of involvement and ownership in your pricing process.

    Sure hope this helps. All the best.

  • Posted by adammjw on 4/12/2008 at 9:15 AM Member
    Sorry, maybe I miss something,but to me the most important thing is the result and not how much time it takes for somebody to do the job.
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