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Course Description

The costs involved in producing a product directly impact the price that a supplier will charge you and eventually how much you will charge your customer. The lower the price that you pay for products/services from your suppliers, the lower the price you can charge your customer, thereby driving value up for them. If you foster a working relationship with your supplier and explore the cost drivers behind their prices, you can collaboratively work with them to cut costs for them and lower prices for you and your customers. In this lesson, you will see how cost components interact with market conditions, the industry, and product specifications to impact price. You will explore several pricing methods in order to grasp what cost elements behind those methods may be driving prices up for you and your supplier. You will examine three cost-based pricing models that are useful for instances where your supplier is willing to provide their cost information. For situations where the supplier is not willing to share their cost information, you will determine prices using reverse price analysis. Finally, you will examine profitability by performing a break-even analysis to see whether a target price you have in mind will be profitable for your supplier.

Benefits to the Learner

  • Leverage various cost models to inform supplier negotiations
  • Perform a break-even analysis to determine a target price that is profitable for your supplier
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Type
self-paced (non-instructor led)
Dates
Aug 01, 2022 to Dec 31, 2030
Total Number of Hours
1.0
Course Fee(s)
Regular Price $0.00
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