Purpose and description of the course
Pricing management is a main driver of successful business development. Pricing drives business development because it translates strategic objectives into changed product offerings, revenue streams and profitability. However, many firms have neglected pricing and used pricing for correcting historical errors or meeting short-term financial goals. Such an approach does not leverage the full potential of pricing. This course therefore focus on how firms can use pricing as a strategic lever to increase a focus on value generation.
The course is tailor-made for the real estate industry and therefore focus on the facets of pricing management that are particularly challenging for the industry. The course is structured in the following manner.
- On the first day you will learn about value based pricing and the techniques used for price setting. A particular focus is here on yield and revenue management and how the strategic levers of space, time and price can be managed to optimize returns. The day will also discuss methods and theories for analyzing customer value.
- On the second day, the topic is asset management and we discus performance management of value drivers, how the type of investor affects measurements, and how cost may be used to improve price and asset decisions.
- On the third day, we focus on the pricing of services, development of product-service combinations and servitization. The day will also deal with the control problem and discussing how discounting behavior affect revenues and how discounting practices can be analyzed and managed.
- Finally, the effect of greening and use of artificial intelligence (AI) on pricing is discussed.
The pricing course in general offers a number of tools and techniques that helps firms develop their pricing practices, structures and processes. However, pricing is not just a discipline requiring technical knowledge of the tools of pricing. Pricing requires change management skills and insights into human behavior. For such reasons, the course also discusses more theoretical and reflective elements. For example, the course discusses behavioral economics in order to understand customer reactions to changes in pricing practices and how insight in to human behavior can be used to affect customers’ perception of value. We also discuss how changes in firms pricing practices and processes generates tensions and organizational resistance.
The course will be delivered in the following manner. Each session starts out with discussing a particular challenge as well as models, theories and techniques for analyzing and solving them. Following this, the session will move on to more detailed work on challenges and solutions through simulations, exercises, and workshops. The last day will provide a forum for discussing the synopsis and developing perspectives on your own organization’s particular pricing challenges.
KEY THEMES IN THE COURSE
- Value driven approaches to pricing.
- Yield and revenue management.
- Asset management.
- The use of cost information in pricing with a focus on cost to serve
- Governance and control of pricing.
- Pricing strategies for services and servitization.
- The use of AI in pricing.
- Greening and pricing.
YOUR LEARNING OUTCOME
In this course you will:
- Develop an understanding of and train the techniques of pricing including approaches to price setting, revenue management, asset management, pricing policies, behavioral aspects of pricing, pricing governance, pricing of services and servitization.
- Apply theories and models of the course to your own organization.
- Get a comprehensive understanding of pricing focusing on value and encompassing market, economic, and organizational perspectives.
WHO SHOULD ATTEND THIS COURSE
This course is relevant for practitioners from the real estate industry and who are interested in getting a comprehensive understanding of the techniques, theories, and practices of pricing.