Purpose and description of the course
Pricing is a main driver of firms’ profitability and of successful business development. In many firms however, pricing has been neglected and is often only used for correcting historical errors and meeting short-term financial goals. Such an approach does not leverage the full potential of pricing.
This course focus on how firms in the building and rental industry can use pricing as a strategic lever to increase a focus on value generation. The course sets off with sessions focusing on value based pricing and the techniques used for price setting. A particular focus is here on yield and revenue management in the buildings and rental industry and how the strategic levers of space, time and price may be used to optimize returns. The course then moves on to discuss two challenges. First, the information problem is discussed. The sessions here discuss how information about customer value can be extracted and analyzed and how cost may be used to improve price decisions. Second, the control problem is discussed with a focus on how discounts and rebates affect revenues and how discounting behavior can be analyzed and managed. The course then moves on to discuss service provision, product-service combinations and servitization in the real estate industry. Finally, the use of artificial intelligence (AI) in pricing is discussed.
The course uses an interdisciplinary problem-solving approach, using market, economic, and organizational perspectives. In the course, participants will develop insights into the use of tools and models for dealing with pricing challenges. They will analyze how building and rental firms may develop pricing as a strategic, value-focused process.
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 pricing challenges.
KEY THEMES IN THE COURSE
- Challenges in pricing and how deal with them.
- Value driven approaches to pricing.
- Yield and revenue management.
- The use of cost information in pricing with a focus on cost to serve
- Organization and governance of pricing.
- Pricing strategies for services and servitization.
- The use of AI in pricing.
YOUR LEARNING OUTCOME
In this course you will:
- Acquire knowledge about strategies to tackle key challenges in pricing.
- Develop an understanding of and train the techniques of pricing including approaches to price setting, revenue management, pricing policies, behavioral aspects of pricing, organization of pricing, 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 practitioner involved in buildings and rental industry and who are interested in getting a comprehensive understanding of the techniques, theories, and practices of pricing.
Each day from 9.00 – 17.00
Address: CBS, Dalgas have 15, Frederiksberg 2000
Deadline for submission of synopsis: TBA
Oral examination: TBA