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Pricing strategy - simple and fair

Archive - Originally posted on "The Horse's Mouth" - 2005-04-29 08:52:16 - Graham Ellis

I'm proud of our pricing model.

We're able to offer courses at prices that are good for the customer, fair and easy to understand. Pious claim? Maybe, but I prefer to work with and within a scheme that I can stand up and believe in ... but of course, it needs additionally to bring in a fair income.

A part of my "fair and easy to understand" clause is our policy of offering courses at a (low) quoted list price and the offering very few discounts, then only in very specific circumstances. If you send two people on the same course, or book a private course but can't find a week that every member of your team is available then - yes - a lower price for the second person or the team member who comes on the public course is justified and willingly given.

Yes, people do ask for discounts ... but usually they'll book and attend anyway once we've spent a few minutes explaining our policy; they come to appreciate that giving them a lower price would mean that we would have to charge a higher price to the person sitting on the next chair to them and that our business isn't one where "the price you pay is the most we can squeeze out of you".

Occasionally ... very occasionally ... someone backs themself into a corner. "I'll only come if you can offer me a special deal along the lines of xxxx". Sorry, sir/madam; we're not in the business of cheapened discounted courses, and people who want such courses will typically delay their payment to the last possible date too - one memorable case recently strung us along for (err) much longer that I like as "The EU is paying for this training ...." ... and of course in the end that didn't come through. A couple of "there's a cheques in the posts"s and ... finally ... payment when we threatened interest and collection charges would be added.

You'll see no mention of agents / resellers in the text above. That's intentional. We're quite happy for people to make direct or indirect bookings, and for the company that's making the indirect booking to charge their client for their added services. We're also delighted for such an agent / reseller if they're able to combine several of their clients onto a course and save themselves some money ... acting rather like a wholesaler. Where an indirect booking is made, we do take extra steps to ensure that the course booked is the right course for the trainee.