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How to Price Long Term Services and Support

by The SCAN Foundation and The Health Foundation for Western and Central New York
Online
2.00 Hrs
Free
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  1. Introduction
    1. New business opportunities for CBO’s
    2. The marketing mix
    3. Different pricing motivations
    4. Price per unit: the units vary
    5. The spectrum of seller’s pricing control
      1. Unilateral: buyer
      2. Bilateral: cost recovery
      3. Bilateral: negotiation
      4. Unilateral: seller
  2. Revenue and cost basics
    1. Definition of profit
    2. Revenue functions
      1. Fee for service
      2. Capitation
    3. Cost types
      1. Sunk
      2. Fixed
      3. Variable
    4. Cost functions
  3. Pricing when buyer has total control of price
    1. Take it or leave it options
    2. Breakeven analysis
  4. Pricing when seller justifies price to the buyer based on costs
    1. Full cost recovery – meaning
    2. Full cost recovery – example
  5. Pricing when buyer and seller negotiate
    1. The pricing band
    2. Value creation
    3. Value sharing
    4. The value proposition and the role of competition
    5. Situation where higher prices can be charged
  6. Pricing when seller has total control of price
    1. Avoiding cost-plus pricing policy
    2. The price-volume relationship
    3. Optimizing price: maximizing contribution to profit