PRICE, FINANCE, PROFIT AND LOSS MAGAGEMENT

Identify the four pillars that affect price, including competition, customers and company factors, and other external factors. See how logistics costs, spare parts, taxes, and inflation shift price and margin.

Identify how the customer drives price, including urgency and willingness to pay, how segmentation and branding influence value, and how positioning and differentiation affect price.

Understand the importance of financial management to translate revenue into profit, optimize pricing by product and category, and control costs to avoid bankruptcy.

Explore the marketing mix's four p's—product, price, place, and promotion—and how product features, packaging, brand positioning, life cycle, and pricing perception shape market success.

Promotions shape pricing in the marketing mix, using anchor pricing, discounts, and promotional packaging to capture market share and communicate value.

Explore how place shapes pricing across retailers, consumers, distributors, and online channels, with margins adjusted for each channel. Consider supply chain costs, taxes, and state-specific factors that affect prices.

Explain the break even point by calculating fixed costs and contribution margin, using chair example and overflow analogy to show when profits begin.

Explore price strategies—low, premium, and hybrid—highlighting alignment with the overall company strategy and tactics like loss leaders, introductory discounts, bait and switch, and Trojan Horse strategy.

Define pricing objectives and analyze demand, costs, and competition to determine the final sale price. Use a pricing spreadsheet to assess price sensitivity and select the final price.

Study demand to set the right prices and drive growth by defining your target market, conducting market research, and analyzing price elasticity, seasonal demand, costs, and testing price points.

Learn to distinguish fixed costs from variable costs and identify examples like rent, salaries, utilities, and packaging, enabling accurate cost estimation tied to sales.

Identify your competitors and analyze their pricing strategies, features, and promotions to inform your pricing decisions. Compare pricing models, monitor market trends, and gather customer feedback to position offerings profitably.

Learn three pricing methodologies—cost based (cost plus), competition based, and value based—using examples to show costs, market competition, and customer perceived value.

Choose from pricing methods such as markup, contribution margin, cost-based, competition-based, and value-based; consider psychological pricing, discounts, payment terms, invoicing, geographic pricing, taxes, and shipping, then finalize and manage price.

Compute the contribution margin, an indicator of profitability, defined as revenue minus variable costs for a period. See how fixed costs and profits are funded, illustrated by a chair example.

Profitability equals (total revenue minus variable costs minus fixed costs) divided by total revenue; example shows 90,909 revenue and 20,000 fixed costs yield 23% profitability.