Workshop three was all about pricing strategies and financial implementation. Admittedly not everyone’s cup of tea! but a very important element of business to master. So, this workshop concentrated on understanding the theory behind the monetary aspects of business and why products are priced as they are.
First up, we talked about the importance of building a pricing strategy, but more importantly why this was a team decision. We went through the different opinions of PRICE… judging it from a financial manager in the business to a marketing manager’s role.
After a few tasks, next up was discussing different methods of pricing, should they choose a cost-based method or a market-based method? Teams were given product specification sheets to start calculating realistic pricing methods and were encouraged in teams to think about why they will set prices the way they will.
Next up! Finance section! After understanding pricing strategies teams were then given a presentation on gaining a clear financial picture, what do they actually have in the business already? What do they need to survive? This then went onto cashflow forecasts where each team were tasked to highlight the highs and lows of the year in sales forecasts. Challenge four results will tell us they’ve managed!