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I will be offering a new training product to policy makers and senior leaders and need to figure out how to price it.

I need to price my new training offering. This summer I'm going to train to become a Climate Change Ambassador using the new En-Roads simulation model developed my MIT and the global scientific community. I have some client contacts and will start there. Climate Interactive. https://www.climateinteractive.org/

My background: http:www.lindavillatore.com https://www.linkedin.com/in/lindavillatore/

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Hello Linda, How many training participants are you targeting? You can use a very popular pricing approach known as the cost-plus price approach. As the name implies, you, first of all, ascertain the cost per participant and add a profit margin to the cost. The total cost per participant plus the profit margin should give you a favourable price. The cost should include both variable costs (costs which changes with the level of output eg number of tutors to hire will be determined by the class size) and fixed costs (these cost remain the same not matter the level of output eg overhead).

On a more competitive side, you can consider target costing. This is the opposite of the cost-plus approach and involves conducting a survey on how similar training like yours is priced in your industry. Afterwards, you deduct your profit margin (e.g 15% of every sale). So, if the average industry price for such training is $500 and your profit margin is 15% of $500 ($75). The balance of $425 (500-75) becomes your target cost. This means you shouldn't spend more than $425 to produce the training per participant. With this approach, you are able to compete favorably.

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Hi Linda. Here are my 3 cents. Predefine limits, with a minimum price and an ideal one. Then, refine the search using some approaches for pricing: a) value based on your attributes (i.e. experience, knowledge, career, skills, reputation), b) perceived value from potential customers (i.e. run survey in social media, contacts, network, former students), c) value based on costs (plus 20-50% gain), d) study your competition. Have success.

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