Pricing Strategies for Logistics Services
When: 02/10/2014 - 02/11/2014
Time: 08:30 am - 05:00 pm
E-mail: send an e-mail
Contact Name: Ryan Milan
A study conducted by global management consulting firm McKinsey & Company has shown that if companies in the Standard & Poor’s 1500 index increase their prices by 1 percent, an 8 percent increase in profits would be generated, assuming volumes remained stable. The reverse holds true as well: A fall in prices by 1 percent would bring about an 8 percent drop in profi ts. It is hence crucial for businesses to target the right level of pricing in order to achieve profit maximisation.
Amidst the keen competition many logistics companies face in Singapore and other Asia-Pacific countries, communicating the right prices to customers in the provision of logistics services such as transportation, warehousing and supply chain management is vital to the organisation’s overall branding and marketing strategy. Justifying higher prices with a more service-driven focus and higher service efficiency with enhanced turnaround ability could be the determining factor that sets your organisation apart from the rest of the competition.
Price-setting has to be implemented in-line with customer segmentation, peer analysis, and customer relationship management strategies in order for organisations to achieve their long-term business objectives. Therefore, it is essential that businesses view pricing strategy formulation, implementation and their subsequent realignments as imperative for their survival.
Salvo Global’s 2-day intensive Masterclass on “Pricing Strategies for Logistics Services” will provide delegates with a comprehensive range of strategies and approaches to pricing, including the concept of Value-Based Pricing, which takes into account not just price-setting based on cost alone, but also the overall value received by the customer. Prices should be determined with a clear strategic focus in mind to identify business opportunities and maximise profit, and other key strategic concepts and tools, such as Price-Value Analysis and Customer Analytics, will be shared with delegates to accelerate the achievement of this objective.
Specific concerns such as labour costs, space constraints, and the status of Singapore as a logistics hub and distribution centre must be taken into
account when customising pricing strategies. This course is designed as an interactive mix of lectures, case studies, discussions and class exercises for delegates to develop real-life strategies that they could bring back to their respective organisations for sharing and implementation.