PRICING & NEGOTIATING

THE VALUE

DBA. Nguyễn Thiện Hùng

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SOME COMMENTS ON PRICE

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 WHAT IS PRICE?

 ENOUGH TO PAY THE COST OF PRODUCTION

OF GOODS
 MAKE PROFITS AND ACHIEVE PRICE GOALS
 MEET THE VALUES THAT BUYERS KNOW
ABOUT PRODUCTS AND SERVICES
 ALLOW THE COMPANY TO COMPETE GOOD
IN THE MARKET
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 VALUATION ISSUES: WHY VALUATION IS
HARD

Target Subjective and explanatory

1. DEMAND FACTOR 1. STRATEGIC ISSUES

(how much the customer wants) (Price target)
2. COST FACTOR 2. COMPETITIVE FACTORS
(actual costs) (Competitor's price)
3. CHANNEL ELEMENT
(Power channel)
4. LEGAL ELEMENTS
(Restrictions and distinctions)

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 PRICE MANAGEMENT MODEL

1 Demand factor
• Độ co giãn nhu cầu
• Co giãn chéo
2 Cost factor • Nhận thức giá trị 5 Channel factor
• Chi phí hiện tại •Quyền lực trong kênh
của khách hàng
• Chi phí đã thực hiện • Các vai trò
• Mục tiêu kinh tế • Lợi nhuận biên

4 Strategic issues
• Chọn thị trường mục tiêu
• Định vị sản phẩm
3 • Mục tiêu về giá 6 Legal factor
Competiton factor • Chương trình marketing • Các
• Cấu
giới hạn chiều dọc
trúc cạnh tranh
•Rào cản thâm nhập • Phân biệt giá
• Dự định của đối thủ

Evaluation and formation

pricing strategy

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 SUPPLY AND DEMAND MODEL
Giá
CUNG

CẦU
Số lượng
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 MARKET STRUCTURE ANALYSIS
Tình huống
Thành phần Cạnh tranh Cạnh tranh Độc
quan trọng hoàn hảo Độc quyền nhóm độc quyền quyền
Tính độc đáo của
Không Không Một vài Duy nhất
sản phẩm

Số lượng đối thủ Nhiều Một vài Từ ít đến nhiều Không

Thị phần của đối thủ

(so với qui mô thị Nhỏ Lớn Lớn đến nhỏ Không
trường)
Đường cong nhu
Co giãn hoàn cầu xoắn lại (co
Co giãn nhu cầu Cả hai Cả hai
toàn giãn và không co
giãn)
Co giãn nhu cầu của
Cả hai Không co giãn Cả hai Cả hai
ngành

Kiểm soát giá Không Một số (quan tâm) Một số Hoàn toàn 5-8
ANALYSIS OF BREAK EVENT POINT

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ANALYSIS OF BREAK EVENT POINT

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 IMPORTANT DECISIONS IN PRICE
MANAGEMENT
• DECISION VALUATION STRATEGY – Develop specific
methods to achieve pricing goals

• DECISION ON PRICE, COSTS AND PROFIT OF

INTERMEDIATE CHANNEL
• DECISION ON PRODUCTS AND PRODUCTS LINES
 Develop pricing structures for complementary and alternative
products

• DECISION TO JOIN BIDDING AND SALE

NEGOTIATION

• BUILDING VALUATION SYSTEM

 Based on the 4Cs: Costs, Customers, Competitors, and Channels.
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 PRICE STRATEGY DECISIONS

 VALUATION OBJECTIVE:

•Target profit
•Price stability
•Market share
•Competitive
•Distinctive
 VALUATION STRATEGY?

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CHANNEL VALUATION

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 VALUATION BY PRODUCT LINE

• VALUATION FOR ALTERNATIVE PRODUCTS

• VALUATION FOR ADDITIONAL PRODUCTS

• VALUATION FOR EACH SEGMENT

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Factors to consider when VALUATION

 + Value to customers
 + Competition status
 + Cost
 + The company's price target
 + Senior leaders of the company
 + Government.

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 Valuation methods

 + Cost-based pricing
 + Value based pricing
 + Pricing based on customer needs

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 Valuation methods

Value-based pricing, steps required:

+ Understanding customer's need to use the product.
+ Identify and analyze variables that create benefits for
customers when using.
+ Identify and analyze cost-causing variables in
customer usage.
+ Analyze cost/benefit considerations in customer use.

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 Price adjustment

 List price and actual price

 Cash discount
 Trade discount (functional discount)
 Volume discount
 End-of-term discount
 FOB price and CIF price

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 Price characteristics in the B2B market

 Compared to the B2C consumer market, price in the

B2B market is less important.
 Business demand is less sensitive to price than
consumer demand
 The form of pricing in the form of competitive offers /
bidding is very popular in the B2B market
 Negotiation on price occurs in almost all cases of
buying and selling in the B2B market

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 OTHER TYPES OF VALUATION

1. BIDDING VALUATION
2. CONDITION:
 The required products and services should be able to be clearly
defined technically for buyers and sellers to understand.
 There is a required number of suppliers to do the bidding
 Suppliers must be willing to bid
 The value of the product must be large enough to cover the
costs of both the seller and the buyer
 Sufficient time is required for the bidding process

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 OTHER TYPES OF VALUATION

2. NEGOTIATION VALUATION
 REASON :
The bidding process is held when the product specifications and
characteristics are clearly known. However, this is not true in the case
of customers purchasing complex products and services
Many institutional clients and influential individuals believe that
bargaining will lead to a fairer price than direct bidding.
Sellers like to negotiate

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 NEGOTIATION STRATEGY

●AVOID: When the company does not need to negotiate with a

partner

● ARRANGE: Necessary sacrifices to keep the relationship

●COMPLEX: Combination of competition and settlement

● COMPETITION: There are winners and losers

● COOPERATION: Working together to solve problems and

win-win

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Thank you for your attention!

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