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Order #104
How to Price Graphic Design & DTP Services
(Pricing Guide for Desktop Services - 5th Edition)
<Click Here To Order>
Table of Contents
Introduction
- Chapter 1 - The Concept of Pricing
- What's Included in a Price?
- What’s Markup Got to do With It?
- Factors Affecting Price
- Market Type
- Market Size
- Demand
- Economy
- Competition
- Perceived Value
- Looks and Location
- Law and Government
- Profit Objectives
- Cost
- Chapter 2 - Cost and Price
- Determining Cost
- Fixed Costs
- Variable Costs
- Direct Costs
- Indirect Costs & Overhead
- The Overhead Factor
- Burden Rate
- General & Administrative (G&A) Costs
- Cost of Services Sold
- Calculating the Cost of Sales & Support
- Productivity
- Calculating Productivity
- Measuring Productivity by $/FTE
- Factors That Affect Productivity
- Budgeting Costs by the Hour
- Calculating Budgeted Hourly Costs
- Putting It All Together
- How Costs Vary During a Project
- Cut Costs, Improve Profit
- Chapter 3 - Marketplace and Price
- Market Analysis
- Estimating Demand for Your Services
- Elasticity of Demand
- Factors that Affect Demand Elasticity
- How to Evaluate Demand
- Responding to Elasticity
- Doing Your Own Market Research
Chapter 4 - Competition and Price
- Analyzing the Competition
- Collecting Competitor Information
- Estimate Number and Location
- Visit Their Web Sites
- Who Are Your Competitors?
- Look at Their Printed Display Ads
- Read Their Press Releases
- What Organizations Do They Join?
- What Else Do They Do for Publicity?
- Which Competitors are Closest?
- What About Their Financial Condition?
- How Much are They Charging?
- With Results in Hand
Chapter 5 - Charging for Services
- Charging for Work or Output
- Charging by the Character and by the Line
- Charging by the Page
- Charging by the Hour
- Charging by Shop Rate
- Charging by the Job - Flat Rate Pricing
- Incorporating “Other” Charges
- Preflight
- Dealing with Difficulty
- Use a Time in Tenths Chart
- Include the Cost of Meeting
- Set-up Fees
- Charging When Time Limits are Exceeded
- Charging a Minimum Rate
- Charging for Rush Jobs
- Charging for Alterations and Corrections
Chapter 6 - Pricing Strategies
- Developing a Strategy
- Selecting Which Services to Offer
- Defining Your Business Objective
- Pricing Strategies to Consider
- Cost-Oriented Pricing
- Markup Pricing
- Cost-Plus Pricing
- Cost-Volume Pricing
- Targeted Profit Pricing
- Targeted Return-on-Sales Pricing
- Targeted Return-on-Investment Pricing
- Shop-Oriented Pricing
- Floor Price Plus Some
- Percent Capacity Plus Margin
- Net Revenue, Inventory Sell Off
- Single Price, Any Customer
- Desired Pay Plus
- Only Pricing With Commas Accepted
- Pricing by Expertise
- Competitor-Oriented Pricing
- Match the Competition
- One-Half
- 3X Better, 3X Below
- Straddle Pricing
- Competing Head-On with Lowest Price
- Market-Oriented Pricing
- New Service Pricing
- Leadership Pricing
- Pricing in the "Zone"
- Loss Leader Pricing
- Customer-Set Pricing
- Accepted As Customary
- Subjective Pricing
- Tiered Pricing
- Penny Pricing
- Composite Pricing
- More Smart Strategies
- Analyzing Customers by Profit
- Measuring Market Share
- Donating Services
- Don't Give Away the Store
- Adding Loss Leader Jobs
- Adding Products and Services
- Pricing in a Competitive Market
- Pricing Assumptions by Competitors
- Countering Cutthroat Prices
- Beating the Competition
- The "10 Plus 10" Strategy
- Value Pricing
Chapter 7 - Pricing Tactics
- Overcoming Pricing Problems
- Price It Right the First Time
- Pricing is a Policy
- Reducing Your Prices
- Coupons
- Send Them a Check
- Rebates
- Discounts and Allowances
- Giving Volume Discounts
- Discounting and the Law
- Calculating Sales Need to Make Price Cut Work
- The Capacity Trap
- When Price Cutting Works
- How to Handle a Price Cut
- Raising Your Price
- How to Know It’s Time
- How to Handle Price Increases
- How Much Can You Raise Your Price?
- Subtle Ways to Raise Prices
- Handling Objections to Price Increase
- Choosing the Right Price
- When the Price Seems Too High
- How to Break Out Top Profits
- Chapter 8 - Business Numbers
- General Accounting Principles
- So What is Profit?
- Return on Investment (ROI)
- Calculating ROI on Marketing & Sales
- Return on Assets (ROA)
- Markup and Gross Profit Margin
- Break-Even Analysis
- Sales Volume Method
- Sales Quantity Method
- Finding Break-Even on Advertising
- Margin Analysis
- Finding Optimum Project Price
- Improving Profit With Margin Analysis
- Chapter 9 - Managing by the Numbers
- Analyzing Financial Numbers
- The Critical Number
- Cash on Hand
- Income
- Expenses
- Cost of Services Sold
Expenses as Percent of Gross Income
- Accounts Receivable
- Inquiries Received
- Purchase Orders (Sales)
- Conversion Ratio
- Number of Customers
- Hours of Service Sold
- Average Sale Amount
- Gross Profit
- Net Profit
- Project Turnaround Time
- Projects Pending (Backlog)
- Revenue Per Employee ($/FTE)
- Monitoring Schedule
- Cash Flow
- Analyzing the Profit in Competitor Bids
- How Much Can You Actually Earn?
- Best Business Practices Model
- Chapter 10 - Estimating, Bidding & Negotiating
- The Basis for Good Estimating
- Applied Estimating
- Specifying a Job
- Create an Estimating Form
- Example - 8-Page Newsletter
- An Estimate is Not a Bid
- Getting Bid Opportunities
- Responding to a Request for Bid
- Symptoms of a Poor Bid Response
- Bidding Against the Alligators
- The Case for Market-Based Bidding
- When to Turn Down A Job
- Submitting a Formal Quote
- Negotiating Techniques
- Getting Help on the Negotiating Process
- Put the Agreement in Writing
- Omission in Many Standard Contracts
- Follow Up On Your Estimates
- When Estimating Your Next Job
- Tracking Bids and Buyer Decisions
- How Long From Proposal to Contract?
- Bidding Tips
- Quoting a Price Over the Telephone
- Dealing With Price Fishing
- Quoting a Completion Time
- Chapter 11 - Street Smart Ideas
- Networking for More Business
- Selecting the Group
- Preparing for the Encounter
- Ready, Set, Network
- Working the Room
- Follow-Up
- Listening for Profit
- Body Language in Business
- Getting Paid
- Final Food for Thought
Appendix
Index
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