The Price is Right

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The Price is Right. Vicky Odams Membership Services Coordinator Session Objectives. Better understanding of Children England and the work of the FSP Enhance understandings of the need to calculate true costs for services. - PowerPoint PPT Presentation

Transcript of The Price is Right

  • The Price is RightVicky OdamsMembership Services

  • Session ObjectivesBetter understanding of Children England and the work of the FSPEnhance understandings of the need to calculate true costs for services.Identify a number of approaches to set prices and make charges for funders and customers.Identify some of the practical implications for organisations in changing their approach to charging and income generation. Explore some of the tools available to assist groups in working through these processes.

  • Children EnglandWorking with our members and partners to achieve our collective vision

    A society where children and young people are valued, protected and listened to, their rights respected and their families supported

  • Children EnglandLeading membership organisation for the children, young people and families voluntary and community sector.Supporting and representing the sector since 1945Around 180 members reaching 100, 000 like-minded people right across EnglandRepresent the full diversity of the CYPF sector

    Creating a fairer world for children and young people by championing the voluntary organisations which work on their behalf.

  • Children EnglandCapacity building support and information to our members and the wider sectorBuild active networksPromote good practiceStimulate policy debateEnsure the issues that matter most to our members are taken up with decision makersWork in partnershipCreating a fairer world for children and young people by championing the voluntary organisations which work on their behalf.

  • Some of our members....

  • Support for you: Funded

    Strategic Partner Programmes:OverarchingEarly Years and ChildcareFamilies

    Information, briefings and resourcesTraining, seminars and eventsInfluence and representation

    Midlands Regional Manager: Sue Thomas sue@childrenengland.ork.uk07432593635

  • Support for you: FundedHow to engage:

    Sign up for email news, training and events, regional updates and/or workforce development bulletins

    Visit the website for free resources, briefings and tools

    Follow us on LinkedIn (search Children England)

    Follow us on twitter @childrenengland

  • Support For You: MembershipFull membership from 60 to March 2013!

    Full Information ServiceMember only networks, discussions and webpagesMember only grant schemesNetworking, training and resourcesMember discounted services (publications & subscriptions; training & events; inhouse training & consultancy; products and services; office support, supplies and services)Community Care Inform

  • Unit Pricing: The Big Picture

    AusteritySustainabilityPersonalisationDirect PaymentsChanging Business Models (B2B)Payment By Results

    Understanding the true cost of your services will be key to a successful response to a price focussed market!

    So where do you start?

  • Getting started with pricing: know your productsActivity:

    What are your services & products?Who are your customers and consumers?

    What is an appropriate unit of service?What are the implications of a move to charging/ income generation for this service?

  • Getting started with pricing: calculating your costsCosts = total expenditure for a service or productPrice = total income generated from that service or productMargin = difference between the two surplus

    What to include? Everything including direct, overhead, fixed and marginal & variable costs dont let them eat into you margin!Once you know the true cost of your services you can start to make informed decisions about price & engagement.Be logical it may not be necessary to cost every single product or service

  • Getting started with pricing: strategies Now you know your costsCompetitionValue BasedSweetenersPerceptual PricingLoss LeadingDiscountsStock Control

  • Getting started with pricing: Tools & Support

    Children England: Love Your TenderChildren England: The Price is RightACEVO: How to cost appropriately with personal budgets

  • Vicky OdamsMembership Services Co-ordinator07966 041

    ************Direct costs are directly associate to the particular service or productOverheads are costs shared across a number of products and servicesFixed costs are costs are those that cannot be changed however much you deliver (e.g. building costs)Marginal costs are important in some services (e.g. personalised services) where one extra unit may significantly increase your costs (e.g. transport or staffing expenses) Variable costs are those that can fluctuate (e.g. volunteers- but what if they leave and you have to provide paid staff, costs of fuel increases etc)****