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. 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 England Working 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 England Leading membership organisation for the children, young people and families voluntary and community sector. Supporting and representing the sector since 1945 Around 180 members reaching 100, 000 like- minded people right across England Represent 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 England Capacity building support and information to our members and the wider sector Build active networks Promote good practice Stimulate policy debate Ensure the issues that matter most to our members are taken up with decision makers Work in partnership “Creating a fairer world for children and young people by championing the voluntary organisations which work on their behalf.”

Some of our members....

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Unit Pricing: The Big Picture Austerity Sustainability Personalisation Direct Payments Changing 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 products Activity: 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 costs Costs = total expenditure for a service or product Price = total income generated from that service or product Margin = difference between the two – surplus What to include? – Everything including direct, overhead, fixed and marginal & variable costs – don’t 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 costs… Competition Value Based Sweeteners Perceptual Pricing Loss Leading Discounts Stock Control

Getting started with pricing: Tools & Support Children England: Love Your Tender Children England: The Price is Right ACEVO: How to cost appropriately with personal budgets

Vicky Odams Membership Services Co-ordinator