2 Responses

1. work from two directions…
   Hi Patrick,

   This is an interesting problem we often have, but as a general rule we work from two directions.

   Firstly, consider the amount of work involved in preparing the course, including any client visits (if applicable), the cost of the venue, materials, travelling and overnight expenses, etc; building up to a total ‘cost’ from your perspective.

   Then take a look at the market and see what your competition charges. Where large differences in price exist, try to identify why this is the case. For example, large organisations may have large overhead costs to cover, or equally may offer certain courses at cheaper rates to ‘entice’ new customers.

   Then decide how you want to position yourself – beware that low price may give a perception of low quality (whilst this is not necessarily the case) and the same product may apperal to different customers simply by changing the price.

   In any case, you need to understand how your target customer perceives you and the course you are offering.

   I’ve never (yet!) found a magic formula, but I hope this helps.

   Kind regards,

   Colin Hamilton
   email: colin@bis-improve.co.uk
   web: http://www.bis-improve.co.uk

2. Formula
   I agree with Colin’s succinct answer.

   A company that I previously worked for, had to quantify the training unit’s expenditure because there was the threat of outsourcing. We followed similar guidelines to Colin’s suggestions.

   After the process was completed the IT training unit was commended for being the most profitable section in the company and the most competitive compared to other similiar training organisations.

   This process also validated the role of training to the members of the board and we instituted a charging process for delegates who did not attend training sessions (without 48 hours notification).

   We raised the profile of the unit and increased attendance rates due to recharging for non attendance.