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Product Services Offering and Pricing Part 2CE 2.4: Product/Service Offering and Pricing
Daniela Axinte and Mary Keany2015/2016
Topics for discussion
• Engineering
• Testing
• Patentability
• Production
• Packaging
• Pricing strategies
ENGINEERING
Engineering
Development Prototype engineering design Engineering analysis Design review report
Prototyping All the various components
Finalization Rev A engineering design Software release (if any) Engineering test reports
TRANSFER TO ENGINEERING
Transfer to Manufacturing
Transfer and Tooling Tooling and fixture support Design files Product manual Product packaging
Design Verification Inspection Beta prototype Design verification test report
Pilot Production Production support
TESTING
Testing - Purpose
Validate the product technically
Test The product technically Price points Functionality Esthetics (colors, packaging, etc.) Messaging (on packaging, collateral material)
Testing – Things to Consider
Core Idea Concept vs. Positioning Statement Concept
• A core idea is a few sentences or one paragraph of text or rough artwork.
• It focuses on the main benefit with little emphasis on secondary benefits, emotions, or persuasiveness
• A positioning statement is several paragraphs • The focus is on the main benefit and secondary benefits
including some selling messages and high quality artwork or photos
Testing
Approved factory UL and other special requirements
Special testing for the specific product Examples: FDA, lead-free
Quality testing First products off the production line Ongoing, random quality testing
PATENTABILITY
Patentability
Types of Patents Design vs. utility patent Improvements vs. brand new idea
Patent office International patents Patent enforcement
PRODUCTION
Typical Production Schedule
Tooling Foam molds
Plastic molds
Order Individual components
Packaging
Assembly Packaging Shipping
From the factory
From the warehouse to the retailers
To consumers
Typical Costs*
Tooling Costs Production cost
Components (all listed individually)
Testing cost (if testing is required) Sourcing company commission (if a sourcing
company is being used) Assembly cost Packaging cost Freight and duty
* Per unit
PACKAGING
Packaging the offering
Languages Colors Benefits vs. features Visual images Environmental issues
PRICING STRATEGIES
Pricing strategies
Introductory pricing Good, better, best Promotional pricing Lost leader Competitive pricing
Topics discussed
• Engineering
• Testing
• Patentability
• Production
• Packaging
• Pricing strategies
About PACE-IT Program
This workforce solution was 100 percent funded by a $3 million grant awarded by the U.S. Department of Labor's Employment and Training Administration. The solution was created by the grantee and does not necessarily reflect the official position of the U.S. Department of Labor. The Department of Labor makes no guarantees, warranties, or assurances of any kind, express or implied, with respect to such information, including any information on linked sites and including, but not limited to, accuracy of the information or its completeness, timeliness, usefulness, adequacy, continued availability or ownership. Funded by the Department of Labor, Employment and Training Administration, Grant #TC-23745-12-60-A-53.PACE-IT is an equal opportunity employer/program and auxiliary aids and services are available upon request to individuals with disabilities. For those that are hearing impaired, a video phone is available at the Services for Students with Disabilities (SSD) office in Mountlake Terrace Hall 159. Check www.edcc.edu/ssd for office hours. Call 425.354.3113 on a video phone for more information about PACE-IT Program. For any additional special accommodation needed, call SSD office at 425.640.1814. Edmonds Community College does not discriminate on the basis of race; color; religion; national origin; sex; disability; sexual orientation; age; citizenship; marital or veteran status; or genetic information in its programs and activities.