Generating Cost-to-Serve Automagically
How to Reduce the Time and Effort Required to Estimate the Indirect Costs of Serving Different Customers
Generating relatively accurate cost-to-serve estimates is often much more difficult than people first anticipate. But what if there was a way to estimate indirect cost-to-serve systematically? What if you could generate cost-to-serve estimates "automagically"? In this tutorial, you will learn:
- The two foundational concepts that can be combined to form the basis of a more timely and automatic system.
- The three basic process steps for leveraging the concepts, developing the system, and fine-tuning the outputs.
- Two approaches for estimating relatively accurate costs for various activities that contribute to cost-to-serve.
- Six short- and long-term benefits of a systematic approach for capturing and reporting customer-level costs.
This tutorial is just one of hundreds of educational resources you get access to as a PricingBrew Journal subscriber.
More Subscriber-Only Resources From Our Library
-
Building A Center Of Excellence Around Pricing
For many companies, the Pricing Center of Excellence model is finding favor over centralized pricing teams. This guide exposes the critical differences and steps to getting started with this popular model in your own organization.
View This Guide -
When to Choose Profit, Revenue, or Both
As pricing people in B2B, we all have to deal with the "corporate schizophrenia" around revenue versus profit. In this conversation with Lydia DiLiello, we discuss how pricing teams can best deal with this oftentimes frustrating dynamic.
View This Interview -
Pricing for Customer Lifetime Value
In B2B, retaining good customers over time is essential for survival. That's why Customer Lifetime Value (CLV) has become such an important metric. So what do B2B pricers really need to understand about CLV?
View This Webinar -
Pricing Psychology in B2B
While businesses do indeed have systems and policies to ensure greater rationality and consideration in purchasing, certain psychological factors can still have tremendous influence over price perceptions.
View This Webinar
Why Subscribe?
When you join your peers and become a PricingBrew Journal subscriber, you get immediate access to this tutorial as well as all of these other features:
- Training WebinarsDozens of on-demand webinars covering crucial pricing topics with new webinars every few weeks
- On-Demand LibraryA searchable library of hundreds of concise guides, tutorials, cases, assessments, and research reports
- Expert InterviewsLearn from others in pricing who’ve “Been There and Done That” through our Expert Interview Series
- Help DeskAsk our team of analysts for advice, insights, and perspectives on your specific pricing challenges