KVC Economic Value Training

Economic Value is the second component of market value. It is determined by means of an end-product cost - customer goal ratio. The numerator of an economic ratio is the customer's detailed cost picture, which shows the variable and fixed costs associated with the manufacture, sale and distribution of products and services. The denominator deals with the customer's goals and objectives. The customer's aim is to achieve the best economic ratio for its own business. This is achievable by either improving the numerator (customer's cost of products and services) and/or improving the denominator (enabling the customer to achieve its goals and objectives). Economic ratios begin at a level of 1.3 or higher and asymptotically approach a level of 0.8 to 1.0, depending on the nature of the product portfolio and the maturity of the market.

whatever your product
or service, proven
KVC methodologies...
...will teach you how to
maximize it's value in the
real world marketplace

Approach: Uses an adaptable Economic Value model to train participants how to design and utilize these models to optimize profitability. Economic Value models are a prerequisite for economic value pricing. Excel files are prepared that are readily adaptable to other products and services. Participants are taught how to design and use Economic Value models for economic value pricing and competitive intelligence purposes.

Benefits: Economic Value models can be used to guide process development to achieve economic value leadership. Economic Value delineates competitive cost positions, establishes economic value pricing and provides marketing direction.

Curriculum: Participants will receive a workbook and a CD that contains files that are conveniently adaptable to other products and services. A laptop computer with a CD ROM drive and Microsoft Office Software (Word, Excel and Power Point) are prerequisites. Attendees do not have to be expert in Word, Excel or Power Point software but rudimentary computer proficiency and knowledge of the basic function of this software is desirable.

This Economic Value Training Program is intended for beginning, middle and senior level professionals. Classes can be grouped according to experience level.

Download Economic Value
Knowledge Block Leaflet (pdf)