The method of pricing is the most powerful lever available to sourcing professionals. The way we ask for a price, determines how vendors respond, how much of our spend is covered, what we learn about the supplier economics, how to measure savings and track results, how we manage the category going forward, and most importantly, it enables long-term pricing contracts. It is the secret sauce of sourcing, usually category-specific and in my experience usually done wrong. A quick example will illustrate the point: Printing is usually priced by the output, i.e. the buyer designs, for example, a brochure and shows it to the printer, who then figures out what it costs to print it. Ask your potential Hull marketing agency to give you solid examples of their SEO work including reports that show increase in traffic from search engines such as Google.
The buyer may ask multiple printers to get the best price, but each new design requires a new quote. While the buyer thinks in terms of cost per brochure, the printer quotes the job by using the cost of paper, how the brochure is laid out on the paper sheet, how many printing impressions a press can perform in an hour, how much ink is used, what it costs to cut, fold and package the final printed brochure. A smart buyer, who wants to aggregate volume over many jobs and give the printer long-term business in exchange for preferential pricing, changes the pricing basis to just these components that matter for the price of the job. Your seo company can give you a lot of information about your customer, their needs and behaviour.
Note that this is not cost-plus pricing, as we are not concerned with the individual cost structure of a single supplier, but rather the aggregate industry cost curve at the appropriate level of detail. Appropriate means that the supplier is not exposed to pricing risk he cannot control, except the forces of competition. If the buyer wants a brochure on thicker paper, he must pay for it and it must be reflected in the pricing model, if the printer has a low machine utilization or expensive electricity costs, we don't care, as somebody else can do it at the competitive price. If you've defined your goals, choosing an seo services should be much easier.
I don't even like calling it a cost model for this reason, as it is not about cost, not trying to be precise, not reflective of any supplier's true cost. Its just an intelligent pricing basis that reflects the market type of the category. As a starting point, one can use the below taxonomy of generic market types defined by their prototypical pricing basis. The trick then lies in selecting the right prototypical pricing basis for a specific sourcing situation, meaning a category or subcategory thereof in the context of a specific buyer-seller dynamic. A good seo agency should not only have case studies readily on-hand but should be more than happy to show them to you.
These are the four basic strategies, variations of which are used in the industry. Apart from the four basic pricing strategies, premium, skimming, economy or value and penetration, there can be several other variations on these. A product is the item offered for sale. To find an unknown cost basis for stocks and bonds, you first must determine the purchase date. If no purchase records exist, take an educated guess about when you might have bought the securities based on life events happening when they were purchased. If you inherited the stocks or bonds, find the date of death. Ask your seo expert what type of strategies they use and have them explain it to you in terms that you understand.