Understanding the market place – demand for the service, ability to pay, competitors, charging policies

Once you understand what you have to offer, you need to think about the demand for that service.  Who wants the service?  Who needs the service?  Who can afford to pay for the service?  How can you provide the service to those who cannot afford to pay?

Do you know exactly how much what you do costs in real terms?  Do you cover those costs currently?

If you are aware of other organisations providing similar services, do you know how much they charge or how they create their pricing structures?

Unless you understand the market place in which you are operating you will not be able to meet the demand for the service and cost it appropriately.

For example: it is not sustainable if the service you provide that is most popular costs you more to provide than you are paid to deliver it. 

In this situation you need to know how much your shortfall is so that you can combine different fundraising sources to pay for the service. 

You do not need to stop delivering expensive services you just need to understand how you can pay for them whether through grant, contract, fundraising or better still your own income generation.

Useful links

ECM - Joint planning and commissioning framework for children, young people and maternity services [pdf 1.02Mb]

ECM - Other joint planning and commissioning guidance and tools

Sheffield out of school network – Survey of demand questionnaire for adults [pdf 44kb] and children [pdf 2.12Mb]

Together for Children - Toolkit for reaching priority and excluded families

Welcoming social enterprise into health and social care: a resource pack for social enterprise providers and commissioners. Visit the Department of Health website.

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