That is Scenario E.

So in the last lecture, you remember the business model canvas, all the 9 components of a startup.

Then auctions like eBay are another example of dynamic pricing.

The price of this used car is reasonable.

Price

A man's worth lies in what he is.

They want to encourage high volume purchases, and so they have stepped pricing that is oriented to create volume.

And so the first of these that I will focus on the first is the price of competing products.

For any given price, it's going to lower the quantity demanded.

Let's say a guy invents a better light bulb.

The price of admission.

How do they currently buy and what's the revenue stream that's associated with these kind of pricing tactics?

Par value

Redemption

Present value

Present values

Future value

Dr. Price?

Wenneck, Price, Garner.

You seem most fortunate in having an employé who comes under the full market price.

Software can do it faster.

By now, you're intimately familiar with the business model canvass.

The goal of Tesla has always been to have a sort of three step process, where version one was an expensive car at low volume, version two is medium priced and medium volume, and then version three would be low price, high volume.

I could actually price on specific customer segments or on features I know they need.

We haven't had a price increase in the last five years.

I can produce cotton thread

How could you have prices that kind of move?

You would be correct that Company B was cheaper.

Alright?

Who are your key partners and suppliers?

It turns out we made this pretty easy.

It's not about low cost.

Well, let's put a tax on oil that is a non revenue tax, and it basically says for the next 20 years, the price of oil will be whatever you want, 35 bucks, 40 bucks.

It has been made possible, by the way, for certain other different reasons.

And finally, American families also pay a price for oil.

If you ever think about it, pricing that you negotiate yeah, we kind of have this price on paper, but that's just the starting point of the conversation.

It's the best price that someone's willing to give you for something.

Our price is considerably higher than the current market price.

See...notice I get my axes confused

They need to understand the external environment and they need to come in.

And that caused housing prices to go up.

Let's look at these cases a little bit more carefully and figure out what's going on.

Because to get that banana to your store, you need to use some gasoline.

The Price of Competing Products. WRTlNG

So for example, let's think about Scenario, a Scenario 2.