They provide value for money.

We provide value for money.

I'll provide value for money.

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

Notice they were beginning with a series of hypotheses about their customer archetype.

I'm a farmer now.

We offer low cost prefabricated houses.

Let's take a look at some value proposition examples.

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

I'll give you some examples.

But today, we're going to talk about the first box, value proposition.

We essentially sold them at 10 a share.

Your suggestion is of no practical use.

His suggestion is worth considering.

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

The next is channels.

More than likely we'll make money from royalties and commercial licensing, etc.

I can't emphasize enough that the business model canvas is just a start.

Who are your key partners and suppliers?

And then, as they went down, they kind of understood.

Now what's our mantra of this day and age I wonder?

Square team did wonderfully, they actually started with the archetype.

Code contributions

So those were kind of missing, but again starting with pains and gains was pretty good for their value proposition.

let me say norm distribution.

And that commission, at least historically, has been 7 of the offering.

Software can do it faster.

And the marketing complexity, would simply just say toner for you printer.

His suggestion is worth considering.

His proposal counted for nothing.

Now, what s interesting is if you remember value proposition describes not only the features but also the pains and gains that they see, that they ve actually craved for the customer and that the goal is to figure out what the MVP is.

The value proposition for a company that's selling services is kind of the same.

They didn't make loans and then sell the loans.

He gave the world unit tests.

I think his suggestion is worth considering.

Because the alternative to pricing on cost is pricing on value.

So archetypes really helped us understand our customers, they value prop, the revenue and some of our pricing tactics.

So, don't worry if your assumptions were wrong here on your revenue model.

So again you could start either with customer segments or you could start with a product and value prop itself, it really doesn t matter.

Southwest took on the airline industry by bringing up the traditional hub and spoke model and providing just very limited services but for an extremely low price.

Offer shutdown options

Publisher

So for sports jersey owners, an annual subscription made sense, but for single game attendees, pay per rental made sense.

I deliver the list, Max delivers Job.

Now we finally come to the last part of the business model canvas.