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

Preston promised his car would sell for 1,000.

Then auctions like eBay are another example of dynamic pricing.

There's no haggling.

No, what happened to us, Chris, is that power, it's priced off the margin.

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

And you know that it's going to be 100.

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

That's a mistake.

It should be a value based decision.

There is no free market for oil.

Now what would happen if these things changed ?

Ken Livingstone was reelected.

Price depends on costs and demand.

Prices depend on the costs and the demand.

But there are two types of prices.

It turns out we made this pretty easy.

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.

But there's another type of pricing.

What s the revenue stream. That s our strategy.

It is traded.

So if the sale is twenty five percent off of x, we could say that the new price, the sale price will be x minus twenty five percent of x is equal to the sale price.

Cost plus market, value pricing, and volume price are all examples of fixed pricing tactics.

Set a price for this item

We are essentially saying the demand, the Price Quantity demanded relationship is held constant and we can pick a price and we'll get a certain quantity demanded.

Let's take a look.

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

So let's talk about our first scenario here, where let's say this curve, people didn't expect prices to change for my e book and now all of a sudden, people expect there's a change in expectation.

One is fixed prices.

As we said, the same with pricing.

But how do you think about pricing itself?

Prices depend on supply and demand.

In companies do you know how much each individual department can sign off for?

But what's interesting is inside of each revenue stream, you may have different pricing tactics.

And then kind of the third common errors, my price hast to be less than my competitor's price.

That just means that the last three yield management, real time, and auctions are examples of dynamic pricing.

And this is very relevant to what's going on in the world today.

We'll just add a markup that is a profit, and therefore we have a price.

And so, we're in a wonderful situation with electricity in the rich world.

Is it a license or subscription model?

What was the market size? What share could you take?

So if I had one closing and modest suggestion,

So something very interesting is happening.

If you expect the future price to go up and the good or the product in question is something that you can store, well, depending on how much you expected to go up, you're probably more likely to buy now buy before the price goes up.

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.