There's no haggling.

But there are two types of prices.

One is fixed prices.

Then auctions like eBay are another example of dynamic pricing.

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

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

Here's how it is. It's the fixed price.

The first three cost based pricing, value based pricing, or volume based pricing are all examples of fixed pricing tactics.

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.

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

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.

(Laughter) Audience member

And what shall we do?

On the left hand side, labor is is under a high cost pressure.

The chairs are aligned up in rows and columns.

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

I love Lego Mindstorm, is which a wonderful way to experiment with these things.

It turns out we made this pretty easy.

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

And the floor is solid, too, grooved.

What s the revenue stream. That s our strategy.

A couple things about entities

Does the price include breakfast?

Let's take a look.

Last point, last graph.

It's not about low cost.

It should be a value based decision.

Set a price for this item

That's a mistake.

But it's the case in many parts of the U.S. So actually to some degree, this, the dollar value, the property tax is driven by this home value assumption up here.

So if my operating profit is zero, we know my overhead.

We've been talking about the law of demand and how if we hold all else equal, a change in price, price goes up, the quantity demanded goes down and the price goes down, the quantity demanded goes up.

legitimate or otherwise.

So it knows, or at least there is computer readable information in the medium itself.

Preston promised his car would sell for 1,000.

This is a part of the nose of the Animaris Percipiere.

How could you have prices that kind of move?

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.

Is it a license or subscription model?

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.

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

You need to be constantly thinking what's the right revenue stream for the right segment and, within that, what's the right pricing model.

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.

So if I had one closing and modest suggestion,

The number of points you need to get something close grows exponentially with the number of dimensions.