Then auctions like eBay are another example of dynamic pricing.

It turns out we made this pretty easy.

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

Set a price for this item

Let's take a look.

licensing and intermediation and direct sales, etc.

But there's another type of pricing.

What s the revenue stream. That s our strategy.

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

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

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

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

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

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

The stock market is a real time market.

It should be a value based decision.

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

That's a constructive suggestion!

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

But how do you think about pricing itself?

Is it a license or subscription model?

As we said, the same with pricing.

And this is just because this is less risky, and sometimes they'll even make it on a temporary agreement.

That's a mistake.

So I proposed to the mayor,

I'll give you some examples.

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.

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

And you will see later that pricing is a tactic.

But there are two types of prices.

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

Your suggestion is of no practical use.

His suggestion is worth considering.

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

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That revenue model is different than the pricing tactics.

Who are your key partners and suppliers?

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

I'm going to talk about two stories today.

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There's no haggling.

It's very simple. It's cost plus markup.

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