Then auctions like eBay are another example of dynamic pricing.

It turns out we made this pretty easy.

Set a price for this item

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

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

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

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.

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

But how do you think about pricing itself?

It should be a value based decision.

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

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

The stock market is a real time market.

As we said, the same with pricing.

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

That's a mistake.

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

There's a huge slack in that system with the right pricing we can undo that.

And you will see later that pricing is a tactic.

Is it a license or subscription model?

But there are two types of prices.

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

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.

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

That revenue model is different than the pricing tactics.

There's no haggling.

How hard can that be?

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I'm going to talk about two stories today.

Negotiated prices is a dynamic price.

You're going to have an incredible advantage in thinking about revenue and pricing.

Preston promised his car would sell for 1,000.

I mentioned them earlier, but a common startup error on day one is let's price on cost.

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

Price

Improvements

This is non uniform, depending on what action we pick now.

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