Then auctions like eBay are another example of dynamic pricing.

It turns out we made this pretty easy.

Feeling underrated and unappreciated.

But there are two types of prices.

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

Man, I even paid retail for it.

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

There's no haggling.

You have a sales force and you're selling directly to the end consumer.

Set a price for this item

Preston promised his car would sell for 1,000.

Especially given wall street's recent financial difficulties.

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

Let's take a look.

We'll allow a 5 percent discount off list prices.

licensing and intermediation and direct sales, etc.

One is fixed prices.

But there's another type of pricing.

What s the revenue stream. That s our strategy.

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

Prices are stable these days.

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.

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

This improves over the existing value.

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

Wholesale prices had been basically flat.

Prices have been stable for the past three years.

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

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

Variables from outside PHP

But how do you think about pricing itself?

The stock market is a real time market.

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.

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

Now something we should consider is that no end user pays was priced.

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.

That's a mistake.

And you will see later that pricing is a tactic.

Now what would happen if these things changed ?

Is it a license or subscription model?

So if I had one closing and modest suggestion,

(English captions by Andrea Matsumoto from the University of Michigan)

So I'm just going back to what I said earlier.