But this is, of course, an optimistic scenario. Let's think of other scenarios.

The new model will retail for 30,000 yen.

Sell, sell, sell.

So let's say it's 1.05.

Well, I won't define the vehicle for you, but I will define the cost for you.

Cost of goods sold, well that's just the cost of the goods sold.

So over here let me draw a better graph than that.

Notice that the selling price is written in red.

This is telling us that if the selling price increases, then this will become a larger negative number so we're going to sell fewer, we're gonna sell a smaller quantity.

Then again for your revenue stream.

So it turns out that those fuels and technologies exist, and this is an example of that this is a solar LED light bulb that we sell for a retail price of about 10 dollars in rural Haiti.

Over here, this axis right here is going to be the selling price,

So, let's say, I cut prices below Imran because I realize this increase price strategy was kind of silly.

And their value proposition, as even they realized later, was pretty unclear.

Sold

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What do you sell?

Your direct sales people can actually be the one talking to the consumers directly or they could be the ones selling to system integrators,

Let's say this was for 2008.

So what, how can we figure out how to maximize this profit?

It's a fantastic device that we want to get in the hands of as many people as we can.

Now the East India Company would sell the surplus tea directly through hand picked consignees in America.

But it's also a morally important one.

We call it a select opportunity .

I had to break a machine open.

This is the PC guy over here.

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

Un bundling is just a fancy word for saying can I somehow decompose the product into separate pieces, giving some for free or if you're lucky, charging for everyone of them.

In a physical channel, a direct sales force are sales people that work for you directly and typically sell directly to the end user.

He's like, you know what, we have to match his prices.

Or if we just wanted to round to the nearest penny, since we're talking about selling something, this optimal profit, this optimal profit, will happen at a selling price of 23 and 30, 23 and 33 cents.

My dad sells tractors.

So now they're in it together.

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.

We get 30 s squared plus 1400 s minus 16000.

And the reason why they're the sell side is because they're always selling you stuff.

I'm a salesperson.

Our liquor license!

What's so awesome about a queensize futon sale?

This guy is a Bible salesman.

So the first thing when you sell a widget is you make it and you just sell it.

So for some industries, distributors play a pivotal role in the distribution of the product.

If it turns out you're right, we could sell dealerships now, which sounds crazy.

And then the next question, obviously, is who are they selling ads to?

A retail merchant buys wholesale and sells retail.