Then auctions like eBay are another example of dynamic pricing.

It turns out we made this pretty easy.

Madam is angry because business is bad.

The expenses average ten dollars a day.

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Set a price for this item

Let's take a look.

But the price went to 140 dollars from 500.

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.

licensing and intermediation and direct sales, etc.

But there's another type of pricing.

What s the revenue stream. That s our strategy.

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?

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

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

Then again for your revenue stream.

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But how do you think about pricing itself?

The stock market is a real time market.

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

That's a mistake.

The stated price does not include labor charges.

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.

As we said, the same with pricing.

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

You'll also the mean, which we'll talk about later, is actually the same thing as the average.

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.

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.

How hard can that be?

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In the next video we'll see that in reality we consume many more than two things but two things, and they spend 60 of their money on apples and they spend 40 of their money on bananas.

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I'm going to talk about two stories today.

And they're looking for ways to extract value out of every purchase that they make.