Then auctions like eBay are another example of dynamic pricing.

It turns out we made this pretty easy.

So really the stock has no value.

Set a price for this item

Let's take a look.

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.

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.

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

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?

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

Is it a license or subscription model?

But how do you think about pricing itself?

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

That's a mistake.

That sounds about right. It's within the right range at least.

That revenue model is different than the pricing tactics.

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.

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As we said, the same with pricing.

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

I'm going to talk about two stories today.

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

Negotiated prices is a dynamic price.

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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I hope you didn't pay too much.

Preston promised his car would sell for 1,000.

For them to get a battery that goes 120 miles is an extension on range, not a reduction in range.

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.

This controls how strictly to match the given value.

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