Then auctions like eBay are another example of dynamic pricing.

It turns out we made this pretty easy.

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

By now, you're intimately familiar with the business model canvass.

If you have your own direct sales people, do the math.

Set a price for this item

So in the last lecture, you remember the business model canvas, all the 9 components of a startup.

Let's take a look.

Then again for your revenue stream.

In customer relationships all the get keep grow metrics, some of which we talked about, some of which you'll discover, what were the customer acquistion costs?

What you really want to think about is not just your internal economics, but the customer insight that you actually have.

Instead of pricing based on cost,

licensing and intermediation and direct sales, etc.

But there's another type of pricing.

What s the revenue stream. That s our strategy.

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

Now we finally come to the last part of the business model canvas.

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

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?

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.

It should be a value based decision.

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

So in our last lectures we talked about value proposition, customer segments, distribution channels, customer relationships get, keeping and growing customers.

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

So one of the interesting equations for every startup is that

That was the customer acquisition cost, CAC, here.

But how do you think about pricing itself?

Is it a license or subscription model?

Another great example is Fidelity.

As we said, the same with pricing.

That's a mistake.

Who are your key partners and suppliers?

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

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

They need to understand the external environment and they need to come in.

And in value proposition, the goal of this is to find out that minimum viable product.

Wouldn't it be great if you could get your hands on some of it somehow?

At clone market, the customers are possibly known because you copied an existing market

We still have earned and paid media driving customers into the funnel.

You use those yellow stickies to put up all your hypotheses and you probably don't have many facts yet but you can make some pretty good guesses about what's a value prop, where the customers are, what your channel is and what your pricing is, but what more can they do is really interesting.