Sunday, May 17, 2015

In the previous post we reviewed the pricing models. To summarize we have advertising model with deep pockets and critical mass. Large companies can engage in this. Then there is free product with subscrption Services for sale . This is generally not liked by investors there's a model to renter existing distribution especially with a markup 2 to 5 times above the cost of the software. If we don't want this cost model, we could pursue a value mod l where the offering is clear to the customer and the conversion  from basic services to premium services is with a factor that us simple and clean. Of course pricing model may be allowed to be governed by the factors this is   the example of market model. Where competitive forces could be allowed to shape the pricing  taking its a,step further we can have pricing models
That are dynamic. Take Uber surge
Pricing for instance. This is an example of dynamic model which we haven't discovered so far  there us actually an interesting incident that led to this model. In Boston Uber drivers detected a problem where as they signed off at 1am there was a lot of unfilled request piling up. To make the supply elastic, drivers were given the option of more money for working longer.

No comments:

Post a Comment