Exploring Business Models: Pricing and Revenue Managment You Tube Pf 1« .iixl ntfin u*« outlay* D) questions to be asked i. hit much ihould Ik charged mi ihu i .what ihnulii be rhr bailiforpricing? j. who should collect payment? A) what make us buy? tu'""m*'i WDn'1 buyunlete **y J perceive thai the benchl* Ihey business model are obtaining In thi* value Pi.-h.1n5r eirecd the Imam lal and other cows * notably time :-diai die"1 iivtur B) three legs of pricing strategy C) revenue management 1. cost-based pricing 2. competition-based pricing Hxdo»i .. utiV.-. - . ■ ..■•„:ll. }. value-based pricing «< 4_ whetc shi.nld payment In- made S when should payment he made? (V how* "hould payment be made' 7. hnw shnuld prices he In the target market' Exploring Business Models: Pricing and Revenue Managment _ Service marketing mix: / g Price and other user outlays Service marketing mix: Price and other user outlays A) what make us buy? ( customers won't buy unless they perceive that the benefits they are obtaining in this value exchange exceed the financial and other costs - notably time and effort - that they incur business model through effective pricing sal are trnasfomred into revenu ;iness model through effective pricing sales are trnasfomred into revenues B) three legs of pricing stratég B) three legs of pricing strategy i. cost-based pricing 2. competition-based pricing 3. value-based pricing .f,i.h«,,.'.|,, rliiMi > in • ur lun v 1'itn he* .« prtcrlx unlj vJar . cost-based príčin ^ ^ g supplier still have the cost even if no services were sold (e.g., rent, taxes, salaries) variable cost cost associated with an additional customer, very low (e.g., ticket to cinema, serving food) semivariable cost expenses that rise or fall in a stepwise fashion (e.g., adding extra bus) contribution difference between the variable cost of selling an extra unit of service and the money received from the buyer break-even analysis at what sales volume level a service will become profitable activity-based costing cost related to all activities directly or indirectly related to production, marketing and delivery $120 100 80 40 ?0 Total revenue t S2B.000 point Total cost (Fixed costs + Variable cosls) Loss \- Variable cosls \- Fixed costs 200 400 600 600 1,000 1.200 QuantEty of pictures 2. competition-based pricing monitor what competitors are charging and try to price accordingly monitor what competitiors are charging and try to price accordingly some of circumstaces reduce price competition • non-price-related costs of using competing alternatives are high • personal relationships matter • swithcihg costs are high • time and location specificity reduce choice only reacting to competition prices can lead to lower prices than necessary - take into account ei customers for each o nonmonetary) and sv - think about compet reduce price competition only reacting to competition prices can lead to lower prices than necessary some of circumstaces reduce price competition non-price-reiated costs of using competing alternatives are high personal relationships matter swithcihg costs are high time and location specificity reduce choice only reacting to competition prices can lead to lower prices than necessary - take into account entire cost to customers for each offering (monetary and nonmonetary) and switching cost - think about competitors' capacity le Sum of all perceived benefits value) minus die sum uf all perceived costs of service- value-based pricin - customer pays mart tor a service which he/she thinks it is worth - we have to learn how customers perceive service value lcm - customer pays more tor a service which he/she thinks it is worth - we have to learn how customers perceive service value et value sum of all perceived benefits (gross value) minus the sum of all perceived costs of service consumer surplus difference between the price customers pay and the amount the would actually have been willing to pay to nhtain thp Hpsirprl hpnpfit<: et value sum of all perceived benefits (gross value) minus the sum of all perceived costs of service consumer surplus difference between the price customers pay and the amount the would actually have been willing to pay to obtain the desired benefits surpiu enhancing gross value increase the gross value of a service by adding benefits to the core product and by enhancing supplementary serivce r*f*\Y\ qi -I vyi f*Y difference between the price ^l_/lloL4.111Cl customers pay and the 1 amount the would actually §W I"T) 1U.S nave ^een w'mnsto Payto *- obtain the desired benefits enhancing gross value increase the gross value of a service by adding benefits to the core product and by enhancing supplementary serivce strategies to communicate the value of a service unicate the value of a service i. reducing uncertainty possible ways: - benefit-driven pricing - flat-rate pricing I.-.-... .... 2. relationship pricing building loyalty by price and nonprice incentives ■•(.iliuoUTil. K^ii-nHxiiH m»i 3. cost leadership challenge when pricing low is - la convince customers Chat they shouldn't equate price with quality but instead feel they're Retting good value • to ensure that economic costs are kept low enought to enable profits 4. managing the perception of value quality of some services can be iceeecoA -ifiiT rnni'iimniinn . i. reducing uncertainty possible way - benefit-dri - flat-rate pr :ainty possible ways: - benefit-driven pricing - flat-rate pricing pricing that aspect of the service that benefits customers directly (e.g., log-on time, what was retrieved) ENTREPRENEURS D BUSINESS MANAGERS CLICK HERE (small business) DESIGN Users don't love usable websites They just hate the poorly designed ones Pr £t$ entity Is "J^ :ainty possible ways: - benefit-driven pricing - flat-rate pricing involves fixed price in advance of service delivery c o G c z G □ o □ □ □ □ G □ O c G O □ iweds rrpair ERVIC :. G !_ n G G :' O G :G □ G G G :_ :_ G O G O completed REMOVE & REFILL UP TO 5 LITRES OF OIL SUPPLY + REMOVE & REFIT OIL FILTER LIGHT GLOBE INSPECTION SUPPLY - REMOVE AND REFT WIPER BLADES TYRE ROTATION 8c PRESSURE CHECK FRONT BRAKE INSPECTION TOP UP ALL RESERVOIRS DRIVE BELT INSPECTION C.V. BOOT INSPECTION UNIVERSAL JOINT INSPECTION ELECTRONIC BATTERY CHECK SERVICE DOOR.BOOT & BONNET LATCHES FRONT WHEEL BALANCE REAR BRAKE INSPECTION SPARE TYRE INSPECTION AND PRESSURE CHECK REMOVE AND REFIT AIR FILTER REMOVE AND REFIT FUEL FILTER DIFF OIL INSPECTION TRANSMISSION OIL INSPECTION POWER STEERING INSPECTION BRAKE SYSTEM FLUSH COMPLETE SUSPENSION INSPECTION EXHAUST INSPECTION COOLANT QUALITY TEST , GST + ERA LEW W/SHOP SUPPLIES FUEL FILTER AIR FILTER RECOMMENDED OPTIONS a ENGINE FLUSH $19.50 Q FUEL SYSTEM CONDITIONER $ 19.50 VAN S 4X4 SURCHARGE $38.00 *Ö1 o 7.70 9.90 A FIXED PRICE PROJECT BY GASHARMA WWW.TDONDDD.COr.': What do you mean you want more details! J said J want BOA, and Wab2.G and a\\ that thing Now telí me how much will it cost A FIXED PRICE PROJECT - BY GASH ARM A www.toondoo.coh consequencies: - risk is transferred to supplier -> the service takes longer to deliver or costs were underestimated . relationship pricing buildin nonpri e.g., discounts when twc services are purchased tc building loyalty by price and nonprice incentives e.g., discounts when two or more services are purchased together nore íer Congratulations You've (wo*^ a Two ©prigmaTArtišl g je'rjrod üct i onlri g ts ■ o bta inatále'from www. C a rt o o n St ockrcjojnil 3. cost leadership challenge w ership challenge when pricing low is - to convince customers that they shouldn't equate price with quality but instead feel they're getting good value - to ensure that economic costs are kept low enought to enable profits len pricing low is - to convince customers that they shouldn't equate price with quality but instead feel they're getting good value - to ensure that economic costs are kept low enought to enable profits IIP* cost leadership challenge when pricing low is - to convince customers that they shouldn't equate price with quality but instead feel they're getting good value - to ensure that economic costs are kept low enought to enable profits managing the perception of value quality of some services can be assessed after consumption -how to make the customer believe in it? the backstage is not visible therefore: eff» personal expl customers un laging the perceptio quality of some services can be assessed after consumption -how to make the customer believe in it? 1 e the backstage is not visible therefore: effective communications and even personal explanations are needed to help customers understand the value they receive alternatives: dynamic pricing and auctions 4*)i aukro registrace prodat mojeauKn hlecat služby forum nápovéca Najít položku Vítejte! Poprvé naAukru? Skvělé místo pro nákip a prodej novério i použitého zboží. Obchodujte rychle, be2pečnš a jednoduše. Kategorie Auto-moto Cestování Děti Dům a zahrada Elektro Donomrenn Foto C) revenue management ^rocus on maximizing of the revenue that can be derived from available capacity at any given tirrte ement ocus on maximizing of the revenue that can be derived from available capacity at any given time setting prices according to predicted demand levels among different market segments the last price-sens segment is the firs predicted demand levels among different market segments the last price-sensitive segment is the first to be allocated capacity, paying the highest price; other sements follow at lower prices based on historical data and forecasted demand often supported by solid UCLd^KJL Ull 111.3 LU1 IV^dl U-CtLCL and forecasted demand often supported by solid mathematical models most effective for operations with fixed capacity, a high fixed cost structure, perishalbe inventory, variable demand and price sensitivity ^ most effective for operations with fixed capacity, a high fixed cost structure, perishalbe inventory, variable demand and price sensitivity works upon knowledge of actual (predicted) price elasticity elastic=flexible=responsive elastic=flexible=responsive % change in demand price elasticity = % change in price demand curve with price elasticity demand curve with low price dosifctty A B C DO easy overview: http://www.uri.edu/artsci/newecn^ D) questions to be asked i. how much should be charged for ?$organization$? ?$sensitivity to prices$? ?$competition$? ?$discounts$? ?$psychology$? stions to be asked i. how much should be charged for this service? ?$organization$? ?$sensitivity to prices$? ?$competition$? ?$discounts$? ?$psychology$? 2. what should be the basis for pricing? .4.: „ — ■> what should be the basis for pricing ?execution? ?admission? ?time? ?comission? ?consumption of physical resources? ?location? ?physical attributes? ?bundling? ?independent charges? who should collect payment? ?provider? ?physical attributes? ?bundling? ?independent charges? who should collect payment? ?provider? ?intermediator? ?broker? ?on place of delivery?x?outlet?x?home? 4. where should payment be made 5. when should payment be made? ?before?x?after? ?which time? ?which day? ?cash?check?credit card?voucher?transfer? For First Time Home Buyers... $1 0,000.00 Grant! sat -■ y Payment Speci Pat u 10.000.0C Fw^rf- r«*te /Awt^ $ Qrmt PurtUijxkttAUj Bank 6. how should payment be made? 7. how should prices be communicated to the target market? ?channel? ?content?