If you ever think about it, pricing that you negotiate yeah, we kind of have this price on paper, but that's just the starting point of the conversation.

Then auctions like eBay are another example of dynamic pricing.

It turns out we made this pretty easy.

We have to set the scene for negotiations.

Set a price for this item

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

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

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

Let's take a look.

Or I'll come to them and say, Here's what I need done.

licensing and intermediation and direct sales, etc.

But there's another type of pricing.

What s the revenue stream. That s our strategy.

But how do you think about pricing itself?

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.

That's a mistake.

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?

The stock market is a real time market.

As we said, the same with pricing.

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

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

Negotiating?

Negotiation?

We'll just add a markup that is a profit, and therefore we have a price.

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.

Let me negotiate with them.

We can work something out, boy.

But the only way he'll talk is if he's scared enough.

We could, you know, negotiate.

We believe that you will be able to make a price concession.

I've made you a deal.

I see you two have come to an agreement.

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.

Preston promised his car would sell for 1,000.

We can work something out.

The tools of your trade...

Set Euclidean Coordinate System

There's no haggling.

It's very simple. It's cost plus markup.