Tuesday 30 October 2012

Pricing model

 Pricing is a tactic, but not part of your revenue model. It is also a mistake to price your product based on how much it cost or to base your pricing to be lower than your competitors.

Pricing Model

You need to know what value are customers willing to pay for your product. Then you need to find out how they will pay for your product and how much they are currently paying.

Asset Sale

This refers to the sale of product to a physical market. For example, this can refer to this can be Ford or Walmart where you sell your assets for a profit.

Usage Fee

This refers to companies such as Telus or amazon where you pay everytime you use a service or product.

Subscription Fee

This is a fee where you are charged a month to have access to a service or product.

Renting

Renting refers to money that is made from lending your product or service.

Advertising fee

This is an example of companies such as Google where people may use for free, however companies will pay Google to advertise there company to the users.

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