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Lecture

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Department
Business
Course
BU121
Professor
Roopa Reddy
Semester
Winter

Description
1. Revenue Stream a. Asset Sale- what you are actually selling and how you are are making money with it b. Usage fees c. Subscription fees d. Lending/renting/leasing e. Licensing f. Brokerage fees g. Advertising Can have a combination of these Pricing Mechanisms - Fixed “Menu Pricing” h. List price – how much it cost. i. Product feature dependent – cost vs. different models and features of the product j. Customer segment dependent k. Volume dependent – the more you buy the cheaper it is - Dynamic Pricing – shifts depending on these factors l. Negotiation/bargaining m. Yield management – e.g. airplane tickets – increasing prices during times when it is busy and you know people will spend the money to get it because they want that product – willing to pay more n. Real-time-market o. Auctions 6. Key Resources
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