dhaka march 3 revenue model: shaer hassan
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DHAKA MARCH 3 REVENUE MODEL: SHAER HASSANTRANSCRIPT
PowerPoint Presentation
Revenue ModelsShaer HassanCEO, Nascenia
What?How a business generates revenue streams from its products and services
WhyTo sustain the business
Revenue Models: Commerce & RetailSelling physical goods: ClothingSelling digital products: Cell phoneIdeal CustomersAdvantageProblemsIdeal Products
A service sold per unit (hour, distance, weight, bandwidth): ISP, Telecom, Theater, BusA service with fixed price: ISP, TelecomDaily deals / flash sales: ajkerdeal, akhoni (previously)
Ideal CustomersAdvantageProblemsIdeal Products
Revenue Models: Commerce & Retail
Revenue Models: Subscription & Usage FeesSubscription: NewspaperUsage fees: ElectricityRental: House, Car
Ideal CustomersAdvantageProblemsIdeal Products
Revenue Models: LicensingLicense of usage: Software
Ideal CustomersAdvantageProblemsIdeal Products
Revenue Models: Auctions & BidsAuctions: ebay
Ideal CustomersAdvantageProblemsIdeal Products
Revenue Models: AdvertisingAdvertisements: TV, Newspaper, Priyo.comPromoted content: Bikroy.comSponsorships: Maya.com.bd Ideal CustomersAdvantageProblemsIdeal Products
Revenue Models: DataDatabases: SMS gateways
Ideal CustomersAdvantageProblemsIdeal Products
Revenue Models: Transaction / IntermediationBrokerage Transaction enablers: epayment gateway SSL CommerzeAffiliate programs: AmazonCreating a platform / marketplace: Odesk, Oployee, kaymu.com.bd, carmudi.com.bd
Ideal CustomersAdvantageProblemsIdeal Products
Revenue Models: FreemiumPaid version without advertisementsPaid version without restrictionsPaid version with additional features
Ideal CustomersAdvantageProblemsIdeal Products
Revenue Models: Negative Operating CycleLower price by receiving payment before delivering the offeringAmazon, Airbnb, courier service for c-commerce in Bangladesh
Ideal CustomersAdvantageProblemsIdeal Products
Revenue Models: Razor/BladesOffer the high-margin below cost to increase volume sales of the low-margin razor blades. Printers and inkGlucometerFree connection with router by ISPsFree SIM by Telcos
Ideal CustomersAdvantageProblemsIdeal Products
Revenue Models: Reverse Razor/BladesOffer the low-margin item below cost to encourage sales of the high-margin companion productKindle, iPod/iTunesIdeal CustomersAdvantageProblemsIdeal Products
Pricing Strategy
Pricing ObjectiveSurvivalMaximum Current ProfitMaximum Market ShareMaximum Market SkimmingProduct-Quality LeadershipOther Objectives
Selecting Pricing ObjectiveDetermining DemandEstimating CostsAnalyzing Competitors Costs, Prices and OffersSelecting a Pricing MethodSelecting Final Price
Determining DemandPrice SensitivityLess price sensitive whenProduct more distinctiveBuyers are less aware of substituteExpenditure is smaller part of buyers incomeExpenditure is small compared to the total cost of the productProduct is assumed to have more quality, prestige or exclusivenessEstimating Demand CurvesPrice Elasticity of DemandSelecting Pricing ObjectiveDetermining DemandEstimating CostsAnalyzing Competitors Costs, Prices and OffersSelecting a Pricing MethodSelecting Final Price
Estimating CostsTypes of costs and level of productionsVariable costTotal costAverage costAccumulated productionTarget costing
Selecting Pricing ObjectiveDetermining DemandEstimating CostsAnalyzing Competitors Costs, Prices and OffersSelecting a Pricing MethodSelecting Final Price
Estimating CostsAccumulated productionTarget costingSelecting Pricing ObjectiveDetermining DemandEstimating CostsAnalyzing Competitors Costs, Prices and OffersSelecting a Pricing MethodSelecting Final Price
Analyzing Competitors Costs, Prices and OffersSelecting Pricing ObjectiveDetermining DemandEstimating CostsAnalyzing Competitors Costs, Prices and OffersSelecting a Pricing MethodSelecting Final Price
Selecting a Pricing MethodMarkup PricingUnit cost = variable cost + fixed cost / unit salesMarkup price= unit cost / (1 - desired return on sales) = 16/(1-0.2) = 20Selecting Pricing ObjectiveDetermining DemandEstimating CostsAnalyzing Competitors Costs, Prices and OffersSelecting a Pricing MethodSelecting Final Price
Selecting a Pricing MethodTarget-return Pricing = unit cost + (desired return*invested capital) / unit salesBreak-even Volume = fixed cost / (price-variable cost)Selecting Pricing ObjectiveDetermining DemandEstimating CostsAnalyzing Competitors Costs, Prices and OffersSelecting a Pricing MethodSelecting Final Price
Selecting a Pricing MethodPerceived Value PricingValue PricingGoing Rate PricingAuction-Type PricingSelecting Pricing ObjectiveDetermining DemandEstimating CostsAnalyzing Competitors Costs, Prices and OffersSelecting a Pricing MethodSelecting Final Price
Selecting Final PriceImpact of other marketing activitiesCompany pricing policiesGain-and-risk-sharing PricingImpact of Price on other partiesSelecting Pricing ObjectiveDetermining DemandEstimating CostsAnalyzing Competitors Costs, Prices and OffersSelecting a Pricing MethodSelecting Final Price
Need to Know before Revenue ModelYour strengthOperationSelling skillsExisting networksMarket / customer readinessPotential market
Thank [email protected]/in/shaerhassanwww.nascenia.com