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Stage 2: Validating Your Business ModelLesson 4: Determining How Much to Charge (pricing & delivery channels)

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01 Introduction and review02 Distinguish among pricing strategies03 Identifying delivery channels04 Impact of pricing and channels on business strategy05 Summary and next steps

agenda

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01Introduction & review

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01 Define pricing strategies and their implications for the business.02 Define delivery channels and their impact on pricing.03 Apply strategies to different product/service types.04 Evaluate how pricing and channels affect overall business strategy.

By the end of this lesson of the you should be able to:

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02distinguish among pricing strategies

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01 determine your business goals02 conduct a thorough market pricing analysis03 understand your target audience04 profile the industry landscape05 create a pricing strategy

5 step process for pricing strategy

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Porter’s 5 Forces: threat of new entrants, supplier power, buyer power, threat of substitutes, industry rivalryPorter’s Five Forces at https://hbr.org/video/3590615226001/the-explainer-porters-five-forces

Example & article (handout)Mindtools video – and accompanying article (Buying a Farm)(Buying a Farm Handout)

tool to outline steps 1-4

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03identifying delivery channels

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What are you selling? How do customers find your product?How are customers buying? Who is paying for the product?How is fulfillment handled?Who provides customer service?Do buyers or sellers have power in the market?

factors in how products/services get to market

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Identifying Delivery Channels

To analyze the attractiveness and likely-profitability of an industry. 

Steve Blank video – distribution channels

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04impact of pricing and channels on business strategy

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cash flow and profitabilityfinancing needshiring needs

impact on your business as a whole

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05summary and next steps

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01 what are important considerations for determining pricing strategy?02 how does distribution impact pricing?

03 how do pricing and channels affect overall business strategy?

review material

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