Pricing Model Exercise

Excercise
  • 4 groups, random, 20 minutes
  • You are a 10 year old entrepreneur running a neighborhood lemonade stand. You want to make some money doing this. What are some models that you could put in place?
    • Charge 50 cents per glass of lemonade
    • Chare 25 cents for a small, and $1.00 for a large lemonade
    • There are many other possibilities
  • Work with your team on the following
    1. Come up with many variants of pricing models as you can
    2. Try to come up with a classification of those models, in other words look for the patterns, for example: what is being charged for, what is free? who is paying, who is getting something for free, what costs are fixed and which ones are variable, and so on.
  • Prepare to present the results using the whiteboard if necessary.
Discuss
  • What are some principles we learn from this exercise?