Posts tagged business models
Business Design Tip of The Day | Approaching Pay What You Want

Marketing functions under the principle that value is perceived. The seller never decides the value of an offer. We may have a hypothesis about the needs of the customer and design a marketing mix (product, price, place, promotion) to fit their need, but ultimately our buyer decides what they are willing to pay. Now what if we are unsure about how much people are realistically going to spend on our product? By testing new product ideas with a pay what you want model, you can begin to understand where your most profitable price point is as well as gain insights into the effectiveness of your promotion, point of sale, and the product itself. 

Let's Consider the Following Scenario 

Urban Design Inc works to help builders of new public transportation facilities. Their mission is to support this segment with relevant information and recommendations for healthy urban design solutions. However, their need to find additional streams of revenue prompts them to think of new ways to do business and they realize their site has a lot of appeal to audiences who simply want to lower commuting expenses and live a more active life. How can they monetize this audience? 

Solutions

One way of leveraging web traffic and learning about whether or not people are willing to put a price tag on your product is to explore a pay what you want strategy. In this exercise, Urban Design Inc could continue granting access to their pro bono beneficiaries through a login process while establishing a call to action that prompts the general consumer to valuate the product and pay the price they feel is right. Some will pay nothing, in which case you can still monetize by acquiring an email, or utilizing web tools to require the user to promote the product in order to unlock the content. Some will pay above what you would have asked for. And ultimately, you will find a price equilibrium that can inform future product design and marketing strategies. 

In the graph above, it is clear that selling 650 units at $7 is more profitable than 83 units at $25. One thousand people are not paying at all but are at the very least identifying themselves for further segmentation and targeting.

In the graph above, it is clear that selling 650 units at $7 is more profitable than 83 units at $25. One thousand people are not paying at all but are at the very least identifying themselves for further segmentation and targeting.

Another way to monetize content is to develop e-books, workbooks, and other downloadable resources that would require the user to engage in the purchasing process. Overall, you should be looking at ways of monetizing the byproducts of your work. If you have an expertise at something that there's a market for, teach it! If you have developed tools and resources in the course of your work, sell them! Overall you should aim to create real value for your audience, and approach this strategy with creativity, agility, and a desire to learn about your business. 

Looking for ways to create additional revenue and impact by leveraging your creativity and expertise? Our team of business design specialists can help. 

Click here to learn more and contact our team.

Architecture for Humanity Re-Launched Today as Open Architecture Collaborative

By Matthew Manos | Founder and Managing Director, verynice

Great News in our feed this morning: Architecture for Humanity re-launched today as "Open Architecture Collaborative". For context, Architecture for Humanity initially launched over a decade ago, and was a leading voice in the pro-bono movement. After going bankrupt, some of their previous employees and volunteers decided to re-launch the organization on their own. They reached out to verynice to see how Models of Impact could help them in that re-launch process, so we did a series of seminars for all of their chapter leads, resulting in a new business model for their phoenix of an organization. Now they have 32 chapters all around the world, and they are officially re-launched! Big victory! http://www.openarchcollab.org/


Interview | Open Architecture Collaborative's Business Model

What was something new that you learned through the Models of Impact process and report?

It's difficult to think about the breadth of business models without proper framework. Models of Impact gave each chapter that framework to begin asking themselves the core questions that contribute to the creation of a new business.

How did engaging your team with business models in this way serve as a personal development tool for the chapter leads and volunteers?

Most chapter leaders are architects and designers who do not have formal business management training. The Models of Impact exercise gave them a much needed framework for what to think of when establishing a new business and how to prioritize efforts. The initial overview with Matthew also helped set the broad strokes for the various types of business models to choose from or combine. It was a much needed base for which to jump off of and turn into action.

In what ways has this process helped to shape the next step for Architecture for Humanity?

Getting all the active chapters involved in one uniform process helped us collect the necessary data to understand what page everyone was on. Analyzing the data allowed us to realize our alignment and see that we needed to remain a non-profit entity as a network. Each chapter leader now has a few more tools up there sleeves when thinking about how they will articulate their own development as a local business.

Business Model Design with Models of Impact 

Models of Impact is a strategic business-design toolkit. Our mission is to promote legacy and entrepreneurship in the social impact community by developing tools and resources that make it easy (and fun!) to design disruptive business models. Click here to download!

FOR DESIGNERS

Learn from our toolkit for designers and enhance your client engagements, in-house strategic planning and design initiatives, and service offerings with non-profit and for-profit clientele.

FOR ENTREPRENEURS

Whether you’re in the early ideation phase, or already have a thriving enterprise, leverage the entrepreneur toolkit in order to gain clarity on your business model and potential for impact.

FOR NON-PROFITS

Many non-profits rely on donations and grants to get by, but this is not a sustainable business plan. Our toolkit introduces you to models that can propel your organization into the future.

FOR EDUCATORS

Integrate our methods to supplement your coursework in business modeling and entrepreneurship. Our educator toolkit includes a range of curricula for High School and Higher Ed.

For more information regarding business model consultation at verynice
Contact our team: info@verynice.co