Tag Archives: pricing

On-Demand Fuel Services Deliver Direct to Cars

Has your car ever run out of gas? Has it ever “run on fumes” while you search for a nearby gas station? For most people, these events have likely happened a few times. Wouldn’t it be nice if your car automatically had its tank filled up without needing to take it to a filling station? And maybe get oil changes and wipers replaced without needing to spend hours at a repair shop? Well, a new company named Yoshi has the answer to this dilemma.

Yoshi is an on-site refueling and car maintenance service that brings gasoline and other services directly to your car. Using an app, drivers can schedule fuel deliveries and select maintenance services. Yoshi’s trained mechanics pump the gas and handle maintenance while the car is parked at work or at home.

Refueling can be scheduled once ($7/delivery), or on a regular basis ($20/month). Additional services include oil change, car wash and detail, repairs, windshield fluid, wiper blade changes, window cleaning, and tire air check and fill. The service is currently in 12 cities and is also used by companies to keep their car fleets fueled up and ready to go.

Fill ‘er up.

Group Activities and Discussion Questions:

  1. Discuss the importance of clearly defining a target market.
  2. Poll students. Ask who would be interested in a system to automatically refuel their cars.
  3. Show Yoshi’s site: http://www.startyoshi.com/
  4. Show video of the service: https://youtu.be/xmqrZ2DvwVE
  5. For Yoshi, what is the target market? Consumers? Corporations?
  6. Divide students into teams and have each team develop a profile of a target market for Yoshi. Include demographics, psychographics, behaviors, values, attitudes, etc.
  7. Based on the target market profile, what makes this product unique for these customers?
  8. Debrief the exercise.

Source: Harlow, T. (1 March, 2018). New on-demand fuel service will allow Twin City drivers to skip the gas station. Minneapolis Star Tribune.

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Mug Keeps Drinks Hot!

It’s a small thing, but a pet peeve of many coffee drinkers is that they absolutely hate it when their mugs of coffee get cold, and have to be microwaved or refilled in order to be hot again. Reheating changes the taste. And then it gets cold again, and has to be reheated yet again, and so on…There should be a solution for the cold desktop mug of coffee.

And, now there is a solution. Enter the Ember Ceramic Mug to solve the dilemma. The mug incorporates technology that helps keep the drink at whatever temperature is needed. Using Ember’s app, the ideal temperature for each beverage can be set automatically. The sleekly styled mug has a change cooling system, micro-processor controlled heating system, and network of sensors – all working to keep the beverage at the ideal temperature!

The innovative design won Ember a coveted TIME Magazine’s Best Inventions of 2017 award. Priced at $79.95, Ember’s mug is not cheap. The white ceramic mug comes with charging coaster, is fully submersible (but wash by hand), and can maintain temperatures for hours on end.

Coffee, anyone?

Group Activities and Discussion Questions:

    1. Discuss the importance of setting objectives. Explain SMART objectives – specific, measureable, achievable, realistic, and time-bound.
    2. Show Ember’s Web site and products: https://ember.com/
    3. Video is available: https://youtu.be/7Vy_y52oZos
    4. Video: https://youtu.be/j9YAvpJTF9w
    5. Divide students into teams. Have each team develop five SMART objectives for this product.
    6. Discuss the objectives. How would the objectives change if a different marketing strategy was used?
    7. Debrief the exercise.

Source: Pierce, D. (12 Dec., 2017). I can’t stop drinking coffee out of this temperature-regulated mug. Wired Magazine.

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Economics of Airline Class Seating

Plane fares are frustrating. From the time someone searches for a flight in the morning, until they book it later in the week (or day), the price changes. And don’t even get started about how little leg-room and seat space there is in the economy class section! But then again, the economy class is not how airlines make money. How does an airline make money on fares?

First class and premium cabin seats!

Here is an example of a flight’s pricing: British Airways 777, round-trip, non-stop between London and Wash. D.C.

  • 224 seats total
  • 122 economy seats @ $876/seat = $106,872
  • 40 premium economy seats @ $2,633/seat = $105,320
  • 48 business class seats @ $6,723/seat = $322,704
  • 14 first class seats @ $8,715/seat = $122,010

The front sections of the plane account for 45% of the seats, but generate 84% of the revenue! While this model does not always hold true, in general airlines get 66% of revenue from the premium, business, and first-class seats.

In essence, airlines are able to sell the same service (transportation) to different people, at vastly different prices (enhanced amenities and the onboard experience). Airlines realized that passengers could be segmented into two categories: tourists, and business people.

What else will future air travel hold?

Group Activities and Discussion Questions:

  1. Pricing is usually a complex topic. Discuss the six steps for pricing (determining objectives, estimating demand, determining cost/profit relationships, select price level, set list price, and make adjustments).
  2. Discuss the various pricing models in class: demand-oriented, cost-oriented, profit-oriented, and competition-oriented.
  1. Show this video that explains the basic economics of airfare:
  2. https://youtu.be/BzB5xtGGsTc
  3. Draw the price structure on the board.
  4. Divide students into teams. Have each team work on a possible re-design of planes to address more market segments.

Source: Wendover Productions, YouTube

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