1. Costing, pricing &
Value

2. Welcome
A Business Model?
Cost Structures
Pricing

3. Business Model
Inputs
Processes
Value
Reaching
your
audience
Cost structures Revenue models

4. Information
transfer
Learning by
telling
Interactive
technologies
Learning by
doing
Collaborative
technologies
Learning by
discussion &
reflection
Adapted from Tronsden 2003

5. Cost Structures
Development
Costs
Delivery Costs
Contribution to Over Head costs

6. Your Revenue
Model
How you will generate
revenues from your
course:
Direct Sales
Other sources of funding
Image from Henry Moltke under CC BY2.0

7. “A pricing strategy takes into
account segments, ability to pay,
market conditions, competitor
actions, trade margins and input
costs, amongst others. It is targeted
at the defined customers and
against competitors.

8. Signals
Pricing is part of your
marketing communications
Low price does not signal
quality
But pricing does influence
access
Pricing and your markets
Market
Who is paying?
What are competitors
charging?
What will the customer
pay?

9. Pricing
Low price
No
possible
surplus at
this price
High price
No
possible
demand
at this
price
Product costs
Competitors’ prices &
prices of substitutes
Unique product
features
Kotler, P. Marketing Management. Pearson

10. THANKS!
Any questions?
You can find me at:
peter.evans@ed.ac.uk

11. Resources
Business Model Canvas
A PDF template of the Canvas is available for the cost of an email at: http://www.businessmodelgeneration.com/
Other reading
Miller, G.E. & Schiffman, S. (2006). ALN business models & the transformation of higher education. Journal of
Asynchronous Learning Networks. 10(2), http://www.duc.auburn.
edu/outreach/dl/pdfs/ALN_Business_Models_and_the_Transformation_of_Higher_Ed.pdf
Kotler, P. et al. (2009). Marketing Management. Pearson
Tronsden, E. (2003). E-Learning in Financial Services: a case based analysis. Menlo Park, CA: SRI Consulting Business
Intelligence