I decide fast lecture 8 resources
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The document describes a bidding business model called IDecideFast. It uses online bidding websites and decision software to provide bidding and auction services. Users can access bidding tools and templates for free, while premium models generate revenue. Partnerships with websites, "snipers", and realtor associations expand the customer base and offerings. The business tests pricing options including free templates supported by advertising or subscription fees for real estate bidding services.
I decide fast lecture 8 resources
- 1. IDecideFast – Bidding Business Model Traffic drivers: Bidding Bulletin 1. Bidding websites Expanding Bidding Free model Online Automated Ibid, webidz, ubid Templates Increases comfort in Service for bidders Users 2. Decision software determining bid and firms. Customer willingness to Personal Bidders in online 3. Snipers Acquisition participate relationships with Auctions: 4. Realtors 1. Traditional eBay Auction domain experts 2. Best Offer eBay (Champaign Realtor Association) Separate Premium 3. Three offers – eBay 4. Name your own price - (domain experts) Models Priceline Modelers/ Web Algorithms Bidders access 1. BiddingPal.Com Bidders in Real Estate: 2. Intermediaries e.g. 1. Best Offer Real Estate. fellow bidders 2. Haggling – Real Estate. Software AppleStore (longer term) Developers Eyeball access for Advertising Ad companies Companies MKTing/Sales/Admin And Domain Experts And Domain Experts Template fee Software Development People Ads for the free from more Hosting/Infrastructure online auction sophisticated bidding tool models e.g. Sales/initial customer acquisition real estate
- 3. New Templates • Based on customer/partner need – eBay three-offer auction – Maximum bid for timed auctions
- 5. New Template New template used in eBay
- 6. New Template
- 7. Maximum Bid – Timed Auctions “Snipers”
- 8. Maximum Bid – Timed Auctions “Snipers”
- 9. Uncertainties in Maximum Bid
- 10. Uncertainties in Maximum Bid • How do you best determine your absolute maximum? • Consider that… – You have not seen the item in person to determine the status or quality of the item. – You may not know the current market price. – You do not know the future market price.
- 11. Partner Development Online Bidding Sniping Realtor Websites Websites Associations • Shared economics: User clicks • Co-development/invention: Mixing crawler capabilities with model • Common customer: Online users
- 16. Example of Sealed Bid Auctions
- 17. Snipers
- 18. Ongoing • Ongoing contacts with partners – ibid/ubid/webids – Snipers – Champaign county realtors • Continue building capability to track customer usage habits • Video tutorial • Test elasticity of demand for template fee • Enhancing website
- 19. Appendix
- 23. Number of Potential Customers – Fee-based real estate template • Champaign -100 per month • Chicago area – 4000 per month • U.S. – 300,000 per month
- 24. • How do you best determine your absolute maximum? • Consider that… – You have not seen the item in person to determine the status or quality of the item. – You may not know the current market price. – You do not know the future market price.
- 25. Number of Potential Customers • Free online general auction templates – Sealed bid template - 30000 • National liquidators …. – Unlimited bidding template • Ibid – 15000 customers • Webidz – 20000 customers • Ubid – 15000 customers – Three-offer template • eBay - 20000
- 26. Pricing Option 1 – Free Online Auctions, Fee Real Estate (1 year) • U.S. – 300,000 per month • 20% of market (very low estimate based on surveys) • $10 per customer • $600,000 per month from real estate template – Free Online Auctions with Ads • 100,000 users • RPU =$1 - $2
- 27. Pricing Real Estate Template • Pay per single use – May reduce cost for users who only bid on 1-2 homes – Increases uncertainty to user of total cost • Pay per number of uses – Uncertainty about number of uses remains • Pay per unit time – More willingness to pay – Increases revenue (can charge more than for single/set number of uses)
- 28. Pricing Option 2 – All Free • 100,000 users online auctions/month • 60,000 users real estate per month • Ad RPU =$2
- 29. Opposing Forces of Bidding 1.000 Chances of 0.800 Winning 0.600 0.400 0.200 0.000 0 10 20 30 40 50 60 70 80 90 100 -0.200 Bid
- 30. Opposing Forces of Bidding 1.000 0.800 Value gained given you win at this bid 0.600 0.400 0.200 0.000 0 10 20 30 40 50 60 70 80 90 100 -0.200 -0.400 Bid
- 31. Opposing Forces of Bidding 1.000 0.800 Chances of Winning 0.600 Value gained given 0.400 you win at this bid 0.200 0.000 0 10 20 30 40 50 60 70 80 90 100 -0.200 -0.400 Bid
- 32. Opposing Forces of Bidding 1.000 0.800 Chances of 0.600 Winning 0.400 0.200 0.000 0 10 20 30 40 50 60 70 80 90 100 -0.200 -0.400 Bid
- 33. IDecideFast Value Proposition 90% of decisions we face do not require mathematical analysis. Just clear thinking. Social Networking Many are faced by a large % of the population. Fast Idea Generation Categorized Post to the World/Friends Collaborative Decision Making e.g. My Decision is: which school should I go to? Designed for the lay person not the Please help me with: decision analyst. 1. Alternatives What do I know? Useful 2. Uncertainties What are my Information What consequences do I care about? choices? 3. Trade-offs Creative Alternatives Clear Values Elements of 4. Frame A Good Decision Sound 5. Pros/Cons What is it that I am deciding? Helpful Frame Reasoning Am I thinking straight about this? Commitment Categorized Decisions to Follow Through Relationships, Marriage, Entertainment, Will I really take action? 90% Clarity by 5% Clarity by Dining, Car, Purchase, Vacations, chatting, simple model School, Bidding, Retirement brainstorming, venting 5% Detailed Solutions to Select Decisions (Templates) (Based on Customer Feedback) Instant Bidding, Which Job, Vacation, Refinancing, Retirement, Messaging/posting Medical Decision
- 34. 1. Traffic 1. Expanding 1. Social 1. Online self- generators service 1. Decision bulletin templates/Categories networking (keywords from 2. Customer Users 2. Collaborative • Twitter acquisition beyond 2. Advertising decision making college students companies • Ask.Com 3. Rapid feedback 3. Build/operate/ 3. Template Users • Facebook maintain 4. Detailed Updates) solutions for select problems 2. (templates) Professional/Student 1. Internet 1. Modelers associations/LinkedIn 2. Software vendor 3. MKTing/Sales/ 3. Template Domain Operation/admin Experts personnel 1. Software development 2. People 1. Advertisement 3. Incentives (for initial customer acquisition) 2. Coupons 4. Hosting/infrastructure 5. Gathering data for templates 3. Template fees 6. Survey/questionnaire costs for templates