Big News: FounderDating is joining OneVest to build the largest community for entrepreneurs. Details here
Latest Notifications
You have no recent recommendations.
Name
Title
 
MiniBio
FOLLOW
Title
 Followers
FOLLOW TOPIC

Question goes here

1,300 Followers

  • Name
    Entrepreneur
  • Name
    Entrepreneur
  • Name
    Entrepreneur
  • Name
    Entrepreneur
  • Name
    Entrepreneur
  • Name
    Entrepreneur
  • Name
    Entrepreneur
  • Name
    Entrepreneur

How to price data for use in a sports channel?

We are potentially getting into providing some interesting derivative data to a sports TV channel, but we have no idea how to price our offering. The data would probably show up as part of the numbers shown before a game, or while the game is in progress.

Obviously, we would like to go for "pricing for the value of the offering to the channel", rather than price it as (Number of hours it took to derive the data * $/hour) * Margin. But then, it gets difficult to estimate the "value of offering".

Another way we have thought about is to correlate the pricing somehow to the rate the channel charges to advertisers for that series. Although we can probably get the advertisement rate for the channel for the series, we have no idea how to arrive at the correlation.

Would like to hear if someone has any experience in this area, or has come across any related article/pointers.

4 Replies

Graeham Ford-Feliz
0
0
Graeham Ford-Feliz Entrepreneur
CEO at Emergent Coast
Is it a completely new offering or are there competitors with the same/similar offering?

I've never done this personally, but I've heard of entrepreneurs talking with potential customers on the phone, doing customer development, to find the value-add of their offering in dollars, then setting the price of the offering at 10% of the value-add, so it is an easy "yes" by the customer. It will be important to talk to the right person that knows the numbers of the business and to ask the right questions.


Samik Raychaudhuri
0
0
Samik Raychaudhuri Entrepreneur
Machine Learning on Big Data, [24]7 Inc.
Graeham, appreciate your response. Yes, the data that we are providing are completely new (no competitors are having same/similar offering at the moment). With that said, there might not be too much of a barrier of entry here, so it is important for us to price it right so that we get the first-mover's advantage and capture as much of the market as possible before other competitors show up.

Graeham Ford-Feliz
0
0
Graeham Ford-Feliz Entrepreneur
CEO at Emergent Coast
awesome, that is a good position to be in, congrats! :-)

If you have a large enough pool of potential customers and are truly in uncharted waters, I would try some form of A/B testing on the price, starting with something that is a balance between a price the customer would definitely accept if your hypotheses are true and a price that covers your operating costs. After which, you can increase the price to new customers and see if it is still accepted.

I am far from a pricing expert, but I hope that helps :-)
Samik Raychaudhuri
0
0
Samik Raychaudhuri Entrepreneur
Machine Learning on Big Data, [24]7 Inc.
Thanks Graeham - we actually do like your first comment about charging 10% of value-add. I think we might still have to prepare and do our homework in case we are offered a lowball, but I think this might be a reasonably prudent approach. Still investigating.
Join FounderDating to participate in the discussion
Nothing gets posted to LinkedIn and your information will not be shared.

Just a few more details please.

DO: Start a discussion, share a resource, or ask a question related to entrepreneurship.
DON'T: Post about prohibited topics such as recruiting, cofounder wanted, check out my product
or feedback on the FD site (you can send this to us directly info@founderdating.com).
See the Community Code of Conduct for more details.

Title

Give your question or discussion topic a great title, make it catchy and succinct.

Details

Make sure what you're about to say is specific and relevant - you'll get better responses.

Topics

Tag your discussion so you get more relevant responses.

Question goes here

1,300 Followers

  • Name
    Details
  • Name
    Details
  • Name
    Details
  • Name
    Details
  • Name
    Details
  • Name
    Details
  • Name
    Details
  • Name
    Details
Know someone who should answer this question? Enter their email below
Stay current and follow these discussion topics?