How does your business intend to make money? It’s a question that will depend on the thing you’re asking customers to pay for. Is it a physical product or a service you’re doing for them?
Direct vs Indirect
Another metric to define around your pricing structure is whether it is direct or indirect,
- Direct – price per customer/service
- Indirect – subscriptions, usage, commission, licensing, fees, partnerships
Direct revenue is something you’re probably familiar with, charging a price per customer for your product, service or time. Is there any part of your offering that could gather indirect revenue?
Defining a revenue stream to include in your lean canvas then means thinking about HOW you’ll get that revenue from your ideal customers. Is there anywhere a level of automation can be introduced to reduce the barriers to receiving money into your business
Example – Ordering a Pizza
It used to be that you dialled a 13 number, and someone helpful on the end of the line took your order and entered it and your preferences for double mushrooms and no olives into their system. It took a few minutes, and just sometimes communication broke down and you got the lucky dip option.
Fast forward to now, and you’re hard pressed finding even the local Ma & Pa pizzeria that don’t offer online ordering. Those few minutes and potential miscommunication have been removed from the equation by customers entering their order directly into ‘the system’. This has led to some necessary changes in store around how orders are handled and cooked, but the ordering experience has been greatly improved from a business perspective.
That level of automation has spilled over too, you can see what production stage your pizza is up to, and even greet the delivery guy or gal at the door as you track them via GPS.