revenue stream

Examples of revenue stream in the following topics:

• Deletion

  • Brands must task their engineering and design teams to produce successful products that generate a consistent stream of sales for both short-term profit and long-term survival.
  • An organization must establish a series of successful products, if that organization wants to maintain a consistent stream of sales or else grow sales over time.
  • Product deletion requires the company to evaluate its entire product mix and pinpoint where organizational resources can be allocated elsewhere to generate consistent revenue streams.
  • To maintain revenues, the company must continue investing in its remaining products and ensure they are competitively positioned in the marketplace.
  • However, if the company seeks to increase sales in the near future, then it must introduce a new group of successful products to generate additional revenue.

• Identifying Prospects

  • Generating a steady flow of prospective customers into this sales pipeline builds consistent revenue streams, ensuring longevity for the organization.
  • The longer companies spend marketing to prospects, the more people and financial resources are spent to close a sale and generate revenue.

• Yield Management Systems

  • Yield management is a large revenue generator for several major industries.
  • Since total demand normally exceeds what the particular firm can produce in that period, the models attempt to optimize the firm's output to maximize revenue.
  • Optimization can help the firm adjust prices and allocate capacity among market segments to maximize expected revenues.
  • While yield management systems tend to generate higher revenues, the revenue streams tend to arrive later in the booking horizon as more capacity is held for late sale at premium prices.
  • That is, they offer far higher discounts more frequently for off-peak times, while raising prices only marginally for peak times, resulting in higher revenue overall.

• Services as Solutions

  • Without genuinely valuable services for your customer, you have no revenue.
  • This model can be a good foundation for a company, leading to a sustainable revenue stream that can help to further fund the development of the product.
  • In other words, create revenue that can sustain and grow the business, to make the product better in the long run, and to enable customers to better deploy the software.

• Organizational Online Buying

  • Each company, within the B2B arena, must market to its colleagues in order to generate sales and to share in a portion of the supply chain revenue stream.

• Use of New Technologies in Marketing and Research

  • Metrics monitored include clicks, responses, leads, deals, and revenue.
  • Through the use of widgets, members can promote their various social networking activities, such as Twitter stream or blog entries of their product pages, on their LinkedIn profile page.

• Profit

  • Target revenue ($) is the corresponding figure for dollar sales.
  • In target volume and target revenue calculations, managers go beyond break-even analysis (the point at which a company sells enough to cover its fixed costs) to determine the level of unit sales or revenues needed to cover a firm's costs and attain its profit targets.
  • To obtain the profit maximizing output quantity, you start by recognizing that profit is equal to total revenue (TR) minus total cost (TC).
  • Given a table of costs and revenues at each quantity, we can either compute equations or plot the data directly on a graph.
  • Then, if marginal revenue is greater than marginal cost at some level of output, marginal profit is positive and thus a greater quantity should be produced, and if marginal revenue is less than marginal cost, marginal profit is negative and a lesser quantity should be produced.

• Marginal Analysis

  • Pricing decisions tend to heavily involve analysis regarding marginal contributions to revenues and costs.
  • Pricing decisions tend to heavily involve analysis regarding marginal contributions to revenues and costs.
  • Alternatively, if marginal revenue is less than the marginal cost, marginal profit is negative and a lesser quantity should be produced.
  • For example, the marginal revenue curve would have a negative gradient, due to the overall market demand curve.
  • Thus, output should be produced at the maximum level, which also happens to be the level that maximizes revenue.

• Market Share/Sales

  • Streaming-only will be the default for new customers, DVD-by-mail, shown here, is an optional add-on.
  • Much of the discussion, verging on outrage, about this move centered on a price increase for the popular one-at-a-time DVD plus streaming option.
  • With so few on-line streaming opportunities it wouldn't be difficult to obtain a large market share.
  • Netflix is signalling to these customers that streaming is a better option.
  • The decision to change pricing strategy may be part of a longer-term strategy to increase market share in on-line video streaming.

• Profit-Maximization Pricing

  • Revenue is the amount of money that a company receives from its normal business activities, usually from the sale of goods and services (as opposed to monies from security sales such as equity shares or debt issuances).To obtain the profit maximising output quantity, we start by recognizing that profit is equal to total revenue (TR) minus total cost (TC).
  • Given a table of costs and revenues at each quantity, we can either compute equations or plot the data directly on a graph.
  • The above method takes the perspective of total revenue and total cost.
  • A firm may also take the perspective of marginal revenue and marginal cost, which is based on the fact that total profit reaches its maximum point where marginal revenue equals marginal cost.
  • This linear total revenue curve represents the case in which the firm is a perfect competitor in the goods market, and thus cannot set its own selling price.