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Session 3: MSP pricing structures

By now, you should have read the SMR article assigned for the first 4 sessions (Strategic Decisions
for MSPs). For this session, please focus on the pricing structure discussion in that article, as well
as the following post:
http://abovethecrowd.com/2013/04/18/a-rake-too-far-optimal-platformpricing-strategy/

ASSIGNMENT QUESTIONS
1. Why is pricing by MSPs significantly more complex than pricing of regular products/services?
2. Consider the pricing structure principles discussed in the SMR article. Are they satisfying?
Robust? Please come prepared with 1-2 specific challenges to those principles.
3. Today, Amazon Marketplace’s effective “rake” is about 17% (the 12% number in Gurley’s post
is outdated or an under-estimate). Is that too high, too low, or just right? Based on what
considerations?

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