Amazon Prime

• Profit = revenue - cost
• Revenue = price * quantity
• Cost = fixed cost + (variable cost * quantity)
• Factor in existing AND new customers

Microsoft Azure

• Strategic objective: share or profits?
• Implications (to Microsoft) if priced high, low, matched with competitors
• Creative pricing models that exist? Can invent?
• Ask about costs
• Ask about Azure’s unique VP vs. competition
• Do not oversimplify by just giving a pricing recommendation