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Portfolio Analysis: Igniting a long-term spirit in a short-term world (IX). Our sub-prototype for Pricing Watercolors Version 1.0

Have a wonderful first week of September. If climate change were not so evident, we should be celebrating the beginning of Autumn. But the global warming effects are now so obvious that everywhere you go feels like summer, even though in our calendars is still autumn. That issue is affecting everything. Just a thought about our climate issues that have to be considered in our DBR methods and business modeling.

Today, I will be super brief. Last Saturday, I posted about the variables that Eleonora Escalante Strategy would consider when DBR building a sub-prototype of a pricing model to solve the problem of an emerging artist that wishes to make a full-time living by painting; and in consequence, his or her revenues require to be the median average salary equivalent to a middle-class citizen in the USA. Of course, we consider this as a starting bottom line on an individual basis. We wish to solve the problem represented in the following question: How to make an individual basic income of US$64,800/year for an emerging watercolor artist (the median average salary for a middle-class citizen in the USA). Do not forget that in theory, and for healthy-happy societies that are living satisfactorily, the contentment and amplitude of the middle class is the key.

The happiest countries on earth 2021. The higher score with an almost beige pale color corresponds to the happiest. The red-violet purplish are the least happy and poorest. All the happiest countries on earth hold a strong and robust middle class, in which their income household is between US$28,800 to US$175,200/year.

Eleonora Escalante Strategy research has established the global range of the middle-class income as an ample scale: it starts at a lower bracket of US$28,800/year (US$20/pppd) up to the max bracket value of US$175,200/year (US$120/pppd), for a family of four people households. All the happiest societies show it with evidence in real numbers.

For our happy emerging artist, who is expecting to earn at least the median of US$64,800 per year, we have done our homework. Find below the sub-prototype of pricing his or her oeuvres. As an illustrative example, we chose a floral watercolor, size 5 inches x 7 inches. And you will see it compared with other scenarios from other types of artists.

Can you see the principle of diversification? Please take notice that we have built one sub-prototype of a pricing model version 1.0. We still need to calculate how many oeuvres this emerging artist has to sell per month (and make the projections for a year). Once we begin changing all the variables of our model, not just the size variable. then we have multiple scenarios, multiple prices. That is why the principle of diversification applies here. Artists need to diversify their artwork according to these 15 variables as a minimum. Without diversification, it is almost impossible to reach the heights of the annual income that we wish to reach. Moreover, the demand of the artist (clients) has another sub-prototype that helps us to do the projections considering other variables designed/researched for that specific BUILD step model.

For the time being, please read the text slides carefully. Our model is so ample, that if you change one variable, the pricing is different. There are 15 variables studied. I will repeat it: Do not forget this is the sub-prototype of pricing, and this model we have built under a DBR method is simply version 1.0. It will require adjustments and changes, not just from my team, but also from practitioners and academia.

If you wish to download this file, please click here:

In our next post, I will continue with steps 6 and 7. TEST and PRESENT. Have a nice Monday. See you then.

Sources of reference cited:

Disclaimer: Illustrations in Watercolor are painted by Eleonora Escalante. Other types of illustrations or videos (which are not mine) are used for educational purposes ONLY. Nevertheless, the majority of the pictures, images, or videos shown on this blog are not mine. I do not own any of the lovely photos or images posted unless otherwise stated.

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