SparePlace

Pricing Model based on market research

Costs Analysis

SparePlace

Costs Analysis

Description of the task:

SparePlace, Live bookings for last-minute customers at London's restaurants and bars.

SparePlace is a new app business based in London that is looking to solve the problem of millions of diners in London.

In particular, it connects last-minute canceled bookings and no shows with last-minute customers looking for a reservation at the best restaurants and bars in London.

In order to build a competitive product, we first need to understand how to position the product in the market and accordingly optimize the pricing model. The overall objective is to understand the broader context of the market, including current diners’ user experience and potential for restaurants to upsell an empty table with a last-minute customer.

Accordingly, the expected outcome is the optimal business model SparePlace should have.
Key questions include:
1. How much should we charge restaurants?
2. Should we apply a flat fee per diner we manage to seat (e.g. OpenTable) or vary the value
according to restaurant type etc.?
3. How should we create an audience? How can we attract new users looking for a last-minute table?
Which is our core market niche (e.g. professionals working in the City of London, students from
Westminster University etc.; evidence must be provided)

Requirements and Rules:

1. Understand our buyer personas and our company’s costs
2. Identify the core market SparePlace is serving or should be serving in the first place
3, Survey and talk with our potential paying customers (restaurants) and identify an optimal business model
4. Analyse the data and formulate optimal prices and packages

Then, create an Excel spreadsheet with the costs you believe SparePlace will need to sustain and, based on these costs and potential paying customers’ feedback, integrate the spreadsheet with the suggested pricing model.

Evaluation Criteria:

We will consider two main factors in assessing your project:
1. The quality of content of the research/analysis done.
2. The structure and the clearness of the presentation of the content.

Content and presentation will be the two main evaluation criteria.

Suggestion:
Probably easiest to present it in an excel table format, however, please feel free to be creative - we are more than happy to accept other formats.

Prizes and Rewards:

If you complete the task, you should expect:
1. Feedback
2. LinkedIn endorsement for skills that you have shown

If you complete the task well, you should expect:
1. In-depth feedback
2. LinkedIn recommendation from a co-founder
3. LinkedIn endorsement for skills that you have shown

If you nail the task, you should expect:
1. In-depth feedback
2. An amazing LinkedIn recommendation from a co-founder
3. LinkedIn endorsement for skills that you have shown
4. Opportunity to be selected on a longer term hands on project working directly with the co-founders
5. Co-founder will offer to introduce you with 1 person from his network who can be useful for your further career development

Deadline Date:

Additional Document:

London

United Kingdom

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