What is TVE and how is it calculated?
Set your pricing based on the true value of your time
David
Last Update há 9 meses
We use Time Value Equivalent (TVE) to calculate about what one minute of the Stars time is worth annualized. This is important to help set the Star Shoutout pricing so that the offer price aligns with an established market value. The calculation is based on a formula that divides an 8 hour day into 480 minutes, then uses 260 days per year to estimate the annualized TVE based on a per minute value, which is about how long it takes to record a Star Shoutout video for a fan.
TVE Formula Description:
The Time Value Equivalence (TVE) of one minute of time annualized can be calculated using the following formula:
TVE = (Minutes per Day × Number of Working Days per Year) × SSO Price
Where:
- TVE stands for Time Value Equivalence, which represents the value attributed to one minute of time when annualized.
- Minutes per Day refers to the total number of minutes in a day, usually 480 minutes (assuming an 8-hour workday).
- Number of Working Days per Year is the count of business days in a year, typically around 260 days (excluding weekends and holidays).
- SSO Price represents the price of the Star Shoutout (SSO) unit, which is the monetary value associated with using the Star Shoutout platform.
By substituting the appropriate values for "Minutes per Day," "Number of Working Days per Year," and "SSO Price" into the formula, you can calculate the Time Value Equivalence (TVE) of one minute of time when annualized. This calculation helps to quantify the value of time based on the given parameters and the cost associated with the use of the Star Shoutout platform.