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Costs don’t matter
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Yeah, they do matter, but not necessarily when pricing. If they did (costs), the price of any SaaS would need to be near to zero, since the cost is marginal because it's scaled up. If they did, the price for a flight ticket would need to be lower the fuller the plane is. Flights get all of their costs covered at a certain quantity of tickets sold (and that’s less than 30% of the seats). Hotel rooms would have to be almost given for free the closer to the end of hotel-day or when they’re getting over X number of rooms sold. Yet, they get more expensive. Restaurants and bars would have to give food away and/or tons of complimentaries, since their drinks are 400%+ in price compared to their costs. Or are you paying for something else? |
Rod Aparicio
Get one tip, question, or belief-challenge that just might change the way you market, to help your customers buy. A *daily* email for b2b founders on improving your business —without the bullshit.
Wanna play a game? Same situation. You need to make an important decision on your business. A game-changer. And you approach 2 advisors —could be a lawyer, a consultant, an accountant, a fractional CMO/CFO/COO... up to you. Both will get you to the same information to make your decision. Adv 1's response: Let me look into it, do some research. It might be around 5 weeks.I'm estimating 60 hours at $80 per hour. Approx total: $ 4800 Adv 2's response: That?I can tell you right away. The price...
When you work in music, movies, or art. When you delight your audience with the unexpected. When you prepare them to expect the unexpected. Not in business, though. You don't want your customers to be misled. You want to surprise them, yeah; yet with an idea they're part of. There, you lead them. And that's how you delight them. PS.- If you want some fun misleading and are into the MCU (Marvel), do watch Deadpool. Great misleading (and tons of swearing, just FYI).
Yup. Buying into an idea and not quite questioning deeply... until I did: Category Creation. The main argument is that it... "involves the creation of new categories of products and services to introduce to the market. [...] Category designers present their products and services under a new category and educates the market on that category." And while this sounds awesome, it's not really "creating" a category. To create a category, it needs not to be existing before. And here's the thing:...