(One of) The big lie. A function of your costs.
Setting up your price as a function of your costs is one of the big lies we’ve been taught into. From hospitality…Calculate labour (staff) + supplies and then add what “the best practice” on profit margin in the industry is. Now you have your price. To B2B…Calculate what it costs you, add a margin and you’re good to go. You have a price. To consulting…Estimate how much you’d like to make in a year based on your costs, divide it by 2000 hours (aprox what you work in a year) and you have…
Value, then Price
If you know what your customer values —what’s REALLY important for them, you have a head start. A head start to put a price that is less that what they gain —so it’s a no-brainer. A head-start to focus on what they really want —so it’s a no-brainer. A head start to ditch whatever would be a nice-to-have and look for the big wins —so it’s a no-brainer. A head start to seeing what to say No to way ahead on the road —so it’s a no-brainer. A head start to shift the conversation from hours, time,…
Another day in paradise
3 chords. No effort. Just a warm up. A world, epic riff that makes it stand out and recognizable all over the world (and time). That’s how this song was made. However, Dominic Miller’s first intention was to make it about the song and himself until he heard: – “That’s the riff!” – “Wait. Hang on a minute, mate. I’m gonna do something really epic that’s gonna show not only great your song is, but how great i am” (I’m just warming up!) When he understood it was not about him or about how epic…
Prep the room
So, you’ve got a gig, quickly got to see the patterns that are holding your clients back and you are ready to move on. You make things happen. You know what to change, how to pivot the approach, how to implement actions, put a plan in motion and so on. You make shit happen. And you hit resistance. Intellectually, your client is following your arguments and understands them. In principle, it’s only logical to implement your advice IF they want to get to the results they want. But they don’t…
Right people. Right Content. Right Time.
“Getting the right people to the right content at the right time” Bill Shander That is the mantra for the 4×4 Model for Knowledge Content by Bill Shander. It’s not about your content reaching the right people. It’s bringing them to your content. And it all happens from low to high commitments they (are asked to) do. It puts people first. Finds the right ones to get the content to. Content second. Light or heavy to consume? Time third. Is it the right context for them to consume it and get it?…
It’s some kind of emo thing
That was Chad Smith, drummer of Red Hot Chili Peppers, after hearing (and playing) “The Kill” by 30 Seconds To Mars in one take —listening to it for the very first time. If you like music, you might enjoy this vid (if you haven’t already seen it bc it’s gone crazy viral). [My recommendation: If you’ve never heard the song before, check it out here.(3:51) Short version of the jam (3:46) here Long version (8:45) here ] Chad’s level of expertise is such that he goes into an unknown situation and…
Marketing is a two-letter word
BS Because it’s seen as a way to tame people. To work “like magic”. To convince them of what they don’t want. To build things around hacks. To win in business. To win in life. That’s how you get to… Creating scarcity Focusing on your brand Creating a personal brand Talk about “performative” authenticity Focus on personality-led growth Product-led growth Hourly rates Marketing is sales Marketing is tactical, not strategic Thought leadershit ESG and B-Corp stunts Certifications Selling…
Your price is not the problem
A common thread that comes when talking on pricing ANY offering comes as: “I believe my prices are too high. I think i’ll lower them.” When digging for the reasons, one recurrent is: “My potential clients have told me so.” If that’s the gist of the problem you’re facing, here’s a question for you: If you cut your prices to 50%, would it automatically double your clients, customers, guests? Would you have people lining up because you’ll be over capacitiy? Just think of that. 🙂
Costs, then Price
A couple of replies to yesterday email focused on 2 things re: pricing. Decision-making and Costs. Decision-making Long time reader and AI specialist Genevieve Hayes pointed out (shared with permission): “All these pricing formulae are just examples of decision rules. And as we’ve discussed on many occasions, they are there to guide you, not to be blindly followed.”. She’s absolutely right. The thing is though, that almost everything taught is taken from the view that costs determine price….
Maybe your pricing IS the problem
If you think of it as a response to the market. If you build it up as your costs + profits. If it’s set up being compared to the competitors. If it’s taken as what big cos do. If you want to build it from low entry points to then raise it. If you’ll raise it little by little. If you believe hours define it. If you believe effort defines it. If you believe it’s “what’s you’re worth”. If Rate is confused with Price. If you ask the question “what would you pay” instead of “would you pay ___”. If…