Fixed prices
They fail. It’s hard to get it right. The scope can always change and it’s a minus-business. That’s right. The way those fixed prices for projects fail is because they were built had most the only way we are taught to create prices: you create a scope, add some time/resources and a buffer, and is all focused on how much effort/work/time/resources it might take. If you miscalculate, you take the big hit. And that’s backwards. It doesn’t take into account how much money it will mean to the…
Bringing solutions
It’s funny. Every time I see a business saying they “bring solutions” I smile. Ponder this question: If you bring solutions… does it mean your competitors (in their marketing and communications) say they “bring problems”? Here’s the thing Bringing solutions is not the thing that makes you different. It’s something else. Usually, it’s the way you get to the transformation. What’s your way?
An oldie but goldie
A brand is the gut feeling a person has about an organization, product or service. [video] Not about a person. Here’s why Because from a functional perspective, an organization, product or service adapts to the market, even when that means they need to change the core of themselves.A rebrand. The way they adapt is by either adding, changing or eliminating features and characteristics. It can make them take radical pivots to their core, even to change or disappear completely while keeping its…
Price difference
“Knowing how much your competition charges will let you know where you can set your prices. So that you don’t charge too little, or charge too much.” Sure. This makes sense when you want to be a me-too player. To be easily exchangeable. Undifferentiated. Expendable. But if you have something truly special? Should you charge the same as everyone else? Here’s a rule of thumb: Make your price AT LEAST 60% higher than your competition. 20, 30 or 40% is too similar. 50 would be fine… but since…
Morally incorrect?
During a conversation this past week, I heard that. That raising your prices 5X or 10X, or charging one client different (probably 10X more) from another is not fair. Or that it’s wrong. What are your thoughts on that?
Surprise
To deliver surprise you need to be comfortable with risk. No risk, and you’ll be expected, predictable. And if you want to stand out in your market, predictability works in favor of your competitors. Awe them. Awe your customers.
One thing that will kill your business
The wrong focus. On customers that are not profitable. On products that no one needs. On numbers (revenue, sales), over profits. On people who just won’t do the thing or put the work. Choosing is hard, yet simple. You’ve always known what you should do. Take that first next step and just start.
Value?
Revenue ≠ Value Just that for you to think today. 🙂
Revenue ≠ Value
Creating value is not the same as creating revenue —and viceversa. Increasing your revenue can be a good indicator of something happening: the market finding your offerings attractive, making a simpler process for your customers to buy, increasing volume of sales, increasing prices, etc. YET, when your cost structure remains, your revenue minus costs will stay pretty much the same (because your costs are proportional to your revenue on most of the situations above). Revenue can deceive you….
Maximizers
In The JOLT Effect, a maximizer refers to a type of person (buyer, in this case) who: Wants to make the absolute best possible decision, not just a good one. Wants to explore every option, analyze all data, and compare thoroughly before committing. Often fears messing up (making the wrong choice). In short, someone who is always trying to get the lowest possible risk. The trade off is, though, that all of this happens at the expense of risking the inaction of now. It can (it does) take many…