profile

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.

Featured Post

Value?

Revenue ≠ Value Just that for you to think today. :)

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.

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.

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?

Charging by the hour creates the wrong incentives. Focusing solely on revenue creates the wrong incentives. Applying discounts without a clear criteria and policy creates the wrong incentives. Serving everyone creates the wrong incentives. Leaving things to wait so that you don't face the hard decisions now creates the wrong incentives. Trying to make compromises with 2 opposite approaches creates the wrong incentives. Overlooking bad behaviors creates the wrong incentives. And when your...

Where do YOUR thoughts LEAD?

How to make your business survive: discounts. A culture of discount hits your business deeply. It puts you (and your team, if you have one) at disadvantage when going to the market. It becomes a clutch. And as such, it's impossible to run freely, and fast, with them. It takes off your power in negotiating for deals. It makes you cut prices off, without any specific pattern. It cuts your margins thin[ner]. It gets you to be overworked —and on the way to burn out. It makes you take ANY kind of...

You as the seller have the total freedom to put any price you want. Your customers have the total freedom to choose whether or not to pay that price to work with you. A way to make it a no-brainer for them to pay is by making that price at least 1/10 of what they gain. Of their outcome.

Leads the dynamics in the relationship. If you're a partner of your clients, then the power weights are roughly equal. You have things at risk when they don't work. But if you don't, that's not a partnership. And that's ok. Power also means you can say no, walk away, or withhold from engaging in the deal.

"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...