Costs don’t matter


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.

Read more from Rod Aparicio

In diving, when you’re overwhelmed, you stop everything. Then, you breath. Assess. Decide. Same is in business. While everything seems urgent, you can only do so much. So stop, breath, assess, decide. And to get to that decision, you’ve already thought of a few ways to go about it.

Just as a band starts playing in a house, to small gigs, to more small gigs... all the way to stadiums with thousands of people. It's the same with decisions. The more controlled, low-impact, and low-risk decisions you make, the easier it is to see the patterns to move upwards. It's simpler to stir the wheel and correct direction with small decisions, than to shift everything from one decision. Quantity over quality first, quality over quantity then.

The way to choose better is by choosing more often. The way you decide better is by deciding more often. Practice. Quantity beats quality. It lets you make decisions that train your judgment. You won’t ever have all good decisions. Yet making a decision (even a shit one) can let you stir the boat and correct direction. Waiting for it to disappear won’t fix it.