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.
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.
"From a cost center to a profit center" What a nonsense. That implies that your profit is based on your costs control. That, magically, when you know your costs (or audit or improve them or whatever), you'll turn into profit. It implies that costs is the basis for profit per default. It also implies that to get to that profit, you need to be the most cost efficient and cost effective. That you rip off anything that is a cost. It implies that you follow best-practices. Bull.Shit. That also...
Getting too close to what the rules/views/templates/best-practices are can make you miss important details. Paper can hold anything. Reality doesn’t.
In a negotiation, the first thing you need to be comfortable with is zero. As in No Money, can't pay, won't pay, don't see the point on it. Having that figure clear in your head is the thing that will let you move forward. Right now, you have zero. If the deal doesn't happen, you'll still have zero. You didn't lose something that you didn't have in the first place. Zero means you're also free. You can say no when it's not a fit, when it doesn't make sense to you, or when you feel like it....