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"From a cost center to a profit center"
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"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 implies that anything that is waste, inefficient, bold, not-safe, not-guaranteed, uncertain, new can not be part of what you do. It implies you don't innovate. It implies that you can't make profit if you disengage costs from price and profit. And that's not real life. |
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.
Price is the representation of your promise. If you have a high price, the implied promise is that it's of high value. It's the right message. If you have a low price, you're also sending the right message: of low value. The understanding of it is like a force of nature: it just happens. And fast. The question is: do you intend to send the message of low value or of high value? Either is ok. There's a market for everyone. Are you making the right message?
More often than not, there is a big focus on revenue as the thing to measure (success, growth, improvement). All of this nonsense of "Orders. Orders. Orders." The thing is, to someone new into a business or sales, this misbelief is misleading. Instead of seeing revenue as a proof of concept and an enabler of cash flow, they see it as the end. And then fail. On top of that "Orders, orders, orders." hides something unintendedly: you get to be an order-taker. Taking orders. Following orders....
Choosing revenue means choosing vanity. It means that what's important is what goes into the business. The today, rather than the long game. It dilutes the way you make decisions, because it's revenue over all. It dilutes your power to say no. It pushes you to comply with what your customer demands. And when revenue is not hitting the mark, you stench of desperation. So you get pushed down. To what they say. In fear. Revenue is not all.