Price is determined by an executive or a management team. They understand how much a product or service costs to make or deliver, add a margin of profit and the result is the “price”.
Value is the feeling every customer and potential customer puts on the product or service provided. Do not confuse value with price.
We should all strive to get more feedback in our day to day but there is some feedback you shouldn’t listen to.
When South Park had it’s first focus group test at Comedy Central it set a record for only scoring 1.5 out of 10 with women. Three of the women in the group cried they hated it so much. Yet South Park went on to be one of the most recognized cartoons out there, and they are still creating more episodes to this day.
A famous quote from business guru Michael Porter goes: “If your goal is anything but profitability – if it’s to be big, or to grow fast, or to become a technology leader – you’ll hit problems.” I think Derek Sivers proves this quote wrong. Ever since Derek started the amazing success story that CD Baby became, his goal was never profitability. In his book Anything You Want he hints at what a new generation of entrepreneur’s are focusing on: putting people first and profits second.
You want to share the experience.When you hear someone is having a keg party the host of it does not have to try to get you to come. She doesn’t have to sell you on the party, she doesn’t have to advertise to get people to come. The keg sells the party. No one wants to miss a Keg party.
Great products are much like keg parties–you want to tell others about them. They are not your regular products; they are different in some special way. Clever advertising doesn’t need to be used to sell them. A large part of your budget doesn’t need to go towards “branding”.
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