There’s a easy regulation: Nobody buys something until it produces extra worth than it prices.
This appears apparent. Worth might be within the type of sustenance, standing, affiliation, peace of thoughts or well being. And worth is all the time measured by the consumer.
A $300 caviar spoon will solely be bought if somebody believes it produces greater than $300 in worth (and so they can afford it).
The consumer doesn’t care how a lot it price you to create. They don’t care how a lot you want the sale.
So, why don’t nurses receives a commission extra? It’s fairly clear that they produce worth far in extra of their salaries.
And why are Taylor Swift live performance tickets so costly? It doesn’t price the promoter a lot in any respect to supply that final seat…
The reason being clear: shortage.
When there are substitutes, knowledgeable shoppers normally select the most cost effective an identical merchandise. That’s why costly wine prices greater than water, despite the fact that you possibly can’t stay with out water.
This all comes collectively after we notice {that a} good enterprise challenge doesn’t merely create worth, it is also constructed round some type of shortage.
Freelancers are tempted to overlook this, and find yourself racing to the underside. “You may choose anybody, and I’m anybody,” is just not a helpful advertising and marketing slogan.
Individuals are going to purchase this from somebody, however why would they purchase it from you?
Inform us in regards to the worth you create. And inform your buyers about why your providing shall be persistently scarce.
