Uncategorized

The Experience Economy

To demonstrate how this works, let me share a concept from a phenomenal book called The Experience Economy by Joe Pine and James Gilmore. What I learned from that book is when coffee first hits the market as a commodity, it costs about $1 a pound. Not much differentiation at this point other than the type of bean. Once it…

Continue Reading

Uncategorized

How They Do Their Work

The second way that most small business owners advertise their company is “how they do their work.” Other than price, what could possibly be wrong with this? Let’s look and see… Let’s say that Sue Smith is a CPA. When Sue introduces herself at a net- working group, it will usually sound something like this, “Hi, I’m Sue Smith with 1-2-3…

Continue Reading

Uncategorized

The Effects of Lowering or Raising Price

In this simplified illustration, Job 1 (which could be Product 1) is priced at $200 and the cost of producing it is $100, which would give you a $100 profit. Job 2 offers a discount of 20 percent, which would make the price $160. Guess what doesn’t change? The cost! It still costs $100 to do that job! So that…

Continue Reading