One of the concepts that is absolutely critical grasp if you want to be an effective marketer is that you need to understand how much value the customer places on a transaction.

It’s not about your cost or your time.

Your hours. Your profit…I don’t care.

Value…I care.

Now, if my kids (8, 6, and 3) can get it…well, anyone can…

The other night, they were telling me about the “show” they were putting on, they said, “tickets costs 30 cents.”

So, I asked them, “how do I know it’s worth 30 cents? I’ve never seen the show. None of my friends have either.”

Being the children of Never Stop Marketing, they agreed to put some “skin in the game” and we arranged a  two-tier pricing model.

I would buy a ticket for 15 cents. Then, after the show, I could pay as much as I wanted…up to 45 cents.

Which they earned

Too often, the conversation is “this is how much we charge per hour.”

“This is the cost.”

How about instead going through the (hard) work of trying to say, “ok, let’s figure out how valuable this is for you and we start from there?”