MBA1281 Nail Your Value Metric and Make More Revenue
There’s a powerful number you have to discover: your product’s value metric.
The value metric is the exact measure, in dollars and cents, of what your product is worth to customers. It’s not what the product is worth in raw materials, or what it costs in overhead, or even its monetary ROI. It’s simply how much money a customer would gladly exchange to enjoy whatever your product does for them.
Yes, it’s a little subjective, but it can be translated into a cash amount. And it’s crucial to know exactly what that amount is.
Today, we explain how to figure out how much you can really charge, based on the value metric. It might take time, but it’s worth every minute you spend to find out where the ceiling is. By setting your price by the value metric (instead of other, less reliable metrics), you can maximize your revenue-per-customer, and widen those profit margins considerably.
We’ll show you how to calculate this all-important number, plus offer some examples of businesses that nail their own value metric perfectly. This might be the most profitable podcast episode you listen to all year. Click Play!
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