Self-Realisation, Uncategorized

“Summer’s almost over”

When I was a kid, my mom would start saying that in mid-July.

I think she meant well. Summer is a great time to stand back, to chill out, to spend an entire day or a week producing little or nothing and simply breathe.

But she was reminding us that regardless of our internal clock, the real world keeps moving forward, and that maybe this little window of time, one that we’ll never see again, could be a great time to make a contribution, find a connection and explore what might be possible. The ability to create is a rare privilege, and it’s not to be ignored.

If you can make a ruckus, make a ruckus.

Reblogged from: here

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Uncategorized, Self-Realisation

All other things being equal (simple contribution analysis for pricing)

If you make a product that costs $5 to produce and package, how much should you charge for it?

I don’t know.

But there’s a simple bit of arithmetic you can do to understand sensitivity in pricing.

Should you charge $7 or $9?

Well, if you charge $7, you make $2 a unit.

If you charge $9, you make $4 a unit, or twice as much.

Which means, all other things being equal, you’ll need to sell twice as many at $7 as you’ll need to sell at $9.

It doesn’t feel that way, but it’s true. 100 sold at $9 is more profitable than 180 sold at $7. And to take it a step further, you’ll need to sell 800 at $5.50 to make as much as you would have made at $9. Eight times as many.

No one knows what your demand curve is going to be like, no one is sure what impact your pricing will have on all the other items you sell.

But be honest with yourself about contribution.

Price is a story, it’s a story we tell ourselves and others about what we have to offer. But price is also the path to being able to stay in business.

Reblogged from: here