Self-Realisation, Uncategorized

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

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Self-Realisation

After you raise your hand…

Show up.

Show up and keep showing up.

Show up with at least as much enthusiasm as you had when you first raised your hand to volunteer.

The volunteering part is easy. Making promises is a fun way to get someone’s attention.

Keeping those promises is often unsung, but that’s how you build something.

Reblogged from: here

Self-Realisation

Running out of room (length vs. density)

A reporter recently hacked an interview he did with me, turning 17 emailed sentences into two and changing both the message and the way it was delivered.

That used to make sense, when papers involved column inches, but it was for an online article.

Why make things shorter than necessary if you’re not paying for paper?

Why make a podcast or a talk 18 minutes long… the internet isn’t going to run out of reels of tape.

As we’ve moved from books to posts to tweets to thumbs up, we keep making messages shorter. In a world with infinite choice, where there’s always something better and more urgent a click away, it’s tempting to go for shorter.

In fact, if you seek to make a difference (as opposed to gather a temporary crowd), shorter isn’t what’s important: Dense is.

Density is difficult to create. It’s about boiling out all the surplus, getting to the heart of it, creating impact. Too much and you’re boring. Not enough and you’re boring.

The formula is simple to describe: make it compelling, then deliver impact. Repeat. Your speech can be two hours long if you can keep this up.

And if you can’t, make it shorter!

Long isn’t the problem. Boring is.

If someone cares, they’ll stick around. If they don’t care, they don’t matter to you anyway.

Reblogged from: Here

Self-Realisation, Travel

Learning from rejection

When someone doesn’t say yes, they’ll often give you a reason.

A common trap: Believe the reason.

If you start rebuilding your product, your pitch and your PR based on the stated reason, you’re driving by looking in the rear view mirror.

The people who turn you down have a reason, but they’re almost certainly not telling you why.

Fake reasons: I don’t like the color, it’s too expensive, you don’t have enough references, there was a typo in your resume.

Real reasons: My boss won’t let me, I don’t trust you, I’m afraid of change.

By all means, make your stuff better. More important, focus on the unstated reasons that drive most rejections. And most important: Shun the non-believers and sell to people who want to go on a journey with you.

Reblogged from: here

Self-Realisation

Problems

Avoiding a problem with foresight and good design is a cheap, highly leveraged way to do your work.

Extinguishing a problem before it gets expensive and difficult is almost as good, and far better than paying a premium when there’s an emergency.

Fretting about an impending problem, worrying about it, imagining the implications of it… all of this is worthless.

The magic of slack (a little extra time in the chain, a few extra dollars in the bank) is that it gives you the resources to stop and avoid a problem or fix it when it’s small. The over-optimized organization misunderstands the value of slack, so it always waits until something is a screaming emergency, because it doesn’t think it has a moment to spare. Expensive.

Action is almost always cheaper now than it is later.

Reblogged from: here

Self-Realisation

Very good results (and an alternative)

Hard work, diligence and focus often lead to very good results. These are the organizations and individuals that consistently show up and work toward their goals.

But exceptional results, hyper-growth and remarkable products and services rarely come from the path that leads to very good results. These are non-linear events, and they don’t come from linear effort or linear skill.

It’s tempting to adopt the grind-it-out mindset, because that’s something we know how to do, it’s a method that we can model, it’s a sort of work ethic.

But by itself, the grind-it-out mindset isn’t going to get us a leap. It’s not going to lead to a line out the door or 15% monthly growth. That only comes from giving up.

We need to give up some of the truths that are the foundation of our work, or give up on some of the people we work with, or give up on the conventional wisdom. Mostly, we need to give up on getting approval from our peers.

Of course, we still have to keep showing up and grinding out. But we have to do it with a different rhythm, in service of a different outcome.

More hours in the practice room doesn’t turn a pretty good musician into a jazz pioneer. More hours in front of the computer doesn’t make your writing breathtaking.

Sure, the work might be just as hard, but it’s work of a different sort.
Reblogged from: here