Patrick McKenzie (patio11) has a lot of great advices and knows how to translate them. There are a lot of advices to take from his blog, but the passage that struck with me the most is the following one:
Let’s talk about that heart surgeon again. Do you think he paid $5.32 for that doohickey he just planted in you? No possible way. He probably paid $500 or $1000 for it. And, if it ever occurred to him to argue with the sales rep from HeartTech (“Technology with a Heart”), the conversation probably went something like this: “Thats an interesting perspective. I suppose you could try making it yourself for $5.32… or, alternately, you could make $49,500 tomorrow installing one and be on the golf course by 3:00.” And then the good doctor’s eyes lit up and the deal got closed. Thats essentially what your conversation with the customer should be: regardless of what it took to make my product, my price is a “fair” one because you’ll get oh so much more out of it. And, seen in that light, most of your customers will agree. Patrick McKenzie