{"type":"rich","version":"1.0","provider_name":"Transistor","provider_url":"https://transistor.fm","author_name":"Business Strategy for CPA's","title":"190 Pricing Sweet Spot: Cost < Price < Value","html":"","width":"100%","height":180,"duration":284,"description":"What is cost, what is price, what is value?\nFirst let us clarify how these terms can be used and what they mean.\nThe seller determines the cost, and it is based on the inputs required to produce the service or product. \nThe seller determines the price, and it is simply a choice. \nThe buyer determines the value, which is unique to each person and highly subjective.\nYou can think of designing the “equation” like this:\n \nCost < Price < Value\n \nSo that:\n When the cost is less than the price, the seller sells at a profit. \n(The seller’s profit is the price at which he sold, minus his cost, of course.)\nWhen the price is less than the value, the buyer buys at a profit.\nThe buyer’s profit is less obvious. It’s the value to them, minus the price. \nThe value to the buyer is what they would have paid. \nThe buyer’s profit is what they would have paid minus what they paid.\nWhen you design your services such that Cost < Price < Value, you are designing your service to create mutually assured profitability. \nIt’s a sweet spot worth seeking.\n \n***Want one piece of business strategy delivered daily to your inbox?***\nSubscribe here: https://www.shethinksbigcoaching.com/subscribe-main-list","thumbnail_url":"https://img.transistorcdn.com/AZFvbY29RNsC20PTchqbqXsFoNMjM1040wmYivreg-g/rs:fill:0:0:1/w:400/h:400/q:60/mb:500000/aHR0cHM6Ly9pbWct/dXBsb2FkLXByb2R1/Y3Rpb24udHJhbnNp/c3Rvci5mbS9lZmE1/ODU2OWRkNzA4ZDQ2/ODg2YmEwYjYzNmEw/NjkzNC5wbmc.webp","thumbnail_width":300,"thumbnail_height":300}