Only when you generate more value for the customer, you can then decide how to split that with the customer in terms of things like price. How do we create more value for the customer and then split that with them?

something better than some metric that's, you know, just operational?

59:12 / 59:43

something better than some metric that's, you know, just operational? And even if it's qualitative. Okay. Can we do that? Can we talk to customers and ask them qualitative questions to try to say, like, you know, I would just say, like, do your best here because only when you generate more value for the customer, you can then decide how to split that with the customer in terms of things like price. You know? Right? But that's that's my, that's in fact how I think of it, that very phrase. How do we create more value for the customer and then split that with them?

Why this clip

Provides a clear mental model for value-based pricing that flips the typical approach. The 'split value' framework is quotable and actionable, offering a fresh perspective on pricing strategy.

59:12 - 59:4331sPractical Framework

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What they said next

One way to offset the cancellations is if existing customers bring in new customers. This is absolutely something that happens in consumer, but it's also an answer to cancellations that grow exponentially - because existing customers bringing in new customers also scales.

1:04:29 - 34s · Business Mechanics

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