There’s a powerful number you have to discover: your product’s value metric.
The value metric is the exact measure, in dollars and cents, of what your product is worth to customers. It’s not what the product is worth in raw materials, or what it costs in overhead, or even its monetary ROI. It’s simply how much money a customer would gladly exchange to enjoy whatever your product does for them.
Yes, it’s a little subjective, but it can be translated into a cash amount. And it’s crucial to know exactly what that amount is.
Today, we explain how to figure out how much you can really charge, based on the value metric. It might take time, but it’s worth every minute you spend to find out where the ceiling is. By setting your price by the value metric (instead of other, less reliable metrics), you can maximize your revenue-per-customer, and widen those profit margins considerably.
We’ll show you how to calculate this all-important number, plus offer some examples of businesses that nail their own value metric perfectly. This might be the most profitable podcast episode you listen to all year. Click Play!
Stitcher | Spotify | Podcast Feed | How To Subscribe
Today’s Sponsors
Varidesk
Varidesk is the world’s leading standing desk solution, helping professionals maintain a healthy, active lifestyle in the office or at home. Varidesk converts any desk into a standing desk. Easily go from sitting to standing, increasing your productivity and focus. Varidesk comes with a 30-day risk-free guarantee, and there’s no assembly required. They also cover shipping both ways – if you don’t love it, they’ll pick it up! To learn more, visit vari.com/desks-and-tables/standing-desks to learn more.
MailChimp
Ready to grow your business? MailChimp is your all-in-one marketing platform. MailChimp lets you manage more of your marketing from one place, without all the extra tools. Market smarter and grow faster with one tool that helps you create, publish, manage, and measure multi-channel marketing campaigns. Let MailChimp help you market smarter — learn more at mailchimp.com