If your goal is to provide a service at terms your…
“If your goal is to provide a service at terms your customers can afford, you have to figure out how to offer your services at price points such that your aggregated costs are lower than your aggregated revenues.”
About This Quote
To stay competitive, price services so total costs stay below total revenue.
In simple terms: Price services below costs to profit.
Key Takeaway
Align pricing with cost structure.
Themes
business
finance
strategy
Mood
pragmatic
analytical
Type
advice
instructional
When to use this quote
- startup budgeting
- product pricing
- service contracts
Key Concepts
cost management
pricing
profitability
Questions to Reflect On
- How can you reduce costs without sacrificing quality?
- What pricing models fit your market?
A Different Perspective
Market pressures may force higher prices.