April 24, 2023

S2E14

30 minutes

Every customer has a threshold when it comes to willingness to pay, and Michele gives a recent example of being a customer herself and being unwilling to pay what was being asked of her. When it comes to determining what the “right” price is for what you’re selling, that right price is ultimately however much the customer is willing to pay.

We also touch upon rules and regulations when it comes to running a business and whether or not any of them are arbitrary, when the government needs to step in and set standards and regulations, and so much more.

At the end of the day, growing in sales doesn’t matter without cost structure; you won’t increase profitability. As always, we really hope that this talk is helpful to you! If it is, please consider subscribing to the podcast (if you aren’t subscribed already) wherever you listen so that you never miss an episode! Please also feel free to reach out to us via one of the methods listed below if you have anything you’d like to share!

Time Stamps

[0:30] - Michele has been trying to hire a new housekeeper.

[4:50] - Karamel points out that this is the first time Michele has ever complained about a price.

[6:32] - Michele and Karamel are ultimately talking about willingness to pay.

[8:34] - The higher the price, the higher the customer’s expectation.

[11:08] - The price you decide on needs to be realistic.

[14:59] - Do research before agreeing to a price.

[15:57] - Who makes the rules about how business is to be done?

[19:04] - Learn about how Karamel had once thought she wanted to be a general contractor.

[22:18] - The government sometimes has to step in with regulations.

[26:27] - Michele makes a connection between skill level and wage.

[28:42] - Growth in sales won’t matter if you aren’t profiting.