Pricing

There are four ways to support a price on something of value:

  1. replacement cost: “How much would it cost to replace?”
  2. market comparison: “How much are other things like this selling for?”
  3. discounted cash flow/net present value: “How much is it worth if it can bring in money over time?”
  4. value comparison: “Who is this particularly valuable to?”

Value Comparison is typically the optimal way to price your offer, since the value of an offer to a specific group can be quite high, resulting in a much better price.

Reference: http://sivers.org/book/PersonalMBA

 

Bernie

 

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