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The $100 MBA Show

MBA1281 Nail Your Value Metric and Make More Revenue

The $100 MBA Show

Omar Zenhom

Careers, Entrepreneurship, Business, Marketing

4.91.2K Ratings

🗓️ 6 June 2019

⏱️ 14 minutes

🧾️ Download transcript

Summary

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.

Transcript

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0:00.0

Heyo! Welcome to the $100 MBA show, your business coach on the go every day with our daily 10 minute business

0:15.4

lessons for the real world. I'm your host, your coach, your teacher, Omar Zen Home.

0:21.2

I'm also the co-founder of the $100 MBA, the complete business training, and

0:25.3

community online. And in today's lesson you will learn how to nail your value metric

0:30.4

and make more revenue. Valu metric is a term I learned from Patrick Campbell over at Profit Well and it talks about,

0:38.0

or it's all about what do your customers value?

0:41.0

What are the variables you can play with so you can offer more value and charge for that value?

0:47.0

People are going to be more willing to pay for something they see value in.

0:51.0

A simple example is airlines.

0:53.8

Airlines charge for a ticket for a flight.

0:57.0

Every seat on the plane is getting to the same destination,

1:00.1

but people are willing to pay a bit more

1:01.8

if the sea has a bit more leg room,

1:03.6

or they can board early, if they get lounge access,

1:06.7

if their seat turns into a bed. These are valuometrics, comfort, convenience,

1:11.9

prestige, the customers of airlines are willing to pay for.

1:16.5

So in today's lesson, we're going to talk about how to discover and nail your value

1:20.4

metric.

1:21.4

So A, you're giving the value that customers want, B, you're pinning that value

1:26.5

to a price, so you're not just giving it away and see how to leverage that so you can be able to make more revenue per customer

1:34.7

every single time they visit your business.

1:37.3

When I learned this concept it really changed the game for me when it comes to

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