Two Decades of Work Wisdom Distilled From Real Experience
Every employer has to evaluate whether the leverage you provide them enables them to manufacture their product or produce their service at a cost less than the price at which they can sell it. If the answer is no, your job has no reason to exist.
Great points. Those younger operators could get some great insights from Saifedean Ammous’s Principles of Economics. Podcast, book and course.
Did I ever tell you I majored in Macro Economics? 😀 Marketing was my minor. I geek out hard on these kind of books.
You left that out…
I agree with the leverage test — with one addition:
Cost efficiency explains part of why businesses win.
Perceived value explains the rest.
People don’t buy purely on production economics.
They buy on convenience.
Status.
Trust.
Risk reduction.
Time saved.
Identity reinforced.
The delta between cost and price is margin.
The delta between cost and perceived value is pricing power.
That second delta is where strategy, brand, and psychology operate.
For younger operators reading this:
Study economics.
Then study human behavior.
Both shape the P&L.
Every employer has to evaluate whether the leverage you provide them enables them to manufacture their product or produce their service at a cost less than the price at which they can sell it. If the answer is no, your job has no reason to exist.
Great points. Those younger operators could get some great insights from Saifedean Ammous’s Principles of Economics. Podcast, book and course.
Did I ever tell you I majored in Macro Economics? 😀 Marketing was my minor. I geek out hard on these kind of books.
You left that out…
I agree with the leverage test — with one addition:
Cost efficiency explains part of why businesses win.
Perceived value explains the rest.
People don’t buy purely on production economics.
They buy on convenience.
Status.
Trust.
Risk reduction.
Time saved.
Identity reinforced.
The delta between cost and price is margin.
The delta between cost and perceived value is pricing power.
That second delta is where strategy, brand, and psychology operate.
For younger operators reading this:
Study economics.
Then study human behavior.
Both shape the P&L.