Incremental pricing

Businesses frequently try to recoup their costs as quickly as possible and in doing so lose out on long term opportunities.

As an extreme example, if a car manufacturer tried to recoup their costs on their first sale, the price of that first car would be many millions of dollars. The chances of making that sale would be very slim. By selling thousands of each model they spread that cost out over many cars and can price the cars cheaper.

In programming, we are able to create a script to do something specific and while it might not be economically feasible to create that script for the customer that wants it, if we can reuse that script for other customers, it can then turn into a profitable program.

Are there things in your business that might not make sense to do for just one customer but if you can resell to other customers can prove to be profitable long term (this is, of course, assuming the customer isn’t paying to own all the rights)?

Just something to think about.

Have a great day!

Lawrence

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