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<== Our conclusion was that this isn’t a temporary blip that will swiftly trend-back up in a V-shaped recovery of valuations but rather represented a new normal on how the market will price these companies somewhat permanently. We’ll just wait until companies that last raised in 2019 or 2020 come to market.”
In the case of MakeSpace we had huge initial successes in New York City as Rahul led the scaling of our drivers, our trucks and our warehouses and we figured out the right price points to beat the local competition. presented pricing challenges when compared to a whole new set of offline competitors we didn’t know well.
With the real data from that surge, you need to take a hard look at business model realities, cost of customer acquisition, inventory costs, and other key metrics. Control costs and adjust prices to maintain your margin. Document processes and metrics for economies of scale.
Of course, nothing is totally free, and I have heard the horror stories of relatively small companies finding thirty or more employees spending most of their time scanning and using social media for promotions, or engaging high-priced consultants who never seem to be able to show any real return for all of their efforts.
These days, a fun shopping experience, or no-question returns, often tips the scales over extra product features or a lower price. I predict that one day soon customer-centric strategies, and metrics like customer lifetime value, will be seen as the standard in business management, rather than an exception in a product-centric world.
Now customer support is called the “customer experience,” and everyone is expecting you to actually anticipate their personal needs, and totally delight them with all aspects of the shopping experience, price versus value, as well as help with any follow-on questions or problems. The marketing metrics covers support as part of experience.
I recommend a ten-slide pitch to start, reviewed by friends and advisors, to be expanded to a ten-to-twenty-page business plan with opportunity sizing, cost and price details, competitors, marketing and sales strategy, financial projections, and resources required. Marty Zwilling First published on Inc.com on 10/21/2019.
And then in the late 90’s money crept in, swept in to town by public markets, instant wealth and an absurd sky-rocketing of valuations based on no reasonable metrics. In those years I learned to properly build product, price products, sell products and serve customers. you are bound to pray to the valuation Gods. billion fund.
Incorporate AI-powered data and metrics systems. Their pricing algorithm crawls the Web daily, and adjusts prices to always match the lowest price found anywhere, offline or online. Marty Zwilling First published on Inc.com on 12/12/2019. They help hiring managers raise the bar for every interview.
Quantify your results in terms of cost per transaction, higher customer satisfaction, lower prices, and profit per employee, rather than number of transactions or hours worked. Help your owner get beyond the misleading metrics of employee overtime and salary increases. Marty Zwilling First published on Inc.com on 03/18/2019.
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