Sublime

A “ cost-plus ” mentality: In the minds of many customers, the price is closely related to the seller’s costs. In other words, consumers have a “cost-plus” mindset. They think that sellers base their prices on costs such as raw materials, manufacturing, and shipping.

Small brands

Mental Market Share (MMS) = the share of the brand’s links to CEPs relative to competitors.

We are constantly making decisions about whether something is worth our money, or trying to convince others to part with their money.

still needs to sell enough units to make a high profit. If the price is so high that volume remains very low, the company will struggle on the profit front.

The single most important talent in selling professional services is the ability to understand the purchasing process (not the sales process) from the clients’ perspective.

These kinds of promises make the guarantee credible. And what does the flipside of that customer value look like? BBBK’s price is ten times as high as its competitors’ prices.

Experience has shown that it is difficult, if not impossible, for one part of the firm to create a strong “frontier expertise” reputation when the firm is already well known as a low-cost provider.

“We’re getting out of the junk business, like employee pricing sales that boost market share but destroy residual values. It’s better to sell fewer cars at higher margins than more cars at lower margins. Selling five million vehicles at zero profit isn’t as good a proposition as selling four million vehicles at a profit.”