A Pricing Idea Confirmed

For years, whenever I have spoken about offering access level agreements, I have suggested a 20 percent premium if the customer wants to pay monthly instead of annually.

Last week, I got some confirmation that my pricing suggestion is right on target. Google is now offering a monthly subscription price for their Google Apps. The only price offered in the past was $50 per user per year, cheap enough to be sure.

Now, they offer a monthly price of $5 per user per month – a difference of, you guessed it, 20 percent.

Every so often, I get one way right!

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A Goodbye to Charles McCord

As a former New Yorker, I grew up listening to Imus in the Morning.

Earlier this month, Imus’ longtime sidekick, Charles McCord retired. In addition to “doing the news” Charles was the literary genius behind many of their most famous bits, Fractured Fairytales were my favorite.

When they begin simulcasting on MSNBC and then FOXBusiness, Charles morphed occasionally into a berater of the I-Man’s narcissism. The most classic, on Whittaker Chambers, is in the montage below. Don had been droning on for weeks about Sam Tanenhaus’ biography of Chambers when one morning Charles exploded.

Happy Retirement Charles! You will be missed.

Thinking Differently

At a recent conference one of the speakers presented the following syllogism:

  • What drives a company –> sales
  • What drives sales –> marketing
  • What drives marketing –> data

The implication is clear, ultimately data drives a company. Unfortunately, this thinking is all too prevalent in the business world (perhaps, just the world, leave business out of it).

It is also wrong. Actually, it is not just wrong, it is confusing cause with effect. Data is not the cause of company activity, it is the effect of it.

Instead, I would like to posit the following syllogism:

  • What drives a company –> profit
  • What drives profit –> creating value for customers
  • What drives value for customers –> innovation
  • What drives innovation –> knowledge
  • What drives knowledge –> relationships (conversations)

In my chain it is relationships that ultimately drive a company.

Thoughts?