September 10, 2017

Affordability envelope


You can build a beautiful product, wrap it in a soothing and secure service, and build equity in its brand. It might just be the the best of its kind – universally recognised for excellence and delivering more value at a better bang-to-buck ratio than has ever been achieved in its sector. It might be pretty. It’s definitely fit for purpose and the best solution to the problem they’ll see this year. They may really really want it.

It might be all that, and they still say No.

Like that car, that holiday, that house – no matter how much it offers and how much they want it, it first has to fit inside their affordability envelope.

Stray outside that, you have three choices:

– Cut the price (and profit)

– Reduce the value (and cost)

– Look for a customer with a wider envelope.

Skippy strategy: When price fights reality, reality wins.