Page 41 - The Bootstrapper Bible

ChangeThis So, to recap, letʼs restate each of the four questions that relate to the value chain: 1. WHO’S GOING TO BUY YOUR PRODUCT OR SERVICE? Define the audience. 2. HOW MUCH ARE THEY GOING TO PAY FOR IT? Do a value analysis to figure out what itʼs worth compared to alternatives. 3. WHERE WILL THEY FIND IT? Determine how much of the distribution of the product you control, and what value is added by the retailers or reps you use. 4. WHAT’S THE COST OF MAKING ONE SALE? Divide the cost of sales by the number of products youʼre going to make. Youʼve just figured out whether theyʼre worth selling. The ice cream example is fascinatingly simple when it comes to these four questions. 1. WHO’S GOING TO BUY YOUR PRODUCT OR SERVICE? Hot kids on the beach! 2. HOW MUCH ARE THEY GOING TO PAY FOR IT? Buck each! 3. WHERE WILL THEY FIND IT? Truck comes to them—we find the best locations. | iss. 6.01 | i | U | X | + | h 41/103 f