Knowledge Marketplace
My First Million

My First Million

The best business ideas come from noticing what's working and doing it better, faster, or for a different audience.

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dream outcome times perceive elective achievement below that you have time delay and then effort and sacrifice
value-equationframeworkpricing

What It Means

Mathematical formula for determining offer value based on four key customer perception variables

Why It Matters

Provides systematic approach to increasing prices and conversion rates simultaneously

When It's True

When customers make rational decisions based on perceived value vs effort tradeoffs

When It's Risky

When customers make purely emotional or price-only decisions, or when dealing with true commodities

How to Apply

1

Audit current offer against each component

2

Identify which variables are weakest

3

Create specific improvements for each component

4

Test pricing changes based on improvements

Example Scenario

Personal trainer realizes they can charge more by offering meal prep service (reduces effort) and guarantee results (increases perceived likelihood)