A Smart Bear · Jason Cohen
articleprincipleWillingness-to-pay: Creating permanent competitive advantage for the right reasons
21 May 2023Profit
Source excerpt
About A Smart BearThis fresh take on "Willingness-to-Pay" analyzes three types of customer motivation, leading to superior strategies for growth that also better the world.
This is a limited feed-provided excerpt, not the full original work.
Apollo layer
What a founder can learn
Founder takeaway
Treat willingness to pay as a strategic signal, not merely a pricing input. Examine the motivations behind customers’ spending and prioritize those that can support durable differentiation, repeatable growth, and positive outcomes.
Why it matters
Two customers may pay the same amount for different reasons, and those motivations can lead to very different growth strategies. Choosing which motivations to serve helps shape positioning and competitive advantage before resources are committed.
Put it to work
For your most valuable customer segment, ask: What specifically motivates them to pay, and how could we strengthen that motivation in a way that benefits both the customer and the wider world?