When you buy something, do you get the value of that purchase in return at about even-steven or do you get more in value than what you paid?
Usually more (hopefully more). But what about a LOT more?
What about a completely lopsided amount more?
From a numbers point of view, when I envisioned ONE HUNDRED TABLES I wanted to see if we could build a product that was worth FAR more to the customer than the cost for them to be there.
Let’s look at this.
We sell our product/service to restaurants.
It’s $100 bucks a year.
$0.27 a day
To add some perspective…
A fill up at the gas station is about $50 or $60 and that only lasts about a week.
A family of four at the movies costs over $50 and that’s for just two hours.
So what’s the key ? As an entrepreneur, when do you know you are offering overwhelming value?
In our business the key was that a restaurant pays a flat $100 to be on board for a year but they can recover this (and often more) when just a single table for two comes to them thanks to us. And the rest of the year for them is gravy.
In other words, regardless of what the cost of your product is, build a business where the full ROI can be recovered on a single transaction by the customer on their own turf.
Think about your own business — especially if it is in the online subscription model. Think about what you charge your customers for your service, then ask yourself “how long does it take my customer to make back what they spent to have my service?
If you can get that ROI ratio for your service to be one day (or better yet even 1 hour) = one year, where a single transaction for the customer equals what they’ve paid you for one year’s time, then you will have a very attractive offer.
Posted by Tony Akston
Photo Credit: Trey Ratcliff, Stuck in Customs