“Expensive” is Defined by Returns
What makes a service provider expensive?
What qualifies a product as expensive?
What qualifies a $50 000 website (or branding strategy) as expensive?
Is it “realistic” for an entrepreneur to expect a $100 000 return (be it in cash or increased brand equity) from a project where he paid (read: invested) $50?
Is “expensive” dependent on the prospect’s bank balance, or on the returns that the investment will produce?
Paying a consultant $100 000 for a two-hour consultation sounds expensive. But that’s until finding out that her insights will yield a return of, not less than, four million dollars. And then, suddenly, her fee sounds like a bargain.
For as long as a million dollar pair of socks will make the buyer way more than a million dollars, the poor overpriced bundle of wool isn’t
expensive.
“Expensive” is dependent on the return that the investor will realize, not how much he has to invest.
(Entrepreneurs need to stop whining, and, start investing.)
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— July 23, 2010.