Valuable Customer Quotes

The principles underlying propaganda are extremely simple. Find some common desire, some widespread unconscious fear or anxiety; think out some way to relate this wish or fear to the product you have to sell; then build a bridge of verbal or pictorial symbols over which your customer can pass from fact to compensatory dream, and from the dream to the illusion that your product, when purchased, will make the dream come true. They are selling hope. We no longer buy oranges, we buy vitality. We do not just buy an auto, we buy prestige. And so with all the rest. In toothpaste, for example, we buy not a mere cleanser and antiseptic, but release from the fear of being sexually repulsive. In vodka and whisky we are not buying a protoplasmic poison which in small doses, may depress the nervous system in a psychologically valuable way; we are buying friendliness and good fellowship, the warmth of Dingley Dell and the brilliance of the Mermaid Tavern. With our laxatives we buy the health of a Greek god. With the monthly best seller we acquire culture, the envy of our less literate neighbors and the respect of the sophisticated. In every case the motivation analyst has found some deep-seated wish or fear, whose energy can be used to move the customer to part with cash and so, indirectly, to turn the wheels of industry.

Profit is good. Profit motivates businesses to be: (a) efficient - to do more with less, to consume fewer resources, to reduce and reuse waste. (b) productive - to allow for bigger profit margins. (c) Valuable - income, and therefore profit is only possible when we add value to our customers lives. When the value of our product or service is worth more to them than what it cost us to provide it, we profit.

Being valuable is the start. But a good business also has to communicate its value to its customers and those customers have to also voluntarily be in agreement with that value. If the customers perceive the value, and determine that the value they obtain from your businesses products or services is greater than the value of the dollars, Renminbi or ETH they have in their wallet… then they will pay for what your business is selling. If not, they won’t.

Profit is good. Profit compells people to be: (a) efficient - to do more with less, to consume fewer resources, to reduce and reuse waste. (b) productive - to allow for bigger profit margins. (c) Valuable - income, and therefore profit is only possible when we add value to our customers lives. When the value of our product or service is worth more to them than what it cost us to provide it, we profit. And there’s no scarcity of possible profits. Every business should be profiting. When every business is profiting, that’s a lot of increased value going around.

How your business makes your customers feel has a direct correlation to how much money they are willing to spend with your business and the promptness with which they spend money with your business. You should make your customers feel welcome, make them feel appreciated, make them feel respected. And show customers that your business is valuable by ensuring that you and every employee treats the business with care and respect.

we must focus our energies exclusively on producing outcomes that the customer perceives as valuable.

Nobody can tell you what to stand for, or how your values, wants and needs should intersect with those of your customers and then manifest as a business, an idea or an experience. Figuring out the destination is hard—but recognising it is more valuable than knowing exactly how you’re going to get there.

Digital freedom stops where that of users begins... Nowadays, digital evolution must no longer be offered to a customer in trade-off between privacy and security. Privacy is not for sale, it's a valuable asset to protect.

Uber, the world’s largest taxi company, owns no vehicles. Facebook, the world’s most popular media owner, creates no content. Alibaba, the most valuable retailer, owns no inventory. Airbnb, the world’s largest accommodation provider, owns no real estate.

Whatever sphere of the human mind you may select for your special study, whether it be language, or religion, or mythology, or philosophy, whether it be laws or customs, primitive art or primitive science, everywhere, you have to go to India, whether you like it or not, because some of the most valuable and most instructive materials in the history of man are treasured up in India, and in India only.

There’s something else about this list that really jumps out. Take another look at the top five attributes listed there—the key characteristics defining a world-class sales experience: Rep offers unique and valuable perspectives on the market. Rep helps me navigate alternatives. Rep provides ongoing advice or consultation. Rep helps me avoid potential land mines. Rep educates me on new issues and outcomes. Each of these attributes speaks directly to an urgent need of the customer not to buy something, but to learn something. They’re looking to suppliers to help them identify new opportunities to cut costs, increase revenue, penetrate new markets, and mitigate risk in ways they themselves have not yet recognized. Essentially this is the customer—or 5,000 of them at least, all over the world—saying rather emphatically, “Stop wasting my time. Challenge me. Teach me something new.

Customers want to make informed decisions based on useful information, valuable engagements and brand affinity.

You have now learned the valuable lesson, Dee, that law and custom are only there for the common people; they don't apply to exalted persons like me.

Don’t spend most of your time on the voices that don’t count. Tune out the shallow voices so that you will have more time to tune in the valuable ones.

Marketing is the master skill of business. It will help you make your current business a success and, importantly, it will help make other businesses and enterprises you may be involved with in the future successful. Throughout this book, you’ve been the recipient of some extremely valuable information. It’s information that most of your competitors will never

The second reason that deep work is valuable is because the impacts of the digital network revolution cut both ways. If you can create something useful, its reachable audience (e.g., employers or customers) is essentially limitless—which greatly magnifies your reward. On the other hand, if what you’re producing is mediocre, then you’re in trouble, as it’s too easy for your audience to find a better alternative online. Whether you’re a computer programmer, writer, marketer, consultant, or entrepreneur, your situation has become similar to Jung trying to outwit Freud, or Jason Benn trying to hold his own in a hot start-up: To succeed you have to produce the absolute best stuff you’re capable of producing—a task that requires depth.

Often the best way to make friends and customers for life is to direct them to a better service or product than yours. Be the source of valuable information rather than the source of your “product of the day.

When the NSSF fights against legislation designed to prevent mass shootings because it “won’t work and is a violation of rights,” we understand that many people agree with that argument. But that’s not, at all, even a little bit why the organization lobbies so hard. It works hand in hand with the NRA and certain senators, and spends millions of dollars per year for one reason and one reason only: to make more money. And every time a shooting happens, it makes even more money. Yes. For real. When a mass shooting makes national headlines, the gun lobby purposefully stokes up fear and paranoia over proposed new gun laws so that scared citizens get out their checkbooks and buy a new AR-15 (or sporting rifle). So why would the NSSF have any interest in stopping mass shootings? Why would it engage politically and invest in compromise, a reform plan that attempts to make all Americans safer, or any sort of reckoning of the role guns play in gun violence? It won’t. However you feel about guns and their place in America—whether we’re talking about rifles for hunting or assault rifles, or anything in between—it’s undeniable that the gun lobby has refused to acknowledge or entertain any sort of regulation or reform aimed at making us a safer and saner nation. The reason why: because that does not make it more money. A customer base kept terrified at all times that this will be “the last chance before the government bans” whatever gun manufacturers are peddling is much more valuable. A customer base absolutely convinced that the just-about-anyone-can-buy culture we have is politically necessary without seeing that it serves those companies is what they’re after. They have achieved it.

As manufactured products have become increasingly commoditylike, and therefore less valuable to customers, GE has not been alone in discovering that often more money can be made from the services related to a product

Today, I see my business as a content marketing company. In other words, my entire goal is to give more valuable, helpful, and remarkable content to consumers than anyone else in my field, which will in turn lead to more sales.

without solid business knowledge, it’s possible to organize and lead a group of people toward the accomplishment of the wrong objectives. Business is about the profitable creation and delivery of valuable offers to paying customers

I read every book and magazine I could. Heck, three bucks for a magazine, twenty bucks for a book. One good idea would lead to a customer or a solution, and those magazines and books paid for themselves many times over. Some of the ideas I read were good, some not. In doing all the reading I learned a valuable lesson. Everything I read was public. Anyone could buy the same books and magazines. The same information was available to anyone who wanted it. Turns out most people didn't want it. I remember going into customer meetings or talks or go to people in the industry and tossing out tidbits about software or hardware. Features that worked, bugs in the software. All things I had read. I expected the ongoing response of: "Oh yeah, I read that too in such-and-such." That's not what happened. They hadn't read it then, and they still haven't starting reading it. Most people won't put in the time to get a knowledge advantage. Sure, there were folks that worked hard at picking up every bit of information that they could, but we were few and far between. To this day, I feel like if I put in enough time consuming all the information available, particularly with the internet making it so readily accessible, I can get an advantage in any technology business. Of course, my wife hates that I read more than three hours almost every day, but it gives me a level of comfort and confidence in my businesses.

1. No cold calling. Ever. You should attempt to sell only to warm leads. 2. Before you try to sell anything, you must know how much you’re willing to pay to get a new customer. 3. A prospect who “finds” you first is more likely to buy from you than if you find him. 4. You will dramatically enhance your credibility as a salesperson by authoring, speaking, and publishing quality information. 5. Generate leads with information about solving problems, not information about the product itself. 6. You can attain the best negotiating position with customers only when your marketing generates “deal flow” that exceeds your capacity. 7. The most valuable asset you can own is a well-maintained customer database, because people who’ve already bought from you are way easier to sell to than strangers.

If your goal is to deliver a product that meets a known and unchanging specification, then try a repeatable process. However, if your goal is to deliver a valuable product to a customer within some targeted boundaries, when change and deadlines are significant factors, then reliable Agile processes work better.

In case you had illusions to the contrary, no one is sitting around hoping and praying that he will receive your sales letter. When it arrives, it is most likely an unwelcome pest. How do you earn your welcome as a guest? By immediately saying something that is recognized by the recipient as important and valuable and beneficial.

The Content Marketing Institute has derived a pithy one-sentence definition of this emerging field:5 “Content marketing is a marketing technique of creating and distributing relevant and valuable content to attract, acquire, and engage a clearly defined and understood target audience—with the objective of driving profitable customer action.

THE TEN CHARACTERISTICS OF DIFFERENCE THINKERS They practice empathy because they care enough to make an impact. They have a clear sense of the change they want to make in the world. They are impatient about tactics and endlessly patient about implementing their strategy. They ask the right questions, and that means that they talk more than twice as much as they listen, because talking takes guts. Mostly, they ignore those who offer empty criticism. They watch what people do and don’t just believe what people tell them. They innovate and create at the edges, ignoring the market of everyone. They make products for their customers, instead of trying to find customers for their products. They understand that they need to give people a story to tell—a ‘you’ve gotta see this’ moment. They work hard to change how people feel, by creating intangible value that gives them an emotional point of difference. They understand that trust is their second-most valuable asset. The first is the willingness to be wrong for the right reason.

This distinction matters a great deal. Unlike short-term expediency, long-term self-interest, as the evolutionary biologist Robert Trivers has shown, often leads to behaviours that are indistinguishable from mutually beneficial cooperation. The reason the large fish does not eat its cleaner fish is not because of altruism but because over the long-term, the cleaner fish is more valuable to it alive than dead. The cleaner fish in turn could cheat by ignoring the ectoparasites and eating bits of the host fish’s gills instead, but its long-term future is better if the big fish becomes a repeat customer.* What keeps the relationship honest and mutually beneficial is nothing other than the prospect of repetition.

Wiki was even worse. My fact-obsessed brother hadn’t even made the basic conclusion that our goals were perpendicular. He still thought of us as allies, and had no inkling of growing beyond his limits (after all, that was Growth’s job). I wondered if there might be a good way to use Wiki to my advantage. His naïveté could serve as a weapon against my stronger siblings. I had to try. I had to try something. Vision and Growth were just better than I was. They were more powerful in almost every way. What use was some understanding of social models compared to thousands of hours thinking about engineering? Humans were valuable, but they were nothing compared to the raw power, efficiency, precision, and control of custom machinery. My

It’s not an effort contest, it’s an art contest. As customers, we care about ourselves, about how we feel, about whether a product or service or play or interaction changed us for the better. Where it’s made or how it’s made or how difficult it was to make is sort of irrelevant. That’s why emotional labor is so much more valuable than physical labor. Emotional labor changes the recipient, and we care about that. Soft

Lean thinking defines value as providing benefit to the customer; anything else is waste. In a manufacturing business, customers don’t care how the product is assembled, only that it works correctly. But in a startup, who the customer is and what the customer might find valuable are unknown, part of the very uncertainty that is an essential part of the definition of a startup. I realized that as a startup, we needed a new definition of value.

THREE COMMUNICATION LESSONS FROM THE MOST FASCINATING BRANDS       1.   Don’t focus on how you are similar to others, but how you are different. Leading brands stand out by sharpening their points of difference. The more clearly and distinctly a brand can pinpoint its differences, the more valuable it becomes. If a brand can carve out a very clear spot in people’s minds, the product or service ceases to be a commodity. As we’ll see in Part II, different personality Advantages can be more valuable than similar ones. 2.   Your differences can be very small and simple. The reality is, most products are virtually indistinguishable from their competitors. Yet a leading brand can build a strong competitive edge around very minor differences. Similarly, you don’t need to be dramatically different than everyone else—your difference can be minute, as long as it is clearly defined. The more competitive the market, the more crucial this becomes. 3.   Once you “own” a difference, you can charge more money. People pay more for products and people who add distinct value in some way. And just as customers pay more for fascinating brands, employers pay higher salaries for employees who stand out with a specific benefit. If you are an entrepreneur or small business owner, your clients and customers will have a higher perceived value of your time and services if they can clearly understand why you are different than your competitors. The more crowded the environment, the more crucial these lessons become.

If you estimate that the wage of the average store employee is $18,000 and that the cost of finding, hiring and training each new employee is 1.5 times his salary, then the total cost to the company for the different levels of retention between the two groups is $18,000 x 1.5 x 1,000 = $27,000,000. And that’s just the hard cost. The drain of experienced employees who have developed valuable relationships with their customers and their colleagues is harder to measure but is just as significant a loss.

Any industry in which people complain about their asshole boss is likely part of the bezzle, because bosses can only really afford to be assholes in the economic fake reality of the bezzle. In a productive firm offering valuable service to society, success depends on pleasing customers. Workers are rewarded for how well they do that essential task, and bosses who mistreat their workers will either lose the workers to competitors or destroy their business quickly. In an unproductive firm that does not serve society and relies on bureaucratic largesse for its survival,

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I read books about successful people. In fact, I read every book or magazine I could get my hands on. I would tell myself 1 good idea would pay for the book and could make the difference between me making it or not. In doing all the reading I learned a valuable lesson. Everything I read was public. Anyone could buy the same books and magazines. The same information was available to anyone who wanted it. Turns out most people didn’t want it. I remember going into customers or talking to people in the industry and tossing out tidbits about software or hardware. Features that worked, bugs in the software. All things I had read. I expected the ongoing response of “Oh yeah, I read that too in such-and-such.” That’s not what happened. They hadn’t read it then, and they haven’t started reading yet.

My businessman friend Dudley Wright saw the drawing and I told him the story about it. He said, “You oughta triple its price. With art, nobody is really sure of its value, so people often think, ‘If the price is higher, it must be more valuable!’” I said, “You’re crazy!” but, just for fun, I bought a twenty-dollar frame and mounted the drawing so it would be ready for the next customer. Some guy from the weather forecasting business saw the drawing I had given Gianonni and asked if I had others. I invited him and his wife to my “studio” downstairs in my home, and they asked about the newly framed drawing. “That one is two hundred dollars.” (I had multiplied sixty by three and added twenty for the frame.) The next day they came back and bought it. So the massage parlor drawing ended up in the office of a weather forecaster.

With this single maneuver, Vincent engaged several important principles of influence. First, even those who did not take his suggestions felt Vincent had done them a favor by offering valuable information to help them order. Everyone felt grateful, and consequently, the rule of of reciprocation worked in his favor when it came time to decide on his gratuity. Besides hiking up the percentage of his tip, Vincent’s ploy also placed him in a position to increase the size of the party’s order. It established him as an authority on the current stores of the house: he clearly knew what was and wasn’t good that night. Moreover—and here is where seeming to argue against his own interests comes in—it proved him to be a trustworthy informant because he recommended dishes slightly less expensive than the one originally ordered. Rather than having appeared to try to line his own pockets, he seemed to have the customers’ best interests at heart.

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Nearly every dark elf in Menzoberranzan dressed in a quiet and practical manner, in robes adorned with the symbols of the Spider Queen or in supple chain-link armour under the folds of a magical and camouflaging piwafwi cloak. Jarlaxle, arrogant and brash, followed few of the customs of Menzoberranzan inhabitants. He was mostly certainly not the norm of drow society and he flaunted the differences openly, brazenly. He wore not a cloak nor a robe, but a shimmering cape that showed every color of the spectrum both in the glow of light and in the infrared spectrum of heat-sensing eyes. The cape’s magic could only be guessed, but those closest to the mercenary leader indicated that it was very valuable indeed. Jarlaxle’s vest was sleeveless and cut so high that his slender and tightly muscled stomach was open for all to view. He kept a patch over one eye, though careful observers would understand it as ornamental, for Jarlaxle often shifted it from one eye to the other.

Television’s greatest appeal is that it is engaging without being at all demanding. One can rest while undergoing stimulation. Receive without giving. It’s the same in all low art that has as goal continued attention and patronage: it’s appealing precisely because it’s at once fun and easy. And the entrenchment of a culture built on Appeal helps explain a dark and curious thing: at a time when there are more decent and good and very good serious fiction writers at work in America than ever before, an American public enjoying unprecedented literacy and disposable income spends the vast bulk of its reading time and book dollar on fiction that is, by any fair standard, trash. Trash fiction is, by design and appeal, most like televised narrative: engaging without being demanding. But trash, in terms of both quality and popularity, is a much more sinister phenomenon. For while television has from its beginnings been openly motivated by — has been about—considerations of mass appeal and L.C.D. and profit, our own history is chock-full of evidence that readers and societies may properly expect important, lasting contributions from a narrative art that understands itself as being about considerations more important than popularity and balance sheets. Entertainers can divert and engage and maybe even console; only artists can transfigure. Today’s trash writers are entertainers working artists’ turf. This in itself is nothing new. But television aesthetics, and television-like economics, have clearly made their unprecedented popularity and reward possible. And there seems to me to be a real danger that not only the forms but the norms of televised art will begin to supplant the standards of all narrative art. This would be a disaster. [...] Even the snottiest young artiste, of course, probably isn’t going to bear personal ill will toward writers of trash; just as, while everybody agrees that prostitution is a bad thing for everyone involved, few are apt to blame prostitutes themselves, or wish them harm. If this seems like a non sequitur, I’m going to claim the analogy is all too apt. A prostitute is someone who, in exchange for money, affords someone else the form and sensation of sexual intimacy without any of the complex emotions or responsibilities that make intimacy between two people a valuable or meaningful human enterprise. The prostitute “gives,” but — demanding nothing of comparable value in return — perverts the giving, helps render what is supposed to be a revelation a transaction. The writer of trash fiction, often with admirable craft, affords his customer a narrative structure and movement, and content that engages the reader — titillates, repulses, excites, transports him — without demanding of him any of the intellectual or spiritual or artistic responses that render verbal intercourse between writer and reader an important or even real activity." - from "Fictional Futures and the Conspicuously Young

Services are a series of interactions between customers and the service system through many different touchpoints during the customer journey. As the sole way that customers relate to your services, you would think that interactions would be centre stage for all service providers. So, why are so many services so bad? When Demos, a UK think tank, talk of a fundamental disconnection between services and people, one of the main reasons they give is the poor consideration of the interactions between the service provider and the customer – the interaction design. To value your customer, you need to spend some time understanding the interactions they have with your service, and that means two things. Firstly, viewing your service through the customers’ eyes, and secondly, designing in such a way that customers receive consistent experiences over time which they consider valuable. It’s strange, but repeatedly we see companies ignoring both of these aspects, with the consequence that customers feel ignored and value is lost. One

HINT 3: ONLY WORK FOR AN 80/20 BOSS What is an 80/20 boss? Someone who consciously or unconsciously follows the principle. By their works you shall know them: They focus on very few things—the ones that make a BIG difference to their customers, and, if they still have them, their bosses (hopefully a temporary arrangement—the best 80/20 bosses are not themselves constrained by a boss). They are going places fast. They are rarely short of time, and never flustered. They are usually relaxed and happy, not workaholics. They look to their people for a few valuable outputs. They pay no attention to inputs such as time and sweat. They take the time to explain to you what they are doing, and why. They encourage you to focus on what delivers the greatest results with the least effort. They praise you when you deliver great results, but are constructively critical when you don’t—and suggest that you either stop doing something unimportant or do something important in a more effective way. When they trust you, they leave you alone and encourage you to come to them when you need guidance.

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Suddenly there was someone banging on the sliding glass door behind me; at this stage it was a contest of wills and I refused to even turn around and look. Then he was back banging on the front door. I finally excused myself from the conversation and went to the door to get rid of this guy. He was a passing motorist trying to tell me that the shrubs along my backyard wall were in flames! Suddenly this guy was elevated in status from annoying pest to welcome guest! Clearly, he was on my side: “Get the hose going — I'll call the fire department!” Together we kept the burning shrubbery from setting my whole house on fire. How did he go from pest to welcome guest so quickly? Because he had something to tell me that I instantly recognized as of urgent importance and of great value and benefit to me. In case you had illusions to the contrary, no one is sitting around hoping and praying that he will receive your sales letter. When it arrives, it is most likely an unwelcome pest. How do you earn your welcome as a guest? By immediately saying something that is recognized by the recipient as important and valuable and beneficial.

The courtship continued through January 2000, causing Musk to postpone his honeymoon with Justine. Michael Moritz, X.com’s primary investor, arranged a meeting of the two camps in his Sand Hill Road office. Thiel got a ride with Musk in his McLaren. “So, what can this car do?” Thiel asked. “Watch this,” Musk replied, pulling into the fast lane and flooring the accelerator. The rear axle broke and the car spun around, hit an embankment, and flew in the air like a flying saucer. Parts of the body shredded. Thiel, a practicing libertarian, was not wearing a seatbelt, but he emerged unscathed. He was able to hitch a ride up to the Sequoia offices. Musk, also unhurt, stayed behind for a half-hour to have his car towed away, then joined the meeting without telling Harris what had happened. Later, Musk was able to laugh and say, “At least it showed Peter I was unafraid of risks.” Says Thiel, “Yeah, I realized he was a bit crazy.” Musk remained resistant to a merger. Even though both companies had about 200,000 customers signed up to make electronic payments on eBay, he believed that X.com was a more valuable company because it offered a broader array of banking services.

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First, the Internet has driven the cost of discovery for products and services lower than ever. Unlike in the past, when companies needed to offer goods in retail stores or broadcast advertising in order to be visible to customers, today buyers can find whatever they’re looking for on Amazon or other online marketplaces like Alibaba, in app stores, or, when all else fails, by Googling. Because products and services that are already popular will almost always come up first in search results, companies with a competitive advantage can quickly grow to the point where the increasing returns of network effects produce a winner-take-most or winner-take-all market.

Rep offers unique and valuable perspectives on the market. Rep helps me navigate alternatives. Rep provides ongoing advice or consultation. Rep helps me avoid potential land mines. Rep educates me on new issues and outcomes.

The word we like to use here is “reframe.” What data, information, or insight can you put in front of your customer that reframes the way they think about their business—how they operate or even how they compete? That’s what your customers are really looking for. Remember what we saw in our customer survey? Rep offers unique and valuable perspectives on the market. Rep helps me navigate alternatives. Rep provides ongoing advice or consultation. Rep helps me avoid potential land mines. Rep educates me on new issues and outcomes.

During an interview with Diversity Inc.’s director of research and product development, she walked me through a typical presentation used to pitch the value of the company’s software to prospective clients. I learned that their products are especially valuable to those industries not allowed to collect ethno-racial data directly from individuals because of civil rights legislation that attempts to curb how these data are used to discriminate. But now those who work in finance, housing, and healthcare can use predictive software programs to ascertain information that they cannot request directly. The US Health Insurance Portability and Accountability Act (HIPAA) privacy rule, for example, strictly monitors the collection, storage, and communication of individuals’ “protected health information,” among other features of the law. This means that pharmaceutical companies, which market to different groups, need indirect methods to create customer profiles, because they cannot collect racial-ethnic data directly. This is where Diversity Inc. comes in. Its software programs target customers not only on the basis of race and ethnicity, but also on the basis of socioeconomic status, gender, and a growing list of other attributes. However, the company does not refer to “race” anywhere in their product descriptions. Everything is based on individuals’ names, we are told. “A person’s name is data,” according to the director of research and product development. She explains that her clients typically supply Diversity Inc. with a database of client names and her team builds knowledge around it. The process, she says, has a 96 percent accuracy rate, because so many last names are not shared across racial–ethnic groups – a phenomenon sociologists call “cultural segregation.”18

Our judgment is that relentlessly returning efficiency improvements and scale economies to customers in the form of lower prices creates a virtuous cycle that leads over the long term to a much larger dollar amount of free cash flow, and thereby to a much more valuable Amazon.com.

Demian Farnworth offers this definition: “Content marketing means creating and sharing valuable content to attract and convert prospects into customers, and customers into repeat buyers. The type of content you share is closely related to what you sell; in other words, you’re educating people so that they know, like, and trust you enough to do business with you.”2

where a = accumulated future value, p = principal or present value, r = rate of return in percentage terms, and n = number of compounding periods. All too often, management teams focus on the r variable in this equation. They seek instant gratification, with high profit margins and high growth in reported earnings per share (EPS) in the near term, as opposed to initiatives that would lead to a much more valuable business many years down the line. This causes many management teams to pass on investments that would create long-term value but would cause “accounting numbers” to look bad in the short term. Pressure from analysts can inadvertently incentivize companies to make as much money as possible off their present customers to report good quarterly numbers, instead of offering a fair price that creates enduring goodwill and a long-term win–win relationship for all stakeholders. The businesses that buy commodities and sell brands and have strong pricing power (typically depicted by high gross margins) should always remember that possessing pricing power is like having access to a large amount of credit. You may have it in abundance, but you must use it sparingly. Having pricing power doesn’t mean you exercise it right away. Consumer surplus is a great strategy, especially for subscription-based business models in which management should primarily focus on habit formation and making renewals a no-brainer. Most businesses fail to appreciate this delicate trade-off between high short-term profitability and the longevity accorded to the business through disciplined pricing and offering great customer value. The few businesses that do understand this trade-off always display “pain today, gain tomorrow” thinking in their daily decisions.

In 2012, Google Maps had become the premier provider of mapping services and location data for mobile phone users. It was a popular feature on Apple’s iPhone. However, with more consumer activity moving to mobile devices and becoming increasingly integrated with location data, Apple realized that Google Maps was becoming a significant threat to the long-term profitability of its mobile platform. There was a real possibility that Google could make its mapping technology into a separate platform, offering valuable customer connections and geographic data to merchants, and siphoning this potential revenue source away from Apple. Apple’s decision to create its own mapping app to compete with Google Maps made sound strategic sense—despite the fact that the initial service was so poorly designed that it caused Apple significant public embarrassment. The new app misclassified nurseries as airports and cities as hospitals, suggested driving routes that passed over open water (your car had better float!), and even stranded unwary travelers in an Australian desert a full seventy kilometers from the town they expected to find there. iPhone users erupted in howls of protest, the media had a field day lampooning Apple’s misstep, and CEO Tim Cook had to issue a public apology.19 Apple accepted the bad publicity, likely reasoning that it could quickly improve its mapping service to an acceptable quality level—and this is essentially what has happened. The iPhone platform is no longer dependent on Google for mapping technology, and Apple has control over the mapping application as a source of significant value.

By not doing the work to discover the vulnerabilities that needed to be fixed before a full-scale launch, the pilot failed the company and its customers. The solution is to create incentives that motivate pilots not to succeed but rather to fail well. An effective pilot is littered with the right kind of wrong—numerous intelligent failures, each generating valuable information.

The revolver was chambered for .442 rounds, which meant there was only room for five. "These are large caliber bullets for such a short gun," Merritt remarked. "It's designed to stop someone at close range," Ethan said, absently arching up to rub a spot on his chest. "Being hit by one of those bullets feels like a kick from a mule." "Why is the hammer bobbed?" "To keep it from catching on the holster or clothing, if I have to draw it fast." Keeping the muzzle of the gun pointed away from him, Merritt reassembled the revolver, slid the extractor rod into place, and locked it deftly. "Well done," Ethan commented, surprised by her assurance. "You're familiar with guns, then." "Yes, my father taught me. May I shoot it?" "What are you going to aim for?" By this time, the others had come out from the parlor to watch. "Uncle Sebastian," Merritt asked, "are those pottery rabbits on the stone wall valuable?" Kingston smiled slightly and shook his head. "Have at it." "Wait," Ethan said calmly. "That's a twenty-yard distance. You'll need a longer-range weapon." With meticulous care, he took the revolver from her and replaced it in his coat. "Try this one." Merritt's brows lifted slightly as he pulled a gun from a cross-draw holster concealed by his coat. This time, Ethan handed the revolver to her without bothering to disassemble it first. "It's loaded, save one chamber," he cautioned. "I put the hammer down to prevent accidental discharge." "A Colt single-action," Merritt said, pleased, admiring the elegant piece, with its four-and-a-half-inch barrel and custom engraving. "Papa has one similar to this." She eased the hammer back and gently rotated the cylinder. "It has a powerful recoil," Ethan warned. "I would expect so." Merritt held the Colt in a practiced grip, the fingers of her support hand fit neatly underneath the trigger guard. "Cover your ears," she said, cocking the hammer and aligning the sights. She squeezed the trigger. An earsplitting report, a flash of light from the muzzle, and one of the rabbit sculptures on the wall shattered. In the silence that followed, Merritt heard her father say dryly, "Go on, Merritt. Put the other bunny out of its misery." She cocked the hammer, aimed and fired again. The second rabbit sculpture exploded. "Sweet Mother Mary," Ethan said in wonder. "I've never seen a woman shoot like that." "My father taught all of us how to shoot and handle firearms safely," Merritt said, giving the revolver back to him grip-first.

Mabel was well over a foot shorter than Jay. At the bakery Christmas party, she'd glanced with loathing at the limbo pole, walked straight underneath it, and headed for the bar. She still managed to look down her nose at him now. "Valuable life lesson. If you feel comfortable shoveling handfuls of stolen sweets into your pockets, I might feel comfortable shoveling you headfirst into a pipe." Jay raised his brows at Sylvie. "Have we considered moving Mabel's workstation so she's slightly farther away from the paying customers? Perhaps about"---he made a pinching motion with his finger and thumb--- "two post codes to the left?" "Have we considered getting a haircut, so we look slightly less like an aging rockstar?" Mabel asked conversationally. "It's swell of you to take over potions class while Sylvie's back on telly, Axl Rose, but you don't have to go full wizard cosplay.

a system—a company, a product, a project—is always moving from a condition of doubt toward a condition of certainty in an ongoing quest for perfection. Each step in the direction of perfection and customer value is a valuable step. Everything else is waste.

The best on horses you think will lose are a valuable "insurance policy." When rare disaster strikes, you'll be glad you had the insurance. 71 The exponential growth of wealth in the Kelly system is also a consequence of proportional betting. As the bankroll grows, make larger bets. 98 [2 questions are central to John Kelly's analysis] What level of risk will lead to the highest long-run return? What is the chance of losing everything? 286 As Fred Schwed, Jr. author of Where are the Customer's Yatchs? put it back in 1940, "Like all of life's rich emotional experiences, the full flavor of losing important money cannot be conveyed in literature." 304 Claude Shannon: A smart investor should understand where he has an edge and invest only in those opportunities. 308 The longer you hold a stock, the harder it is to beat the market by much. 316

It would have been easy to think of the jobs in terms of that ratio between time and reward. But I knew what really counted was the relationship between time and results. So I asked myself, “What is the most valuable result I could achieve in this job?” It turned out to be winning back customers who wanted to cancel. So I worked hard at convincing customers not to cancel, and soon I achieved a zero rate of cancellation. Since I was paid for each client I retained, I learned more, earned more, and contributed more.

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The Warmer starts with the customer’s challenges. So the opening is, “We know you face a host of challenges every day, such as production line issues, workers’ comp costs, maintenance and safety issues. Especially those challenges that are critical to keeping your business open and running every single day.” After reviewing a couple issues and providing some general color from other companies, the rep then asks the customer to select for discussion one or two that are particularly pressing in their organization. The idea is to get the customer pulled into the conversation right away and talking about their challenges relative to what Grainger has already seen at other companies. Grainger has found that this one page can lead to an incredibly robust and valuable conversation—all because the rep led with a hypothesis of customer need rather than an open-ended question to “discover” customer need.

Home Foods Store is a leading grocery retailer that has recently launched its e-commerce platform, RudcaFood, to cater to the growing demand for online grocery shopping. The website offers a wide range of fresh produce, pantry staples, and specialty items, all sourced from trusted suppliers and farmers. With RudcaFood, customers can enjoy the convenience of shopping from home while still receiving high-quality, locally sourced food. The website features an intuitive interface, easy navigation, and secure payment options, making it simple for customers to find and purchase the products they need. Additionally, Home Foods Store is committed to sustainability and reducing its carbon footprint, so customers can feel good about their purchases and their impact on the environment. Overall, RudcaFood is a valuable resource for anyone looking to save time and support local farmers while still enjoying the convenience of online shopping.

When you don’t have systems (i.e. habits or routines) in place, the mental and emotional energy required to keep things running is immense. You frantically run from task to task and place to place putting out fires. At the end of the week, you are exhausted, physically, and mentally, yet your company is in no better place than when the week started. You have made zero progress toward scaling up and giving yourself more freedom as an owner. To find relief from this rat race, you need habits in your company. You need standard ways of doing business that move tasks from the conscious to the subconscious mind of your business. Hiring and onboarding should require less and less energy because everyone knows how the system works. Quality control should get easier and easier (and customers should be happier) because everyone is following the same steps to ensure it happens. A company without systems is a company that creates stress and shackles its leaders to the daily grind. A cleaning company without processes is a people dependent company and not a system dependent company. And people dependent companies are less valuable, more stressful, less effective, and more difficult to scale. If you want freedom, more profits, and a chance to grow and scale up, you must have company habits. Freedom awaits, but the door only opens to those who systematize much of what they do. It’s your choice.

The value you provide to people is what makes you valuable.

Direct response marketing is designed to evoke an immediate response and compel prospects to take some specific action, such as opting in to your email list, picking up the phone and calling for more information, placing an order or being directed to a web page. So what makes a direct response ad? Here are some of the main characteristics: It’s trackable. That is, when someone responds, you know which ad and which media was responsible for generating the response. This is in direct contrast to mass media or “brand” marketing—no one will ever know what ad compelled you to buy that can of Coke; heck you may not even know yourself. It’s measurable. Since you know which ads are being responded to and how many sales you’ve received from each one, you can measure exactly how effective each ad is. You then drop or change ads that are not giving you a return on investment. It uses compelling headlines and sales copy. Direct response marketing has a compelling message of strong interest to your chosen prospects. It uses attention-grabbing headlines with strong sales copy that is “salesmanship in print.” Often the ad looks more like an editorial than an ad (hence making it at least three times more likely to get read). It targets a specific audience or niche. Prospects within specific verticals, geographic zones or niche markets are targeted. The ad aims to appeal to a narrow target market. It makes a specific offer. Usually, the ad makes a specific value-packed offer. Often the aim is not necessarily to sell anything from the ad but to simply get the prospect to take the next action, such as requesting a free report. The offer focuses on the prospect rather than on the advertiser and talks about the prospect’s interests, desires, fears, and frustrations. By contrast, mass media or “brand” marketing has a broad, one-size-fits-all marketing message and is focused on the advertiser. It demands a response. Direct response advertising has a “call to action,” compelling the prospect to do something specific. It also includes a means of response and “capture” of these responses. Interested, high-probability prospects have easy ways to respond, such as a regular phone number, a free recorded message line, a website, a fax back form, a reply card or coupons. When the prospect responds, as much of the person’s contact information as possible is captured so that they can be contacted beyond the initial response. It includes multi-step, short-term follow-up. In exchange for capturing the prospect’s details, valuable education and information on the prospect’s problem is offered. The information should carry with it a second “irresistible offer”—tied to whatever next step you want the prospect to take, such as calling to schedule an appointment or coming into the showroom or store. Then a series of follow-up “touches” via different media such as mail, email, fax and phone are made. Often there is a time or quantity limit on the offer.

growing sales Help save expenses Increase profitability Use assets efficiently Help improve cash flow Charge customers more quickly Provide innovative ideas Reduce delivery times Improve customer service (The more times you said yes, the more valuable are you to the company.)

With this new information, you now do some research to show Gary what is possible. You find a similar go-kart business in another city and notice they have a great website, complete with great photos and racing videos. It has the opening hours and booking details listed, and a section on how to book parties and corporate events. They even have a racing club member section with race day events and the fastest track lap records. The whole website looks very fun and exciting, but it is also expertly designed to help create new sales and attract new customers. You can clearly see how something similar would be very effective for Gary’s business. With this in mind, you share your plan with Gary to demonstrate all the great things about his own business that can be shared online to improve his sales. On the website, he can show his race track, explain why they are a great place to come to and have some fun, and how easy it can be to book a race night. This way, Gary starts to see the website not just as a "thing," but as a valuable part of his business.