Clayton Christensen on why customers pay a premium, or: bad products are expensive

If you hire a product to get a job done and it doesn’t do the job well, then you have to take it back, or throw it away, or give it away, or repair it, and go out and find something that will do the job well. And if that doesn’t do well then you have to test it, and…

What’s it worth? (2)

The way of thinking I described yesterday also applies to buying equipment, services and training in an organisation. The question isn’t simply “How much does this cost?” (which usually feels like a lot), but rather “How much is it worth it to us to have this problem solved?” The obvious thing to look for is the gain in productivity that…

What’s it worth? (1)

$50 for a pair of jeans.£100 for a pair of shoes.£250 for a smartphone – if you’re thrifty. The prices of these and many other things make me wince when I think about buying new ones, but they probably shouldn’t. Imagine there was a toll booth just inside your front door, and you had to put money in a box…

Bootstrapping the non-profit organisation Rule 7 (part 4)

This is the seventh-and-a-quarter post in a series applying Seth Godin’s rules of bootstrapping (see also here) to building a non-profit organisation. Rule 7: Charge a lot (but be worth more than you charge) A last argument for applying this rule in non-profit context is that if your clients pay, your resources go further, and you can serve a lot more people. We covered this…

Bootstrapping the non-profit organisation Rule 7 (part 3)

This is the seventh-and-a-third post in a series applying Seth Godin’s rules of bootstrapping (see also here) to building a non-profit organisation. Rule 7: Charge a lot (but be worth more than you charge) How does this rule apply to what a charity charges its clients? Is it ethical to charge your clients a lot? Shakespeare’s Prospero said it best: This swift business I must…

Bootstrapping the non-profit organisation Rule 7 (part 2)

This is the seventh-and-a-half post in a series applying Seth Godin’s rules of bootstrapping (see also here) to building a non-profit organisation. Rule 7: Charge a lot (but be worth more than you charge) The point here is that your organisation’s selling point – we’re still looking at things from the perspective of donors and supporters – should never be how cheap you are (your…

Bootstrapping the non-profit organisation Rule 7 (part 1)

This is the seventh post in a series applying Seth Godin’s rules of bootstrapping (see also here) to building a non-profit organisation. Rule 7: Charge a lot (but be worth more than you charge) This is a counter-intuitive but powerful lens for thinking about non-profit work. For now, let’s understand what you ‘charge’ as being how much your program costs. All other things being equal,…