The Value We Create
Value is measured in currency. Usually cash. The more cash you get for something of value, the more valuable it is considered. The token of that value is price. Price is like a protocol we use to communicate value.
You build something of value. You communicate the amount of value by setting the price - $649. People buy it. You get cash and now you too can buy things. Want more cash? Just build something else, or something better and repeat the cycle. Right?
Well, there’s another way - marketing. Take your original product and remove something. Memory, for example. Keep the price - $649. Now create new products by adding what you just removed in two steps. Now you have three items valued at $649, $749 and $849. People buy it.
How much did you save by dismantling your original product? Next to nothing. How much more value did you create? Up to $200.
Let’s just say you had to spend $249...
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