2min chapter

The Capital Stack cover image

Jen Abel on Why Founders Fails to Find Product Market Fit

The Capital Stack

CHAPTER

Navigating ROI and Value Conversations in Early Business Stages

This chapter explores the intricacies of addressing pricing and return on investment in early business discussions. The speakers highlight the significance of understanding client metrics and effective communication to convey the costs of unresolved problems.

00:00
Speaker 1
So how
Speaker 2
important is bringing in, and this kind of goes counterintuitive to kind of what you've been building on, but like, how do you, how do you think about bringing in pricing conversations and speaking about value and ROI and getting to that number? Yeah. ROI
Speaker 1
is tough, especially if you haven't had customers go through yet and you can truly see the value you're delivering. Because otherwise, how do you justify ROI if no one's actually like stayed on for a year? Right. So ROI is very tough in the zero to one stage. the value piece all comes down to understanding how is that problem growing? Cause if they're measuring it and they want to solve for it, the Intel lives with them. Great. Month over month. What are you looking at, at this number? Like, how is this number growing? How is it changing? What is the cost? Every time that goes up by one what does that cost you because again if something is actively being measured why that's what i always want to dig into who asked for this measurement how are you measuring it who's in charge of reporting when this number goes over a certain point what does good look like in terms of changing this measurement sometimes it's just shifting it by two % is a big deal. Yet sometimes we go in selling, oh, we can reduce your cost by 50%. No one's going to believe that. Yeah, it's all bullshit. So it's always like if they're measuring the problem, right? And there's, that's where I would really pull because that's where the insight is going to come from. And all you're going to do is play that back to them. Be like, listen, on our last call, you just told me that every day that goes by that this is not solved for, it's going to cost you $2,500. Right. So since we last talked, this, this problem has cost you $10,000. Right. Right. So like using their own language just to play it back and position it to them. So they, they just need that aha moment.

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