Quantify Pain to Create Value

Identifying and quantifying pain points in a target market is essential for developing a successful business. For instance, if students face a barrier of $1,000 before entering college, a solution that reduces this cost significantly—say to $100—creates substantial value. This scenario illustrates a $900 value creation by offering a more affordable alternative that maintains the same functionality. Understanding how much value customers derive allows for effective pricing strategies, suggesting a 90-10 revenue split where customers benefit significantly while the company earns a fair price for its service. By focusing on significant pain relief and value creation, businesses can thrive.