Thread: Cheap vs Expensive || B2B vs C2B

Five years ago when I wrote my story on the RD forum, I concluded with some insight regarding B2B vs C2B. (bizness to bizness VS consumer to biz)

I wrote that I preferred B2B over C2B because businesses spend money. Consumers on the other hand, don't. If they can save $2 per month on a service, they switch. I mentioned that consumers are fickle with their money; business is not so much because cost is spread out into an ROI factor.

I know if (or when) I start another web business, it will be in the B2B space -- at least, the revenue model will grow from business vs consumer.

Anyhow, I write this because I just finished a great article that expands on this notion -- how businesses spend money. This article also has some great insight into the power of pricing and how price can impact your image -- without making any product/service changes.

A great read!!!

http://www.inc.com/magazine/20080501...-customer.html

In my old biz - we had about a 1000% mark up.
People (competitors) started slashing prices to compete. All they really did is kick themselves later. They eliminated the amazing margins.

In my experience (in that biz) - - - the customers that are shopping for price are probably the customers you don't want anyway. They are the ones that will cause you the most headaches. No thanks.

We have been thinking about how to price our guide - - - it is on the consumer side - - - article gives some nice food for thought.

Originally Posted by andviv

I found this one in the May edition of Inc magazine.



How Hard Could it Be: A Real Cool Customer
Consumer-oriented start-ups get a lot of buzz. But you can make more money selling stuff to humble cube dwellers.




From this one I reinforced two good ideas/concepts:

1. Sell to businesses, not to consumers (I know MJ loves this concept).
2. Usually you have set your price too low.

Woops didn't know ... Thx Andres ... ++