The dollar/hour method is a consumer way of looking at things. What really matters is value.
Case in point, the Slap-Chop:
Two people who both make $10/hour are looking at the Slap-Chop to help make coleslaw in 1/10th the time it normally takes. One really likes coleslaw and makes it twice a week, the other makes coleslaw every day at her job (she's a chef).
Who is likely to buy the product for $10? $50? $500?
Value is relative and can be derived in two forms:
1. Value gained in having something
2. Value lost in not having something
If you are selling something, figuring out how your customer values your product is key. Want to sell for more? Educate them on how to value it through marketing.
Case in point, the Slap-Chop:
Two people who both make $10/hour are looking at the Slap-Chop to help make coleslaw in 1/10th the time it normally takes. One really likes coleslaw and makes it twice a week, the other makes coleslaw every day at her job (she's a chef).
Who is likely to buy the product for $10? $50? $500?
Value is relative and can be derived in two forms:
1. Value gained in having something
2. Value lost in not having something
If you are selling something, figuring out how your customer values your product is key. Want to sell for more? Educate them on how to value it through marketing.