November 10, 2021

Vocab Lesson

My old buddies Erik Dietrich and Reuven Lerner recently interviewed me for the new season of their podcast.

I’ll let you know when the interview is published but in the meantime I wanted to riff on the “vocab lesson” theme that organically cropped up in our conversation.

These were the most important terms that cropped up:

Billing - Charging in arrears for services rendered, typically on an hourly basis. The trouble with billing is that the buyer doesn’t know the final price until after the service is completed, which can lead to them paying more for a service than it is worth to them.

Pricing - The act of calculating how much money you would accept in exchange for a thing, in order to present a price to potential buyers prior to them making a purchase decision.

Cost - The least amount of money that a seller would accept in exchange for a thing.

Value - The largest amount money that a buyer would exchange for a thing.

Price - The amount of money that changes hands between buyer and seller. Normally, the price is known to the buyer in advance so they can make an informed buying decision. If the price is only known after services are rendered - as is the case when billing - then it is possible for the price to exceed the value, which makes the buyer very angry.

Leverage - A construct that takes input force and multiplies it to create greater output force. For example: a physical lever that would allow a typical human to lift a car with their own body weight; a software automation that syndicates daily writing via blog, email, Twitter, LinkedIn, etc; an operating procedure that systematizes complex and reoccurring production activities.

Positioning - A strategic marketing technique that makes a product, service, or business more memorable. A successful positioning statement will result in people thinking of you at the exact moment that you can help.

BTW - If these definitions were helpful, you might enjoy my student glossary.