

Most Valuable Things I Learned in Business School - alrex021
http://personalmba.com/business-school-top-four/

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tjic
Great article.

Re:

>All Prices are Arbitrary

I note that this varies by sector. If you're selling books, then your price is
bounded by the wholesale price (on the bottom end) and the MSRP (on the high
end).

Note to self: for my next startup, make sure to pick something where the upper
bound isn't so clear!

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joshkaufman
Thanks! Re: books - it's hard to break out of market pricing, since books are
common and there's a comparable product sitting on the shelf next to it (or a
click away). With value-based pricing, some books should sell for thousands of
dollars, but they don't - market pricing is too easy, so the price of books
stays low.

Information products, on the other hand, often cover the same information at
10-100x the price, since market comparison is much more difficult.

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moe
What the hell is he talking about, the first Matrix movie _is_ better than the
sequels.

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joshkaufman
True. The point was that parts 2 & 3 had no chance - the expectations were so
high that almost nothing could exceed them.

If you like, substitute iPhone version 1 vs. version 2. Same idea. Over-
inflated expectations = poor quality experience, regardless of actual
performance.

