A lesson on value from Fast Times at Ridgemont High
o what does Mike Damone, Van Halen and Fast Times at Ridgement High have to teach us about value in business. Well, Mike Damone is the ticket scalper from this early 1980’s classic movie (my all time favourite flick). If the first few minutes after the opening credits, Mike and his buddy Rat are hanging out at the movie theatre when two young guys ask Mike “Are you the guy with the Van Halen tickets”? Of course Damone being a business man states that the tickets are $20.00 each and the young guys complain that the tickets are only $12.50. Damone tells the boys “don’t buy them” and finishes the transactions and makes $15.00, although in the movie he states he makes $16.00.
What is the underlying lesson here? You should never compete on price! Damone was providing a service and that service costs money. How many times in your business to you cut your rates or price just to win a deal? Sure, we may need to do it from time to time, and I am not arguing that, but never reduce your price after you quote something. Why? You have just flushed your value down the toilet.
It took me until today to figure that message from the movie and a request from a client to “sharpen my pencil”.
I couldn’t find a video clip, so this is the closest I got -http://www.classicvanhalen.com/movies.shtml
Value is what will separate us from the main stream crowd in the next 18 or so months. As the market begins to soften, business owners and sales professionals including marketing professionals will need to become extremely creative in projecting their value to the community and then make sure that they practice what they preach. Delivering 150% value is key. Just like we discussed in the Go-Giver with rule number one. Give more in value than you take in payment.
I am always interested in speaking with other professionals about how they deliver value to the market. I welcome your comments or email at stuart@stuartcrawford.com.
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