The 3 Lines Of Business
In this concise presentation, the speaker outlines a fundamental framework for any business: three distinct lines—value, price, and cost. The goal is to maximize the distance between these lines by delivering a product or service that costs the business very little, can be sold at a high price, and provides even greater value to the customer. The gap between price and value is defined as customer surplus, representing the extra benefit customers receive beyond what they pay. The gap between cost and price is profit. The speaker further advises that by separating recurring elements from one‑time elements of a product or feature, businesses can more precisely align each component’s cost, value, and price, ensuring optimal pricing and profitability.
