Know What to Do, Not How to Do It

The real product you sell is a solution.

What problems can I solve for you? What value can I create? How much market potential can I unlock for you?

Only then does price become a secondary question. If something feels too affordable, it feels like an unbelievable deal.

If all you did was buy a plot of land, put up a building, and divide it into rooms, what do you think you could charge per night? Then you’d be competing on price against Hampton by Hilton and Home Inn.

But what if you built a terrace amid the mountain clouds and mist, set out a few tables, and named it “The Café Closest to Heaven”? Add some horses for moonlit rides, more tables for tea in the forest, and plant red maples along the windows facing your indoor hot spring—the leaves turning crimson across the hillsides...

How much per night then? ¥8,000, with a two-night minimum, and you still have to wait in line. This is Hoshinoya, a famous Japanese brand.

So there it is—understanding your customer is the foremost duty of any business.