Monday, June 23, 2014

The Go Giver: Accepting payment for Value

I read the Book The Go Giver a few years ago and I really liked the message it had to offer.  In fact, its probably one of the best books I have read on over-delivering and reaping the rewards of doing so.  But although I think the book had some great points, I also have some serious issues with it.

I don't entirely agree with the First Law and Premise: 

"Your true worth is determined by how much more you give in value then you take in payment".  

As business owners, the goal isn't to provide much more value then our price point.  This is just bad business.  For example, I'm not going to sell you a brand new Ferrari for $20,000.  This is madness and its throwing money down the toilet.  No one will value what we do if we give things away free severely discounted.

I think this premise really needs to be changed to  "Provide great value and price your rates accordingly."

The reason why we don't want to over-deliver severely is because we have no guarantee that our buyers will come back or will buy more and we shouldn't place ourselves in a bad situation by setting  rates lower then they deserve.    Anyone who believes this should stay far far far away from business.

The Second Law, The Law of Compensation I think is incomplete.  It should be changed to "Your income is determined by how many people you serve and how well you serve them and how wide your profit margins are."  

Again, the problem is in providing much more in value then we ask for in payment.  I don't agree that our true worth is determined by providing as much excess value then our price rates demand.  If we accept this premise, we may as well work for free and see where that gets us.

If the author of the Go Giver thought a bit more about how this applies to the financial statement in business this book would have been a real knock out.  None the less, it was a great read with a great message.
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