Okay, so I mentioned that value is an equation, it's a ratio between benefits and costs and as we can see here in this table on the top line we can think about total benefits. And on the bottom line we can think about total costs. And I think often we tend to be kind of narrow minded and simplistic in terms of only thinking about one kind of benefits or one kind of cost. So in the case of benefits it can be just functional quality, which maybe equal, so POP here stands for point of parity and POD will stand for point of difference. And so we have to think about other ways to not only be on par, but specially to be different. Unfortunately, in some cases that we can be different inferior way such as in terms of the perception of service. But fortunately there are many areas that we look hard enough where we are superior So the point of difference can be something that helps us argue that we should charge something higher. So just having better relationships, so just having offsets which matter in the case of international marketing, international B2B market. And the same kind of argument could be made with costs as well. Again, we can be inferior. And maybe part of that perception that our service is poor stems from the fact that we charge for maintenance whereas the competition does not. So that's something to think about. If what we're charging is not that much, by not charging and being, equating our maintenance charge with that of the competition, our value perception, our benefits perception may improve. And also in terms of total cost, we can be better if we had higher productivity, which saves our customer money. And if it's something like, let's say, an airplane our product may have a higher salvage value, which is money ultimately for our customer. Its cost saved for them. So again, we can have more wiggle room not only thinking about the top line but also more wiggle room thinking about the bottom line. So it's not just the POP that matters but actually it's more important that we think more broadly about how we can be especially better both in terms of benefits and cost. And so in a related vein, there was this very well-known concept in B2B pricing, which is TCO, which stands for total cost of ownership. So I'll very brief here. And this is very consistent with what I talked about earlier, especially in terms of cost. That you have these wide range of costs that a customer has to bear. And so it's not just the upfront price or cost that a customer has to bear. Of course, he has to install it. But then he has to use it and at the end, he also has to dispose it. So there is this lifetime of cost that a buyer has to bear and so if we can have an advantage at some level, not only in terms of the up front, but also in terms of the installation, and the operational costs, and disposal cost. Now that's where, even though we may be less competitive initially, up front we can more than make up for that lack of competition by being much better in terms of the other cost. Okay. Finally, I've talked about many different angles of attack and I talked about how important it is to think about four different angles of attack. The last angle of attack will be how we manage our cost. And we can think of this in terms of cost per market. And even, especially in the case where you have a large customer, a cost per customer. And so maybe this is in the realm of cost accounting, where accountants have to help you determine all the different cost on a per market or even per customer basis. So as we can see here, you end up having many different types of markets or customers segments where you have this alignment between. You're cost and the price that you charged, and that'll be in the high high case and the low low case. So we can argue that both the carriage trade and bargain basement type of customers are aligned but you also have the off diagonal where you have a misalign in terms of either the price being high and the cost being low, or the price being low and your cost being high. So it can work in your favor, as is the case in terms of passive customers. And this happens when you have a repetitive buying situation and a very loyal customer base, where over time you costs come down even though, because your perception of value is still high, customers are willing to pay a high price. So the profitability will, therefore, be very high. But unfortunately the opposite is true where you have low prices, but your cost of serving them will be very high. And this can happen where a small business is dealing with a very large one, a very aggressive large client And this speaks really about the kind of portfolio that you have. So if you look at the following portfolio, this is ideal. Because look at how profitable you may be when you have the very loyal high paying, and yet less costly to serve consumers. So this is certainly an ideal situation. But in contrast, the opposite will be true if you're suffering from a portfolio where you have these very aggressive customers. And you may not even know it. And so you may be bleeding internally because not having done your cost accounting well, he had just this average like price and average like cost. And you don't know where your problem is, so it really behooves you on a per market or even per customer basis to know where you're making money and where you're not because something has to be done. Maybe it's not worth you're while to continue to serve these customers even if there big. So summing up we learned on the segment that in pricing there are many options stemming from the definition of B2B. B2B2C that helps too. In product marketing, it can really help you in pricing marketing. And as for that we learned how we had to think broadly in terms of both benefits and cost. Whether it's benefits to your customer whether it's cost to your customers, and related to that was this notion of total cost of ownership, which is like this lifetime cost that a customer has to bear. But, you also have to think about what you're value adding and your cost situation is as well.
