The customer. And he can fire everybody in the company from the chairman down, simply by spending his money somewhere else.”
– Sam Walton
In this post, we will explore three aspects of transactions: understanding what a transaction is, how to conduct one, and how to profit from it.
- Understanding What a transaction is.
- How to conduct one.
- How to profit from it.
A transaction involves an exchange between two or more parties where each party offers something of value. For example, I might want a chair my brother has while he desires my computer keyboard; thus, we would trade these items in a transaction. Transactions can also involve money but are distinct from sales which primarily deal with monetary exchanges.
To execute a transaction, consider the roles of cashier or customer at a shop. When visiting an ice cream store as a customer, you select your desired flavor and proceed to the counter where you offer something of value (typically money) in exchange for the ice cream – that’s conducting a transaction.
Now let’s discuss profiting from transactions. To initiate any kind of transaction, you must possess an economically valuable item – something people want. Once you have such items on offer in your store, potential customers will be drawn inside even if they haven’t completed any transactions yet.
To profit from these transactions, implement the Minimal Viable Offer (MVO) strategy by providing just enough benefits to entice customers into purchasing without compromising profitability significantly. While MVO does not guarantee profits every time due to various market factors and competition dynamics , it increases your chances of earning higher returns when employed effectively.
Read this topic here: https://personalmba.com/transaction/
That concludes our exploration into the world of transactions! Join us next week for another insightful discussion.