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When demand outpaces capacity, raise prices to afford better hires
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Key takeaways
- You're thinking, "Okay, well, I need to increase my team because I have this demand, but I can't increase my team because I don't have the money to do it." What's the problem?
- It allows you to pay higher compensation so you can attract the talent you need to get people in so that you can no longer be supply constrained.
Chapters
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0:00
Abschnitt 1 Let's say that you have more demand than you can handle.
Full transcript
Locally archived YouTube transcript with timecodes. Speakers are assigned heuristically and may be corrected editorially.
0:00Let's say that you have more demand than you can handle. You've got a team that's spread thin. You're thinking, "Okay, well, I need to increase my team because I have this demand, but I can't increase my team because I don't have the money to do it." What's the problem? Step one, raise your price. If you've got more than you can handle, then we can decrease how much is coming in by raising price. Now we have more cash flow. That cash flow does what? It allows you to pay higher compensation so you can attract the talent you need to get people in so that you can no longer be supply constrained. Each of those have quote risk, but the alternative is what? You stay there? You stay stuck?