Talk about Pricing with Purpose – Why you need to have a young CVO

Ron Baker has advocated for years that a Chief Value Officer needs to be LACEY – exhibit leadership, attitude, commitment, experimental, and above all youth.

Why?

Let me illustrate it with a story sent via email to me by John Shaver of Aries Technology. John writes:

I noticed that Alex Ovechkin of the Washington Capitals just signed a 13-year, $124M deal. Let’s see, if he plays approximately 80 games a year at 2 1/2 hours per game over the next 13 years… that’s $48K per hour! I wonder if that negotiation tactic would have worked?!?

So, how did he come up with the price? Probably a number of factors: market value, number of tickets sold because fans want to see him, future revenues for the franchise if they win the Stanley Cup, merchandise sales, etc. In other words, he made the effort to find and prove value.

Plus he didn’t pay an agent anything. He’s a 22 year old who negotiated the entire deal by himself.

I think I’m going to hire him as our new CVO since he obviously is an expert pricer!

I wonder if Alex has to fill out a timesheet?

Comments

  1. Great example, Ed.

    And the funny thing is that even if he misses a few games due to injury or some personal issues, the HR folks don’t start deducting his “wages.”

    But the dynamic is that when the buyer makes a commitment to achieve certain objectives, the seller also makes a commitment to help and support the buyer regardless of number of hours.

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