In my opinion business models and functions transcend industry boundaries. I find that a professional sales person is defined by his/her process as much as by the results they achieve. Though the results they achieve gain social status and develop a collective opinion of said sales person.
Many functions of the method I use in developing products are derived from my experience in sales and particularly from real estate. One of the duties that realtors have is in pricing listings (realtor’s inventory) to sell. There are several methods of determining price; the most commonly used is a “Comparative Market Analysis” the jargin for it is a CMA.
To do a CMA we call the property of interest the “subject” and the past performing (Sold, Active, Active w/contingencies [under contract]) property by a number. Now I will stop with the real estate portion but I want to show the similarity.
In determining price there is a top down and bottom up function. Top-down is what is from market perspective “Value”, what people are willing to pay. Bottom-up is from manufacturing “Cost” what it takes to create the product. The difference is your “Margin”. That Margin is the most important aspect when operating any business.
When doing a patent search it is less like a CMA and more like developing a Broker’s Price Opinion (BPO)… That is another subject, next time.
This is what I THINK and may not be necissarily true in practice. I am looking to complete that thought with Scott, Matt, Roger’s or anybody with industry experience input… Thank you.
Stay Thirsty, Stay Green!
~Chappy!
