The Smith Report - Operational Playbooks

Value Propositions Change

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Value Propositions Change

Value propositions change over time sometimes very quickly. As the WSJ pointed out this week. The owner of an 11 year old, six cylinder Ford Explorer that averages 15 mpg could replace it with a 2013 Explorer that gets up to 23 mpg with a 4 cylinder “EcoBoost” turbo charged model. The owner can use the difference to fund a low cost loan.

Look at your industry. Have the economics changed due to technology, fuel, tax, finance?

Look at the components of the Return on Investment (ROI) in your world. The denominator will be the investment by your customer. What often happens over time is that the benefits rise relative to the price point or investment. So when you add up the benefits together to arrive at the nominator, you might find the ROI % has changed dramatically.

I believe in this economy more than ever, prospects need help converting value propositions to improved performance to ROI%.

 

 

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About the Author

Ian founded The Portfolio Partnership (TPP) in 2010. TPP is an operational consultancy focused on scaling private businesses safely. He believes his resume of building 4 previous businesses from publishing, investment banking to software in Europe and the States gives him a unique set of skills and a sense of humor. He remains a competitive masters track & field athlete and in 2012 was ranked #2 indoors in the world for his age at 400m.

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