How Valuable is your Product or Service?

A Simple Formula to Create and Measure “Value.”

Peter, CEO of a global company, and I discuss multiple things, including business, strategy, sales, and associated profitability. We share a lot in common and get along well. I shared my best ideas from what I read, learned, and my experiences. We usually get over a phone call during the weekends and discuss multiple topics, from real-world challenges, ideas, inspiration, and implementation in real life. We are mindful that discussions should not stop after disconnecting the phone lines but should be implemented in real life.

One such weekend, Peter called me up, and as usual, we started our discussion with the marketing and pricing strategy adopted by various companies. After about fifteen minutes of conversation, there was a pause. Peter asked me some questions on his company’s products, the value customers get by using them, and said that my business is not growing and customers do not realize the value of products. Peter continued to express his displeasure and asked for ideas to better the situation.

I shared with him and shall equally stay valid to all business owners and aspiring entrepreneurs. Note: The source is from various books and after applying them across multiple products/services. Here goes my explanation.