Adding value always seemed like a nebulous concept to me.

While I understood what it meant at a gut level ie: being helpful, solving problems, etc… it was hard to quantify into something on paper.

How would you compare the value of the two videos below?

One is probably the most hilarious cat video you’ve ever seen.

Another is probably the most inspirational video you’ve ever seen.

Most importantly, how do you determine:

  • A) The value of your product and service
  • B) What price point to sell it at?
Video: Capoeira Cat Video: Steve Jobs Commencement Speech 2005



I stumbled upon the answer recently in a book called The Consulting Bible (affiliate link) by Alan Weiss and he gives an equation that has the answer:

What Is Value? Click Here For The Equation

To break this down a little bit:

  • Tangible Benefits – Return on Investment, Sales, Better Margins, etc.
  • Annualized Benefits – Tangible Benefits x 12 months
  • Intangible Benefits – Image, Reputation, Credibility, Trust, etc.
  • Emotional Impact – Relief, Happiness, Inspiration, etc.
  • Peripheral Benefits – Bonus efficiencies, spillover effects, etc.

The ways you can increase value:

  • Reduce price
  • Increase benefits
  • Increase both price and benefits

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