Value in Service— What a Great Concept.

 One definition: “The extent to which a good or service is perceived by its customer to meet his or her needs or wants, measured by customer’s willingness to pay for it. It commonly depends more on the customer’s perception of the worth of the product than on its intrinsic value.”

Others are similar but still do not convey what value actually is to your consumer, client, B2B, and so on.

Textbooks I use in teaching have great definitions but Lack Substance and Connection to Reality.  The Question I try to find answers for is:

                                                                                 How do you convert Value to something Tangible???


In other words, Value is an Intangible asset, so how do you convert it into something Tangible your customer can experience over and over and over again.  The Experience your Clients have is the essence of Value.

                                                                                  We have Answers for you.


According to Harvard Business Review publication, “Value in business markets is the worth in monetary terms of the technical, economic, service, and social benefits a customer company receives in exchange for the price it pays for a market offering. Value is what a customer gets in exchange for the price it pays. We see a market offering as having two elemental characteristics: its value and its price. Thus raising or lowering the price of a market offering does not change the value that such an offering provides to a customer. Rather, it changes the customer’s incentive to purchase that market offering. Finally, considerations of value take place within some context.”  

Most publications have the same recipe for value:

                                                                                 V- C= Value Created per Unit

                                                         V= Value of Product/Service to an Average Consumer

                                                         C= Cost of Product/Service


How Is Value Created?

  • To increase profitability, firms need to create more value
  • The firm’s value creation is the difference between V (the price that the firm can charge for that product given competitive pressures) and C (the costs of producing that product)

A firm has high profits when it creates more value for its customers and does so at a lower cost.


Quite interesting, but this sounds like “Profit” Not Value.  Theory does not distinguish between the two because they do not have an answer basically nor an explanation for the Difference.


A firm’s operations are like a value chain composed of a series of distinct value creation activities:

  • production, marketing, materials management, R&D, human resources, information systems, and the firm infrastructure
  • All of these activities must be managed effectively and be consistent with firm strategy


Below is a nice Model to incorporate Value in your business at all levels, in other words the activities listed below apply to Products and Services, the Task would be to Create Value in All areas listed Consistently.


The Value Chain

Companies like Wal-Mart in the Retail Industry and Google in the Service Industry have mastered the process above and were able to duplicate success in the different contact points with customers and B2B clients in all areas above.  Wal-Mart is the leader in Supply Chain Globally.

According to Supply Chain Digest, this global retail giant operates more than 11,700 stores under 59 company names, with 2.3 million employees in 28 countries around the world while managing an average of $ 32 billion in inventory.


How does Wal-Mart create Value in Purchasing, Operations, Distribution, Sales, Service and all the other areas. 

Most Importantly, How can You Use that in Your Business?  Let’s Talk.


Food for Thought:

“Value is what a customer gets in exchange for the price it pays.”

The Product/Service is what the customer gets for that Price they pay, Not Value. 

The question to ask is: What Value are we referring to?  The one the customer receives or the one the Business enjoys, the latter would be what we call Profit.


                                   “V-C= Value Created per Unit”  Actually is Profit

Value has Nothing to Do with the 4P’s, and if in doubt, simply look around at All the Discount Stores that carry Products that Failed in Offering Value.


In 2016, Gallup reported that just 23% of U.S. employees strongly agree that they can apply their organization’s values to their work every day, and only 27% strongly agree that they “believe in” their organization’s values.

According to Fond’s survey, the correlation between corporate values and performance is so strong that nearly 90% of American companies report that they have a set of clearly defined corporate values.  Only 22% responded that 60% or more of their employees know their company’s core values. Half of that number (11%) could say that 80% of their employees know all the core values.

Only about 1 in 10 HR leaders believe that 80% or more of their employees are able to recite core values.

                                                                              How Important are Your Values???


Value is not a formula, it is not profit, it is what makes your business a success.


Yes, We Create Value for Businesses.  We make the process Simple and Tangible which is key to success.


                                                                                                 We Created Value in Our Services Globally.



                                                                           We Understand Your Needs and Share Your Dreams                                                                                                           

Contact Us to increase your Profits and Minimize your Risk