Home > Marketing > Value proposition?

Value proposition?

This is a new concept for me..

I know the answer to this question could vary wildly but, how do you guys define your value proposition?
- by Tony Dunne
For home owners looking to sell their their manufactured or mobile home, MFG Home Brokers, a professional, cost effective listing service, helps you quickly sell your home for the best fair market price.

Instead of trying to sell it yourself, let MFG Home Brokers, accurately access the value of your home, find buyers, arrange financing, and handle all of the paperwork.


Actually that was a bit harder to write than I expected.:bl

Pam - by LadySmith

Actually that was a bit harder to write than I expected.:bl

Pam
Thats what i thought:cu - by Tony Dunne
Thats what i thought:cu
The purpose of your value proposition is to identify a need that your target market possesses, that is unmet by your competition and can best be satisfied by your company/product. It is generally done in about 2 sentences.

The first sentence defines Value (both as a need and as a benefit). Start by addressing who should buy your product (your target customer) and what they need...then address who you are (or your product), and what benefit your product serves.

The second sentence is your Proposition (why your product is different than the competition). It's easier if you start this sentence by defining your competion, then state why your company/product is different/better.

ok, so for the value part:

"For home owners" defines my customer.

"looking to sell their their manufactured or mobile home,"
defines their need.

"MFG Home Brokers, a professional, cost effective listing service" defines who I am and my product.

"helps you quickly sell your home for the best fair market price" defines my benefit.

Then my proposition:

"Instead of trying to sell it yourself" defines my major competition.

"let MFG Home Brokers, accurately access the value of your home, find buyers, arrange financing, and handle all of the paperwork" defines why my company is different/better.

Does that help?

Pam - by LadySmith
This is a new concept for me..

I know the answer to this question could vary wildly but, how do you guys define your value proposition?


Actually that was a bit harder to write than I expected.:bl

Pam
My value proposition was very simple. In fact, I sought out a value proposition before I started developing the business concept. It is simply this:

My region has a ski resort that is no less beautiful than Aspen or Tahoe, but has a 40% occupancy rate in the winter. That means 60% of the 2,200 rooms here are sitting empty every day during ski season. Anyone see a value proposition here?

If that info isn't enough to make an entrepreneur drool, I next discovered that the local tourist board spent $1,000,000 dollars a few years ago on advertising in a metropolitan area within a day's drive of here, but with little or no success. What I could have done with a million dollars!!!

So here is my value proposition. It costs the same amount of money to heat empty rooms in the winter that it does to heat full ones. Put a few of your empty rooms to work to fill up the rest of them. Instead of spending a million dollars on advertising that doesn't work, spend 20% of that million dollars on a vacation giveaway promotion that will.

Incidentally, the same value proposition works for the ski resort. It costs the same amount of money to operate the lift whether they have 500 visitors a week or 5000. Free lift tickets in the vacation giveaway cost them nothing. The advertsing that accompanies it will be much more effective than the vanilla advertising they are currently doing. - by rlabston
So here is my value proposition. It costs the same amount of money to heat empty rooms in the winter that it does to heat full ones. Put a few of your empty rooms to work to fill up the rest of them. Instead of spending a million dollars on advertising that doesn't work, spend 20% of that million dollars on a vacation giveaway promotion that will.

Incidentally, the same value proposition works for the ski resort. It costs the same amount of money to operate the lift whether they have 500 visitors a week or 5000. Free lift tickets in the vacation giveaway cost them nothing. The advertsing that accompanies it will be much more effective than the vanilla advertising they are currently doing.
It makes sense. How are prospects responding to this? - by Calvin
It makes sense. How are prospects responding to this?
Good question. I have made presentations to individuals, an association of hotel owners and the tourism board.

I measure response in 2 ways. The first is a bit superficial, but useful none-the-less. When I make a presentation, if the audience is yawning and having a hard time staying awake, or they ask me to make the presentation shorter and leave, I view that as a negative response. If they ask lots of question, talk to me after the presentation and offer contacts in their company to follow up with, I view that as a positive response. In my limited marketing effort to date, the response has been overwhelmingly positive.

The second method of measuring response is with actual sales. It is one thing to say, "Yeah, that's a great idea!" but it is a much more powerful response to say, "Sure, I believe in this approach enough to give you $30,000 to be the Prime Sponsor. Since I am not yet at the point in the marketing effort to start asking for money, I will have to follow up later with an answer on how this part of the response is going. - by rlabston
Iím skiing in Aspen next winter, Iíll have to book through you, sounds like you know where I should stay? - by Tony Dunne
I try to set the value propostion according to the market value and the customoers intrest - by mtajim
IMO, i don't believe that you should say the same thing to every customer. this is very difficult, but if you can ask the right questions people will tell you what is important to them and then you base your "value propostion" around that.....let me pose a question........
How can you have a "value propostion" if you don't know what is valuable to someone?? - by benjamin-benjamin
thats right , every individual has his own choice and wants most from the seller, so we should try to get the nerve of cutomer and deal that way - by mtajim
IMO, i don't believe that you should say the same thing to every customer. this is very difficult, but if you can ask the right questions people will tell you what is important to them and then you base your "value propostion" around that.....let me pose a question........
How can you have a "value propostion" if you don't know what is valuable to someone??
I think you have hit the nail on the head, benjamin-benjamin. We should be redefining our value proposition for each customer based on his or her needs. I usually open the presentation portion of the sales event with a question that incorporates what I consider to be the value proposition for that prospect. The question is usually along the lines of, "Would you be interested in a my product or service if it met this list if needs that you have just told me about?" Of course, this question is usually answered by an objections the customer may have to making the buy decision at that moment, such as, the value is right but the timing is bad or something was missed in identifying the customer's needs. In case of the latter, I usually fall back into the 2nd part of the sales event which is collecting information from the prospect.

When the value proposition is right but the timing is wrong, what do you do? Do you try to create a sense of urgency for the customer to overcome this objection? Do you makea note to call the customer back when he expects to be prepared to make a decision? - by rlabston
When the value proposition is right but the timing is wrong, what do you do? Do you try to create a sense of urgency for the customer to overcome this objection? Do you makea note to call the customer back when he expects to be prepared to make a decision?
It depends, you create a sense of urgency IF the customer is not stressed out and giving you lame excuses, but alot of times what has been effective for me is saying....."I can tell that your blood pressure is high (insert fake laugh) and there are factors that haven't been decided so we can make a decision right now anyways. What i think will be best is if you go home relax get a good nights sleep and then meet with me tomorrow. That way you head is clear, blood pressure is dropped and you can make a logical decision.
If they are going to leave anyways you want them to feel comfatable with coming back. if you hammer them they will feel too scared to come back.... - by benjamin-benjamin
Weekly Updates!
Questions and Answers about Selling
Subscribe to our mailing list to get threads and posts sent to your email address weekly - Free of Charge.