Value Proposition

A value proposition is a statement of how a given product or services benefits the customer. Wikipedia says:

In the field of marketing, a customer value proposition consists of the sum total of benefits which a vendor promises that a customer will receive in return for the customer's associated payment (or other value-transfer). In simple words: value proposition = what the customer gets for what the customer pays.

Wal-Mart's used to be "the lowest prices all the time," which I liked because it was clear, efficient, effective, and the store's operations, whether you think Wal-Mart is the best business that's ever existed in the history of the human race or the most evil and sinister enterprise ever created, you have to agree that their business worked for them.

The entrepreneur must understand what the customer sees as the value of the product, or the entrepreneur is not seeing his business clearly from the outside. He's trapped in a black box into which all can see in, but he can't see out.

Read the Wikipedia article and go to some of the links. If you're interested in reading about Wal-mart, I'd recommend Charles Fishman's The Wal-Mart Effect. If you google it, you can probably find it through an aggregator for cheap.

If you're interested in what I say, post a comment. And check out my other blogs: www.yourstopforrealestate.com/blog and www.kearneymusicschoolmurders.blogspot.com