EP#52 - Streetwear brand Supreme made and sold a f**king brick?! A business creates value, then sells it, so if you don't understand the fundamental value you're creating you're going to miss the mark.
The Livelihood Podcast
English - October 20, 2020 20:00 - 1 hour - 46.1 MBEntrepreneurship Business make money money make money online money from homes online business passive income ecommerce entrepreneur selling online marketing Homepage Download Apple Podcasts Google Podcasts Overcast Castro Pocket Casts RSS feed
We break down the 10 forms of value and how you can use it to get ahead.
There are loads of different types of value out there, most business owners don't really know what business they're in. Is it important? Will it make the difference between a successful brand and a failure? Maybe. Think of this like you're rapid fire MBA into value. We also discuss all sorts of abstract topics like intangible value, can you make a toothbrush more expensive by the way it's sold?
10 Types of Value
Product
Tangible form of value, create tangible item people want
Service
Employee capable of a skill that people can’t won’t or don’t do themselves
Shared Resource
A durable asset that can be used by many people - you must create an asset people want asset to, serve as many people as you can. I.e gyms, fitness clubs
Theme parks and museums also fit here
Subscription
Provides predefined benefits on a recurring fee. Tangible or intangible. 1. Provide significant value to each subscriber on a regular basis. 2. Build a subscriber base and continue to grow to account for attrition. Bill customers on a recurring basis, retain each customer for as long as possible.
Keep customer attrition as low as possible
Resale
Acquisition at wholesale, resell at a higher price (most of retail)
Lease
Involves acquiring an asset following by letting another person use the asset for a fee. DVD, cars etc - allowing other people to use and return. Protect yourself against loss or damage.
Agency
Involves marketing and sale of an asset you don’t own. Instead of producing value by yourself you team up with someone else you earn a commission for sale. Provide value - find a seller who has a saleable asset, build a relationship with buyers.
Audience Aggregation
Collects the attention of people with similar characteristics. Since attention is limited
Blogs, instagram, mailing lists, youtubers, influencers
Option
Option is take a predefined action, coupon, retainer, movie tickets,. User has the option to take an action. Identify some action people might want to take in the future. Offer potential buyers to take that action before a specified deadline.
Loan, Insurance and Capital