The process of selling a product isn’t rocket science (unless you’re an aerospace engineer pitching to NASA) but it does take brains, hard work, research and value proposition that hits it out of the ballpark. First, think about what makes your idea special. This is your value proposition. Consider why anyone should buy your product instead of buying something else. Your value proposition won’t win any awards for being overly complicated - the easier your customer can understand your value proposition, the better your product will sell.
So what’s in an effective value proposition? Read on to find out.
Start With Why...
Determine the driving force behind your idea and why you're positioned to make it happen. I recommend reading Simon Sinek's Start With Why. It's a great resource, and it helped me understand my "why" – to help people get going and move forward to reach higher ground. This is exactly what all of the businesses that I've founded have in common with each other. The best part of this "why" is that it's authentic. Make sure this comes through with your business idea.
Even brand-new concepts may fulfill the same function as older ones, so you'll have to be clear on what you are providing that makes it worthwhile for people to break their habits and loyalties. If your concept is extremely cutting-edge, you may have to introduce your product by demonstrating why it's game-changing to help people see how it can help them.
Explain what's new about your idea. Which unique attributes will your business bring to the table: customer service, technology, a special process, better taste, lower price, faster delivery, or a combination of things? This is what will set you apart from your competition and make your product or service more appealing to your potential customers. Even something as simple as more attractive packaging could make the difference for many consumers.
Example of An Excellent Value Proposition: Square
Square is an online/mobile payment technology that has revolutionized who and how credit card payments can be processed. Until Square, you had to get expensive equipment, complete onerous 'signup' forms, pay high fees. Square developed a little plug in to your iPhone/iPad that allows 'vendors' to run credit card transactions immediately with easy and low cost setup options. Now, millions of small business owners can accept mobile payments on the go, like food vendors at a fair, admission fees for a concert, or joining a club. This technology has brought real novelty and innovation to the payments market which desperately needed to be more efficient. Congratulations to founder Jack Dorsey for such a game-changing value proposition.