Gendernomics: Value Propositions

When I came up with the idea for this essay, I was actually surprised that I hadn’t written it before because the idea of a value proposition is so central to Gendernomics. Investopedia defines a value proposition in the following manner:

“A value proposition refers to the value a company promises to deliver to customers should they choose to buy their product. A value proposition is also a declaration of intent or a statement that introduces a company’s brand to consumers by telling them what the company stands for, how it operates, and why it deserves their business.

A value proposition can be presented as a business or marketing statement that a company uses to summarize why a consumer should buy a product or use a service. This statement, if worded compellingly, convinces a potential consumer that one particular product or service the company offers will add more value or better solve a problem for them than other similar offerings will.” [1] 

When we interact with other people, or move about our daily lives, we are constantly being inundated by various value offerings and propositions from companies and other people, some of these are on point, some of these are exaggerated, but the shared characteristic of all of them is that an exchange is being proposed. You give them something, and they’ll give you something in return. What determines if you engage in a trade is whether you consider the price being asked is smaller than the value being delivered.

To clarify the former statement, if I have $5 and you have a sandwich that you want to sell to me, in order for the transaction to take place, I will have to value the sandwich as being worth $5 or more, and you have to value the $5 as being of equal value or higher value than your sandwich. If both of us make the judgment that we prefer what we already have, then no trade can take place. This is Ludwig Von Mises subjective value theory in practice. When someone buys a $487 course, then they value that course at $487 or higher, and they expect to be able to get more value out of it than they paid.

The accuracy of their judgment being the determinant of the outcome. If you consider paying a personal trainer $200 in hour, you expect to get results that deliver equal or higher value in order to justify your investment. It’s basic what is the cost of investment and what is the return on the investment? Continue reading