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Every "value form" creates value for people
who pay for it, and that value can be converted to a certain amount of money
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Usually, for every "value form" to be
created and ready; a certain amount of money must be spent on it. Except for
some "value forms" that depends mainly on mere human skills
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Almost all the time the value that a "value
form" creates –translated into money- is more than the amount of money
used in its creation
Value capture means that: every business must keep some money of what it
makes- a percent of what it makes in form of sales
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That is related directly to the profit margin: the
more you can capture from a "value form" and the less you spend on it
to create, the more your profit margin is, the better :)
A general rule of thumb:
Capture 10% ± of the value you create.
Of course that is changed according
to a lot of factors, for example the scarcity of the "value form",
the segment of customers you are targeting …. Etc.
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