First...let’s pay respect to internet marketing consultant and author Frank Kern for sharing this value formula, which is used by some of the infopreneurs and lifestyle coaches of India ( and abroad as well).
Second, no matter what business you’re in...this value formula will take you to new heights, if you wanna use social media for your business.
Plus, this can increase your market value and reputation even if you're crowded by enormous competitors. The value equation says,
Practical value + Intrinsic value = Total perceived value
Or PV + IV = TPV
Let’s understand exactly what this means!
Practical value is the tangible value of your product/service, the things your stuff does.
For example: If you’re selling a kitchen knife, then it would be more valuable because it cuts better vegetables than another knife.
Intrinsic value, is the intangible or unseen value that is created by extensive promotion and positioning of the product.
Now, the reality is...more the intrinsic value of your stuff, the more you can charge for it from people.
In the words of Frank Kern: The money is in the intrinsic value not practical value!
That doesn't mean, your stuff should not be great, or our product should be less on features and benefits. This is must.
But, even the best product alone without boosting intrinsic value, cannot increase its total perceived value.
And if you see today’s scenario, most of the so-called “Indian lifestyle coaches”, not all...but the majority of them are burning cash to boost the intrinsic value of their coaching program.
They tend to fake the audience how rich and happy by showing their pics with Red lambos in armani suits with a group of girls around them, all in front of a big mansion as if they bought it within 90 days or so and sell their coaching program for 6000 with a promise of “get rich” quickly by implementing those strategies.
My friend, all thanks to intrinsics value. That’s why these coaches are making big bucks!
So, here’s the thing...If we want to raise the prices and value of your product/service and close those big-ticket sales, the first step you need to take is to increase profits and increase the intrinsic value.
Yes, there’s nothing wrong in increasing intrinsic value when you have a good product/service that solves your customer problem.
However, please resist yourself from walking the path of internet lifestyle goo-roo!