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Framework · Value proposition

From industrial cost to perceived value

Cost explains what we need to recover. Value explains why someone would choose us.

Conceptual diagram of the strategic process
Conceptual illustration · AdeMarcos

Industrial cost

Raw materials and operating costs: the economic base required to manufacture and deliver the product.

Value in use

Regulatory compliance, required performance and application fit: what allows the solution to be used with confidence.

Added value

Customer-relevant differentiation: ease of installation, service, integration, brand or savings at system level.

The implication

Not every added benefit becomes a price premium. We need to know who benefits, who makes the purchase decision and what evidence enables value capture.

Illustrative framework. Examples do not represent results of an executed project.

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