An excerpt from
Aji Notes, Volume 3, written by Toby Hecht.
Aji Notes, Volume 3
(pages 192-193)
What Is Value?
Value is an assessment, interpretation or judgement made by Sellers and Buyers about the “HELP” of an offer, practice, narrative or strategy (OPNS).
It is not an objective, perceivable, obvious or permanent truth about OPNS, or goods and services, that people simply observe and report.
Making assessments of value is an important competitive capability and advantage for both Sellers and Buyers.
That’s why it is part of Aji’s tactical, strategic and competitive knowledge. (Part #3)
When bottles of water are common, they have no value to people. They have a price because no one will go through the difficult and costly practice to value them. It’s much easier to simply shop around for the best price.
But, when people are hot and thirsty, and bottles of water are scarce, they find themselves compelled to assess their value. If they don’t accept Seller’s offers quickly and agree to pay a premium, they’ll lose the opportunity to those who are faster at making the assessment and move first.
Value is an assessment about the possible HELP OPNS may provide to produce outcomes that will fulfill their intentions and commitments.
It is an assessment about:
… the (1) importance (consequences to fulfilling intentions), (2) utility (practicality) and (3) worth (returns on costs: time, energy, lost opportunities and money)
… of an offer, practice, narrative or strategy (OPNS), including goods and services,
… to HELP people fulfill their intentions to:
1. Take care of their concerns
2. Cope with a situation’s threats, obligations and opportunities
3. Increase their capabilities to fulfill their intentions
4. Design and execute strategies to produce outcomes
… and whether the HELP is (1) fresh, (2) new, (3) highly valued and (4) scarce relative to demand.