Product Management playbook/Module 1 · Foundations

Day 06 / 100 · Foundations · What value really means

Value lives in the customer’s eyes.

Value isn't what you put in. It's what customers get, minus everything it costs them to get it.

Value = what they gain − what it costs them

The Value Equation

Gains

What They Gain

  • A job done faster or better
  • Money made or saved
  • Less worry, more confidence
  • Looking good to their boss or customers

Costs

What They Pay

  • Money: price, fees, add-ons
  • Time: setup, learning, migration
  • Effort: new habits, new workflows
  • Risk: “what if this goes wrong?”

Raise the gain. Cut the cost.