# The delta value formula

Telco Strategies isimli blogdan seçtiğim bir alıntı… Telekom dünyası gibi soyut ürünlerin pazarlandığı bir dünyada bilinmesi gereken ana yapı taşlarından birisi;  fiyat-değer algısından bahsediyor…

As time goes by and the picture gets clearer, I take one important learning from the Kellogg course with me. The good thing is: This learning can be summarized in one equation. Well, good thing for me since I have to admit liking mathematical rigor (No, please don’t take me as a boring/picky!).

Well, this is the equation:

Δ price ≤ Δ value

So, why do I like this equation? Let me explore it further.. in other words that equation equals:

So, what does the left hand side of that inequality represent? That’s your price premium. What about the right hand side? That’s the additional monetary value your offering provides, the extra value that only your offering can provide (and that competition can’t match).

Thus, what if there is no Δ value? Or what if you “don’t know”/”can’t prove” the differential value your offering has in comparison to competition?

Well, this is what our equation gives us:

Δ price ≤ 0, that is to say: