Value Capture

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What is “Value Capture”?

“You can get anything you want in this life if you help enough other people get what they want.” — Zig Ziglar, sales guru

Key Points:

• Value Capture is the process of retaining some percentage of the value provided in every Transaction. For example, if you bring $1 million of revenue to a client, and you charge $100,000, you are capturing 10% of the value you created.
• The more value you capture, the less attractive your offer becomes.
• There are two major approaches to Value Capture:
  
  
  
  • Maximization. An organization should try to capture as much value as possible.
  • Minimization. An organization should capture as little value as possible, as long as it remains Sufficient.
• As long as you bring enough to cover your needs, there’s no need to capture every cent.
• Create as much value as you can, so your captured value is worth it.

Questions for Consideration:

• How much value are you currently capturing from each transaction?
• Are you trying to capture too little, or too much?

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