Law of Value
Make the total experience worth more than the price
- Difficulty
- Moderate
- Time to result
- ~weeks to results
- Steps
- 4
- Confidence
- 98%
The Law of Value says a sale becomes compelling when the customer receives substantially more total value than the price paid. That value is not limited to the product's intrinsic function. It also includes expertise, time saved, reduced risk, peace of mind, empathy, consistency, attention, and gratitude across the experience. Start with the customer's desired result, then identify every practical and emotional benefit the offer creates. Improve the weak points until the buyer can reasonably feel better off after the exchange. This is not a rule to undercharge or overdeliver without limits: the seller should also earn a healthy profit. The mechanism is a mutually profitable exchange in which perceived and realized customer value comfortably exceed price while delivery remains worthwhile for the business.
Origin
Bob Burg presents the Law of Value as the first of the five laws in The Go-Giver and illustrates it with an accountant who creates savings, time, security, and peace of mind.
Core principles
- 01Value includes the full customer experience, not only the deliverable
- 02Both buyer and seller should profit from a free-market exchange
- 03Price and value are different measures
- 04Healthy margins can coexist with exceptional customer value
How to run it
- 1
Discover the desired outcome
Learn what the customer wants to accomplish and what currently costs them time, money, confidence, or peace of mind.
Pro tip Ask about the customer's wider situation rather than limiting discovery to the immediate task.
Watch out Do not assume every customer values the same benefits.
- 2
Map the full value
List the tangible and intangible gains your offer creates, including saved time, avoided risk, expertise, and emotional relief.
Pro tip Express each benefit in the customer's terms.
Watch out Do not confuse a long feature list with customer value.
- 3
Improve the experience
Add excellence, consistency, empathy, attention, and gratitude wherever they strengthen the result or relationship.
Pro tip Audit the complete journey, not only the core delivery.
Watch out Do not add costly extras that the customer does not value.
- 4
Check both profits
Confirm that the buyer is materially better off and that the price still gives the seller a healthy return.
Pro tip Treat mutual benefit as a design constraint before making the offer.
Watch out Giving more value does not mean sacrificing commercial sustainability.
In the wild
An accountant charges a client one thousand dollars. By understanding the client's business, she saves five thousand dollars in taxes, removes hours of work, and gives the family confidence that the filing was completed correctly. The client receives financial, practical, and emotional value well beyond the fee, while the accountant is still paid profitably for her expertise and care.
→ The buyer and seller both finish the exchange better off.
Common mistakes
Equating value with low price
Reducing price does not automatically improve value and may destroy the seller's profit.
Counting only the deliverable
Customers also value time, certainty, attention, and the quality of the experience.
Is it for you?
Best for
It is best for service providers and sales teams that can improve both outcomes and customer experience.
Not ideal for
It is not ideal for deceptive offers whose claimed value cannot be demonstrated.
From the transcript
“in any free market based exchange there should always be two profits the buyer profits and the seller profits because each of them come away…”
From the episode
Bob Burg on Closing More Deals with the Go-Giver Sales Strategy