VALUE DRIVER NUMBER 6 OF 8: MARKET DIFFERENTIATION OR MONOPOLY CONTROL
VALUE DRIVER NUMBER 6 OF 8: MARKET DIFFERENTIATION OR MONOPOLY CONTROL
Hello, this is Jack Kearney, Managing Director of Trinitas Business Valuations.
MARKET DIFFERENTIATION (or MONOPOLY CONTROL) is the sixth Value Driver. Monopoly Control is an attribute of sellability that means that you have control over how you price your product. You are not being commoditized essentially because you are unique and different in the marketplace. You have heard Warren Buffet, the famous investor, talk about this idea of having a deep and wide mote around your business. He is referring to the idea that he invests in companies that have a differentiated marketing position. A lot of investors look for companies that have a differentiated proposition, because that gives you a better ability to control your pricing. The more you can control your pricing, the more margin you make, the more margin you make, the more you can invest in sales and marketing, and it triggers this nice little domino effect, that enables you to stay different in the marketplace. Again, the more different you are, the more control you have over your pricing. The way you can improve your score on the Monopoly Control is to really scrutinize the way you are marketing your business through two lenses. The marketing strategy must have two attributes, it has to be meaningful to customers and it has to make it different. Scrutinize all of the messages that you have in the marketplace, look at your website and social media, the side of your vans, however you communicate to your market and ask yourself, does this make us different and do customers care? Those are the two factors that drive up your Monopoly Control score. If you would like to learn more about your company’s market differentiators, go now to fill out The Value Builder Questionnaire™.
The Value Builder System™ is a statistically proven methodology designed to increase the value of a privately held business. The Value Builder Score™ is an evaluation system driven by an algorithm that evaluates a business on the eight core value drivers that acquirers (investors or lenders) consider when buying (investing in or lending to) companies. The Value Builder Score™ gives a comprehensive assessment of the "Sellability" (“Investability” or Credit Worthiness) of your business, whether you want to sell next year or just to know that you're building a valuable asset for the future. After analyzing more than 52,000+ businesses, analysts at The Value Builder System™ have discovered that companies with a Value Builder Score™ of 90+ received offers that are 71% higher than the average-scoring business. The Value Builder System™ is available exclusively through an experienced and authorized group of advisors, known as Certified Value Builders™, such as Trinitas Business Valuations. Click on one of the buttons below to discover whether you are ready to sell your business (The Value Builder Pre-Score™) or whether your business is ready to be sold for the best price, terms, & conditions (The Value Builder Score™).
MARKET DIFFERENTIATION (or MONOPOLY CONTROL) is the sixth Value Driver. Monopoly Control is an attribute of sellability that means that you have control over how you price your product. You are not being commoditized essentially because you are unique and different in the marketplace. You have heard Warren Buffet, the famous investor, talk about this idea of having a deep and wide mote around your business. He is referring to the idea that he invests in companies that have a differentiated marketing position. A lot of investors look for companies that have a differentiated proposition, because that gives you a better ability to control your pricing. The more you can control your pricing, the more margin you make, the more margin you make, the more you can invest in sales and marketing, and it triggers this nice little domino effect, that enables you to stay different in the marketplace. Again, the more different you are, the more control you have over your pricing. The way you can improve your score on the Monopoly Control is to really scrutinize the way you are marketing your business through two lenses. The marketing strategy must have two attributes, it has to be meaningful to customers and it has to make it different. Scrutinize all of the messages that you have in the marketplace, look at your website and social media, the side of your vans, however you communicate to your market and ask yourself, does this make us different and do customers care? Those are the two factors that drive up your Monopoly Control score. If you would like to learn more about your company’s market differentiators, go now to fill out The Value Builder Questionnaire™.
The Value Builder System™ is a statistically proven methodology designed to increase the value of a privately held business. The Value Builder Score™ is an evaluation system driven by an algorithm that evaluates a business on the eight core value drivers that acquirers (investors or lenders) consider when buying (investing in or lending to) companies. The Value Builder Score™ gives a comprehensive assessment of the "Sellability" (“Investability” or Credit Worthiness) of your business, whether you want to sell next year or just to know that you're building a valuable asset for the future. After analyzing more than 52,000+ businesses, analysts at The Value Builder System™ have discovered that companies with a Value Builder Score™ of 90+ received offers that are 71% higher than the average-scoring business. The Value Builder System™ is available exclusively through an experienced and authorized group of advisors, known as Certified Value Builders™, such as Trinitas Business Valuations. Click on one of the buttons below to discover whether you are ready to sell your business (The Value Builder Pre-Score™) or whether your business is ready to be sold for the best price, terms, & conditions (The Value Builder Score™).