The value equation


Welcome back!

I’m Nicolas Gramnea ―co-founder of

My mission is to help 1.000.000 entrepreneurs succeed on their journey.

Because entrepreneurs make this planet a better place to live on!

With that said…

You are in the right place, today, if you want to take your business to the next level!

Offer component #3:

Value Equation

Everyone on the internet and they grandma talking about “VALUE”… but nobody actually gives you the formula to understand what VALUE actually means.

Luckily, for you― I found the best formula to describe this word, kudos to Alex.


you’ll understand how to create VALUE out of thin air

you’ll understand the perception around value on your prospects minds

So, your offer might not be converting because what you’re offering is not valuable enough.

Here’s how to increase value.

So, there are 4 pieces in this equation.

Read this carefully.

The better the dream outcome of what we’re selling to someone, the more value the person is going to have and attach to our service.

The likelihood to achieve that outcome with our service in and of itself increases value.

Now there is a big line…

The things that are at the top of the line increase value.

The things that are at the bottom of the equation decreases value.

Time delay: What’s the time delay between purchase and achieving the result?

Effort and sacrifice: How much they would have to suffer in order to get the result?

So, if you think about this from a theoretical standpoint:

If I can achieve this amazing dream outcome
with 100% likelihood, it happened instantly,
and I didn’t have to do anything…

…that will be the ultimate valuable thing.

That is the idea we’re chasing after.

And all of us, entrepreneurs, should be chasing that hypothetical perfection; and if you think about that as your goal standard then you’d always have a direction to be able to move your product and services in.

Let’s break each one of them.

1.) Dream outcome: Is the end result meaningful to them?

So, a lot of times― especially newer entrepreneurs, they always think they have to do something crazy unique.

And a lot of times you just have to be really good at your thing.

If we get a person whose end result is at the top of their “mountain of achievements” and they have a little path to walk through… as long as there is an outcome they don’t have― they would be willing to pay for it.

This is most important when understanding price points between different industries, or different problems being solved.

For example, if I could make you a 1.000.000€, that would be more meaningful for many people than losing 10 kg.

It just is.

Because that is more meaningful to you, you’d be willing to pay me more for that outcome. Which inherently means that if you want to make more money, figure out how to solve more expensive problems.

So, the second is around risk.

2.) Perceived likelihood of achievement: do they think they’re actually going to succeed?

If we had 2 surgeons that you’re thinking about getting a procedure from, and for one guy it was his first surgery out of medical school… and the other guy it was his 10.000th surgery.

Which one would you be willing to pay more for?

Well… probably the 10.000th guy.

And here what’s ironically; it probably takes that guy less time, than the first hour surgeon.

But we’re willing to pay more because, our perceived likelihood of him doing a good job is significantly higher― and the reason that’s valuable to us is that it decreases our risk of negative outcome.

And so… the more success you create for your clients, the more future value you create.

The important point here is that we’re increasing the PERCEIVED likelihood of achievement. 

You can get 100% of your client’s results, but if they don’t know that― they are not going to be able to perceive the value.

So make sure you also communicate the likelihood of their success.

Next… we have the bottom of the equation.

3.) Time delay: how long it would take them to see the final result? what about the initial result?

These are the two aspects of the time delay.

So, if I were to― I’ll use a weight loss example, it’s just simple and easy for everyone.

If I were to send you to my friend Zhiyan and I’d tell you…

“Hey man, work with Zhiyan, and tomorrow you’d have a six-pack”

That would be SIGNIFICANTLY more valuable…

…than you’ve got to wait a year to have a six-pack.

One of the easiest ways to provide value and crush a marketplace, that’s already established, it’s just go in― find the big thing that everyone is doing… do it in half the time.

That’s how you create value, instantly.

Super easy.

So, always, you have to think about time as a component of value.

Because people value their time more than anything.

PRO tip: FAST beats FREE.


Even if there are free players in your marketplace, you can beat free by simply being faster.

People can walk, but instead they take an Uber / Taxi.

And if you have a product or service that it takes a long time for them to see a result…

Then is there a way that we can trigger progress and show them progress on the way there… so that we can increase the perceived value of the thing that we’re selling?

And then, the last piece of this is:

4.) Effort and Sacrifice: what additional cost / inconveniences that they must incur to achieve this result?

What’s the sweat they have to put on this?

So, the idea here is that INCREASE the desire / promise― DECREASE time / effort and sacrifice, and that’s how you create ultimate value.

This is how we can think about this in a real-world example.

Coolsculpting vs. Workout

For Coolsculpting people are willing to pay waaay more than a gym membership when the outcome is the same. Why they are willing to do that?

It’s because of the other aspects of this equation.


Likelihood of achievement ⇾ very high. They think they’re gonna pay, the machine will do the work, and they’re going to pee out the extra fat.

Time delay ⇾ almost instantly.

Effort & Sacrifice ⇾ nothing. Don’t change how they eat, don’t have to wake up at 5 in the morning to work out, don’t have to change the way they cook.

So… as a result, people are willing to pay THOUSANDS for stuff like this.

And they will not pay 10€ – 20€ a month for a gym membership.

…even if the outcome is the same.

That is how you deconstruct and recreate value.

Wake up skinny vs. Eat less, be sore, discomfort, etc.

If you want to create maximum value, you must get the bottom to 0.

At the beginning, majority of the entrepreneur focuses at the top of this equation… but if we look at bigger businesses, we can spot the fact that they focus most of their time on getting the bottom to 0.

Think about Amazon― they consistently invest in getting faster delivery time.

Think about Netflix― they consistently invest in improving their algorithm to recommend you better shows, so you can start watching without having to search.

This is why these companies became so valuable.

And it’s all about perception… not just doing it, but making sure your prospects:

…they perceive that they are going to have less time delay

…they’re going to perceive they are going to be likely to achieve

…they’re going to perceive there is not a lot of inconvenience for them

So, as long as you communicate these things, then the end result of the product that we have becomes more valuable.

When you think about your product right now, think about each of these 4 variables:

Dream outcome
Perceived likelihood
Time delay
Effort and sacrifice

And think about how you can recombine all these things to create a more valuable product for your clients.

These were concepts we had to understand first before we actually put and assemble the pieces together to create your offer.

You're in!

Check your email

━learn how to use Designer’s Kit to win more projects.


You should get an email.
Subj: “Get started ━Starter’s Kit”



Share the Starter’s Kit via WhatsApp or LinkedIn and help us reach more entrepreneurs.