Master The Value Triangle
Here’s a neat tool you can use to get insight into any offering, any brand, and any client’s needs.
A “sale” is only possible when both parties perceive that the value they are getting from the trade is greater than the value of the thing they are giving up.
You can view the value in almost any transaction in terms of three primary factors:
- Speed
- Quality
- Cost
These three factors make up “The Value Triangle.” The general principle is that you have to choose between these factors. You can’t have them all.
Here’s how a Value Triangle might look visually. In this example, the triangle is rotated to show that Quality is the #1 priority, Speed is fairly important, and Cost is not an issue.
You can show any balance between the 3 value factors by simply rotating the triangle around its central point. You can’t have all 3 factors as high priority.
Let’s see how you might use the Value Triangle in practice.
Scenario 1: Client’s Requirements
A client comes to a web designer and asks for a web site to be built. They want a good standard, and it needs to be built within a short deadline. Oh, and they only have a small budget.
So they’re asking for all three factors to be high priority. That’s not how the world works.
- If you want a high standard of result, and you need it soon, you need to be prepared to pay.
- If you want a good result, and you want it cheap, be prepared to wait.
- If you want it cheap and quick, don’t expect quality.
To put it bluntly, you might say to that client, “Quick, Cheap, Good – pick two.”
Scenario 2: Positioning a Service
If you’re putting any product or service on the market, people need to know where it fits in relation to what they already know. That’s positioning.
Let’s say you’re marketing your own service (web design, consulting, programming, logo creation, whatever). How would you spin the Value Triangle to represent what you offer?
If I were making a premium web site, I would have something similar to the example above: Quality top, Speed OK, but don’t expect it to be cheap.
But remember, for every client, there’s a corresponding perfect service. I could just as easily market “Speedy & Cheap Web Design” (which you’d expect to be relatively low quality), “Paratroop Web Consultancy” (which would deliver great services at the drop of the hat – but really cost you), or “Good Web Sites for Businesses on a Budget” (in which case those clients would need to wait).
Scenario 3: Project Priorities
You can use the Value Triangle to help you understand and choose between the priorities in any project or transaction. It will also apply to a project you’re running.
In our team, we always have a lot of ideas for things we could do next. If we decide that something has to happen now, the Value Triangle tells us that we either have to sacrifice Quality, Cost, or some balance between the two. If it has to be quick and good, we know we may have to pay to bring in extra help.
I hope you find this really useful in your work, and look forward to your comments.
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Your site very impressive. I’m looking for someone to build my photography website, but not sure where to look and how to insure quality. Any suggestions?
Thanks,
B
Hi Beverly,
The students from our Pro Web Design Course could be just what you’re looking for. Although they’re still learning the trade, there are some very promising web designers coming through the ranks that we can put you in touch with. However, if you’re looking for an established agency, this will usually mean that the price of your project would increase somewhat.
I can email you further details and recommendations if you like?
Jimmy.
Thanks for the article , I think its also important to understand the requirement of the client before creating the design. Many sites consist of the basic pages but could benefit from social network integration and additional CMS for additional cost.
The client should understand the volume of effort that is required to deliver the results.
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That’s a great concept. It can go beyond websites, we were just discussing it in relation to food at a restaurant.
Should definitely be considered in the market planning phase as it helps determine what is important.
i like the triangle concept. Thanks for a good article.
Wow, this seemingly simple concept is really powerful and helpful if you think of it. Thanks for sharing!
great article.
I’ve seen this concept before, but usually with a focus on 4 areas (vs. 3): Scope, Quality, Speed, and Cost. Instead of a triangle, you have a square. You tell the client: “You can have any 3, but I get to keep 1″. This hints to your scenario #1 (client requirements); but you make it part of the equation.
Client wants: high scope, high quality, speed – then,
You get: Cost
Client wants: Low Cost, high quality, Speed – then,
You get: Scope (which would be low)
Client wants: high scope, Low Cost, Speed – then,
You get: Quality (need to be real careful here, as low quality could damage you *and* your client)
etc etc
..anyways, great article.
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Interesting version, John. However, I feel both the triangle and the square have a flaw in assuming that high quality websites can be made for a low price, if you have much time for it.
Triangle: “If you want a good result, and you want it cheap, be prepared to wait.”
Square: “Client wants: high scope, high quality, low cost. You get: Speed.”
I don’t see that happen. I can’t compensate in time for the values I bring in. It’s quite the opposite: good quality sites take time. Adding more time to a project would make it even more expensie, not cheaper. Even if I take more time to deliver, and not working full time on it but only evenry now and then, it would cost me money, as the delivery will be later, and so my payment.