How to Create Value: Small Efforts, Outsized Returns

We at Holden Advisors believe that pricing power can be achieved with differentiation and execution.

We can create more differentiation by creating more value for our customers. There are, in general, 2 primary ways to create more value for our customers. First is product improvement that would benefit our customers. The second way is to make service improvements.  

It is natural for firms to place emphasis on product improvements to maintain or achieve market leadership. Often, the product is the focus of innovation and improvement. We want to bring up an alternative area where minor investments could bear a lot of value for you and your customers.  

As your product becomes more mature, incremental improvement can become more costly. On the other hand, non-product innovations can be much faster to implement and could provide tremendous value for your customers and a source of profitability for you.  

Here are a few examples: 

Manufactured product: 

An OEM manufacturer of medical device components changed packaging to match customers’ assembly workflow after simply visiting a customer facility. The result: less handling time, less waste, and smoother operations, creating value far beyond the cost of new packaging. That additional value gave the OEM more leverage to defend price and deepen the relationship. 

Software product: 

A B2B software provider updated the visuals on its invoice page, adding conditional highlights to show key metrics and usage patterns. Customers could instantly see the value they received and where they could unlock more. This simple change reduced pricing pushback and made cross‑sell conversations easier.  

Data product: 

A data provider added a simple dashboard comparing each customer’s usage to industry trends. Customers could see how they were performing relative to peers and how much value they were extracting as usage fluctuated. By continuously reinforcing value, the provider strengthened its case for renewals and price increases. 

Differentiation does not have to mean a major product overhaul. As these examples show, competitive advantages can come from small, low-cost changes to packaging, reporting, or invoicing. Changes that align with how customers actually use your product day-to-day. The real differentiator is not the size of the investment but your organization's ability to identify these opportunities and to execute them. Getting closer to your customers through customer visits, regular check-ins, or simply asking how they use what you sell will uncover the small frictions that, once resolved, translate into pricing power and higher margins. 

Start small: pick one product or service line, talk to a handful of customers about their actual day-to-day workflow, and look for the low-cost, high-value fix hiding in plain sight. It is rarely a big investment, but it can yield outsized returns in value and pricing power.