The First Law of Marketing: The Value of Value
July 11, 2014
Hosted by Ron Baker and Ed Kless
Adam Smith was confounded. One of the greatest economic and social thinkers in the history of ideas struggled with the so-called diamond-water paradox. None of us would be able to live beyond a couple of weeks without water, yet its price is relatively cheap compared to the frivolous diamond. Most people resolve this paradox by replying the supply of diamonds is scarce compared to water. But this theory lacks explanatory power. Ron and Ed will compare and contrast The Labor Theory of Value with the subjective theory of value, developed by the Marginalist Revolution of 1871-1874. The idea that all value is subjective seems obvious is retrospect, given how consumer preferences and tastes can change on a whim. Ron and Ed explore the present-day consequences for enterprise that subscribe to one or the other of these theories. They both cannot be right. The correct one is known as the First Law of Marketing: All Value is Subjective. There is value in having a correct theory of value.
The Soul of Enterprise: Business in the Knowledge Economy
Friday at 1 PM Pacific Time on VoiceAmerica Business Channel and VoiceAmerica Variety Channel
The Soul of Enterprise is designed to champion the insight that wealth is created by intellectual capital, a product of the inexhaustible human spirit.
Wealth is above all an accumulation of possibilities. These possibilities lie hidden in the womb of the future, waiting to be discovered by human imagination, ingenuity, and creativity, manifested in free enterprises dedicated to the service of others. Tune in to The Soul of Enterprise, with Ron Baker and Ed Kless, broadcast live every Friday at 1 PM Pacific Time, on the VoiceAmerica Business Channel and the VoiceAmerica Variety Channel.
Ron Baker and Ed Kless
Ronald J. Baker started his career in 1984 with KPMG’s Private Business Advisory Services in San Francisco. Today, he is the founder of VeraSage Institute, the leading think tank dedicated to improving the professions for posterity.
As a frequent speaker, writer, and educator, his work takes him around the world. He has been an instructor with the California CPA Education Foundation since 1995 and has authored fifteen courses for them.
He is the author of the best-selling marketing book ever written specifically for the professions, his latest book published in December 2010, “Implementing Value Pricing: A Radical Business Model for Professional Firms.”
Ron has toured the world, spreading his value-pricing message to over 110,000 professionals. He has been appointed to the American Institute of Certified Public Accountants’ Group of One Hundred, a think tank of leaders to address the future of the profession. He was named as one of Accounting Today’s Top 100 Most Influential People in the profession eight times, and selected as one of LinkedIn’s 150 Influencers.
He graduated in 1984, from San Francisco State University, with a Bachelor of Science in Accounting and a minor in Economics. He is a graduate of Disney University and Cato University, and is a faculty member of the Professional Pricing Society. He presently resides in Petaluma, California.
Ed Kless joined Sage in July of 2003 and is currently the senior director of partner development and strategy. He develops and delivers curriculum for Sage business partners on the art and practice of small business consulting including the Sage Consulting Academy, Business Strategy and Customer Experience Workshops. He also serves as the liaison to the Sage Leadership Association.
Prior to joining Sage, Ed worked with Tipping Point Advisors, an organization dedicated to the growth and development of software implementation partners. In 1996, he co-founded Third Wave Business Systems, a Microsoft Dynamics GP partner that grew to 20 team members and $5 million in revenue. At Third Wave, Ed developed the implementation methodology and led the CRM and ERP consulting teams.
Ed is a frequent contributor to industry publications, including the Journal of Accountancy, Harvard Business Review and HR.com, and has spoken at many conferences worldwide on project management, pricing, and knowledge workers. He is also active in the Information Technology Alliance (ITA). He lives north of Dallas with his wife and two children and ran for Texas State Senate in 2010 and 2012 as a Libertarian.