𝗚𝗿𝗲𝗲𝗻 𝗣𝗿𝗲𝗺𝗶𝘂𝗺𝘀 𝗮𝗻𝗱 𝟭𝟬𝘅 𝗩𝗮𝗹𝘂𝗲
- Emin Askerov
- Dec 25, 2024
- 2 min read
Imagine it’s 2008, and Tesla is unveiling the Roadster—a sleek electric car that doesn’t ask you to compromise. It’s fast, luxurious, and—surprise—doesn’t cost more than a comparable sports car. Tesla didn’t market it as a “green vehicle” with a hefty price tag to save the planet. Instead, it sold status, performance, and design while quietly slipping in a climate solution. That’s the power of a 10x value proposition versus relying on a green premium.
𝗪𝗵𝗮𝘁’𝘀 𝘁𝗵𝗲 𝗗𝗶𝗳𝗳𝗲𝗿𝗲𝗻𝗰𝗲?
* 𝗚𝗿𝗲𝗲𝗻 𝗣𝗿𝗲𝗺𝗶𝘂𝗺: Charges extra for being environmentally friendly, relying on customers’ willingness to pay more to “do the right thing.” The reality is that it’s an added cost that most people avoid unless required by regulations. A good example is solar and wind energy in the past few decades. Their prices were often fixed in so-called power-purchase agreements, and they were several orders of magnitude higher than prices from conventional energy sources like coal and gas.
* 𝟭𝟬𝘅 𝗩𝗮𝗹𝘂𝗲: Offers a product or service that’s 10 times better in performance, cost, or experience than existing options. Customers flock to it because it solves a problem or enhances their lives or their business in a clear, undeniable way.
Tesla succeeded because it understood this fundamental truth: People don’t buy products just because they’re green—they buy them because they’re better.
𝗛𝗼𝘄 𝘁𝗼 𝗞𝗻𝗼𝘄 𝗜𝗳 𝗬𝗼𝘂 𝗛𝗮𝘃𝗲 𝗮 𝟭𝟬𝘅 𝗣𝗿𝗼𝗽𝗼𝘀𝗶𝘁𝗶𝗼𝗻?
1️⃣ 𝗦𝘁𝗮𝘁𝘂𝘀: Does your product elevate your customer’s position or prestige? Tesla nailed this by making EVs a luxury symbol. Leonardo DiCaprio ditched his Prius the moment Roadster became available.
2️⃣ 𝗦𝗮𝗳𝗲𝘁𝘆: Can your product make customers feel safer or more secure? Think of energy-as-a-service or manufacturing-as-a-service business models that avoid CAPEX or disaster-proof technologies.
3️⃣ 𝗪𝗲𝗮𝗹𝘁𝗵: The basic one - does it deliver 10x financial returns? In Climatetech this would usually mean cost savings or a completely new market opportunity. I’ve seen a lot of startups offering 30% cost savings, that got nowhere.
You have a scalable value proposition if your cleantech startup can deliver 10x in one of these areas.
𝗧𝗵𝗲 𝗧𝗮𝗸𝗲𝗮𝘄𝗮𝘆
So, what would it be - A Christmas tree or presents? If your climate tech startup leans heavily on green premiums, rethink your strategy. Focus on delivering a 10x value proposition in status, safety, or wealth. That’s how you’ll attract mainstream customers, secure investor confidence, and achieve scale.
Want more insights on scaling cleantech? Follow me here for deep dives into what makes scaleups work. Merry Christmas, and let’s build the future—10x better!
