Defining Your Value Proposition: Lessons from Mardi Gras
Tom Martin
I show you how to become more PERSUASIVE when Prospecting, Pitching & Proposing your services
Every year in New Orleans, Mardi Gras provides a fascinating lesson in behavioral economics, buyer motivation, and—most importantly— defining your value proposition.
I know what you're thinking... is he kidding? What can Mardi Gras teach me about defining my value proposition? Just remember, 15 years ago, I showed you how we rebranded Mardi Gras from Girls Gone Wild to Family Friendly Fun using nothing more than social media.
So, give me two minutes and see if you still feel that way ??
Mardi Gras is a time when behavioral economics upsets the apple cart of traditional value propositions. It’s a time when plastic beads, which generally have little to no worth, suddenly become highly coveted. People will scream, push, bribe, and even embarrass themselves to get their hands on them. Why? Because scarcity and exclusivity drive perceived value.
This dynamic plays out in business, too—especially in the business world, where defining your value proposition can mean the difference between commanding premium rates or competing on price. Companies that price themselves based on time and materials often struggle to scale, while those focusing on the total value delivered thrive.
To understand how to define your value proposition, let’s break it down using three real-world Mardi Gras examples: beads, bathrooms, and apartment rentals.
Lesson 1: The Power of Scarcity and Perceived Value
Imagine standing on a packed parade route. Beads are flying through the air, and suddenly, you see a rider holding a massive, gleaming strand of oversized beads. They only have a few of them to throw. The crowd around you goes wild. You find yourself reaching, jumping—maybe even shoving—just to get one.
Why? Scarcity.
Scarcity creates urgency and inflates perceived value. The fewer there are of something, the more desirable it becomes. But it does more than just increase the perceived value of something. Scarcity also drives interest. A perfect Mardi Gras case in point is the Rex Parade.?
A few years ago fewer and fewer people seemed to make the early trek out to the avenue on Mardi Gras morning to watch Rex. Unlike parades that changed the theme of their floats every year or were known to throw insane amounts of beads and trinkets, Rex was seen as kind of old and boring.?Sorry, Rex riders #HurtfulButTruthfull ??
Until a few years ago, when the parade announced, every float would throw a unique float medallion bead that would only be thrown by that float's riders that year. Yep, they created a collection that was only available that year.?
Care to venture a guess as to what happened next??
That's right... viewership went up, and just like my youngest son (on the right) and nephew, people up and down the route were hell-bent on catching the entire set of float medallion beads.?
And I can confirm that neither child has thought about much less held or looked at any of them since.?
Scarcity = Increased Perceived Value
This is why agencies that offer highly specialized, hard-to-find expertise command higher prices than generalists.
How to Apply This to Your Value Proposition
If you want to increase your perceived value, you need to build in scarcity. Ask yourself. Are you...
Scarcity isn’t about artificial limitations—it’s about defining what makes your company distinct and ensuring your positioning reflects that uniqueness.
Lesson 2: The Value Proposition of a Bathroom at Mardi Gras
One of the most famous sayings at Mardi Gras is, “There’s no place to pee on Mardi Gras Day.” The city doesn’t provide public porta-potties along the parade routes, which creates an opportunity for churches, restaurants, and even homeowners to sell bathroom access.
Most folks buy a wristband, allowing them to use a restroom for anywhere from $5 to $50 daily. Others rent a hotel room at double or triple the standard rate just so they have a private place to use the bathroom. It works because when demand is high and supply is low, people will pay almost anything for convenience.
Because, when you gotta go.... you gotta go, right? ??
How to Apply This to Your Value Proposition
In my world, most agencies sell their services based on what they do (e.g., website development, branding, media buying). But that’s not the real value they provide. Their true value lies in the outcomes and convenience they create for their clients. What they really sell is a promise of a future outcome. Ask yourself, are you...
Just like a bathroom at Mardi Gras, the easier and more essential you make your company’s services, the more valuable they become.
Lesson 3: Defining the Value Proposition—A Mardi Gras Apartment Krewe Story
Mardi Gras isn’t just about parades. It’s about community. Groups of friends who don't want to pay the hotel prices and deal with the access limitations the hotels place on guests during Mardi Gras will rent apartments along the parade route.
That's right, there are rental units near the parade route where the lease requires the occupant to either move out for a month during the Mardi Gras season or pay $3,000 to $5,000 for that month. ?That allows landlords to rent the apartment to these groups of friends so they have a place to store personal items and unlimited access to a bathroom, and for those that hire "ladder sitters," ensure they get a prime viewing spot for every parade.
Earlier this week, I listened to two friends in the same rental Krewe arguing over fairness. Both had paid the same amount to join the Krewe. Both had access to the apartment’s amenities. But one friend (let’s call him Friend A) planned to attend only one day of parades, while the other (Friend B) planned to be there for multiple days.
Friend A was frustrated. He felt it was unfair that he had to pay the same amount as Friend B, even though he’d be using the apartment far less. He viewed the Krewe membership as an Airbnb rental—paying for nights he wasn’t staying.
Friend B, on the other hand, saw it differently. He wasn’t just paying for the nights he planned to be there; he was paying for the security of knowing a spot was always available. He valued the total package, not just his personal usage.
Two VERY different value propositions—one saw it as a direct, transactional exchange (I pay for what I use). In contrast, the other saw it as an investment in access and security (I pay for the ability to use it when I need it, regardless of how much I use it).
This is the fundamental shift you must make when defining your company's value proposition. Instead of selling based on time spent or specific deliverables, you should position your company's value based on availability, expertise, and strategic advantage—things that can’t be measured in simple units.
How to Apply This to Your Agency's Value Proposition
Many companies price their services like Friend A—charging based on hours worked, deliverables produced, or commissions on items bought or sold. But clients don’t want to buy units of input. They'd much rather pay for results. Instead of focusing on what you do, define your value based on the outcomes your clients receives.
Companies that price based on business impact, market exclusivity, or strategic insight don’t just survive—they thrive. And if you market your services to Fortune 500 clients, linking your services (and their cost) to a positive impact on key business metrics is table stakes to starting any business development conversation.?
Defining Your Value Proposition the Right Way
Many companies define their value proposition based on output: hours worked, campaigns delivered, impressions generated. But the most successful companies—just like Friend B—understand that real value is in access, expertise, and guaranteed outcomes.
If you want to attract premium clients, stop selling individual nights at an Airbnb and start selling the security of always having a front-row seat when your clients need it most.
Build scarcity. Solve urgent problems. Focus on total value, not just the cost of individual transactions. Because in the end, nobody remembers the cheapest company—they remember the one that delivered the most impact.
What’s Your Company’s Value Proposition?
If you can’t answer that question clearly, or the value proposition isn't compelling or differentiating, it might be time to redefine it. As luck would have it, I can help you do that, like I have for other companies just like you. Click Here to start the conversation.?
And if you're looking for more good business development advice, why not go see?everything I've written on the subject?or subscribe to my?weekly newsletter, where I share advice on prospecting, nurturing, and closing advice to help you grow YOUR agency or small business?
Very well done Tom, I love articles that affirm beliefs and make one think about new ideas and ways to tweak the image.