{"id":3237,"date":"2010-08-31T22:09:35","date_gmt":"2010-09-01T06:09:35","guid":{"rendered":"https:\/\/www.pickthebrain.com\/?p=3237"},"modified":"2013-08-23T10:00:03","modified_gmt":"2013-08-23T18:00:03","slug":"distinguishing-between-price-and-value","status":"publish","type":"post","link":"https:\/\/www.pickthebrain.com\/blog\/distinguishing-between-price-and-value\/","title":{"rendered":"Distinguishing Between Price and Value"},"content":{"rendered":"
<\/div>

<\/a><\/p>\n

If a book costs $50, is that good value?<\/p>\n

Your first response might be “no way!” It seems like a lot of money for a bunch of pages bound together.<\/p>\n

If a book costs $2, is that good value?<\/p>\n

“Hell, yeah!” That’s a bargain-basement price.<\/p>\n

The problem is, the price<\/em> of those books doesn’t necessarily bear any relation to the value<\/em> which the books have to you. A textbook packed with useful information for college might be well worth $50. On the other hand, a trashy, badly-written novel might not be worth even $2 \u2013 especially when you factor in the time cost of reading it.<\/p>\n

“Cheap” Doesn’t Mean “Good Value”<\/h2>\n

Most of us find it hard to resist a bargain. Maybe we’ve got a coupon for a particular store, or we see something marked down to a great price. Of course, advertisers and marketers know just how to push our buttons too.<\/p>\n

But just because something’s cheap<\/em> doesn’t mean that it’s good value.<\/p>\n

Perhaps it’s a shoddy product. You could pick up some cheap garden tools, but they might work badly and need replacing after a month \u2013 in the long term, you’d be better to invest in some quality tools which last for decades.<\/p>\n

Perhaps it’s a perfectly good product at a very decent price, but it’s just not right for you<\/em>. Sure, that sweater might be amazingly cheap, but if it’s not a color and style that you like, you’re just not going to wear it.<\/p>\n

Be very wary of bargains, coupons and money-off deals.<\/strong> Marketers aren’t acting out of altruism \u2013 they’re trying to part you from your cash.<\/p>\n

“Expensive” Doesn’t Mean “Bad Value”<\/h2>\n

Conversely, sometimes it’s worth spending more money than you might initially feel comfortable with.<\/p>\n

Let’s say you’re setting up a new business. Paying $200 for an hour of consulting might sound like a massive expense \u2013 except, if that $200 results in $1000 of extra sales within your first month, it’s looking like a much better value proposition.<\/p>\n

Try to look beyond the price of something to assess the value<\/em> of a particular product, service or event. <\/strong>Maybe those conferences won’t come cheap \u2013 but the networking and learning you do there will be worth much more than the ticket price. Perhaps you’re investing quite a bit of cash in training materials \u2013 but once you’ve worked through these, you’ll be in a great position to raise your rates.<\/p>\n

Value Isn’t the Same For Everyone<\/h2>\n

We often think that items and services have a particular market value, set by invisible yet powerful forces. Of course, this is the case to some extent, particularly with popular goods like groceries.<\/p>\n

On a day-to-day level, though, in your personal life, this sort of “value” isn’t really too relevant. What matters is being clear about what you<\/em> consider valuable.<\/p>\n

Perhaps the easiest example is the price of a ticket to a big soccer game. You might be willing to pay hundreds of dollars to see your favorite team play \u2013 but your mate Bob, who hates soccer, wouldn’t pay a penny.<\/p>\n

Any time you’re weighing up a purchasing decision (or secretly judging a friend’s choices), bear in mind that your<\/em> “value” isn’t the same as everybody else’s.<\/strong><\/p>\n

The price might be high, low or somewhere in between. What matters is whether or not that particular product or service is going to be valuable<\/em> to you.<\/p>\n

To test for value, ask yourself:<\/p>\n