Thoughts on value
I found this quote the other day.
Price is a public matter — a negotiation between supply and demand. A thing’s price is set in competition. So the price of a car is determined by how much some people want it, how much they are willing to pay, and how ready the manufacturer is to sell. It’s a public activity: lots of people are involved in the process, but your voice is almost never important in setting the price.
Value, on the other hand, is a personal, ethical and aesthetic judgment — assigned finally by individuals, and founded on their perceptiveness, wisdom and character.
It has really stuck with me for a while now and maybe it’s because I am currently in the middle of starting a new project / venture that focuses quite heavily on where the find the sweet spot between these two. My product is not unique and I am merely trying to do it better than the other guys, so price and value are likely to be two of the biggest success factors in this next chapter.
I have had the same questions with the coaching services I offer – where do clients feel they extract greatest value? I do want them to think about the price, as it’s a reflection on what my time is worth, but I don’t want them to fret it and be psychotic about getting every penny’s worth out of me.
It’s a constant debate and battle for me. So often, price sets the expectation for an entire experience rather than just being a guide towards the value you will derive from the experience, which is surely the more important thing?
Value should be the driver, not price. Value should be the indicative element that determines whether an item is a success or failure.
Lets use a simple example like a veggie garden. In fact, lets use the herb garden on the porch of our 8th story apartment. We have a living ecosystem up there, but one that mostly attracts herb garden killing pests just as they are about to be ready for consumption. For my better half, the value in a plate of fresh rocket outweighs the effort of cleaning said rocket with an organic pest spray then hand washing every rocket leaf in order to serve a truly fresh salad.
You couldn’t pay her for that rocket and there is no price attached to it. It’s the concept and idea that are most important to her.
How many simple things like this are in your life – that are valuable beyond their price or any price that could be made up for them? I am looking for more of those.