Title: The Price Of Everything But The Value Of Nothing | KEXINO
Headings: The Price Of Everything, The Value Of Nothing.
The Price Of Everything, The Value Of Nothing.
Price is not the same as value
Price is what you pay. Value is what you get.
Commodity Pricing Wrongly Equates “Value” With “Price”
About the Author
Gee Ranasinha
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Content: You need to show me how your paperclips are ‘better’ than the ones I’d otherwise buy. If you can’t, then you need to price them cheaper if you’re to get my business. But the problem with selling a commodity is that there’s always someone, somewhere, who’s prepared to sell it cheaper. With price as your biggest differentiator, you’re in a race to the bottom. Supermarkets, for example, often work on the loss-leader principle. They’ll sell daily staples, such as milk or bread, for less than it costs to buy them. The goal is to use such low pricing as an enticement to get more customers through the door. Once they’re in, the supermarket is gambling on these customers buying other stuff while they’re in the store. The profits made for the other items offsets the losses made on the bread and milk, evening-out the profit-per-customer statistics. Commodity Pricing Wrongly Equates “Value” With “Price”
Today, for any small business marketing their products or services, there’s no future in selling something perceived by customers as a commodity.