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: Value is what you get. For example, I don’t care what brand of paperclips I buy. I’m guessing you probably don’t care much either. If I’m in the market to buy paperclips, I’m simply looking for the best deal. If you make paperclips and want me to buy from you, you need to communicate your value. 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.