Price vs. Value – The Common Consumer’s Confusion
Price is what you pay. Value is what you get. – Warren Buffett
In an era where everything is valued by the digits on the price tag, it is not confounding to understand that many people seldom understand the difference between the price of a product and the value of the product. A common consumer often misunderstands the difference between the two and hence always gets the greasy end of the bargain when dealing with shrewd businessmen.
A consumer’s goal must be to eke out more value in the product they buy, rather than to keep an eye on the price of the product. And it surely doesn’t mean that you have won the bargain if you can get a product for a less cost. One must ascertain the value of the product they are offered regardless of its price and decide accordingly.
“Low cost doesn’t necessarily mean that you have won the bargain.”
For example, a website can be built for both $100 and $1000. A consumer often misinterprets that a website built for $100 is more valuable than the one built for $1000. The reality is that the consumer loses the bargain in the long run.
A website that is built for $100 may be acceptable to the organization’s/individual’s current needs. But, one must understand that time is a flowing river and one part of the river is not the same as another.
“A $100 website is similar to someone trying to wade the river of time with a stick in hand, while a $1000 website is akin to someone wading the same river in a sturdy boat.”
It is obvious who will win such a race!
Speaking of long runs, the consumer with the stick will soon realize that he needs to improve his tools to even stand a chance of winning. Desperate with worries, he will try to build a similar boat from the stick. Regardless of his efforts, he is ultimately doomed to fail.
While the consumer with a $1000 website may look like a loser in the beginning, he will be the one to win the race between the two. The reason for his success is very simple – he looked at the value of the product he bought when others looked only at the price of the product they bought.
It is this distinction that sets him apart to greatness!
Be the one who focuses on the value of the product, rather than the one who looks at the price of the product. Success will ultimately be yours!
Mind Spark Technologies understands the difference between the two. We deliver products of great value to our customers. Our goal in never to make a product – we strive to make products that transform the business model of our customers and enhance their values in this competitive world.