How should we ascribe value to a particular item?
Value seems to be a very subjective thing. A thing's value in money is the amount that someone is willing to pay for it. So value depends on how badly each individual wants or needs that thing. For some things, like airline tickets or a room at a hotel, while the value may not seem to be all that different, the price that people pay can be all over the map. How late you book, the availability of a substitute, these affect the value, and therefore the price.
What drives me crazy is infomercials or commercials where the advertiser is selling a thing. And the price of the thing is $79. But wait there's more! Order now and we will include a carrying case and an extra bottle of stuff to go with your thing. A $49 value, yours free! I can only assume that the $49 is made up. If the case and bottle of stuff had a $49 value, that's how much they would make you pay for it. But the idea is that if you are considering buying the thing for $79, because you think it represents that value, and now you also get the case and bottle of stuff, for no extra charge, what a great bargain! The thing, the case and the bottle of stuff, with a value of $500, yours for $79. The value is $79, because that's how much it costs. But not really. If I don't want the thing, or at least don't want it bad enough, then the value is less than $79, because I'm not willing to pay that much for it. If I wanted the thing bad enough that I would have paid $500 for it, then $79 is a great value.
My kids are the same way. Kids will pay any amount of money for something that they want bad enough. My kid would pay $5 for a candy bar if the moment was right. I think that it is partly because they don't appreciate the value of money, but also because they are driven to get what they want as soon as possible. Of course, I might spend $50 bucks on an old coin with a face value of $0.25, so who am I to talk.
It seems like I am rambling, so to summarize: Value is subjective, and I hate those commercials.
3 comments:
Value is relative and subjective. But there is a measuring standard that is consistent in some places. But not usually on products. How do you "value" a hug, say, or time with your spouse? One could say the value is what you "give up" for it=the price. But really, some things can't be labeled by any method.
I usually use donuts as a good measure. How many donuts is it going to take for me to do something? If Alan thinks he's in the doghouse, he doesn't bring me flowers, but donuts.
If Alan "thinks" he's in the doghouse he brings you donuts? Doesn't he know? See the mindgames you play?
JK.
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