Difference between Price and Value Episode 86, LIFE LESSONS

We often consider that price and value are the same. But this is not true. Let us look into the interesting difference between both terms.

Hi friends and welcome to Life Lessons.

We all should have enjoyed our childhood in different ways. Many such memories are associated with many people and toys. I too had one such toy. The toy was known as the “Golden egg game”. This was a simple toy of a hen and 4 eggs. There were three while eggs and 1 golden egg. The toy was designed to hatch the eggs as the original hen. As of now, there is no such interesting factor that makes this toy sell in the market. But this was one of the most favorite toys that I had in my childhood.

Another interesting fact was that the toy’s price was just Rs10 in those days. Now, when I search for such a toy in the market, it is almost unavailable. Today, I’m ready to pay even hundreds of rupees for it, but it’s not available. This is the instance where I began to understand the difference between the value and price of something in life.

There is a small difference between these two terms that many of us fail to understand. Let us look into this difference in the coming lines.

Also, Check Out 10 LESSONS FROM BHAGWAD GITA TO APPLY IN DAILY LIFE here

Price

Generally defining, “Price is the amount of money expected, required, or given in payment for something”. Well, this is true in many instances. This is the factor that is determined by the demand and not always the worth of the item.

Value

Generally defining, “Value is the regard that something held to deserve; the importance, worth, or usefulness of something”. Value is never always defined by the price of the item, rather the worth of it and the importance of it does.

I was recently searching for the best motorcycle for me. When I was looking at various videos and posts regarding the same, I came across a word- “Value for Money”. This generally speaks out the value that is provided at the price. The worth is something that is not the same for all items available at a particular price point. This is where the decision of the individual comes to play.

Also, Check out FACTS ABOUT COMFORT ZONE YOU DON'T KNOW here

Price vs. Value

By the definition given above, I hope that the basic ideas of the two terms are understood. This brings us to understand the difference between them. Price is the money or effort that we have to pay for something. Whereas the value is offerings that it has to give us at that price.

As I started my own experience regarding my favorite toy, the value for that toy is impeccable for me. Moreover, I was attached to that product. Thus this increases the worth. This is the value of that toy. Whereas, the price is something that the maker charges me for that.

Also, Check out THE GREEDY MAN IN YOU here

Where does the problem arise?

As with other problems, here too the problem arises with the perception of people. People think that when the price is high, then the value offered is also equally high. This is not always true. There should be a short investigation behind it to find out the truth in such instances.

This perception gets people to purchase and own high priced and branded items ensuring their worth. I recently came across such a person. One of my friends was searching for a good wristwatch. When I was asked for the suggestion. I suggested few watches in the range of Rs 2500 to Rs 3500. He was not liking these. The reason was not the specs and the warranty, rather the reason was that the price was low to ensure him a value. I was hurtled by his statement how can one ensure value by price only? When we consider a common man going for purchasing a watch, he (she) should be contented with the price range that I suggested. Ne can go for costlier ones of he (she) want a premium and luxury. This accounts for other sections. As far as the reliability is considered some options are available at lower prices either.

When these sorts of people increase in population, the prices of commodities will increase just to prove that it is offering better quality. And this is not a good sign. Recently, in an interview, an automobile expert had openly talked about one such auto company that was pricing its cars high just to make it feel premium. There were no such premium features as such. It is because this auto company perfectly knows the psychology of some people. And it is targeting those people for marketing.

Also, Check out the life lesson from a MIDDLE-CLASS FATHER here

Bottom Line

The reason may be the emotion that we have with the product or the value itself, it all lets us think and know the difference between Price and Value. Knowing this difference only can bring about an evolutionary change in deciding what is our actual decision regarding products. These perceptions followed by many people will for sure lead to a better future.

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