Just because the price of a product is lower it does not necessarily mean that the value is greater. If a car has 4-wheel drive, a sun roof and real leather seats it probably costs more than the identical car without those extras. The car salesman might claim that the vehicle with the extras has added value because of the extras, especially since he is throwing them into the deal at 50% of their normal cost. However, if I am a car buyer who hates sun roofs (It messes with my hair and I try to avoid the sun. Besides they leak.), I live in Florida where it never snows and I never drive off road, and I am a member of PETA (people for the ethical treatment of animals), those extras have no value to me. They might actually act as a deterrent to my purchasing that vehicle. Admittedly, I chose an extreme example. But I think you get the idea. If I am using the car every day to commute, I may care more about gas mileage than prestige or load capacity. In that case, a car with higher gas mileage may be a better value even though it costs more because it solves my pain. So, focus your efforts on finding and solving the pain rather than on sharpening your pencil to give them a better price.
Value is not related to price
November 7, 2018 by