How not knowing the difference between Price and Value makes you a rookie!

“Mr. Vijay ab to yeh sauda ho gaya. Ek baat kahu aapse, ye building aap mehngi le gaye. Agar aap kehte to shayad main 1-2 lakh rupey kam kar deta. Bura mat maaniye, apko dhandha karna nahi aata!”

“Dhandha karna to aapko nahi aata Mr. Agarwal. Agar aapne mujhse is building ke 10 lakh rupey bhi aur maange hote to main de deta.”

Mr. Agarwal looks at the building and is visibly confused, “Acha, aisi kya baat hai is building me?“

“Aaj se 20 baras pehle jab ye building ban rahi thi, meri maa ne yaha eente uthai thi. Aaj main ye building apni maa ko tohfa dene ja raha hu.”

And with that Vijay turns around and walks away. This is a scene from 1975’s iconic Amitabh Bachchan starrer Deewaar.

It sets the stage perfectly for this topic – the difference between price and value. For Vijay, the value of the building in question is much higher than the price he pays for it.

Look around – what are some of the things you value much more than the price you paid? Are there items that you bought for lower price without sweating much about the value?

Retail stores often have a “Value for Money” tag on the items on discount. Dropping the price doesn’t necessarily enhance the value, it just provides a good deal. Do you hunt for deals? More importantly, should you hunt for deals or value?

As service providers, creators, and sellers, your priority should be to provide excellent value. When the value being offered increases, the price becomes less important.

“People don’t buy products, they buy the results those products will give them.”

– Brian Tracy

As a customer, you always have the option to swing either way. The customer is the king, and rightly so. Don’t pay a higher price if you don’t see the value.