Tag: price

Taking advantage of free stuff

We never truly take advantage of what we have access to because we don’t value free stuff.

How many free pdfs have you downloaded?
How many free courses have you signed up for?
How many helpful free YouTube videos have you watched?

How much of that information have you implemented into your life or made use of?

There is an abundance of free stuff out there but the problem is, we don’t value it. Somewhere in our minds we feel like if it has no monetary price then it is not of value.

And we know that this is true because many of us pay for things that we can get for free.

Price, value and auction

I recently wrote a post called Does the customer determine value?

Here are some more thoughts related to value, price and the customer.

Think about an auction, the seller will often have a reserve price (the minimum amount they’re willing to sell the item for). Yet items often get sold for significantly higher because buyers are prepared to keep bidding if they want the item badly enough.

Even if an item could fetch around 20k, the seller can never start with that price, they have to allow the buyers to build up to it. Instead, the seller can only hope that people will pay that amount or at least above their minimum price.

I think it could be said that, although the seller sets the price it is in fact the customer that determines the value of the item.

Does the customer determine value?

I recently saw some things for sale and my first thought was that I wouldn’t buy them. In my opinion the items weren’t worth the price they were being sold for.

But people were buying the items.

Turns out that that even though I didn’t value the items at the price they were being sold for other people did, which got me thinking.

Who determines value?

If you’re selling something for £50 and nobody buys it, is it actually worth £50.

Or does value come from what the customer is willing to pay for it.

In my opinion it is the customer that determines the value because they’re the ones willing to pay for it. However, it is worth noting that just because you’re unable to sell to one group of people, doesn’t mean you’re prices are too high.

It might just mean that those people don’t see the value in what you’re selling.

But maybe another group will.