Cost and value
Written by Silver Lining Floor Care

Price, Value, Cost, Profit

What is the difference?

Price

When you look for the service or to buy the item or food, usually the best price is the lowest one. It will leave the most amount of money in your pocket. This really only applies to

  1. your pocket,

there is also price of the

  1. environment, health, mental, etc.

We do not often consider any other prices as the effects of it can be grasp right now, as you don’t have money now, you need to buy other staff now, the bills need to be paid now. Environment will not suffer from your small decision; your health probably won’t be affected by this decision significantly anyway and you are probably not even thinking about it anyways, so your mental health is not affected at all you might think. The 2nd set of prices is important, but not so urgent now, you can always work on them in the future, at some point.

Why don’t you take a step back, meditate on it for a while, look from the perspective? I came to understand that important and urgent issues have massive impact on what happens now, and they can be very important. Think about something what would you need to do to improve your relationships, your business, your health. It is very unlikely that it is urgent, and this might be the very cause why it needs improving in the first place. It tends to be the things that are also important but not so urgent, which relates to the 2ndset of prices.

Value

You get what you paid for, don’t you believe it? You can’t get good and cheap, good things aren’t cheap. It is also possible to get poor quality and very expensive – we all been there and suffered because of our poor choice, usually uneducated, not fully understood and rapid. All you really want is the value for money, isn’t it? I promise you, you will always get that.

It is always better to spend little more that you planned as the maximum you can lose is that little. If you spend little less than you should, you will lose everything and yet you will not have the product which does what it supposed to do. Sometimes, waiting is a better option, this way you are not losing anything, you are just withdrawing your investment.

Cost

isn’t the cost is often called price? Let’s take a burger for this example. Price of it is £3.99, what is the cost of making this burger. You need a cow to start with, the cow need to be born, raised and slaughtered. It drinks around 150L of water daily for around 15 months – that’s the cost of the environment. It eats a lot as well, so the grain must be grown to feed it, the grain needs a field, this is why deforestation happens – in order to feed the cow. That it needs to be slaughter, packed, shipped and cooked. So, the cost in this instance is likely to be more then price you pay of £3.99. We like to pretend to be blind and ignore the cost.

Profit

In order for any business to be healthy economically, treat the workers fair, treat the planet well, don’t go mental and serve the good value to its customers, it must produce profit. Otherwise costs will go up and you will not even notice. Next time you call, the business may be not existing anymore as it was not sustainable. Do you often hear the business owner saying that his/her employees are paid more than the owner?

Morale

Consider all the costs and look at the value of the product. if it doesn’t match the price, there is something wrong. It may just be a feeling, or it can be very obvious. Either way the decision at the end is yours and you have to live with its consequences.

 

This actually makes me a hypocrite as sometimes I ignore the true cost. The truth comes in 3 stages, ridicule, violence opposition and acceptance. I am somewhere in between all 3.

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