A Simple Take on Value
Let’s talk a little bit about VALUE today. This concept is a tough one for creatives to grasp yet probably the most important in running a business. I’ll revisit value often because let’s face it, it’s pretty much the basis of everything. Business is built on the very basic premise that: you have something of value to offer, and someone else has a need for that something. But for an actual transaction to occur, both parties need to agree on the value of that something. Yet most of the time, we boil the value of what we do down to the summary of the cost and the time it took to create. Why?
I have an almost 4 year old at home. Her two most prized possessions are “Pink Bear” and her iPad (yes, my preschooler has an old hand-me-down 1st generation iPad, don’t judge. It’s pretty much the only thing that will get her to stop talking for more than 1 minute and sometimes I need to hear my own thoughts). Pink Bear is exactly what you’d imagine, a generic stuffed bear with (now-matted) pink fur and a pink satin bow around “his” neck (my daughter insists he is a boy bear). Pink Bear is by her side all 24 hours of the day. He sleeps with her, travels with her, and plays alongside her.
If I were to take both her iPad and Pink Bear hostage and tell her she had to give me all the money in her piggybank for only one, it’s pretty clear which item she’d pick.
So often I hear: “I can’t charge that amount because no one will pay it.”. Really? How do you know? If they won’t pay the amount it’s worth, it’s simply because you haven’t shown them the value. That’s it.
My daughter would choose a stuffed pink bear that probably cost $0.10 to make in China over an iPad any day.
So we all just need to figure out how to be a pink bear.