Value Versus Price

The value of any product or service is indubitable in the eyes of the beholder, but I believe that the way we measure value is often clouded by what we want rather than what it's actually worth. One of the most frustrating things when working in the medical field is watching patients turn down health-specific products or services because of a price tag. That is not to say that medical services are not overpriced, but in relation to all the other extraneous expenses we spend our dollars on, one must admit that the priorities are habitually out of order. We are eager to fork out hundreds of dollars for a designer bag without hesitation. Shoes, accessories, and items that boost our social status are consumed at outrages prices at no question, but as soon as it comes to anything in regards to what we actually need, the wallet is on shutdown and we need answers. According to the Bureau of Labor Statistics, the average American spends more than $1700 annually on clothing alone. I doubt that this includes all the designer shoppers, because last I checked, an MK backpack costs about half of that by itself. While I believe that everyone should live the way that makes them happy, I also know that having the wrong perception in regards to what we need and what we want can eventually lead us into some big trouble.

Just take the following sample for instance:

Progressive lenses with anti reflective coating and standard frames vs. basic cup of Starbucks coffee (tall)

At first glance, the price for the pair of glasses seems outrageous, but the cup of coffee is affordable and also aids to our personal addictions (in most cases). As an optician, I cannot tell you how many countless times patients have tried to argue just how unfairly priced frames and lenses are. Again, I don't disagree, but let us put things in perspective here for a second. Glasses are an essential product to correct a deficit in our health. Coffee, on the other hand, serves one purpose: to satisfy our need for caffeine. There is literally no value in coffee from a health point of view, but we wouldn't dare challenge the price tag of a cup of Starbucks coffee. At least I never heard a customer argue the fee for a latte.

Let us look at the actual price for a second and determine if we still find one price unfair over the other:

Annual price based on the assumption that coffee is consumed almost every day.

Why is it that we are so quick to spend hundreds of dollars annually to satisfy our cravings, but hesitate at a drop of a hat when our health or business growth requires us to disburse monetarily? While I originally intended this lesson for our financial class taught to young adults in our Lift Up Young Lives program, I realized quickly that some of us adults could use a little reminder that we all have financial blind spots. By no means am I trying to shame anyone, I am one of those who appreciates her designer handbags. But in the same sense, I also know not to be a nuisance when it comes to spending money on actual necessities.

How quickly the value of a product changes if we take a minute to weigh out the actual cost of a product or service can be seen in the illustration above. Subsequently, we have to identify the actual value by comparing the need to our wants. Yes, that fast food burger is delicious, but do we really need it? Does it help us grow our business? Is it a useful tool to advance us spiritually or on a personal level? I think you have to agree that the answer is no. Next time you find yourself in a situation where a large amount of money is required to aid your health, grow your business, or to take your personal and spiritual well being to a higher level, take a second and truly distinguish between value and price tag. Adjust your economic mirror and rid yourself once and for all of that financial blind spot.