Many in the business world are obsessed with ‘value’.
Value added, add more value, extra value…
Value is the amount you get divided by the price; $2.29 / gallon of gas is actually .43 gallons per dollar. Not as good as .50 gallons per dollar but better than .39.
When it comes to commodities, more for your dollar is better, and the biggest companies (with the largest advertising budgets and exposure) promote the heck out of value.
We see it so often, and we shop for it so often that it’s tempting to believe that decreasing price is the name of the game.
A decrease in price requires a decrease in costs, which often involves a decrease in labor (and human connection). This is relatively easy, just look at the financial statement line items and look for ways to shop better and do more with less.
All this focus on one side of the equation is like a muscle head that only works their upper body – their legs get weak and they look funny.
The other side of the equation is trickier. It requires imagination because there isn’t a menu of line items to ‘increase’.
But this is a good thing because it’s where life gets interesting. It’s also where that product or service ceases to be a commodity and it becomes impossible to shop based solely on price.
From a career and business building perspective this begs the question; are you working out your whole body?