This is an old concept that bares a revisit. Fundamentally, these are the three attributes that constitute value in any transaction: price, service and quality. When you want a dress or a pair of shoes, there are numerous places, designs, prices and qualities that are inherent in the overall buying experience and eventual satisfaction with the dress or shoes and your satisfaction with the outcome. Value is after all an assessment of the “worth” that something holds for the buyer.
The internet has disrupted our sense of “worth” and therefore value by placing an increasing focus on price as the distinguishing variable. Why pay 90 when you can get it for 88 is a fair question? But, to determine value over time, I want to be able to look at quality and service first and price last.
When you stay at certain hotels, the experience is much different than at other hotels. Addressing a problem is much different. Even the sleep you get may be much different. Simply speaking, the quality of the experience and the services that can be provided can be vastly different.
The same is true of clothing. The experience you have with a garment or shoes over time – washing, fading, stitching, etc. can be very different from one garment or shoes to another. Therefore, knowing what you are seeking in the quality and service variables FIRST will guide you to price levels for the wearing/washing/lasting/looking experience you will have with the garment.
The internet makes it all too easy to sort by price and push decisions to be price based. I see purveyors of upmarket products continually shopping online for the “lowest price” and then being frustrated that some aspect of the “experience” goes badly.
If you are simply buying commodities, by all means, get the best price for that commodity. If you are buying things that will have “value” then make price the last consideration. Nothing makes tomorrow any more difficult that having a bad night’s sleep, so don’t blame the low priced hotel located next to a nightclub for your bad night’s sleep. If you want to sleep well, figure out what that is worth to you (value) and then always be comfortable paying for it. When you don’t get the value at the price, that’s a different story.