Value: Case Study
Let’s consider two scenarios where you decide what you value more:
Coffee. Dunkin’ doesn’t have a welcoming internal environment, no one really works in there, so you pay half the price because it’s just the coffee. You’re going to buy it and leave. You might not even go in; they released a strategy of a mobile-order drive through lane and sales skyrocketed 25%. They know their value, and they are capitalizing on it. Now let’s consider Starbucks. Starbucks gives a comfortable environment with music, leather, plants, and mood-altering aesthetics. You pay 5 bucks for a coffee to not only drink the coffee, but to also sit and work for an hour, maybe more. And best yet - because you’re hooked with their app, you’ll drive through, still pay the increased coffee price, and never go in. So which do you value more - a coffee to go for less, or a coffee to stay most times for more?
Furniture. Think of IKEA. The furniture is not meant to be moved or taken apart, but if you’re staying put and it’s good enough for a few years, it might work. We recently bought 3 IKEA dressers for our children as we transition their room from toddler to young girl because they’ll have this set up for about 5 years before we do a final room for them as teens. We aren’t planning to move in that 5 years. We aren’t planning to take it apart. I’d rather spend $180 on a dresser than $500, so we buy three of these and that is our value. On the flip side, we are in the market for a new King sized bed for our master bedroom. While we aren’t moving or taking it apart, we plan to use our bed for 10-20 years. Therefore, we value real wood and a design that fits our aesthetic, because that bedroom is not redone every 5 years. Sure, we might change up the paint or accessors, but the bed is a piece that will most likely stay the same for quite a while. Therefore, I’m willing to spend a few thousand on a quality bed that will last.
