By Bill Quain
This is the fourth column in my “money, sunny and honey” series, and week three on my favorite topic: Money. Check back over the past few weeks of my Shore Local Newsmagazine columns so you can catch up on the conversation.
Price is more than a tag.
When people think about the price of something, they think of the price tag. People talk about how much money they saved when they bought something on sale or when they went to a giant discount store.
However, there is far more to price than just the amount marked on the tag. Professionals define price as “Everything you give up to get what you want.” That’s why I chose the first six words of that definition for this week’s column.
You see, when I had my interview with Money, he told me that looking at price simply as what is on the tag is one of the biggest reasons people do not have more of him. Money is made up of everything valuable, and value shouldn’t be discounted!
When you pay for something that costs you more than money, I call it “price plus.” No, I’m not talking about ShopRite or a cost-savings program. I mean when an item costs money plus something else.
You see the price tag, but you know it is going to take something more than just the money you have in your pocket to afford that thing you want to buy. It might cost you time, happiness, stress, etc. “Price plus” can be expensive!
A great example of “price plus”
My father-in-law loves going to the giant discount warehouse store. He has been retired for years, so time is no problem for him. He goes to the giant discount warehouse store, gets on one of those scooters outside the store, and spends his time cruising the aisles looking for bargains. Later, he talks about all the money he saved.
However, what did those savings cost him? He has plenty of time, so maybe his time isn’t worth much. But what about you? How much is your time worth? When you go to the giant discount warehouse store, do you save money or do you spend your valuable time driving to a distant store site? Time is money. If you give up time to save some money, the price might be higher than you think.
Fastest service, highest quality, lowest price
I once saw a sign in a print shop that said “We guarantee the fastest service, the highest quality, and the lowest price. Pick any two!” Folks, when it comes to lowering the price, you always have to give up something.
Money says: Price can be a revenue.
Most people are always talking about the price of something as if it were always a cost. But if you are selling something (like your time on a job), price can be a revenue! In other words, you are the seller, and the higher the price, the more you make.
This is also a good time to start thinking about getting a higher price in things other than money when you are selling something like your time. The next time you ask for a raise, think about the things that are worth more to you and less to your boss. Asking for more money is always tough, but what about asking for more of something else instead like flexibility or more training? Maybe your boss will give you that, in greater quantities, than she will give you money. How much is flexibility worth to you? What if you were able to come in late, or leave early two days per week? How about training? Would it be worth more to you in your next job if you received some free training today?
When I’m negotiating for something, I almost always try to imagine what would be less valuable to the buyer and more valuable to me. It’s amazing what people will give up if it isn’t money! It’s fun trying to get into the mind of a buyer and imagining what is most valuable to them!
It could be as simple and inexpensive as just having someone be nice to them. It’s amazing how much people will do for you – including lowering their price – if you just act like a nice person! In that case, you aren’t giving up anything. You’ll get a great return on investment by simply spreading a little good cheer.
So, give me a little something.
Okay, now it’s your turn. Give up a little something, and shoot me an email with your thoughts. I’d love to hear from you at bill@quain.com. As I say each week, “I’ll see ya in the papers!”
Bill is a Professor in Stockton University’s Hospitality Management Program. He is the author of 27 books, and a highly-respected speaker. Even though he is almost totally blind, Bill is a long-distance runner and runs the Ocean City Half Marathon each year. He lives in Ocean City with his wife Jeanne, and his Guide Dog Trudy. Visit www.billquain.com or email him at bill@quain.com.
