Friday, June 3, 2011
Price vs. Value
I find that this is a very difficult concept to explain to people. But flatly stated, there is a difference between the price of a thing and its value. The two are not necessarily related. Just because something has a high price, does not mean it has an equally high value. For example you may own an expensive home that is worth a lot and can fetch a good price, but it's value can be less to you because it just is not comfortable. Maybe it's too big or too hard to maintain. Maybe you're all alone and it is in an isolated area. It's price might be high but perhaps a small apartment that has plenty of heat and lower maintenance costs may be a better value. I once found a 10K gold brooch pin set with emeralds at a church sale for $1. The price was $1 but the value was much greater than that. I bought a beautiful painting on eBay five years ago and paid less than $150. But it hangs in my bedroom and has given me so much joy, that it definitely has a lot more value. Just because something is inexpensive to purchase (read CHEAP) does not mean that it may not have a great deal of value. And the converse is true also. How many gadgets have we bought that are now in the bottom of a drawer collecting dust? They may have had a high price but they have lost most, if not all, their value.