Every transaction between buyer and seller. Virtually every human interaction, regardless of whether money changes hands. Exchanges between organizations and even nation-states.
One fundamental aspect of all these exchanges is that they involve a swap of value.
It’s not just a function of capitalism. It’s what humans have done for centuries, well before even the most ancient civilizations.
Perceived value is ALWAYS involved in a trade of goods or services.
I need flints for arrows, and you admire a clay pot I own. We each have our own perception of the value of these items, and we trade.
I need business advisory services, and I perceive that the value I’ll receive from engaging you will exceed the fee you’re charging. I decide to buy.
A group of nations decide that they want to come together to form a free-trade bloc. Each of them must give up certain advantages and privileges unique to them, while receiving benefits that each value differently.
If you’re a buyer, you want to learn enough, whether on your own or relying on others, to understand whether what you’re seeking to purchase fulfills the value desire you have. If you’re a seller, you must find a buyer who perceives value, in excess of the money you’re asking, for what you’re selling.
There’s an exchange of value in every transaction. Every transaction involves two parties who have their own perceptions of value.
Image created using Craiyon (Formerly DALL-E Mini)
(This blog post was also posted on LinkedIn.)
©Ray Business Advisors, LLC and John Ray
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About me: I help solo or small professional services firm owners with the confidence and positioning necessary to improve their pricing and change the trajectory of not only their business but their life.
I have a podcast called The Price and Value Journey, which features interviews with industry leaders and audio versions of my blog posts. You can find the podcast on your favorite podcast app.
I also have a book coming out in 2023: The Price and Value Journey: Raise Your Confidence, Your Value, and Your Prices to Grow Your Business Using The Generosity Mindset.
For more information, go to PriceValueJourney.com