As a lifetime serial entrepreneur I'd like to take a moment to talk about price and value.
When someone creates a thing and sells it, a lot of careful consideration is given setting the price. Price is set from the cost of production + an estimation of the additional value to the consumer. This is tricky, because value is subjective and varies from person to person so a lot of guesswork is involved.
Attached is an image of a plain white t-shirt.
It's price was $120.
If you think that is crazy and the… See More
shirt is not worth that much. You would be wrong.
It might not be worth that to YOU. But to others, it was priced too low. As it sold out almost instantly and demand far outstripped supply.
As a consumer, it is not our job to set the price because we do not know the cost and we do not know the value to anyone other than ourselves. All we can do is buy or not buy.
It's ok to tell a creator, "sorry that is out of my budget" and hope that maybe they will put it on sale. But to go beyond that it quickly gets rude.
Please don't be rude.
Thank you Angel for creating this community, thank you Dot for all your contributions to it.
ABSOLUTELY PERFECTLY STATED. Only thing I would add is that just because something may not be in your current budget doesn't mean it can't be WORTH that much to you. I mean, there are many things I think the VALUE of is great, I simply cannot afford them even at that value. Like an Apache helicopter.
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I totally agree. But whenever I see such prices I really hope the producers/workers are being paid well and at least some minimum of health and environmental standards are met during production.
I saw a lot of documentations about the production of fabrics (or other stuff) for a really low price per piece, which was then sold for 500 to 10000% more.
I remember specifically one about jeans being produced in china without any regulations or standards to ensure the workers health (e.g. protection from… See More
hazardous chemicals) or protecting the environement (the chemicals simply were wasted into the nearby rivers without any filtering).
It absolutely shocked me to learn that almost every jeans brand was producing there for as low as 2€ then being sold for 80+€. Of course standards could be set by the government, but I think it also has to be done by the brand itself.
I think one of the biggest challenges today is defining what to value by pricing - only the brand or an fairly paid and ecologically done production. A long way to go, but I won't loose hope...
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I agree totally.
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Nice speech!
Could I borrow that Soap Box for a moment? I just need to inform my wife about how being a workaholic is not a good thing...
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Well Said!
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