Sunday, November 23, 2008

Getting "you're moneys worth aka Value

We have all been to some large store, led there by wider selection and the perception of them having the lowest price. In many cases they provide a price that seems good, but what they do not provide is the best value. Value is linked to Price through the mechanism of exchange. When an economist observes an exchange, two important value functions are revealed: those of the buyer and seller. Just as the buyer reveals what he is willing to pay for a good, so too does the seller reveal what it costs him to give up the good.

So what we are is we need to look at the function of value and it has several PARTS!

After you give your money to someone for an object what are their responsibilites for selling you whatever you purchased. hence warranty.

A warranty is an obligation or guarantee that an article or service sold is as factually stated or legally implied by the seller, and that often provides for a specific remedy such as repair or replacement in the event the article or service fails to meet the warranty. A breach of warranty occurs when the promise is broken, i.e., a product is defective or not as should be expected by a reasonable buyer.

So having the "best" "lowest" "beat all" price may not be the best value.

Me peronally I buy from people I like and respect. Although sometimes you have no choice but to buy from a large multi-national company. Just my view from here...........

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