Price vs Value: Is Cheaper Really The Better?

(Photo by venkane)

Let me start with a quiz – which do you think is a better deal?

Let’s say you are interested in learning how to draw. You find two art classes for adults. One is at the local Parks and Recreation Center. The class is ongoing, and you can join any month. It is $30 per month plus $15 for the model. Another is at the local Art College – it is a non-credit continuing education class. So you need to wait until the next semester. One semester class (approximately 4 months) is $500 plus $160 for the model. Both class meets once a week for three hours.

This quiz is based on my real life experience from a few years ago. At the time, I was a complete beginner, and $500 course at the college just felt too much. Plus I wanted to try out quickly. (Very typical of me. . .) So I signed up with the Parks and Rec class. And it was fine. The instructor was a local artist, and he taught me the basics. The atmosphere of the class was easy and non-critical, which was good for beginners.

After a while, however, I reached my plateau. We were doing the same thing week after week, just different poses. The casual atmosphere was not particularly stimulating, either. So I decided to take the course at the college. Believe me, that tuition was a lot of money for me. My thinking was, well, I just do this for this fall semester to see what it is like – if it’s one time, I can afford this, I can do this instead of taking a vacation. . .

Wow. The class was different. The instructor (grad student at the college) set the objective of the class each week. The course was well planned and organized, and I could see my progress. Also, the students were more hungry and serious (They paid the high tuition, you know), and this was encouraging for me. The models were better, too – this was nude figure drawing class, which is terrific to learn the human body structure, and the models had professional attitude.

If I stayed at the Parks and Rec class, paying the $30 per month fee, I would have paid the same amount of money I paid to the college in 17 months. But after the 17 months, would I have learned the same level of drawing skill there? I doubt it. Even if I could, isn’t it better if could learn it more quickly, like I did at the college? My time is valuable.

My conclusion: The higher priced course is a better deal for its value.

The cheaper class did its job in the beginning. I could not just jump to the college class when I started. But when I was ready, the higher priced college course was actually more economical for me, because it delivered more value in shorter time. To this day, I am glad I got that art class for myself.

Of course, the choice depends on your situation and needs. If you actually want to spend more time on an ongoing basis in the class, the Parks and Rec class is better. In this case, it is delivering a different kind of value, a relaxed class setting.

What we need to think about price and value as entrepreneurs.

We need to think about price vs value in two directions: in buying and selling.

When we buy, either for ourselves or for our business, we need to think about the value we are seeking. Remember that the lower price is not always the better choice as the above example shows. What value are you getting, and does that satisfy your need? Is the $150 per hour attorney really cheaper than $250 per hour attorney? How much work can each do in one hour, and what is the quality of their work? Or sundry items such as business cards. You can get business cards really cheap, using a preset template and thin (under 90lb) paper. But does it deliver the value your business needs? Or is the poor print and paper quality undermining the credibility of your business?

When we sell our products and services, we need to set the price. For many new entrepreneurs, this is a difficult process. It is difficult because we are not yet clear about the value of our offering. We do our benchmarking study, and then factor in the uniqueness of our products and services. Yet, with all the preparation, I think there is a level of uncertainty we just have to take as entrepreneurs when it comes to pricing. The best advice I heard is that, if it sells at that price while some prospects complain about the price, then it is priced just about right. (I can’t remember where I read this advice – I read too much – if you know the source, please let me know so that I can give proper credit to the original. I have the feeling, however, that it is the kind of advice that is going around by the word of mouth among business owners. . .) Don’t be too shy in pricing. Your products and services are valuable.

There is an exception to this rule. While fair pricing is important, it is also a good idea to offer value for free or at low price so that people can try it out before they commit to buy. When done right, this should bring in more sales. I also believe in giving back. Giving is not just about sending money to charity – the best giving you can make may be offering part of your products and services. This is why I write this blog and offer lots of information and inspiration for free to anyone in the world with internet access.

There are more about price and value, such as competition. I will get back to this later. For now, here are my two suggestions:

1. When you buy, don’t judge products and services by their prices. Always check their value and your need.
2. When you sell, don’t be afraid to put a good price on your products and services.

How do you make your purchasing decisions in terms of price vs value?
How do you determine the price of your products and services as a business owner?

Thanks to Carnival of Money Stories for including this post.

True Life Purpose Goes Beyond The Illusion Of Self

(Photo by Kaptain Krispy Kreme)

He has it all – a great job, beautiful wife, healthy kids, big house, nice car. . . yet he is not happy.

Todd at We The Change recently shared his encounter with his old friend. I know many of these people, too. I used to work in the corporate America assisting senior management. They had advanced degrees and high-paying jobs, and were mostly stressed out. You know these people, too, or maybe you are one of them.

If money doesn’t bring happiness and satisfaction, what will?

Money is good. We live in capitalism and we need money to buy comforts. The problem is, once we cover our needs for security and wellness – foods, clothes, roof over our head, insurance, etc. — the more money and stuffs don’t always bring us more satisfaction, but many of us are not aware of this.

Then what will bring true happiness? Well, you actually know the answer deep inside, so I’m going to jump to it: Life Purpose. Without purpose, life is a mere survival struggle or living in a big fat warehouse of stuffs, or somewhere in between. Todd’s friend got everything he could buy (and some more – like a good family), but he doesn’t have the sense of direction that he is heading toward his purpose. This sense of no direction is very disturbing, so he distracts himself in Vegas. How sad . . .

Do you have the sense of direction you are heading toward your purpose?

Even the way you think and spend money changes when you do. When you know your purpose of your life, you see money as a means to an end, not the purpose by itself. So you start spending money on things that support you in your journey to the purpose, like getting services that free up more of your time, or books and classes that better equip you in the journey. And the relative lack of money (again, provided you have the fundamental security and wellness) won’t disturb you so much.

I am talking from experience. As I wrote in Is Becoming An Entrepreneur Harder Than Surviving In A Foreign Country?, I left my comfortable life in Japan to seek higher purpose. At that time, I wasn’t so clear about all this spiritual purpose of life stuff – I just knew I had to do this. And I never looked back.

Do what you love? Follow your bliss? Is that all?

It’s nice to do what you love. It brings certain level of happiness and satisfaction. But it will also bring innate limitations. If you follow your bliss and do something only because you love doing it, what would you do when you face challenges? Maybe you get a harsh criticism. Or maybe you are just tired. You may still love it, but doing it is not much fun on these days. A self-indulgent purpose to do what you love betrays you . . . unless the love is . . .

If you look deeper, you might find that the real reason you love “it” is because it connects you to other people, other lives. For example, I see aspiring musicians in Todd’s comment area. They say they want to sing. Great. Perhaps they like the sensation of singing, their voices, the way their voices mix with the instruments. Now I guess they want people to hear their singing. They love singing, but that is not the end of the process – what they are really seeking is to connect with the audience through their singing. And even change the feelings of the audience, which may mean changing their lives. If they love music not only for their contentment but because of the joy of connecting to others, that is not a self-indulgent purpose – it is probably a true purpose.

Their gift in singing is probably bestowed so that they can use it to fulfill their purpose to touch people’s lives through their singing. So is your unique gift – it indicates the way to your life purpose.

Real satisfaction comes somewhere beyond the boundary of yourself

I am not talking about charities and volunteer work necessarily. We can be of service through our work, either as employee or as entrepreneur, and through a lot of things we do in our lives.

Spiritually we are all connected. It is only an illusion to see myself separate from you and others. I think this is why self-serving purpose is limiting and misleading – true purpose can’t be only about you, it is about how you can serve the universe.

It may sound like a contradiction, but when you become aware of your life purpose that serves not only you but the people around you too, it will bring you joy like no other. It is a warm, expansive feeling. Like all the struggles matter no more.

Take a moment today and think. What do you love doing? What are your gifts? Do they indicate your purpose of life that extends beyond yourself?

I feel so honored to be the first Winning Quote of the Week at Cath Lawson. Please see her post Can You Write a $500 Prize Winning Quote? to see which part of this post was quoted. Thank you, Cath! Also, thanks to Jonathan for including this post in his March Round-up, to Andrea for including this in Carnival of Truth, to Alex for inclusion in Personal development Carnival, to Jirel for inclusion in Carnival of Inspiration and Motivation, to Roger for inclusion in Carnival of Self-Growth, to Carnival of Improved Life for inclusion.

Making A Brand Out Of Adversity: Stephen Hopson

(Photo by Leefotos)

Become the next interviewee for the Interview With Successful Entrepreneurs series!

This is the second post of the Interview With Successful Entrepreneurs series. Before I introduce today’s great interviewee, however, allow me to report the surprise comment I received regarding the first interview. My intention for this interview series is to learn the insider stories of successful entrepreneurs that inform and inspire my readers. And Christine O’Kelly gave us such a story! When I read Nathalie’s comment, however, I realized I also created a potential goal for some aspiring entrepreneurs. Yes, I’d be honored to interview you when you become a successful entrepreneur! Stay around, learn whatever you need from me and other entrepreneurs, and make your dream come true. For me, this is like a miracle gift for my effort, to be able to offer something you can look forward to.

How can we turn adversity in life and in business to success?

Another miracle, a synchronicity, was taking place that day when I published Christine’s interview. I heard about Stephen Hopson at Andrea’s blog and emailed him earlier. He emailed me back just when I posted the interview and commented on Christine’s post for that day. Her post was about the lies we tell ourselves that effectively keep us broke, lazy, and stuck in where we are. So I disclosed one of my own lies, that public speaking is tough for me because I have accent. Christine commented back mentioning Stephen, who is a professional motivational speaker despite the fact he is deaf. So Stephen joined the discussion in her comment section. It was like the dots here and there in the big blogosphere came to connect at that miraculous moment.

Through that discussion (you really should check it out – Stephen almost took over Christine’s comment section), I learned how I can turn my perceived disadvantage to an advantage that sets me apart from the crowd. He said, “We can turn whatever so-called disadvantages that we might have and turn them into assets. Like my speaking despite being born deaf. I’d be crazy not to use that gift, right?” Can you believe this — he actually used the word “gift” for his disability. I was shocked. I’ve been writing about the importance of expressing ourselves in business, the “I Factor,” and yet this was a revelation for me. The result (one of it – more to come, of course) was my recent post, Is Becoming An Entrepreneur Harder Than Surviving In A Foreign Country?

So here we go, Stephen Hopson of Adversity University. Check out the video clip of his speaking demo, too. It includes the story of his spiritual awakening, which led him to quit his high-paying job on Wall Street.

1. Tell us a bit about your business and why you started it.

Obstacle Illusions is a LLC that was actually legalized in November of 2007 in an effort to turn my speaking and life coaching into a business platform to teach people who are ready to explore and overcome adversity because no one is immune from it – adversity does not discriminate. My services include fun and passionate presentations so that the audience can come to the conclusion that overcoming the impossible is truly possible if they have the heart to persevere. In essence, I teach people the power of transforming adversity into success.

2. What were the three biggest challenges when you were starting off as a new entrepreneur?

• Learning ways of getting my name out there, creating opportunities to be called upon to give powerful keynote presentations for organizations seeking inspiring speakers with a powerful message.
• Defining my target audience
• Defining and honing my message

3. And how did you work through these challenges?

There were several ways I went about doing this including but not limited to writing several articles, submitting stories for books like Chicken Soup for the College Soul: Inspiring and Humorous Stories About College, creating an Adversity University blog and networking with other speakers, bloggers, authors and entrepreneurs. The defining of my message was created through working and reworking a central message, eventually arriving at dealing with and overcoming adversity as my main theme for everyone has some form of adversity in their lives; therefore, it applies to everyone, regardless of who they are or where they’ve been in life. It’s a universal theme that touches everyone.

4. What is the best part of being an entrepreneur for you?

Having no one to report to, setting my own hours and doing what is best for me, rather than slaving away at the beck and call of an organization that might not allow me to pursue my life’s mission in the manner I was called by God to do.

5. Any advice for people who dream to have their own business and yet find it hard to make the leap?

Those who take the risk and take a leap of faith in the unknown are usually rewarded immensely for their faith. Following your intuition and trusting your instincts are the best ways to move forward. Be open minded and let others help you but understand that ultimately the decision is yours to make. Only your inner spirit knows what’s right, not others. Be willing to make a stand for authenticity and you will be rewarded far beyond your wildest imagination. See obstacles as opportunities in disguise and know how to surrender, not give in. There’s a big difference between the two. Giving in is like giving up whereas surrendering the outcome is trusting that what’s meant to happen, will happen. Do what your heart asks of you and trust that you will be led to the right opportunities, the right people, the right path to take. Keep trying but don’t bang your head against the wall for that won’t serve you.

My Takeaway
Thank you, Stephen. I understand the challenge of marketing, and I am impressed he has created such a powerful brand for himself. He is truly a one-of-a-kind man who heightens our spirituality. And I promise I stop banging my head against the wall – my next door neighbor will be glad, too.

Next Page »