Price is what you pay Value is what you get – Warren Buffet

Price is what you pay Value is what you get: A lovely quote for someone considering the startup journey. The business planning approach tells us that we need to price something based on what the market is ready to pay. However, the main thing to consider is always the question of the value a user is getting. Based on that, we can quantify the value through price. Sometimes, this quantification can be based on the amount of time it saves or the actual commercial benefit that it can provide.

Price is what you pay Value is what you get Meaning

Most of us are taught to evaluate a product or service based on the value we are getting. The value varies for different types of customers. For some, it might be about time, for others, it might be creation of commercial opportunities. The key thing to note is that the dimension of value changes based on the persona of people. But the most important thing to keep coming back to is about the value that we can deliver. Ultimately people purchase value and pay the price for it.

Another important point in this quote is about the value which people perceive. The term value is not an objective statement but a subjective one. Hence the term – a perceived user value. Ultimately a customer identifies whether something is useful or not based on what they think about it.

Price is what you pay Value is what you get

Warren Buffet