A case for Value and its cost.

When I first saw the woman complain about how her husband committed suicide with her new scarf....for me, it was not funny but on a second thought I realised that people Value different things in different ways and for different reasons.

It is the term Value that should define the reason for doing business in the first place. Businesses sell Value which comes at a cost. So the goal should be to create the best Value at the least possible cost.

It is important to note that there are drivers for value and cost. Lets call them the components that affect the cost of the product and its perceived value. For example, humans "value" a drug because it can cure a terminal illness, but to produce the drug, it costs the pharmaceutical company billions of dollars in research and development.

It is very important for business people to identify the drivers for value and cost. For Value, it is good health to the dieing patient which is priceless but to a limit of affordability. For cost, it is amount and time invested in research and development which is eventually mitigated by production of large volumes at cheap rates while ensuring that the drug is patented.


 People pay for Value; Organisations survive when costs are low.