Value

Some people make the mistake of thinking the price tag of an item is what the item is actually worth

Others make the mistake of thinking if one item sold for X amount then all of the items are worth X amount.

The thing people have to realize is that an item (goods or service) is only worth what someone is willing to pay for it.

If a person wants to sell their house for X amount of dollars so they list the house for that amount, it doesn’t mean the house is worth X. The house is only worth what someone else is willing to pay for the house.

If one product sold for X dollars it doesn’t mean five of those products will sell for 5 times X. In some cases, one person needed that particular product for a specific reason so they were willing to pay X but if no one else has that need, the value of the next product might be much lower.

If a company raises X amount of dollars for 10% of the company it doesn’t mean the company can get 10X for the whole company.

Too often, people let delusion get in the way of real valuation of what they are selling and forget that without a buyer, the arbitrary price is just that…arbitrary.

The flip side of this is if you aren’t looking to sell something, the so called value doesn’t mean much (except for when it comes to taxes).

Just something to think about

Have a great day!

Lawrence

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