Value

I have really been thinking about how we determine what a "value" is, or on the other hand, what makes something a good deal?  At a time when the entire world is topsy-turvy over Black Friday or Cyber Monday deals, it really makes me think. 

Added to this is a bit of information my son shared with me last week.  He told me that a large percentage of the "deals" for Black Friday were produced specifically for that day, so I'm curious if they are the same quality and attention to detail that you would get if you bought the same item produced in say - June.  There is part of me that really wonders about that, but I'm also a person who doesn't participate in the craziness of these shopping experiences either.  As my family and friends know, when I need something I will go out and buy it.  When someone tries to advertise to me, typically unless I just happen to need what is being advertised, I will talk myself out of the perceived need for the item.

So, given what I have said above, what is a "value" in my world?  I had to think about this for a while, but I have some really good examples for you.  First, there is the plumber that did work for us last week.  We bought a new stacked high efficiency washer and dryer about a year ago.  It fit into a VERY tight spot in our house.  It has already needed service twice, and then a couple of weeks ago it dumped water on the floor.  Because of all of this I decided that we would move the unit to the basement where it would be much easier to service.  In order to do that, we needed water supply and drainage hooked up in the basement, and as many of you know, I don't do plumbing work.  So, we found a person that seemed reasonable and was willing to work us in around the rest of the things that he had going on.  He came in and looked the work over and quoted us $500.  Again, for the work involved this seemed very reasonable.  The time came for him to do the work and he was on time and very positive throughout the project, and by the way, he did a superb job.  When he was all done he told us that he needed to return some things to Menard's and when he was done he would send us a bill.  The bill came in the mail and I opened it expecting to see $500.  I was pleasantly surprised to see a bill for $454.89.  In my world, that is a value.  Unasked for, not bartered for, just given because it is the right thing to do. 

I watched the complete reverse of this the other day on one of the "car/hot rod" shows.  The principals in the show were doing a complete restoration of a car for a customer and they had quoted $60,000 for the project.  At the end of the project, they were all happy with themselves when they told the customer that the price was $60,000.  Alright, they hit the number, but no big reason to be happy.  They had committed to that number.  Be under by a little bit, 500 or 750 dollars and the customer feels as though they got a bargain.  And just as a final note here, if you are in West Des Moines/Clive/Johnston and looking for plumbing work, or handyman services, a big positive shout out goes to Premiere Property Services in Clive.

Okay, example two.  Sara's birthday was this weekend and one of the things everyone wanted to do was go to the UpDown Lounge in the East Village.  I think I've mentioned this place to you before.  Vintage arcade and pinball machines, full service bar and honestly, geeks as far as the eye could see.  I was really at home in there.  Well, you talk about a value, when we got there they were running a "Buy One Get One" deal on tokens for the machines.  Ten dollars and we got eighty tokens!!!!  I will tell you with honesty, had there been a place that had done that when I was in college, I am pretty sure that I would have figured out how to take my entire paycheck in and I am relatively sure that graduation may have come with as a bit more of a challenge.  Anyway, that really seemed like a value to me.  Oh, and by the way Kansas City, I understand that UpDown is coming your way pretty soon, so be ready.

Finally today, I am going to turn this over a little bit.  Sometimes we don't see ourselves, in our roles as consumers, as having a value.  If you go to Google and ask "What is the lifetime value of a pizza customer", the first link that comes up is Putting the Service Profit Change to Work. This is a pretty good read overall, but it points out that a loyal, happy pizza customer can spend $8000 in a lifetime with a pizza place.  And that of course is an average.  Some families can spend a lot more than that.  But when you stop to buy that pizza, are you really treated like someone that will spend that kind of money there?  Typically we aren't, and typically we don't even think about it.  One of the things that I've tried to teach Andrew and Megan is to think of things at least by the year.  It isn't only $20 per month, it is $240 a year.  And we need to think of ourselves as the kind of consumers that will spend $8000 with a pizza place, or $1800 a year with our cable provider.  We are a value to the businesses that we support, and in turn they can truly provide us value at the same time.  I will spend my money with the UpDowns of the world and the Premiere Propertys -  the companies that see me as a lifetime customer and offer a value in recognition of that, even if it is only the first time that we've ever worked together.  It is fun doing business with people who think about it this way.

Have a great week.