Values and Profits

Oscar Wilde once said that a pessimist was a man who and that "value" composed as it is of varying elements, knew the price of everything and the value of nothing. must be thoroughly understood before it can become of l-The Increase of your business;

To coin a corresponding retroactive epigram, an Optimist may possibly be defined as a man tvho appreciates Values.

Profits, to coin another phrase, lie in a just appreciation of Values-and their securing in turn produces Optimism.

It naturally runs around in a sort of circle and if you will take just a little pains to locate definitely on the circumference, you and yottr business rvill keep on piling up the values and the profits.

Now, then, what do we lnean by "profiting through a just appreciation of valttes" ? What, for instance, is the VALUE-TO-YOU of a house bill sold ? Under which of the follorving heads u'ould you classify that value-that profit ?

2-^the actual profit on the goods sold ;

3-The turn-over of the stock;

4-Beating your competitor;

S-Keeping your force busy; fActivity of your finances.

Each of these, it is true, possesses a certain element of "value" but in our study of VAI-UES we mttst first determine our understanding of "value".

"Price" is merely the amount of the "goods-we-have" which we are willing to exchange for the "goods-we-want"; and at that, there are always two "prices" concerned in every transaction, potential or actual, and these trvo prices are :- a-the price the seller rvants to get; and b-the price the buyer is rvilling to give.

No transaction is perfected-no sale is made-until these two prices coincide, in terms of "money", rvhich is merely the accepted medium of exchange.

Each of these two prices is governed by the "value" placed upon it by each party to the proposed transaction; practical, commercial use. , "Value", indeed, is extremely variable. It could not be otherwise, being based on so many conditions.

Speaking mathematically, "valtte" ^ay be roughly defined as the resultant of the forces which affect, or are affected in the buyer or seller by, the article in question.

The accuracy of VAI-UE, therefore, depends on the degree in which all of these contributing forces are determined.

And, unless VALUE can be determined with a high degree of accuracy, PRICE can not be, for PRICE depends on VALUE.

For instance, besides the six main eletnents of PRICEMAKING value listed above. there are others to be considered, as :__

7-Filling your customer's u'ants;

8-Satisfying his ambition, comfort, pleasure, etc.;

9-Establishment of his confidence in your ability to supply and do numbers 7 and 8 above; l0-Increasing the size and permanence of the community by one more building; thus increasing the potential market for your goods; ll--Raising the local standard for Better Buildings;

12-Advertising vour business by r,vork accomplished.

Study these items and you rvill see that each one of them is in turn made up of subordinate items.

Give this matter the thoughtful consideration it deserves and you rvill realize the tremendous importance they have in the determination of the VALUE-TO-YOU of your sales.

PRICE-the amount of something you receive in exchange for your goods-so long as it covers the MATERIAL COSTS plus a REASONABLE PROFIT, in a strictly commercial sense-is of very little mom.ent compared to the determination and the fixing of the elements o{ the VALUE-TO-YOU of your sales.