Profits and Values

A wise man once said that a pessimist is a man who knows the price of everything, and the value of ndthing.

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

Profits, to coin another phrase, lie in a just appreciation of values, and their securing, in turn produces optimism.

It just 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 your business rvill keep on making the profits.

Now then, what do we mean by "profiting through a just appreciation of values and profits ?" What, for instance, is the value-to-you of house bill sold ? Under which of the following heads rvould you classify that value-that profit?

1. The increase of your business.

2. The actual profit on the goods sold-

3. The turn-over of the stock.

4. Beating your comPetitor.

5. Keeping your organization busy.

6. Activity of your finances.

Each of these, it is true, possesses a certain element of value, but in our study of values, we must determine our understanding of "value."

"Value" indeed, is extremely variable. It could not be otherrvise, being based on so many conditions.

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

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

And unless value can be determined with a high degree of accuracy, PRICE cannot, for price depends on value.

For instance, besides the six main elements of price making listed above, there are others to be considered, as:

7. Filling your customers rvants.

8. Satisfying his ambitions, comfort, pleasures, etc.

9. Increasing the size and permanence of the community by adding nerv buildings thus increasing the potential value of your goods.

10. Raising the local standard for better buildings.

.11. Advertising your business by work accomplished. PRICE-the amount 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 moment compared to the determination and the fixing of the elements of the value-to-1ou of your sales.