Just how do you and I, as consumers, put “value” on items we purchase? From automobiles to faucets, why are we willing to pay considerably more money for one item than another similar item?
I live in a very old house, and there always are plumbing replacement and repair items high on my shopping list. I was looking around the Internet earlier and found a site marketing Grohe faucets which, to be honest, I’d never heard of. Most of my replacement or repair plumbing stuff comes from low-end home improvement stores or, uh, well — Walmart. Would I spend significantly more money for a high-end faucet if something more “off the rack” would do the job? Absolutely I would if I could afford to spend the money.
Why? Why spend significantly more money for a Grohe faucet than something from my neighborhood hardware store? Because of the features and benefits I see in the Grohe — assuming I need a new faucet and find a way to pay for it.
So why are U.S. automakers or other U.S. manufacturers losing business to foreign manufacturers? Is it just price?
It’s probably MOSTLY price — but, very importantly, it is the perception consumers have of quality and benefits. Given two faucets or pickup trucks, if money were no object, would you buy the cheapest? Probably not, right? Probably you’d buy the more costly faucet or pickup truck because you would perceive it as more valuable.
What do you think about all this? Leave a comment and share with us all.