03-23-2014, 01:35 AM
Here is a marketing equation on value that I find useful. Value= desirability divided by price, or V= D/P. A number greater than 1 indicates positive value. So, the higher the price, or lower the desirability, a buyer will find decreasing value in the product. While desirability is a pure variable, if you think about a product in these terms, it makes sense. So, to me, a Harley has very little value. It is expensive, and I don't desire one. To someone else, actually many, the reverse is true. The Cb1100, again to me, has great value, as the price I paid for it was extremely fair versus how desirable it is to me.
That's today's lesson, class dismissed, go ride!
That's today's lesson, class dismissed, go ride!
