FarraigePlaisteaċ (sé/é)@lemmy.world to No Stupid Questions@lemmy.world · 2 days agoIf online services (such as Netflix) only ever raise their prices, does that mean they offer less and less value for money as time passes?message-squaremessage-square33fedilinkarrow-up1163arrow-down13
arrow-up1160arrow-down1message-squareIf online services (such as Netflix) only ever raise their prices, does that mean they offer less and less value for money as time passes?FarraigePlaisteaċ (sé/é)@lemmy.world to No Stupid Questions@lemmy.world · 2 days agomessage-square33fedilink
minus-squarePaper_Phrog@lemmy.worldlinkfedilinkarrow-up27arrow-down1·2 days agoThis, and the measurement of the perception of “value” needs to be taken into account.
minus-squareReyali@lemmy.worldlinkfedilinkarrow-up3·11 hours agoI’ve been taught: Value = Benefits received / Costs incurred Costs can be price, time, energy, etc. Benefits can be a physical product, an experience, a feature, or less tangible like peace of mind or security. If you increase price, other costs must go down OR benefits must go up; otherwise value is lost. And yes, it’s all perception. Benefits don’t affect all customers equally, and people place different value on their time, etc. Your comment is spot on. I have just found this equation consistently holds up.
This, and the measurement of the perception of “value” needs to be taken into account.
I’ve been taught:
Costs can be price, time, energy, etc.
Benefits can be a physical product, an experience, a feature, or less tangible like peace of mind or security.
If you increase price, other costs must go down OR benefits must go up; otherwise value is lost.
And yes, it’s all perception. Benefits don’t affect all customers equally, and people place different value on their time, etc.
Your comment is spot on. I have just found this equation consistently holds up.