Sublime

The objective value of the product or other measures of value, such as the Marxian theory that value is defined by the human labor time invested, do not matter intrinsically. They matter only to the degree that the customer thinks they matter and is willing to a pay a price in return.

Res tantum valet quantum vendi potest. (A thing is worth only what someone else will pay for it.)

Pricing: Capture this value with value-based pricing or a proxy of it. Imagine price as a currency of value exchange.

Value your time at an hourly rate, and ruthlessly spend to save time at that rate. You will never be worth more than you think you’re worth.

In other words, the recommendation tied the four critical elements together—price (WTP), value (to customers), volume (the expected demand at those price points), and costs in delivering the service (including the risks based on probability of car failure within the warranty period). That

Value is crucial, because it forces you not to rest on your laurels but to assess each of your businesses based on the value they currently deliver to buyers. The

Price is what you pay. Value is what you get. —WARREN BUFFETT

When evaluating a transaction, traditional economic models simply compare the value to the price. Real, human people, however, compare value to price plus other elements, like fairness.