Value Versus Price

Value Versus Price

Price is what you pay. Value is what you get.  Value Versus Price

Here’s a little story to illustrate the difference between Value Versus Price. Once upon a time, a local nursing home called because the local furniture store recommended me. They wanted a bid to clean 7,000 square feet of corridors, halls in the facility. After measuring it up, I gave the administrator my price. Based on the story I heard through the grapevine (last guys didn’t get it clean – just wet. And it smelled like a wet dog for 2 days), I expected my price to be higher. It soon became apparent the previous guys were pretty proud of themselves – they had charged 50% more than me!
     She quickly accepted my offer (before I changed my mind) and we set about with the security guy to schedule the work. It had to be done after dinner (7:00 P.M.) and completed before it got too late (patients had to sleep). I said, “How about Monday and Tuesday evenings? The security guy says, “Which one?” I said, “Both, why? How long did it take the last guys?” He said, they were in at 7:00 and out by 10:00.” I said, “You mean two guys did 7,000 square feet in 3 hours and charged 50% more than I’m charging and left it dirty and wet and smelling like a wet dog for 2 days and got paid?”
He said, “Yep.”
It took my 3-man crew 9 hours over 2 nights. We left the carpet clean, fresh, and dry. That’s value and price!
Value Versus Price - Warren Buffet