What Price Value? How do we measure it?
In Oscar Wilde’s play, Lady Windermere’s Fan, the writer had his Lord Darlington character quip that: ‘a cynic is a man who knows the price of everything and the value of nothing’.
This blog post by Paul Bernal, The Price of Everything and the Value of Nothing, uses Wilde’s insightful wit to argue how our government, our businesses, our media and more are ever dominated by those that fit Wilde’s description of cynics. As he says: ‘The idea that anyone in the ‘real world’ should even consider ethical, moral, philosophical or cultural values to be on a par with financial or economic ‘value’ appears whimsical, sentimental, even romantic. Hard-nosed, sensible, rational, practical people ‘know’ otherwise. It’s the economy, stupid.’ He concludes his post thus: ‘I may not know the price of everything, but I do know that there are many things more valuable than money.’
The reason I mention all this is my increasing work with salons wishing to stock Pink&Green Skincare’s products. It’s clear that more and more salons are becoming ever more disenchanted with the global companies they’ve become tied to – and the products themselves. All of which has led me to consider value, and what it means and how we measure it.
What does value comprise and how do we measure it?
The salon’s issues with the skincare big boys are twofold:
- The salon owners are feeling ever-more dictated to and pressured by the big brands. Here I refer you to the aforementioned blog and ask yourself which would be stronger: their ethical and moral values or their economic values?
- Their customers are becoming ever-more enquiring. They want to know whythe products cost what they do. How much of that £80 serum is the product itself and how much is marketing, gorgeous packing etc?
Then they also now want to know what the ingredients are. Both women and men are now more concerned than ever about what goes on to their skin. They want to know the environmental credentials of the products they use. They want to know what sort of company is behind the products they use – how do they work with their suppliers?
And all these factors constitute value: both to salon and client.
A glass of wine?
I don’t know about you, but I’m partial to a glass of wine in the evening. Now there’s a formula around the price of a bottle of wine that is a good analogy for the value of … well anything you care to think of. Because, as with most everything, there’s no automatic link between the quality of the wine in the bottle and the price. The former doesn’t always increase with the latter.
As this article from Wine Wisdom, about calculating the cost of a bottle of wine, points out, the cost of the glass and the transport are similar no matter how much the bottle costs. So, in a £5 bottle of wine the value of the wine in the bottle is well under 50p. The rest of it is duty, advertising etc.
Pay £10 for a bottle of wine and you get wine to the quality of £3. For twice as much money you get six times the quality of wine. Go to £20 a bottle and you get wine quality of around £7/8 pounds – but you’ve paid twice as much for only a small increase in wine quality. The rest of the £20? That’s a charge for the brand. At this price point you’re paying for the label, the chateau and the associations thereof. It’s evident that £10 is the sweet spot when it comes to wine.
Now I’m not saying, because I can’t, that all premium products are 10% product value and 90% packaging, marketing, transportation etc – but it’s something to think about, along with everything else we’ve talked about above.
Indeed, it does appear that many people are doing exactly that. And how do I know this? Because salons that are stocking Pink&Green Skincare alongside the big-name brands, report that they’re selling more Pink&Green Skincare than the other brands on their shelves.
Now, I’m not going to lie to you and pretend that Pink&Green doesn’t want to make money. That would be silly. Yet, as Paul Bernal put in his blog conclusion, many things are more valuable than money. Relationships for example.
Which is why Pink&Green offers the salons it works with a personal service. One where you can have as many or as few Pink&Green Skincare products as you want and need. One where there’s no pressure at all to take more of one thing or to stock a bigger range. This is a great offer for newly-established, just-starting-out salons – or indeed for any salon at all.
Call us on 0781 580 7775 or drop a line to firstname.lastname@example.org find out more.