FarraigePlaisteaċ (sé/é)@lemmy.world to No Stupid Questions@lemmy.world · 1 day 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-square31fedilinkarrow-up1137arrow-down12
arrow-up1135arrow-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 · 1 day agomessage-square31fedilink
minus-squarePaper_Phrog@lemmy.worldlinkfedilinkarrow-up25arrow-down1·1 day agoThis, and the measurement of the perception of “value” needs to be taken into account.
minus-squareReyali@lemmy.worldlinkfedilinkarrow-up1·3 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.