The power of value perception!

"The value of water is more than diamond in a desert!" This one small statement changed the whole way I looked at things. I was exposed to this concept of "Value perception" when I for the first time in my life came across this wonderful subject called ECONOMICS!

This concept of value perception has influenced me in a very huge way! The whole building block for any business in this world, Rate of Return or more popularly known as ROI, is based on this factor. The ROI of your business is basically the value perceptions you feel is there for your products or services in your consumer's or client's eyes! Whatever you pay for the goods you purchase is basically because you value the good so much. You see the ROI in it. Here again I feel the words "Value perception" and "ROI" are interchangeable. Each of them are conceptually derived from each other! Few years back, had anyone imagined paying 100 bucks for a single cup of a coffee! (I am basically referring to the CCDs n Baristas we have today...) This is the paradigm shift in the perception of the customer which has created wonders!

This whole concept of value perception leads us to a new era of costing and accounting! At the end of the day, while pricing a particular product or a service, the first and foremost factor is to meet the break even! All extra you get is technically termed as profit. Now your profit depends on the way the customers/consumers value your product/service...

Since I have explored a bit on the Psychology also, let me not constraint myself to just business and accounting. If you see a relationship, the whole point of having or not having a relationship with a person is based on the way you see the value out of it! The amount of importance you give to a relationship is in direct correlation with the way you perceive it and hence the amount of value you derive out of it. You might want to term it as love, hatred, anger etc etc... But all these again are an output of human values! :)

If I correlate all of these factors, I will end-up with a summary to explain what I call it as "The power of value perception!" It just is an amazing matter of fact that all our lives, work, relationships, anything and everything you can relate yourself to, is definitely someway or the other related to the three evergreen letters "ROI"...