Eliminating Value Confusion

By Sid Raisch

We need to clear up some confusion over the word “value”.

We Americans are a confused lot. Our language does this to us. Some other languages have one meaning per word. We have many.

Dual meanings are confusing. I have learned that it is a sign of intelligence when toddler’s pickup dual meanings of words. Understanding of multiple definitions of a word is also a sign of intelligence among adults. So let’s understand the simple word “value”, in all its wonder, and amazing complexity, beginning with the textbook definition.

I have no idea where the dictionary is, so we’ll Google. Maybe the definition of value has changed with the Internet? Right from the beginning, the cause of confusion is evident. Value is both a Noun, with two definitions, and a Verb with two additional definitions.

Noun

1. the regard that something is held to deserve; the importance, worth, or usefulness of something. "your support is of great value"

2. a person's principles or standards of behavior; one's judgment of what is important in life. "they internalize their parents' rules and values"

Verb

3. estimate the monetary worth of (something). "his estate was valued at $45,000"
4. consider (someone or something) to be important or beneficial; have a high opinion of. "she had come to value her privacy and independence"

Beyond the noun or verb issue, there’s more reason for confusion. There are other definitions of value, and not all of the definers agree. It seems that value of the word value is in the eyes of the beholder. This is “Perceived Value”.

One definer says there are 5 types of Economic Value:

1. Value in Use
2. Value in Exchange
3. Value in Distribution
4. Value in Finance
5. Value in Fitness

You may be aware of the four types of value a product or service offers to its customers:

1. Practical Utility Value
2. Perceived Value
3. Social Value
4. Identity Value.

Confusing definitions leads to confusion. Understanding the definitions of value is a beginning. This is a term where like-mindedness goes a long way. A common point of view about value is essential to building, protecting, and defending value within your company culture. Click the links above, and share those articles along with this one with your associates. Come to a cultural alignment on what type of value your company will present for the products and services you provide your customers. This will be of great value to you.

Your friend,

Sid

PS: Then there’s another form of value, as in “low cost option” that causes big problems for retailers. If you or your associates go to this type of value based thinking you will want to read Part 2 of this article, coming soon.


Sid is a consulting Service Provider to The Garden Center Group and also serves as President/CEO of Bower & Branch. Sid has been inventing and reinventing the way things “don’t get done” into “get it done” strategies that increase profit-ability, market-ability, oper-ability, and owner-ability of garden centers, landscape operations and a few wise suppliers of plants and products. It’s not 38 years of the same thing, it’s thirty-eight increasingly effective years dedicated to improving and re-inventing the inter-dependent horticulture supply chain. He’s constantly challenging “that’s how we do it”, “we tried that”, and a dozen or so other excuses. Sid knows how to get people to get things done by overcoming underlying attitudes, fears and lacking resources. When you read Sid’s articles or hear Sid talk “put your ears on” and listen up, and get ready to think and implement changes that will take you and your company to new heights and new places. Contact Sid at 937-302-0423 or email to [email protected]