How Do We Define Value?
In yesterday’s post, I made the argument we shouldn’t “support” small businesses, as that connotation “smells of pity, condescension, obligation, and guilt.” As expected, I quickly received a lot of feedback on this post. One such piece of feedback was from my friend Mike (yes, this Mike). Mike let me know he partially agreed and partially disagreed with my post.
There are probably four posts worth of nuance Mike brought to the table, but the one I want to discuss today is the idea of value. In my post, I stated that businesses “don’t deserve our support, but do deserve the opportunity to serve us well and provide us with value.” Mike explained that he strongly values relationships, and would happily pay more for a product bought locally because the relationship he gets to create in the process is valuable to him. I couldn’t agree more!
Let’s say we can purchase a product for $50 on Amazon and $55 from a local small business. The small business is charging 10% more for the same product, so does that mean there’s less value in buying it locally? From a mathematical perspective, yes. The product is providing the same impact in our life, but costs us 10% more. By definition, that’s less value. However, this is where I think we need to take a moment to ask ourselves what the definition of value is. From a utilitarian perspective, the Amazon purchase would have more value. But this is Meaning Over Money, so you know we can’t just look at everything through the lens of money. Mike would testify, and I would wholeheartedly affirm him, that there’s much more value on the table than dollars and cents. In his example, the relationship he gets to build and maintain with the small business is also a value-add to his life.
There are a number of other things we could attribute value to:
Buying within close proximity to your home.
The interactions with staff and/or other customers.
Seeing the product first-hand before buying.
Getting questions answered by an engaged and knowledgeable employee.
Knowing your patronage is investing in the local labor market.
The list goes on and on.
I think Mike touched on a really good point. I don’t think his perspective is contradictory to my post, but largely complementary. This is also the opportunity for small businesses to shine. They need to add more value than they charge, but there are a number of different ways they get to create value than simply price. BUT, and it’s a big but, they do need to add value. This is the heart of my message. Small businesses (including mine) don’t deserve our support. They deserve the opportunity to serve us well and add value. If they succeed, they will earn the right to do it again….and again. And as Mike beautifully points us, that relationship piece is so, so valuable. I for one would gladly pay more in exchange for that meaningful relationship.