09.02.2009

An Evaluation

Recently I read an article on value, and how in this economic climate more buyers are thinking about value when making purchasing decisions.  It was a great article, though if you've been reading my blog you know that I've been on that train for a long time now.  While reading, I thought to myself, 'Wouldn't it be great to write something on consumers, value, and how this pertains to the work we do at MCA?'  After all, it would be something fun and easy to write about, no real thinking involved - right?

I started with a little online research.  My first step was to type the word 'value' into Google and see how many times it popped up on the internet (about 746,000,000 times, if you're interested).  Initially I thought to just go down the page until I found a few interesting articles on people and value, make some easy comparisons, talk about design, and call it a day.  I quickly realized it just wasn't going to be that easy.

Since nothing seemed to be quite what I was looking for on Google, my next stop was Wikipedia.  Everything's a breeze on there...unless, of course, you're looking up the word 'value'.  According to Wikipedia, there are at least 10 completely different (values, ha!) ways to use the word 'value', depending on if you're referring to economics, mathematics, ethics, personal and cultural matters, investing, marketing, computer science, law, semiotics, or colors. 

A little more research into value in both its economic and personal definitions led me to an important realization.  Value, as discussed in connection with purchasing habits and identity, is a philosophical definition, relating to the personal importance a buyer places on the item in question.  This means that when a potential homebuyer walks through a model home and considers whether or not to purchase, among the many things that rolls through his or her mind is the big question - Is this house worth more to me than the money I will pay for it? 

At this point, I assume that most of you will be thinking in terms of resale value, or at least the use of sound materials, something to make the consumer believe he or she is getting a good 'deal' for the money.  In fact, that's where most people go wrong.  Even I had it partially wrong, because I always associated the many values a homebuyer has to sort through while making the big decision as being the SAME 'value'.  However, there's an important differentiation. 

The 'value' I've always been most concerned about, without even knowing it had a name or even a concrete difference, is something known in academic circles as 'personal philosophic value'.  This particular decision-making tool differs from person to person, and can be defined by a simple sentence - 'Is it worth...?'

Now you're asking, 'But, worth WHAT?'  We'll never know.  Every man, woman and child has his or her own set of (personal and cultural values) beliefs.  Money talks, but not everyone listens in the same way.  A guy might walk into one of our models, see a fabulous bar and billiards area and think of all the great nights he could have hanging out with his buddies.  You can't place a monetary value on great moments with good friends, but if he decides to buy the house, maybe you have.  A newly married couple walks into a baby's bedroom in one of our models, eyes the bassinet and then each other.  They share a secret smile.  Together they've decided that having a happy family is worth more to them than the money they have to spend to make it happen. 

'Is it worth?' doesn't refer to the confines of the house at all, but the life that the buyer will live within it. 

Value in its many forms is extremely important, and always has been.  We should try to always keep in mind that no matter what the economy is telling us, people still want the best for themselves and their families.  It is our responsibility (and what a joy!) to help homebuyers achieve their dreams by showing them the possibilities that exist.  Luckily for us, when we do a good job at appealing to a prospective buyer's value system, we also do a good job at improving our own values - economically speaking, of course!

Read the article that got me thinking more about value.