Price is not Necessarily a Reflection

Price is not necessarily a reflection of value because according to economic principles, price is more likely to reflect value in a free marketplace that encourages competition. Value is understood to be a synonym for low price, but value describes the relationship between the benefits the customer receives from a product and its price. Perhaps economic and mathematical calculations can determine the "true" value of a product of service. However, in practical, real world terms, price is not an accurate reflection of value. Value, differs for each person and society and can waver depending on the place, fashion, economic situation of the times. One cannot designate a price for a product or service but the system of pricing products as an indicator of value is a necessary action in a world with scarce resources. The question of value has resonated within thought numerous times. What does it mean when value matches its price? The two terms "price" and "value" hold two very different meanings - price being a quantified measure of how much someone would give in exchange for an item. Value is the degree to which someone feels an item is of personal importance. Shopping at Wal-Mart, Sam’s Club, and Dollar Tree asserts that price is not necessarily a reflection of value.
Wal-Mart where shopping is a pleasure, is that a true statement? Now there are some items in Wal-Mart like cereal, meat, and beverages that are good in price and great in value. Name brand cereals cost four to five dollars a box whereas you can buy the bag cereals at the same price and get a better buy. When one feels that the product is very valuable and is willing to pay an agreed sum of money in exchange for it, which is an instance where price may be a reflection of value. Meat products are okay at Wal-Mart. Sometimes the presentation is not pleasing and the price is outrageous. Beverage items are reasonable in price as well as value. Customers love to get more and pay less. However the expensive product can be the least beneficial. A wedding ring is more valuable to a newlywed couple than to a single man. Hence the expensive price for the ring would reflect upon its value to the couple, but not to the man.
Expensive products are cherished and used less than cheaper products. When it comes down to reflecting upon the value of some objects, a stated price might not necessarily quantify its value. Sam’s Club is a perfect place to put the question of price and value to the test. Everything is big in value for a reasonable price. Price is not an accurate reflection of value at Sam’s because some prices on products are unbeatable. For example: three bottles of ketchup for six dollars, a large can of beans for three dollars, and two bags of potato chips for five dollars. To determine if price is a reflection of its value would be determined by how value and price is defined for the individual. Certainly, price is gauged differently among individuals.
The individual has a definition of how valuable something is to them, and they might have an idea of how much money they are willing to spend to purchase it. There is a small, delicate balance between value and price; yet in many instances this balance is offset, which may bring one to decide whether something was worth its price. The Dollar Tree where everything is one dollar. Essentially, when it comes down to reflecting upon the value of some objects, a stated price might not necessarily quantify its value. Having a store that has become a small corporation now, makes questions of price and value a strong debate topic. In Dollar Tree value is a subjective concept because if all items are set at one set price whether big or small in quantity. When value increases, the price is less significant. When value decreases, the price becomes much more significant people want to ensure that they get their "money's worth" at that point.
The price of an object or service fluctuates depending on supply and demand. Shopping at Wal-Mart, Sam’s Club, and Dollar Tree asserts that price is not necessarily a reflection of value. On the demand side, how much an object or service is worth to a person determines how much he is willing to pay for it. When there is a market with many variations of a product, the price does not reflect the value of the product to the consumer. For example, the local grocery store occasionally sells three husks of corn for the promotional price of 99 cents. Since corn is only one of the many kinds of food that people eat, its prices are kept low so that people are enticed to buy it. Therefore, the price of corn is not an accurate reflection the value it brings to the consumers because its price is driven down when alternatives are present. The ultimate determinant of whether or not there exist alternatives in the market. An abundance of supply brought on by alternative products means the price is lowered so that people will choose to purchase one particular product over others.