Dec 8, 2013

Your Antiques Inventory Prices: Value, Cost or Gut Feelings?

Have you ever seen the Edvard Munch painting “The Scream”? If Munch doesn’t ring a bell, recall the scene in the movie “Home Alone” in which Macaulay Culkin shaves for the first time, and then applies after-shave to his raw face: hands slapped over his ears, eyes as big as saucers, he emits a scream that can be heard a block away.

Such was my response to a Harvard Business Review article that recently arrived in my inbox. The article discussed book pricing relative to Amazon’s Kindle, Apple’s iPad, and traditional print books. The author’s position was to keep prices high for ebooks, because “charging what the market will bear creates value not just for companies but for consumers as well”.

I read that statement and screamed. Macaulay has nothing on me.

You see, value is not created by price. Value is a personal issue. Price is determined by the intersection of supply and demand. Value can have an impact on demand, so consequently has some impact on price, but it is a secondary determinate. Read More

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