The Value of a Tomato
Story★★★★I remember when the Apple iPhone came out. It was the first phone that cost like $500, right? But these days, most of us have iPhones, and they cost over a thousand bucks now.
What makes this cost a thousand dollars? It’s simply the fact that the seller believes in this product, and it’s going to cost you $2,000. And you’re like, ‘Wow, that must be good.’ What is it that you’re believing in? The appreciation of your product.
If I come here, this paper might help you. Want to buy it? That’s $0.50. But if I tell you, this is an ancient paper that came from Egypt in the 14th BC, it’s like, ‘Whoa, that’s amazing.’ How much is it?
Last time it was evaluated 5 years ago was $15,000. And you’re like, ‘OK, I’ll give you $20,000 right now.’ So the value, you have to place a value on your product. When you think your stuff is cheap, it will be cheap.
But when you think your stuff is valuable—not expensive, valuable—then people will pay.
Abreu, Adner, “Turning Tomatoes Into Profit Part 4” (AudioVerse teaching 34168).
The point
The speaker uses the iPhone and an ancient paper to illustrate that perceived value, not just cost, determines what people will pay.