Price vs Value…Goat farmers or farmers in general, it’s important to understand the difference between the price of something and its value. Its something that I have taken time to unpack and its empowered my buying decision making. I hope this thread is insightful to you.
Price is the money or amount paid to get something. Value is the utility of worth of the commodity of service for an individual. Price is the amount you pay. Value is what the product or service pays you. A product with one price can have different values for different people.
If you buy a goat for R2k, that is the price of that goat. Its value is the offspring it gives you, the emotional value of owning the goat and eventually what you sell it for or the enjoyment you derive from the meat when you slaughter it. Value can be financial and non financial
Its now very easy for me to compare 2 goats with different prices because I focus on what their value is to me. Cheap for me then means a goat that gives me more value than what I pay for it and not how low the price is. Conversely expensive is higher price compared to value.
The mistake I made when I started goat farming was buying cheap goats from a price perspective and not from a value perspective. I have learnt over the years to only buy goats where their value is equal to or exceeds their price, no matter how much the goat is priced at.
As a farmer your responsibility is to convert the price you pay into value for you. The higher the value you create relative to the price you pay, the more successful you are.
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