Economic Value

What is economic value

Defining Value

The word value itself has many different meanings, from economic value to social value and personal value.

To each person, their value can vary, especially their economic value.

Economic value, typically in businesses, usually refers to the worth of something, whether it be time, education, entertainment, money, or a product that someone is willing to pay for or use.

An example of economic value can be a website that sells physical products. The value you are getting is money from selling your products, and the value your users are getting is the time and effort someone has put into creating that physical product that they can use.

Another example could be a service you call to help you with an issue or problem you have. For example, a plumbing service that offers help to those who have leaky pipes, broken toilets, etc. The value the plumbing service is getting is also money, and the value those who are using this service is that they are inexperienced for such a job, so they can hire these people who have used their time and effort to learn to fix such things.

A final example can be an online business that doesn't necessarily use in-person problems or physical products to sell. Take Netflix as an example. Streaming platforms like Netflix offer a variety of ebooks, movies, and music that provide information and entertainment. The value these streaming platforms get is usually a subscription-based payment where money is paid over a course of days, weeks, months, or years, and the value they provide is entertainment and education.

So, as you can see, the main value that companies are willing to sell their products for usually consists of money. It's just that money comes with time and education that others haven't put into either because they are a young audience, investing their time in something else, or developing their own businesses and are buying off other businesses.