Valuing Words
7. Value, Not Price (The Encouragement Manifesto)
We are thrilled that has offered to write a piece for The Gift of Words *
* follow this link if you would like to add to this collection of encouraging words.
It has been a pleasure to get to know Matt over the past few months as he has found his voice within the Substack community. He is a generous contributor to conversations and the archive of fine writing that is gathering in what is a special community for writers and readers alike. Matt is both, and he writes with an understanding of what readers are looking for.
Recently, Feasts and Fables put out a call to action for their readers. Well known for the Encouragement Manifesto they developed while operating a small business, they have broadened their mission of encouragement to the artistic community on Substack and even more so in every facet of their lives. The call to action was simply this - for the reader to pick one of the ten values and write what it means to them. Looking through the list, I realized I could write extensively on any of them as they are powerful and meaningful. Being a glutton for punishment, I decided to pick the one I thought might be the most challenging to write about - Value #7 - Value, not price.
In a letter to his investors in 2008, Warren Buffett said that Benjamin Graham taught him, “Price is what you pay; value is what you get.” Most of us are aware that price and value are different but related. A lower price point in a commercial business typically indicates lower quality, which may show lower value. Those with the financial means will often spend more money to purchase something with a higher perceived value or high social prestige. We observe this in many facets of our lives, including the cost of buying a home, a new vehicle, or clothing. In Buffett’s case, he looked for investment opportunities where he could purchase stocks or companies that had a high value but which, for whatever reason, the market had caused the price to drop so that he would get additional value out of the purchase by getting it on sale.
The price-to-value relationship is not always that clear. Product price is what the customer pays and is typically a fixed amount. Product value is the worth that a customer gets from the product, which varies drastically depending on the perception and needs of the customer. Two customers may look at an identical product, and while it will have the same price for both, it will likely have a different value depending on whether they need the product. When my wife and I go grocery shopping, we frequently encounter this conundrum between price and value. If I see a package of bacon on sale, that has tremendous value for me, but for my wife, it has no value since she does not eat pork. Likewise, if we see that kombucha is on sale, my wife will be excited, and I couldn’t care less. The price of these products didn’t change between my wife and me, but their value significantly differed based on our needs and wants.
If you own a business or create a product, at some point, you will need to determine what relationship you will have with the price and value question. In developing their Encouragement Manifesto, Feasts and Fables focused on delivering value to every customer. They wanted their business to be about community and relationships. Price was necessary to consider because they had a company to maintain and provide their living wage. However, value took precedence, making all the difference in their experience.
As writers and artists, we must examine this question in the light of our creative pursuit and the products we offer. When I started writing, I sat down and thought about my goals. I didn’t have all the answers, and my creative space was still developing, but one thing I did know was that building community and relationships was vital for me. I didn’t want money to be a barrier for anyone to participate in that creative dialog. Even though I didn’t know Feasts and Fables when I started writing, I followed the same path and focused on value rather than price in my creative endeavors.
How does that work for me?
First and foremost, I give my best effort to each piece I write and publish, attempting to provide the greatest possible value for my readers. This doesn’t mean that everything I write is perfect, and I am unlikely to win awards anytime soon, but it does mean that I give my all each time I write. Secondly, I don’t charge for any of my content. I am not selling a product or service but rather creating a place where discourse can take place on topics very dear to me. For this reason, I decided not to have a paywall so that finances never prevented someone from participating in the community I was trying to create. Every consumer's financial situation is different, and with so many great writers out there, readers have an overwhelming number of options. Third, I have paid-tier options for my publication, but they do not provide additional content for the consumer. The paid tiers are there for those readers who find value in my writing and can support it financially. I have been very blessed by generous readers who have chosen to support me with a paid subscription.
Compensation for the creative work of artists is necessary, and consumers should acknowledge the value of those creative efforts. Acknowledgment of value can occur in different ways, and a financial price is only one of those methods. My model may only work for some, and each creative has to decide for themselves in light of their situation. However, taking the focus off price and putting my energy into focusing on value was an enormously freeing decision.
Focusing on the value of my writing also allowed me to focus on the value of the relationships created by that writing. The end result for me is a greater enjoyment in developing relationships with my readers through my writing.
We warmly recommend that you head over to Beyond the Bookshelf where
is building a community of readers and writers who want to find the connections between life and literature while exploring the stories of our lives.He is bringing folk together to think about and discuss critically:
How does what we read influence how we live our lives?
How do our life experiences influence what we choose to read?
Why is access to books so important?
How can we support literacy initiatives?
What is the importance of independent/local booksellers?
We’ll see you over there.
I enjoyed reading your essay, Matthew. Thank you for sharing your thoughts.
Following your thought process in deciding to keep your writing free was interesting. Even while my mind kept coming up with scenarios that posed a value consideration that would end up on the opposite side of the paywall decision.
That in taking the decision, you are considering a particular 'target audience'
Because there is an audience that would be excluded if the community includes everybody. A bit like a restaurant that a celebrity could not patronise because it has not got the sort of exclusivity that guarantees their privacy, security, or simply street cred.
Of course, that is a bit far-fetched for writing.
Perhaps it would apply for building a particular type of community. If you wrote a newsletter about real estate in New York, say, and paywalled it to a level where only those who could afford real estate in New York had access. And in giving everybody access, the real community one wanted to engage would keep away. If they thought discussions did not represent buyer opinions.
I've been reading some author's comments about the new DM feature on substack. And how they are considering taking up the paid option. Yes, as a source of revenue. But also, as a way to form a certain type of community; to keep their DM time and attention only to 'serious' community; not creepy texters or time wasters.
The value of words question goes all over the place.
This was a great post, Matthew! Value is such an important concept.