Price and Value Agreement

Price and Value Agreement

It is true that people do have a choice in whether they want to pay a certain price for an item that they purchase or not. It all depends on the value of the item. If the value or quality of the item is not very good then a person will not pay very much for the item or will purchase a different item that is in better quality. It is all about compromise between businesses and customers. A customer will pay a certain amount for an item if they believe it is a good deal. They will take into consideration the quality and the demand of the product when deciding if it is a good deal along with the price. If there are a lot of parts or details in an item or service then the price will be higher than if the product has very little parts and does not take very long at all to make or use.

Housing is a very good example of price and value agreement. If a house has tons of landscaping and is a huge house with a lot of accessories such as a garden, or a Jacuzzi, or even two full bathrooms, this would make the value of a house go way up. The neighborhood that a person lives in could also bring up the value of a property. Even adding a satellite dish to your home can bring up the property value of a home. It is all about the little details that can add value to a home. Prices vary on homes all over the country too. A three bedroom house in California may be valued at a higher price than a three bedroom house in Montana just because of the location. Another example is a three bedroom home in the upper section of Michigan could be $100,000, and a three bedroom house in Lower Michigan can be $150,000 because it has more landscaping and a satellite on it. This is just an example of how a price can fluctuate between houses in one area. The value of houses in Lansing, Michigan (where I live) has fluctuated over the years. In the year 2007, houses averaged around $113,000 and in the year 2010 housing prices average around $119,000. I believe that prices...