In this lesson we're going to talk about something that is fundamentally crucial for small business owners to understand: The Concept of Value. 

Most mobile bar owners that I work with initially price their services based on what they think others will pay and in ways that they think are simple / easy for people to understand, but in the process they underprice and create pricing that does not scale with the variable of events leading to overcharging some events and under charging others, or creating a pricing scenario that is really only appropriate for one type of event but doesn't translate well to other types of events like corporate, or small house parties. 

We're going to address all of this, but let's start by unpack the concept of value. 

Many people, especially those in the service industry, associate their personal value with the work they do for others. But I want to make something very clear: your personal value is not determined by what you do. Your value is intrinsic. You are valuable no matter what you do for others.

Now, when you provide services to others, you create value for them. But it's important to understand that there's no one-size-fits-all way to quantify this value. 

Value is subjective - it's what people are willing to pay for something. It's tied to importance, not worth. 

Worth, on the other hand, equates to cost. Something can be valuable to you and yet be worth nothing. Conversely, something can be worth a lot and yet have little value.

And remember, value is not inherently a monetary concept. What your services are worth is a blend of math and psychology, which we'll discuss further in a moment.

Clients tend to find value in services that:

- Save or make them money. Would you spend $2k if you knew it could generate $100k? Of course, you would.

- Make their lives easier, saving them time, granting freedom, or helping them bypass a learning curve.

- Improve their emotional state or relieve pain. This could mean providing entertainment, helping them fit in socially, solving a physical issue, or achieving social acceptance.

- Provide security or address fear, such as FOMO or scarcity.