“Expensive is not the relevant metric, utility is.” – Seth Godin
I got the above quote as part of an email from Seth to me today and it got me thinking twice about the relevance of luxury.
Many a time, we are tricked into believing that luxury, expensive goods are the best, much better than the cheaper alternative…
This may be true but NOT in all cases.
Let me explain!
While expensive items may make you feel you are getting “value for your money”, not all luxury goods are properly designed to give you maximum utility.
Of what use is a costly N80,000 perfume when you can buy one with a stronger fragrance for at least N5,000?
Unless it is an i-watch that has advanced tech features, of what use is a N50,000 “mechanical” ROLEX watch when you can buy the same watch for N8,000.
Unless you are very rich, I see absolutely no sense in buying an exotic luxurious phone or car when you know the spare parts are scarce in your locality or when you have to pay as much as it costs to purchase a new one just to import the spare part.
In the words of Seth, “no one needs a $200 mouse when a $9 one is faster and easier to use.”
In this modern age, luxury is still good and desirable but it cannot take the place of utility, at least for the financially intelligent.
⚠️Please don’t get me wrong…⚠️
If you have the budget for it and you gain personal satisfaction from using luxury items, please, by all means, indulge yourself … ?
Get yourself a Ferrari, a Porsche, a N200,000 i-watch and every other expensive stuff that makes you feel good.
I am with you on that.
Besides, there are many situations where certain luxuries are worth it…
For instance, a quality N3,000 underwear will always be more comfortable and durable than a N500 alternative.
An MBA from Harvard will always be better and more rewarding 100x than one from the University of Uyo, anytime.
The value you get when you pay highly for a widely recognized and experienced “high-class” Coach or Mentor cannot be compared to a cheaper alternative…
There are thousands of other examples of cases where Luxury literally means you’ll get value for your money.
However, as a FINTELite, the major thing you should look out for – even when you have all the money in the world – is the Utility, the functionality of the Design and the Value you’ll get in exchange for your money.
It is an error for you to blindly assume that you will get value for your money simply because a product is the most expensive one in the market.
You have to realize that many times, when you pay for an expensive item, you are actually paying for the value of the Brand name, the packaging, the market hype and the story behind the product.
So how do you avoid being scammed with the “Luxury narrative”?
It behoves you to always do your research to find out if a cheaper alternative is more functional, reliable, durable, convenient or value-packed before dolling out your hard-earned money.
If it is not, then you have effortlessly justified the use of your money ?.
Doing this will ensure you don’t regret your choice afterwards.
What are your thoughts on today’s Financial Intelligence tip?
I really want to hear from you in the comments below.