Warren Buffett is valued as the third-richest man in the world, with a net worth somewhere around $72.7 billion. For context on how much money that is, he could lose $2 million per day --day -- and not go broke for 98 years --years. In short, it’s a lot of money. Buffett made his money predominantly off of investments, and is called “The Oracle of Omaha” (where he lives) because of his strong investment record. Athletes, celebrities, and business founders all over the world seek out his advice on a weekly basis.
One of Buffett’s most famous quotes is fairly simple: “Price is what you pay. Value is what you get.” Despite the simplicity of the quote, a lot of business owners don’t understand the difference. Especially in small businesses, everything tends to be evaluated in terms of cost -- i.e. price. This is logical because small businesses have less resources than bigger, enterprise businesses. But that’s also the reason they need to focus more on the value they’ll get from something (another way to think of this is “ROI”).
Here’s a quick example from your personal life: let’s say you have a big family, and you buy a minivan. The minivan may cost you $40,000. That’s the price. But if it lasts 8-10 years and gets your big family to all the important life moments, well, the value is much higher than $40,000. It is the same in a work sense with Field Service Management software. Your cost (price) will be one thing. The value (ROI) from it will be entirely different. You need to start by understanding the cost, or pricing, part of the equation. That’s what this white paper is for.