October 13, 2023

The incredible value in some services

cash coins money pattern
Reading Time: 2 minutes

There are a lot of things we purchase that aren’t cheap, but we buy them anyhow. This could include your house, your car, or even your coffee from Starbucks. None of those are a great value, but we consider those expenses to be worthwhile.

In thinking through what things cost, though, a few seem very underpriced for what they deliver. Market forces and competition have forced them to stay low, which is a win for all of us.

Trash service

The trash company we use (and love) isn’t the cheapest around, but they’re still an incredible value. At $72/qtr for trash pickup, that’s just $5.53 for each one.

Imagine making this proposal to someone else: “I’m going to leave a bunch of trash in front of my house. I want you to get a big truck and come and pick it up. Do this every week at the same day and time, and I’ll pay you $5.53 for it”.

That’d be crazy! For a single person to handle a single house, even $50/pickup would hardly be worthwhile. The economies of scale and competition help bring that price down to something that is just unbelievably inexpensive, and I love it.

Fiber internet

The other one that comes to mind is our internet service. We pay AT&T $70/mo for 1GB fiber to our house, with essentially no downtime ever. That’s $2.33/day for us to use internet service on five computers, four phones, and a variety of TVs, tablets, VR headsets and other devices. We stream movies, play games, write blog posts, and it just flies. For $2.33/day? That’s amazing!

I’ll still gripe (even if just internally) about many of the bills that I have to pay, so I try to even that out by appreciating how amazing some of these services are for just a tiny fraction of the cost of what their value is to us.

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Posts

I’m not good at this

Reading Time: < 1 minuteWhen giving a talk, many of us can be nervous and we’ll often feel a bit of imposter syndrome. While sharing weaknesses during a talk…

Read More

If you’re the same person you were ninety days ago, you’re falling behind

Reading Time: < 1 minuteThey say that in business you’re either growing or you’re dying. It’s nearly impossible for a business to just sit at the same level year…

Read More

SKUs per square foot

Reading Time: < 1 minuteIn the books that I read, Costco tends to come up a lot. They’ve grown slowly and steadily for decades, and they’re a business that…

Read More