Money is quantified or metered value. It’s a probable type of value.
If you were given a laptop and N50,000, you will try to estimate the value of the laptop but as for the cash, the value already flashed in your mind. Reason is quantification.
Money also places value in a type of scale. The best scale ever used in transactions since the Era of barter trade.
A principle we can find is this : For every weight of value, there’s an equal weight of money.
A laptop is a form of value. Let’s say it costs 70,000. You bought it from a retailer, making a transaction and getting the item. There’s an exchange in value. The retailer bought the laptop at 65,000 from the company, making a transaction and getting the item. Another exchange in value. For the company, they have an inventory of parts. Some of them buy parts. Each parts have their individual value, and cost of manufacturing a laptop totals 60,000.
For the retailer that bought the lappy at 65000 and sold at 70,000, you might want to question the equity or equality in those.
The retailer, being of service made the laptop available to you.
The service, for an item such as a laptop, could attract an extra 5000 which should be termed as profit to the retailer. The retailer made it available for people like you who will value it and bring your money. (Availability and access is the value the retailer provided, The laptop is the value that the company provided)
And it did.
Hence service is a type of value.
And for the company, Their service(Designing a laptop out of raw materials and marketing) was able to attract money from someone on the other side of the planet, and eventually around the world through series of exchanges made possible by the equality that money has inflicted on value.
That’s why they say money makes the world go round.
Look at this_
A laptop contains a thousand parts and in most cases each of them are manufactured separately.
Take the cpu core for example, it’s being built by people who are serving in the lab.
Cpu components? Silicon and all.
Observe the value chain;
Silicon is valued by the engineers. CPU is valued by the phone manufacturers. The phone is valued by the consumers (Value here comes only after its marketed)
Service is intangible, made out of ability and skill. Both comes from knowledge. All these are values.
Reversing the chain
Knowledge makes skill, skill makes service. Whatever happens at this point, the by product is money. (Unless marketing wasn’t involved)
What do we learn? More principles below;
1. Service without marketing will fail to arouse value which will bring money.
———-this is the reason why alot of talented singers aren’t in the spotlight.
2. All goods on the fundamental level, was service.
3. Providing service is the starting point to earning money. Convert your knowledge to service. If you sell goods, know that the goods have its own value. And your service has a stretchable value.
Let’s talk about stretchable value.
The same clothes sometimes get found on a boutique and on a roadside. Let’s say that of roadside is 5000 while that of boutique is 10,000
That of the boutique is more expensive. Why? It’s not because the cost price of the cloth in the boutique was higher.. It is almost same with that of the road side.
But the boutique owner offered a stretched service by (creating a collection of clothes, a recommended wardrobe clothings, advice, convenience of shopping and more) and if the profit of the roadside seller was 1000, this one gets 6000.because of her service.
Success/greatness lies in serving. Look at this
When I was still a kid, my siblings used to have disputes over stuff including chores. I started a paper money where I tore paper and made something we can use to “buy” something from ourselves.
This initiative smoothened the flow of things in the house by a lot as we were all striving to make money so that we can use the money to get stuff from others
The point is if the money you make won’t get people to give you stuff or do stuff for you(serving you) , you won’t save money talk more of making money.
Imagine you succeed in your field and you’re now worth a million dollars. This money is quantized value.
You bought a mansion. The house is also a value that came from hundreds of bricklayers and workers that built the house. They just served you.
You bought a car. A thousand engineers including the shippers just worked for you.
You now buy a laptop. Figure out what happens from all I’ve discussed earlier 😉
The ultimate purpose of money is to help everyone SERVE everyone.