“Price is what you pay; value is what you get.”- Benjamin Graham, quoted by Warren Buffett. The value beyond the priceThis week, I read that Malta is planning to remove free public transport for most residents from outside the EU who do not have long term residency. The proposal is expected to be announced in the upcoming budget. This saddened me. People who live, work, and contribute to the country deserve to feel that they belong. To me, this proposal sends the opposite message, treating some residents as less deserving than others. It also made me think about the difference between price and value. Malta introduced free public transport to encourage people to use buses instead of cars. But removing the fare only addresses one reason someone might choose to drive. If a bus journey takes much longer, involves uncertain waiting times, or makes getting to work on time difficult, a free ticket may not be enough. People also value their time, convenience, and peace of mind. For those who rely on buses, free travel can make a real difference. For someone who has the option to drive, the service needs to offer enough value to change their habits. We can reduce the price of something to zero, but we still need to make it worth choosing. #Value #Price #Fairness |
Week 43. When Free Is Not Enough
“Price is what you pay; value is what you get.”- Benjamin Graham, quoted by Warren Buffett. The value beyond the priceThis week, I read that Malta is planning to remove free public transport for most residents from outside the EU who do not have long term residency. The proposal is expected to be announced in the upcoming budget. This saddened me. People who live, work, and contribute to the country deserve to feel that they belong. To me, this proposal sends the opposite message, treating some residents as less deserving than others. It also made me think about the difference between price and value. Malta introduced free public transport to encourage people to use buses instead of cars. But removing the fare only addresses one reason someone might choose to drive. If a bus journey takes much longer, involves uncertain waiting times, or makes getting to work on time difficult, a free ticket may not be enough. People also value their time, convenience, and peace of mind. For those who rely on buses, free travel can make a real difference. For someone who has the option to drive, the service needs to offer enough value to change their habits. We can reduce the price of something to zero, but we still need to make it worth choosing. #Value #Price #Fairness |