By Kartik Jhaveri

A sculptor who works with wood from the jungle, spends hours carving beautidul wooden toys. Now let's suppose he were to spend the same time making a wooden structure instead of a toy, using the same amount of wood and other materials.

Which product will fetch a better price? The truth is that the final sale depends on your 'buying behaviour'. What type of shopper are you? Take stock:

·      You would  pay the lowest price for roadside goods.

·      You would bargain and ask for a discount if you were to buy from a street shop.

·      You will pay a hefty sum if the same product is sold in an art gallery or a shop in a five-star hotel. Not only will you pay big money, you will also treat the product with utmost care -- because you would like to believe that it is an invaluable work of art.

The subsequent question that arises: why are you willing to pay a different price for a product, which incurs the same cost?

The answer: pricing is based on creation. If the sculptor created a toy, the pricing would be different and lower compared to a deity or say, some other structural art form.

We pay a higher price for what we perceive to be better. There is, obviously, no sense of pragmatism in this buying behaviour as it is controlled by our emotions.

Smart shopping mantra

There is nothing right or wrong about letting your emotions rule when you shop -- as long as it does not hamper your growth, and subsequent achievement of financial goals.

But if your buying behaviour reflects these mantras, then you are on the path to contentment!

·      You judiciously weigh the price of a product against the benefit, the product’s utility and the value it brings to you.

·      You have a long-term perspective.

·      You are content with what you get and don't compare your shopping list with that of others around you.

So, whether you buy a mobile phone or a painting, it’s the price that is important because, ultimately, what you pay is what dictates the future of the asset you create.

Kartik Jhaveri, an expert at Financial Planning, is a Certified Financial Planner and a Chartered Wealth Manager. He may be reached at kartik.jhaveri@transcend-india.com.

Disclaimer: The contents of the above articles are the intellectual property and copyright of the author, Kartik Jhaveri. No part may be used or reproduced in any form or manner. If you choose to act upon the information contained in the above article it is at your own risk. This article is purely educative and you are strongly advised to consult an expert prior to taking any significant decision.