Why does a diamond ring cost thousands, but the water you drink is basically free? Why is an NFT of a pixelated monkey somehow worth more than a real monkey (or even a real car)? And why do some people spend $5 on coffee every morning but refuse to pay $1.99 for a useful app?
The answer?
People are weird.
Welcome to the strange, irrational world of how we value things—a place where logic takes a backseat, emotions run wild, and entire markets are built on perception rather than reality.
The Great Illusion: Price ≠ Value
We love to think that prices are based on cold, hard logic, like materials, labor, and production costs. But if that were true:
- A luxury handbag wouldn’t cost 100x more than a normal one.
- A celebrity’s old sneakers wouldn’t sell for more than a brand-new car.
- A blue checkmark on X (Erstwhile Twitter) wouldn’t be considered a “status symbol.”
The truth? Value is just a beautifully chaotic mix of psychology, social influence, and straight-up marketing wizardry.
The 5 Illusions That Drive Value
1. Scarcity – If There’s Less of It, We Want It More
Diamonds, rare sneakers, limited-edition anything—it’s all about making something hard to get so it feels valuable.
- Example: Gold is expensive, but if we found a planet made entirely of gold tomorrow, guess what? Prices would tank.
- Lesson: Just because something is rare doesn’t mean it’s useful—but it does make people want it.
2. Branding – When Logos Cost More Than the Product
Is a plain white T-shirt worth $5, or $500? The answer depends entirely on whether it has a Gucci, Supreme, or Balenciaga logo on it.
- The real cost? Maybe $10 to make.
- The perceived value? Whatever the brand convinces you it’s worth.
- Quote to Ponder: “A brand is not what you tell people it is. It’s what people tell each other it is.” – Jeff Bezos
3. Emotional Attachment – Why People Pay for Sentiment
Why would someone pay millions for an old guitar? Because it belonged to Kurt Cobain.
- A product isn’t just its function—it’s the story behind it.
- This is why people buy souvenirs they’ll never use, pay for autographs, and keep childhood toys forever.
4. Social Proof – If Everyone Else Wants It, So Do We
If everyone is lining up for a new phone, it must be worth it, right?
- Think of hyped sneakers, concert tickets, or new tech gadgets—people value things higher simply because others do.
- The Fear of Missing Out (FOMO) is a real economic force.
5. Utility – The Rational Part (That We Ignore Half the Time)
Okay, sometimes we do value things based on what they actually do:
- A car gets you places.
- A phone helps you communicate.
- A house gives you shelter.
But let’s be honest—most of the time, we’re paying for more than just function.
Why Does This Matter?
Because understanding how people value things explains almost every weird pricing mystery:
- Apple vs. Android: Similar hardware, but one has stronger branding & social proof.
- Designer handbags vs. a $30 backpack: One holds status, the other just holds stuff.
- A $300 bottle of wine vs. a $15 bottle: Can you actually tell the difference? (Be honest.)
The Takeaway: Everything Is About Perception
The next time you wonder why something is expensive, ask yourself:
✔ Is it actually useful?
✔ Or is it just rare, well-branded, or hyped?
And most importantly: Would I still want it if no one else cared about it?
Disclaimer: Read Before You Rethink Every Purchase
This essay is for entertainment and self-reflection purposes only—not financial advice. If you decide to sell your expensive sneakers and start valuing only “practical” things, don’t blame us when you miss the thrill of irrational spending.
Also, if you overanalyze your next shopping trip and have an existential crisis over why you’re paying extra for “artisanal” coffee, that’s on you.
Happy spending (or questioning it)!
