Why Pay Exorbitant Fees?

A lot of individuals ask why people go to extreme lengths to purchase a good or service they can barely afford. Why is value attached to expensive commodities and services?

The human construct of worth is often based on the price-value of a commodity or service.

An expensive commodity doesn’t necessarily reflect worth, but can sometimes impose value. Most people buy expensive things because of the ideology of being valuable, or the feeling of self-aggrandizement for purchasing any of such commodities.

Case Scenario

Apple, for instance, understands this principle, so why not exploit it to increase demand?

Whenever you see an individual using the latest Apple product, what comes to mind? (That’s rhetorical, you don’t need to answer that)

Well, what Apple does, is try to impose value on their products by selling it at extravagant prices to its customers. Now, you’re probably thinking why don’t the customers complain or stop buying these products despite the incessant increase in prices over the years? The answer to that is not far-fetched. I know this, yet I buy Apple products, this particular article was in fact, uploaded from an iPhone.

Apple products are not just expensive because of the value they impose on the buyers; considering a wide range of features they offer. Ones you can hardly find on other tech brands. Features like the;

iMessage, High end-end data security and encryption, FaceTime, iOS, AirDrop, Siri, AppStore and iTunes.

However, we all know Apple products could easily go for a much lower price. Nonetheless, are sold at expensive rates. Apple understands that products of high price sales preach and depict quality to the individuals buying them.

Why Humans go extreme lengths to purchase goods/services they can barely afford:

Humans are creatures of desire and respect. Everyone may not want to be loved, but everyone wants to be respected. We sometimes purchase goods and services at exorbitant fees because of the illusion that it creates self worth. This is a radical philosophy that has been accepted by a myriad of people around the world.

This ideology of expensive things reflecting more worth and value is diverse and not just on commodities, but its outreach is spread across one’s education, diet, travels and tourism, social life, religion and as strange as this may sound, one’s physique.

Why do people pay exorbitant fees?

As a child growing up in Nigeria, I never saw the logic behind one paying huge fees to attend a private college that will get them the same degree and job a public university would. My philosophy was clouded by naivety, for I didn’t have the knowledge of, nor did I, at that time, understand the art of networking.

The most popular case-scenarios are notable in the South-Eastern and Western parts of Nigeria. In these parts of the country, we observe middle-class parents working themselves to their teeth so their kids can attend the most elite schools in the country. They’re not doing this just so their kids can get a good education in a comfortable learning environment, but so their kids can have seats at the table of the Rich.

Most upper-class individuals can easily afford the tuition of an elite school, but hardly can a middle-class individual afford such, yet you find these middle-class parents working hard because they understand the principle of Networking and know they’re not just paying for their child’s education, but also, an opportunity to dine with the rich. Now, what happens when these middle-class kids mingle with the kids of the Rich, creating connections, and having relationships with them? The truth is that the rich understand money flow and because of this, they tend to marry, host conferences, dinner nights and movie premieres amongst themselves.

Why is networking important to rich people and how can the middle-class benefit from this?

Networking maintains the money flow, connections, and wealth distribution in a society. The rich understand the value of this and as a result, tend to build relationships amongst themselves that help creates a seamless distribution of wealth across generations.

The middle class, on the other hand, can tap into this network by sending their kids to schools, conferences, churches, societies, clubs and events where these rich people are. People sometimes pay exorbitant fees not for, the quality it offers, but the value it imposes and the feeling of self-worth it gives.

Expensive is the new quality. We’ve come to a time in the world where expensive things are much more appreciated because of the values attached to them.

Disclaimer:

Despite the fact that people buy expensive products and services because of the comfort and satisfaction it gives, there’s a lot more to why people go extreme lengths to pay exorbitant fees than just comfort and satisfactory services.

Williams Shakespeare once said, and I quote:

“Nothing is so common as the wish to be remarkable”

Every individual wants to be seen as remarkable, unique and a person of worth, and we sometimes, create these desires by the products and services we buy. Also, because of the feeling of self-worth and confidence it gives. Sometimes, the products and services we use affect how we’re seen by other people.