The Difference Between Profit and Value

Green fronds

(Image: Theen Moy)

In today’s world, many decisions made are based on profit, not value. Even when value is considered, it’s done as an afterthought to earn profit rather than a priority.

For example, if companies are focused on value, there wouldn’t be so many mass-produced candy brands today, much candy advertisements targeting kids. A little candy once in a while is fine. But when you have way more junk options than healthy food options, when there are way more ads for unhealthy food rather than healthy food, then something is wrong.

Advertisement

If value is the driver, you will not have public transport companies that cut down on maintenance to maximize profit, thereafter causing a slew of transport issues. Think the public transport system in Singapore in the 2010s, which experienced massive breakdowns in that time, allegedly due to maintenance cuts as part of profit maximization.

If value is the driver, you will not see land “owners” or authorities raising rent again and again, in large increments and at short intervals, which then drives businesses out of the market. Every business takes time to build their audience and it’s more important to work on macro-guidelines that encourage businesses to thrive and serve the highest good of all, rather than regularly look for ways to cream their earnings. A relentless focus on profit leaves us with highly capitalistic businesses that perpetuate low-consciousness behaviors such as materialism and junk food eating.

If value is the driver, you will not see online coaches with elaborate sales funnels trying to sell you something every step of the way. You will not see trainers who rag on you for not wanting to buy their stuff. Seminar trainers in Singapore are known for doing this. There won’t be misleading copywriting and exaggerated claims — which are very common in online courses today.

If value is the driver, you will not see clothing companies churning out new clothes every season, marketing them as the latest fashion, convincing you to buy them as a form of an identity differentiator, thereafter getting rid of extra stock at discount prices before bringing in a new batch of clothes and doing the same thing all over again — even though a simple T-shirt can last for years before it gets worn out. Same for makeup. Isn’t it more impactful to help girls recognize that they are beautiful without makeup (or accessories or fancy clothes for that matter), and that beauty is a construct?

Profit is important yes, in this money-driven world. If we need money as a currency to live in today’s world, then we need to take steps to earn money to survive, pursue our dreams, and support others.

But there’s a big difference between (1) making decisions where creating value is the priority, and (2) making decisions where profit as the priority and value is simply a secondary afterthought as part of making money.

With the first scenario, you make decisions that better the world, while being profitable so that you can continue to do your work and serve others.

Advertisement

With the second scenario, you get decisions that maximize profit without regard of consequences, and where the audience’s well-being is considered as an afterthought — sometimes never. You get decisions where the bare minimum is done to honor people’s needs, sometimes even making decisions detrimental to the customers you’re supposed to serve.

With a profit-driven approach, you may get a wide selection of options in the name of serving others, like Chocolate with Almonds, Chocolate with Raisins, and Chocolate with Almonds and Raisins if you sell chocolates let’s say. But when most mass-produced chocolate today is unhealthy and all the options you get are really just one unhealthy variant after another (but with fancier packaging), having more options doesn’t uplift your life. It keeps you busy yes, it gives the illusion of choice yes, but it’s not going to improve your life, let’s kid ourselves not.

The profit-driven approach is also where the rich become richer and the poor become poorer; where people’s decisions are obsessively rooted in money and self-survival at the expense of others. It’s where societies become seemingly more affluent but are not necessarily happier or better-off — well, except for the top 1%. In some countries where the top few percent of earners literally control the national policies, you start to have a world like in Elysium — first in spirit, then reality. The scary thing is that this is happening right now, just that it’s happening so slowly that no one realizes that.

Doing what’s right may not be the easiest but it’s necessary. Consider the following:

  • Do you make decisions driven by value or profit? Do you make decisions based on what gives the most value to people or what gives you the most money?
  • Do you constantly think of ways to increase the top line at the expense of improving your products/services and what gives the most value to the end user?
  • Do you pursue ideas that add no real value to the world just because they are lucrative?
  • Do you allow yourself to work on projects that don’t earn big bucks but can serve the greater good?
  • Do you measure your success by the money you earn or by the value you give?
  • Do you beat people down in your quest to earn money?
  • Do you consider those who earn less money as “inferior” because you assume that earning less money = giving less value? (Not true by the way)

Choosing a value-centered path isn’t always the easiest. But it is important as it helps improve humanity. When you focus on value (while still acknowledging the importance of making profit to self-sustain), you change the world in a far greater way than a profit-driven existence will. When you focus on giving value as priority, you help lift the world into the higher consciousness levels of courage, love, and perhaps one day, enlightenment.

Read: