Time to Value<\/a><\/em><\/p>\n\n\n\nThe nature of economic value follows a natural progression from commodities to goods to services and then to experiences. Each step along the way adds value.<\/p>\n\n\n\n
What is classified as a commodity?<\/h2>\n\n\n\n
Think of coffee. The coffee bean is a commodity <\/em>to be sure. It is widely traded on the futures market and is a classic example of economic elasticity. When it is roasted and packaged it now becomes a good<\/em> that is distributed throughout various retail channels. When it is brewed it now becomes a service<\/em> that is available at cafes, restaurants, etc. When it is served in a high-end restaurant or espresso bar, where the ordering, creation, and consumption of the cup embodies a sense of ambiance or sense of theater, it now becomes a distinctive experience<\/em>.<\/p>\n\n\n\nIt is interesting to note that the price One is willing to pay increases as the good or service moves along this evolutionary path.<\/p>\n\n\n\n\t