What’s a spare tire worth?

What do you think is the value of a new spare tire?

It seems obvious that a spare tire is a good thing to have. You don't need it often, but it's sure comes in handy when you do.

Imagine your car’s spare tire needs replacing. What is that worth?

A few minutes online will tell you what it would take to get a new spare tire for your car.

$50? $100? $200?

But:

That dollar amount is not the value. It's just the cost.

The value is what it's really worth to you.

The cost is just the effect of broad market forces, supply and demand.

The value on the other hand, depends on a variety of factors in your specific situation:

• Are you about to go on a long drive across the desert?

• Or do you only drive your car occasionally, in town, and would rather have it towed than change a tire yourself?

• Are you generally adventurous and cavalier?

• Or are you anxious about risk and looking to plan for every contingency?

Even if you're generally adventurous, there's a good chance that the value of that spare tire will be far more than the cost — especially if you're about to drive across the desert.

Here's the thing:

For a small purchase like this, we may not think much about putting a number on the value. It's easy enough to check the prices and make a quick decision.

But for larger investments, like the time and money you could put into major improvements to your CRM, it's worth thinking about the actual value, a question quite separate from cost:

Value in funding, in mission goals, in staff efficiency, and in the many intangibles that make up your organization's image and culture.

Without calculating the value, how could you even know if it's worth the investment to start?

And what’s more: how could you know if it was a good investment once it's done?

All the best,
A.