Age Isn’t Important, Words Are

If you confuse what is a commodity versus what is a specialty, you are almost certain to lose, at some point. The questions at that point will be: when, and how much?

Even people with practical experience get this wrong. The issue is that you may not be able to tell the difference because you can be wrongfully told, both unintentionally, and unfortunately, intentionally. There’s a reason I am with you here, nonstop. There’s a reason for the now very-long list of affiliations, appearances, etc. It is so that you can attach your common sense and ask “is this guy makin’ all of it up, in front of this many groups, that have vetted him?” I realize this is overkill but it’s in response to our skeptical society. Back to the point…

In finance, the issue is that you are being sold a commodity service as if it was a specialty, and charged a specialty price. This is precisely backwards.

Doesn’t matter your age or background, this is among the first things you need to distinguish.

  • Is there a similar or very similar item, at the same price? If there are two items that look the same, but the prices are wildly different, then why? it can be for a long list of reasons, you do deserve an explanation.

  • If I am wrong, who/how am I getting the explanation to decide if it’s a commodity or a specialty?

  • If I am wrong, what would the downside be?

Do you notice the list? It is the same list I would use if you are looking to buy a lawn mower. In my world, for the record, there is a reason that pure execution of any service has no charge. Simply put, it’s a commodity. For other matters, though, that’s different, pretty certain we are swimming in Lake Specialty.

Ultimately, Jae’s Corner to help you understand the differences here. The specific topic? Eh, the world will change, the circumstances will change, your requirements and objectives will change.

Your need to distinguish commodity vs specialty? Necessary in every sitch.