Why buy a mug from Good Brew at a price more than utilitarian value?

Austrian economists, such as Carl Menger and Ludwig von Mises, emphasize the subjective theory of value.

This subjective value theory posits that the value of any good or service is not exclusively determined by objective factors like inherent utility, production costs, or labor input, but rather by the subjective preferences and judgments of individuals.

Value arises from how much satisfaction or “psychic profit” a person expects to derive from something and this value can include aesthetic, emotional, or personal appeal beyond mere functional use.

Paying $25 USD for a coffee cup with the likeness of an Austrian economist and a cogent quote of theirs when the cup is available from bulk merchandise wholesalers for 7 dollars is not silly.

The decision is perfectly rational and valid, provided that the buyer subjectively values the artistic element enough to justify the extra cost.

The “utilitarian value” of a cup such as its ability to hold boiling hot fluid for drinking is only one aspect. The artwork adds subjective value through beauty, uniqueness, or personal enjoyment, which can outweigh pure functionality in the individual’s ranking of preferences.

In essence, Austrians view market prices as emerging from voluntary exchanges where both parties benefit subjectively, without judgment on whether preferences are “practical.”

You could take your time to sketch your own pictures of your favorite economists, you could research their publications and find historically accurate statements that they made, you could track down your own vendor of quality but utilitarian cups, you could stick your sketch and your quotes on your mug and varnish the combination, or you could simply find one of our mugs whose appearance and quality you value, and exchange some of your currency with us at an agreeable price for our effort to prepare and assemble the products in a way that makes them very convenient to acquire.

We hope you like our cups enough to buy one and, yes, we realize that a 25 USD coffee mug is a bit of a luxury item given that you can find perfectly useful blank ones for 6 dollars or even settle for a 2 dollar pack of 50 paper Solo cups in a pinch.