Value for money (VFM) is a term used to assess whether or not an organisation (or individual) has obtained the maximum benefit from the goods and services it both acquires and provides, within the resources available to it. Some elements may be subjective, difficult to measure, intangible and misunderstood. Judgement is therefore required when considering whether VFM has been satisfactorily achieved or not. It not only measures the cost of goods and services, but also takes account of the mix of quality, cost, resource use, fitness for purpose, timeliness, and convenience to judge whether or not, together, they constitute good value.
Achieving VFM is also often described in terms of the 'three Es' - economy, efficiency and effectiveness. The definition of the three Es approved by the Value for Money Committee is as follows:
In this regard, I am using the term "value-for-money" to mean that a product-- either a good or a form of service-- has met my own subjective measures of economy, efficiency and effectiveness. My judgment on which products are VFM is based on my first-hand experiences. Therefore, it does not mean that all other products from the same category that I do not feature in my blog, are not value-for-money.Economy - careful use of resources to save expense, time or effort.Efficiency - delivering the same level of service for less cost, time or effort.Effectiveness - delivering a better service or getting a better return for the same amount of expense, time or effort.
Moreover, my opinion on products being VFM could change over time as other products improve or as the products I earlier judged as VFM could depreciate in value, for one reason or another.
