Your argument applies well to commodities. Today there are so many commodity products that we're almost drowning in them. Amazon, Walmart, Costco, and others h

Your argument applies well to commodities. Today there are so many commodity products that we're almost drowning in them. Amazon, Walmart, Costco, and others have risen because they are optimized to take advantage of commodities. Your argument does not apply to new products and services. Let's say you've written a new AI-driven CRM product that maintains customer contact automatically without being overbearing. How do you price it? There's a lot of risk because it's never been done before and you don't know how easy it is for other companies to copy you. You need to build in a margin that allows you to fund not only your current staff but also future improvements. So, in short, it's important to know whether your product or service is a commodity (or whether commodities compete with your product). It deeply impacts the way you develop your pricing.