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Agreed. Value, price, and cost are three independent variables. When they line up advantageously, you have a viable product. But one does not determine the othe
by damoncali 15y ago
Agreed. Value, price, and cost are three independent variables. When they line up advantageously, you have a viable product. But one does not determine the others.
- hammock 15y agoGood point. There are actually four variables - one of them is usually money though, so we don't think about it that much. The four are buyer price (= contracted price + opportunity cost to buyer) buyer value (what the product is worth to her) seller cost (cost to create product + opportunity cost to seller) seller value (value of what he will be receiving in return, usually face value of money)