What Is Price, Cost and Value
What is value?
Value is demand, ability to do it and difficulty in replacing you or product. Price is the amount that a person is told that a product or service is worth. People always argue about price.
Price is not the problem. Value that is offered in connection to the price is the point. If I pay for something, then that is the price.
What will it cost me?
The cost is not the same as the price. For example:
I can call a subcontractor to pour concrete to my front door without rebar for a cheaper price. The concrete settles and starts to crack in six months. Do I repair the crack? Do I get the concrete poured again with rebar? The price was for the concrete pour without rebar. The cost is what will be spent to fix the problem again. The long term is the cost.
What is Price?
The value determines the price. The better the value the less the cost will be long term for customers. You create value in proportion to your price and display reliability to establish that long term there is no extra cost.