Cost vs Price vs Value
Ditching Hourly
00:00
The Only Three Numbers That Matter When Calculating Profitability
When determining profits or r i from a project, there are three numbers that matter. Cost is the minimum amount a seller is willing to accept. The value is the maximum amount a by er is willing to pay. And the price is the actual amount of money that changes hands between the buyer and seller. Price is typically pretty concrete and objective, but cost and value are completely subjective. They're based on a whole bunch of very squishy things like mood, context, timing, urgency, risk, desire, personal preference and so on.
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