Whether selling or buying, using the language of “value,” rather than price, is critical.
By Holly O’Dell
- Price can be defined as: the amount of money asked for or given in exchange for something else.
- Cost can be defined as: the value of the item
less the price.
In the simplest terms, then, if a purchaser spends $50,000 on a product that earns $100,000 in profit, the net cost of the product is —$50,000. And a negative net cost is a definite value.