Cost as a function of price
When pricing, the temptation is to determine cost, then increase that number by some arbitrary factor.
For example,
“If we bill staff out at $100/hr, and it takes 10 hours of work per month to handle the client’s books, then the price for monthly accounting services shall be $1000/mo + 40% = $1400/mo.”
…
But what if cost were a function of price, instead of price being a function of cost?
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