Cost, Price and Value; Sellers and Customers Meeting Point
Value is what everyone pays for, either time, expertise, effort, idea, additions, goods, services, and so on, if it isn't worth it then it won't be paid for. When people ask you how much a thing costs, they are asking you about the price of the thing. When a customer asks for the cost of a good/service, they are asking for the combined amount invested to getting it ready for taking such as time, effort, rent, interest, taxes, duties, and so on which was required to get it ready for purchase.
When you are done, you should be able to give a price for the goods and the price is cost + profit. You do not give the cost of a commodity without considering the profit to be made on it. If you give customers the cost of a product without including profit, you will only be breaking even, you will not be making a profit at all. The risk involved in a business is determined by risk, so when you are taking a large risk, you demand a high price but when the risk is low, the price is low.
Cost + Price = Value. When a good is produced, the seller determines the price of the good but the customer determines how valuable the goods are to them. When the goods are less valuable for the customer, they either negotiate or go for a better option. What is fair to some people can be cool to others and what is too cheap for some might be too expensive for others.
The price is meaningful when it meets with value and it becomes less meaningful when the value is less than the price. Paying for value is what customers do, giving a price based on cost and profit is what sellers do, an agreement is what determines sales.
