COST

It's easy to get Cost and Price confused.

Typically, the seller uses their total costs to establish the Price paid by the buyer, which then establishes the buyer's "cost" to own the product or service. It's the answer to the question, "What does this cost?"

From the buyer's perspective, Price is for a Commodity, and Cost is the Perceived Value of all purchase components.

This isn't as complicated as it might sound; without building Perceived Value into your offering, you are selling a commodity, which means you are selling on Price.

If you are flying from New York to LA, you can get there for $349—that is the "Price" of a ticket—or you can get there for $1299, which is the "Cost" of First Class. You still arrive in LA; it is the Perceived Value of what the $850 provides: baggage fees, bigger seats, express check-in, club access, first-off the plane, and, of course, the status aspect. Have you noticed that First Class is always full?

The point of all this is to say, whatever you sell, whatever you offer:

Build Value, Build Value, Build Value.

It's worth the EFFORT.