Cost as a function of price
When pricing, it’s common to start with the cost and then add a percentage.
For example:
“If our staff rate is $100/hour and it takes 10 hours a month, then our cost is $1,000. Add 40%, and the price becomes $1,400/month.”
That seems logical… but what if it’s not?
It treats cost as fixed, and price as reactive.
What if you flipped it?
What if cost were a function of price — not the other way around?
Start with the price, then ask: “How could I deliver the result the client wants at that price?”
Then design the product or service to meet that price profitably.
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