Cost is a fact, Price is a decision

I had the following stated to me today in a meeting:

“Cost is a fact, Price is a decision”

What a great quote and very true.

The cost of a product or service is what it is…it costs X to produce that produce/server. The price of that product/service is a decision that must be made. Do you want a 10% margin or a 20% margin? That’s a decision.

Of course, you can decide to lower your costs…but once you’ve made that decision and implemented the change, your cost is your cost but your price can change based on circumstance (preferred client,etc).