Understanding The Difference Between Price And Value; Product And Benefit
21st August 2008
Earlier this year, in response to yet another editorial somewhere where someone insisted that if something has a price of zero, it means that people don’t think it has any value, we pointed out that price and value are two different things. Price isn’t determined by value — it’s determined by the intersection of supply and demand. Value plays into that, by determining what the demand part is.
An excellent discussion of a distinction not commonly understood by the ignorati.