Whether you are in business or if you are a consumer, it’s worth your effort to review how products or services can be or are priced in the real world.
One is based on a cost-plus basis with a standard mark-up. That add—on is subject to competition.
Some times the real competition comes from those offering accessory services, to add to basic services. The basic product or service is sold at around cost. That service may even be free or almost negligible, in relation to cost, as is the safety razor. Profits come from the razor blades.
What the bottom line price amounts to will depend on what the consumer feels the product or service is worth. Often, government bureaucrats get into the act, but they manage to get the concept wrong with their meddling.
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