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Message 12 of 12
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cost doesn't determine demand
... but it does determine supply.

If customers aren't willing to pay cost plus something, then nobody can make a profit selling it. As supply therefore becomes more scarce, the customer's willingness to pay should go up. Basic Adam Smith there.

Exception for when you give it away. In that case, you're viewing your cost as an expense in marketing, for the most part.
Contributr
3rd Jan 2011