Tuesday, October 10, 2006

What is the true value...

So, here I sit with my focus on value and I discover that value isn't something as obvious as I thought.

If it cost me $1 to make something and I sell it for $10, then that's a financial value of $9 dollars per sell. That looks really valuable.

But what if it costs me $9 dollars after the sale in support? Then there is no value. How much something is sold for is only part of the equation.

The hard part some of the time is finding the cost. What may initially look good may actually be very bad in the long run. And if things are bad in the long run, things are only going to get worse, not better.

Therefore, we need to find the true cost of what we think is valuable. If it is still valuable with the costs factored in, then do it. If it isn't, then don't. And if we find that we've made a bad decision, then we should change it.

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