Try appraising real estate for a while, it’s a strong lesson in: something is worth whatever somebody is willing to pay for it. Can be higher than cost, can be lower than cost, but the willing buyer is the key to the whole valuation equation.
something is worth whatever somebody is willing to pay for it
That’s a naive short-term approach to valuation.
Real value has to be measured in some kind of revenue generation, or - at least - cost mitigation. Otherwise what you’re describing isn’t value but expense.
the willing buyer is the key to the whole valuation equation
The willing buyer is the key to perceived value. But suckering someone doesn’t increase the utility of what you sold them.
cost != value
Angry Labour Value Fundamentalist Noises
Try appraising real estate for a while, it’s a strong lesson in: something is worth whatever somebody is willing to pay for it. Can be higher than cost, can be lower than cost, but the willing buyer is the key to the whole valuation equation.
That’s a naive short-term approach to valuation.
Real value has to be measured in some kind of revenue generation, or - at least - cost mitigation. Otherwise what you’re describing isn’t value but expense.
The willing buyer is the key to perceived value. But suckering someone doesn’t increase the utility of what you sold them.