Dr Herbie wrote:
Yes, but most people don't realize that this is how it works. They think that a 5 dollar stepstool at Walmart is a value. It's actually 5 dollars worth of labor from someone.
Getting off topic a little, but:
No, no, no. First rule of sales : the price of something is unrelated to the cost of it's production, it is set at the value customers are willing to pay.
The product costs x amount based on what the manufacturer pays to make it plus the markup. If the retailer sells it for more, then the difference is the labor of the sales dept, marketing, etc.
It's all labor, but labor is defined by each step along the way until you purchase it.
Not exactly, but anyway
.. And Services.... ?
Services are labor.
Think about it this way: Gasoline is free. It exists in the ground, and if you had a magical fairy who would pull it up out of the ground and refine it for you, you'd have free gas.
But, the reality is that someone has to drill for it, refine it, and ship it to you. Those costs are labor and they add up to the amount that you pay for gas.
Services are the same. You are paying for someone to provide that service through their labor. Or, they are providing that service by leveraging the labor of someone else. Their ability to leverage that labor is their own labor and that is what you are paying for.
Name me one purchased product, service, or whatever, and I guarantee that you can find the sub-pieces that are based on labor.