The physical value of a book is a measurable cost of paper, printing, and labor charges, but estimating the value of the book’s contents is difficult. Most intangible values are similarly challenging to assess. We purchase the intangible value of a book at its physical price. When revenues are generated, the added value produced can be realized. These revenues arise solely from sales, which are based on price, not value. In essence, there is always an imbalance between price and value, and this imbalance determines whether one is wealthy or poor. Management is the act that shifts this imbalance in my favor. - Joseph’s “just my thoughts”
The prerequisite for working is to earn a profit. Profit is defined as revenues minus costs and expenses. In other words, you must incur costs and expenses before you can make sales. Profits arise when sales exceed costs and expenses. If I overlook this straightforward reason, the harder I work, the more I will struggle and negatively impact others. Behind the concept of generating significant revenue lies an oversight of the importance of making a profit. Increased revenue also leads to more significant expenses. The total costs and expenses associated with making sales are referred to as prime costs. Many businesspeople in this world are unaware of prime cost structures and focus solely on boosting sales. - Joseph’s “just my thoughts”