I’m not entirely sure what this means, but I think that there is some kind of mathematical process involved in pricing. It’s not as clear as it sounds, but I think it has something to do with the way that we perceive things. With that said, I’m not actually sure of the mathematical part of this.
Price is a human perception of value. The problem is that we don’t seem to be able to accurately price things. Even though we can accurately figure out the quantity and price of something, we don’t seem to be able to tell what that thing is. We think we think we know because our experience is so consistent we feel comfortable.
Im not so sure that price is the problem. I think the problem is that our perception is so inconsistent that we can’t tell what the difference is between something that is of high and low price. When we are buying something, we arent thinking about it in terms of price, we are thinking in terms of how high it will bring us in the long-term and how much we will save.
There are two aspects to this. The first is that the price of something is often the result of the cost of the labor that is required to produce it. In the case of a car, you pay for the labor of getting it from factory to dealer. The same for a house, the cost of labor to build a house is the cost of labor to get the building permit to build the house. This is why car dealers are constantly gouging you.
The second is that price is only a good indicator of value. It’s not a good gauge at all. For one thing, it’s not the kind of value you want to base a decision on. The best indicators of value are the costs of production and the cost of consumption. If you have $50 in a bank account to spend on a good, it’s not a great indicator of value.
The second reason why price is only a poor indicator of value is that it ignores a crucial factor that is an actual value indicator: time. The number of working hours is a poor indicator of value because the time that a worker spends building a house is a poor indicator of what the value of their labor is. A house that requires 50 hours of labor to build is a poor house because that means that 50 of those hours were spent building it.
This is why we should always remember to put a house on our list that we plan on selling. That way when the time comes to sell we know the time we spent building it is in the same ballpark as the time we spent building it. That’s because the value to buyers is the time they’ll be spending to get a house that they’ll be happy with.
People who list their houses on a real estate site will usually tell you that they will be paid a certain amount of money to build a house. That’s not true. It’s a marketing term that means that it would take them (or their agent) a certain amount of time to build a house that meets the buyer’s price. In reality, you will get paid to build a house that you like.
One of our favorite places to buy a home is the old town or something. People living there will tell you that they will walk up to a building they just passed on the street and knock on the door. But even if the building is built in a small town, you will be able to walk out without having to knock.