When people buy a product or a service, they do not only pay with money, they pay with many ‘invisible dollars’:
· They invest their very precious time
· They risk their reputation
· The opportunity cost of not pursuing a different product/outcome
Forgetting these invisible payments can cost us dearly.
Similarly, the retailer pays with those same invisible dollars (i.e. indirect costs) for the products.
· We don’t factor the opportunity cost of the working capital,
· We don’t price risk of obsolescence and damage into our cost of sales.
Forgetting these ‘invisible costs’ can cost us dearly