Price is 100% payment for labour only! Because nature is a gift by definition. That’s the basis of pricing. But in practical life there are different corrections plus and minus.

Divsion of Labour and Price

For instance time (fruit), place (cigarettes, food, water), scarsity (art) or abundance (books), etcetera. Including these we don’t speak about price anymore but about value. Thus price is not only a figure but it’s the work and enthousiasm of a human being who made it for you! It is human reality as well! Buying and even negotiating is a process which can reveal us the reality of human labour and give us a feeling of deep respect for the other. It gives us in every situation the basis of what trade is and what fair.

Price and Value

Although the basis is simple, practical pricing is indeed much more complex. Price discrimination (different prices for different incomes), speculation, subsidising, taxes and insurances, risk premiums etc etc are making every price calculation a jungle! But even then all 100% price is going somewhere to someone who did something for this product or service! Direct or indirect… Every discussion about price is therefore talking about what labour is delivered, what is real what is fair what is value.

True Price = True Income

But pricing is in the end also very simple again: only a way of administration in exchanging products and services. For making possible that the producer becomes enough income to make the next product. Therefore we should say: true price = true income!

Read more: