This seemingly simple difference causes a surprising amount of confusion — especially in fractional work.
Price is what you get for something.
Cost is what you give up to get it.
When you buy a car, the price the seller sets becomes your cost. You get a car, they get money.
When you sell a service, the price you charge becomes your client’s cost. Your buyer gets your service, you get paid.
But when you sell a car, your cost includes more than what you paid for it. It’s the time you spent cleaning it, the money spent on ads, the hassle of dealing with tire-kickers. That all goes in.
Selling a service is no different. Your cost isn’t just your time or effort—it’s everything it takes to show up and do the work well. The tools, the subscriptions, the insurance, the marketing. The calendar time, the prep, the context switching. The headspace. All of it.
And here’s the thing: none of that defines your price.
It might shape it.
It should inform it.
But it’s not the same.
Cost is your floor. Price is your decision.
Getting those confused is how you end up resenting the work.
Or over-explaining your rate.
Or negotiating against yourself before anyone asks.
So start by separating them.
Know your cost.
Then set your price.
We can figure out the rest after that.
Want to discuss how to maintain the right balance in your fractional role? Let’s talk strategy.
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