Price, value and cost are three concepts that are commonly used as synonyms. In this chapter we show that they have very different meanings and are highly variable.
For example, 1 kg of high quality grapes which are produced by a winegrower and sold for 1.30€, may be turned into a bottle of wine that a customer buys in a shop for 15.73€, or consumes in a restaurant for 26.12€. A price increase occurs at each stage of the supply chain, each actor along the chain charging a margin or markup until a final selling price is reached. But how does a winery choose the price at which it will sell its wine? Does it look at the competition, at production costs, or at its qualitative value?
Whatever the price charged, the wines arriving at the market place still need to face the imperatives of the laws of supply and demand.