There was a time when my youngest son would put a price tag on everything in his room so he could get money to buy the video games he wanted. He would lure dinner guests up to his room and ask them if they wanted to buy anything from his room. Many an “obligated” guest did.
I remember one time he had asked for something at the store that cost $5. I purchased it for him but as soon as we got home, he put it in his room on display with a price tag of $3. I told him that I just bought that for him for $5…how could he sell it now for $3? (“we would lose money”) He replied, “It wasn’t my $3!”.
In that instant, I knew he understood the meaning of cost of goods sold. In my own businesses, I wish I learned that a bit sooner.
