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More money based on when and how much

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 Profits for vendor and client

There are three costs involved in a client-vendor relationship: the cost of creating the product, the amount that the vendor is charging and the amount that the client is paying.

This means that there are two sets of profit: 1) For the vendor, their profit is the sales price minus their production costs, 2) For the client, their profit is the value received, minus the amount paid.

The client is looking to receive the greatest value and pay the least amount for that value, while the vendor is seeking to reduce their costs and charge as much as possible. Let’s examine why this

 

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Old invoices eventually become worthless

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