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Do you really know what your products cost? Or, just what your system says they do?

When your data tells you one thing, but your invoices say another, who do you trust?

And what if the purpose behind your costing model is the reason you can’t see what’s really happening?

If you’ve ever wondered why your numbers don’t match your experience, this episode is for you.

In this conversation, John Downes speaks with Dave Sanders, CEO of Bestrane, about the truth behind product costing and how CEOs can use it to make better decisions and improve their Organisation Performance and Value.

== How to reveal hidden behaviours through your costing model

== Why AI can’t replace good judgement in decision-making

== How accurate costing improves business performance and value

00:00 Dave Sanders and The Journey into Product Costing

02:38 Understanding Product Costing

04:10 Case Study: Electronic Components and Software

07:33 The Role of Invoices in Costing

17:40 Challenges in Product and Service Costing

21:52 Value-Based Pricing in Practice

23:10 Challenges in Service Pricing

25:26 Costing in Software Businesses

34:29 AI's Impact on Costing and Decision Making

38:20 Critical Actions for Founders and CEOs

When I work with successful business leaders to create their Strategic Plans and help them implement them, I often find that their product and service costing doesn’t tell the full story. Many assume they know their margins, until the data reveals how sales or customer behaviour drives unseen cost.

The first Insight is about Purpose-Driven Costing.

Many costing models exist to satisfy accountants rather than decision-makers.

So, what can you do?

• Define what decision each cost figure is meant to support.

• Align every measure with your business purpose: service, efficiency, or value.

The second Insight is about Revealing Hidden Behaviour.

Linking costs to activity exposes how teams or branches use resources differently.

So, what can you do?

• Analyse behaviour patterns behind cost drivers.

• Use costing to start conversations that improve performance, not assign blame.

The third Insight is about Thinking Before You Automate.

AI can model hundreds of scenarios, but leaders must still decide what matters.

So, what can you do?

• Use technology to test options but decide with intent.

• Keep purpose and human judgement at the centre of every decision.

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