What is the difference between the fair market value (FMV) and the preferred price of a product or service?

The fair market value (FMV) is the price at which a product or service would be sold between a willing buyer and a willing seller in a competitive market. The preferred price, on the other hand, is the price set by the seller based on factors like brand reputation, exclusivity, or customer demand, which may be higher or lower than the FMV.