[lotsofpulp]

Problem with this approach is your competitors who price higher will end up with a bigger pile of money which they can use to outcompete you for land, people, equipment, and other resources.

For example, you are bidding for a business, and buyer A models max profit/lowest costs, and buyer B models less profit/higher costs (such as paying employees more), buyer A is going to be able to offer more money and secure the asset.