From a guy I respect last year:

"The smartest thing I've every heard regarding running a company was to go out and hire the best, then figure out a product/service strategy to bill/price that talent at 2X the cost.  If you hire the best, the market will allow you to price accordingly..."

Damn!  That's a pretty good train of thought... Perhaps words to live by the next time you're dealing with a manager who wants to lowball someone on an offer...