When it comes to cost vs prices not many folks know there is a difference or perceive there may be a difference. I was on of those at one time. These terms seem to be interchangeable at will, but are they really interchangeable.
We shall see as we go along and you will see if you do not agree with me.
My wife has a saying of, "It only costs a little more to go first class." The adage was almost always correct, when it came to me anyway. You see, I am a cheap skate. I will try to dodge the bullet every time when buying something. I am always looking for the "better deal".
The "better deal" is not always the better deal. If we take buying a bicycle as an example we might be able to draw line between cost and price.
All things being equal we must start off Even Steven. So both bicycles must be new to begin with. I know nothing of the price of bicycles so I will be working purely in the world of make believe for illustration purposes.
Bicycle A is priced at $159.00 on the sticker tag hanging on the handlebar. Bicycle A comes standard with two tires. It has air conditioning (if you peddle fast enough) and an air horn and a seat. It also has two peddles and a reflector fastened to the rear fender. And, it also comes assembled.
Bicycle B is priced at $215.00 on the sticker tag hanging on the handlebar. Bicycle B comes standard with two tires, no air horn and a seat. It also has air conditioning (if you peddle fast enough), two peddles and a reflector attached to the rear fender.
Both bicycles look very much alike and when asked what the difference is you are told $56.00 and change as far as the salesman knows.
So, for the sake of $56.00 and change you opt to get the $159.00 bicycle A.
Little Johnny or Suzy (sorry if your name happens to be Johnny or Suzy) really likes this bicycle and it looks like a good bicycle. So you carry it home in the trunk of your not so new Kia for the pack away price of $170.98 and you are patting yourself on the back and laughing all the way home over the great deal you made on this sweet machine.
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Like what you read? Find how this saga ends by clicking this link. Cost vs Price Part 2
You will write the rest of this story after you read part two Cost vs Price.
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