Cost Vs Price – It May Not Be What You Think

When it comes to cost vs price 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.

When you get home you break it out of the cardboard box and wrapping and begin to assemble this beauty. What looked to be so simple a child could do it, only took you about five and half hours of which about four and half of them were accompanied with language to embarrass a sailor and little Johnny or Suzy was allowed in the house during the time of assembly.

When the sweet purchase was finally handed over to little Johnny or Suzy you breathe a sigh of relief and take the trash to dumpster down the street because you did not have room for it in your garbage can. What you did not notice was the sign saying cheaters would be prosecuted for dumping in a private container.

The guy running the lounge was just coming out to dump a couple of bags of beer cans and bottles and just spotted you driving away in time to get your license number. Forty-three minutes later two gentlemen dressed in blue arrive at your residence to confront you about your deed, which of course you deny.

Just then little Johnny or Suzy rides up on their sweet new bicycle and proudly shows it off to the gentlemen dressed in blue and proudly beams at daddy for putting it all together for them and he has just got back from getting rid of of the big ugly box.

You are issued a citation and a notice to appear in city court in no less than ten days. After taking off half a day to go to court you are fined $180.00 plus court costs $250.00. The cost of your sweet deal is now only $610.98 not counting the cost of your half day in court from lost wages.

After little Johnny or Suzy has ridden the sweet ride for only 28 days the handle bars break. You take them back to the store, because the bicycle is still under warranty for two more days of which they give you a new set of handle bars.

Eighteen days later one of the peddles breaks off. The price of the new peddle is was only $14.79 including tax. A few weeks later the crank bearingd go out. At a cost of $27.99 and another hour and half of cussing they are replaced and within about six weeks you have to purchase a new rear tire and wheel. At which point you toss in the towel and you go shopping again.

Back to the store you go. You purchase bicycle B, which little Johnny or Suzy can ride home without having to load it into to your not so new Kia.

Little Johnny or Suzy and four little brothers and or sisters all rode Bicycle B until they gave it up for their own Kia, of which you had to replace the tires a total of one time at a cost of $23.79. The total cost of Bicycle B is $244.92 plus tax.

The total cost bicycle A was a whopping $653.76, not counting the half day off court, for a total of about 4 months of wear and tear.

Now that is what my wife would call, it only costs a little bit more to go first class and it is the difference between cost and price. The difference in this case, being $56 and change for price and $408.84 difference in cost.

So when you out shopping for anything, consider what the difference in cost vs price may be. It just may be cheaper to opt for the slightly more expensive purchase and go first class.

Do not allow yourself to be scammed by empty promises of grandeur. Do not settle for the cheapest bid. There is a reason cheap does not last and why cheap is not inexpensive. You Dear Reader will be writing the final chapter to this little saga.

I am a participant in the 100 Comments efforts. I hope you find this post useful and worthy of passing on.

Justin Case

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