Is it the Price or the Cost?

To be or not to be?

Actually, this has nothing to do what that question. I wanted to make sure you are paying attention to what you are reading.

Lately, I have been looking at my finances. I have seen it grow and have seen it shrink. It typically goes in the right direction but not without purpose. I listen to financial gurus like Dave Ramsey and always think why are some of these items so pricey? Then, I ask myself who comes out with pricing. It’s easy to say the prices are directed by the market. But who is the market? It all had to start somewhere. 

As I continue to think, I wonder how I can make a difference in the market. Before I make that change, I have to understand the difference between the price and the cost of any product or service.

To someone quickly looking at these two words, it sounds like an easy answer. It can be the same word. Even in Latin, both words can be called pretium. However, when you break it down, it means two completely different concepts. 

Price typically refers to the monetary value of an item or service. For example, what is the price of a new car? The number is pretty concrete.

Now look at the same question with the word “cost” inserted into it. What is the cost of a new car? The answer can vary based on what you had to give up to get it.

When I look at both words, I see price as referring to money while cost referring to something that I had to give up.

I bring up these two words when I look at the lives of others. I have learned as being a business owner that people will overvalue price versus undervaluing cost. Price is easy recognizable while cost is not.

I was listening to a person on TV (cannot remember who) but I recalled the person saying, “scared money, don’t make money”. That is how I feel when it comes to investing in my personal development. I am not scared to spend money on me. Especially, when it comes to making me better, which will in turn make others better. 

Unfortunately, when it comes to other people spending money, they tend to want something for free or at a reduced cost. They are not willing to spend a little for what they need to do to better themselves. They rather come up with every excuse on why they should not spend on themselves.

Over the past few years, I have prided myself on ensuring I spend money on personal development. It is something I realize I had to do each day. I am not bragging because I did not always know how to do this. I had to learn this over 30 plus years of life. Fortunately, once I recognized I needed to make a change, I made a change. I figured If I am not growing, I am losing out on life. 

That is why I went out and spent money on an MBA. That is why I went out and joined Toastmasters. That is why I went out and joined the John Maxwell Team. That is why I went out and joined LegalShield. I did and do all of these different things for growth. I do not want to think back in my life and wonder why I let the price get in the way of my success. I want to make sure I am looking forward. I want to make sure I am continuously progressing forward.

So, at the end of the day, what are you going to base your life on – the price or the cost?

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