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Archive for September, 2010

The difference between price and cost

Friday, September 10th, 2010

"How much?" is usually the question that people ask when I buy something. This is not asking the real question. What people want is money, how much money damages for buying the item. The price is a thing once the money is there and brought home the point.

The cost of an object is different and is usually a last, if at all. The real cost is the price and the money it needs to maintain the element during theduration. The cost for one item continues for days, weeks, months and even years have paid the price.

Let me give you an example. When I decided to create a battery drill was Home Depot and began to buy the shopping cart. I know something about the quality of the instruments, but when I saw the price of the drill from the makers such as Bosch, DeWalt, Porter Cable, I decided to go to the producer with a "cheaper". By itself, the one I chose was not a "drill evil, nor was the"Cheap" on the shelf. However, it was not mentioned by the quality of these companies already. So I paid the price of the drill, which included a charger, two batteries and a carrying amount.

My son, the carpenter, is also a battery drill about the same time that I bought. Since it is high quality and durability has bought a drill from DeWalt. It also comes with a charger, two batteries and a case. Paid almost three times what Idone.

Here is the result. He uses his power drill more than me and usually for more serious work. For jobs within three years after my stop drill. The charger stopped working and the tip did not even with a fully charged battery. Thus, returning to Home Depot I went searching for another tip. My son is still drill and uses it constantly works.

When I realize this scenario, the total cost of the drill, I was much more than the price I paid for it. To replace the batteries for mydrilling would be almost what I paid for it originally cost. Then there is the cost of the charger. The only thing that would replace, the suitcases could have been, even if he has a broken lock.

My new power tool is another company (which still did not purchase the highest quality to my son) and when I add, drilling the price of my original one I just bought is almost as much as I would have bought at higher price athe first place.
Because I tried to do without?

You could have a number of reasons:

Prior Ignorance: Would not recognize the true value of the drill more expensive

According Mentality: I groped to acquire the best price

Financially: that I can afford right now to buy

Careless Fourth: I can be motivated by apathy

Fifth misled to believe that I could have the best "deal" with what I've read about the product

In my businessWe focus on quality of articles and help people understand that the price they pay today actually cheaper than a twenty-five, that if they bought something at a price below the counter. That makes more sense to pay a higher price will still not at the time of the last to know That you buy the rest of their lives, or something to buy, much less for the moment still need to spend more over to the Same life?
She believes that the price orCosts or a purchase?

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