The Difference Between Price and Cost

The Difference Between Price and Cost

 

This article is going to go ‘off piste’ a little from singing, but it is very relevant to the bigger picture of self-development and increasing one’s knowledge. I want to explore true value, perceived value and the difference between price and cost. I basically want to understand why human nature, more often than not, works in such a price driven way as opposed to a value driven one.

Let’s start by looking at car mechanics. If your car breaks down and is off the road for any length of time it costs you money. It can affect your ability to work (especially if you’re a driver of any kind), and therefore your ability to earn money.

You Decide

The Difference Between Price and Cost

Let’s say you have two choices. One option is to get your car fixed as soon as possible by a very experienced and respected mechanic who has been in business for over 30 years and knows engines inside out. He offers a guarantee and his contact details so that you can get in touch with him at any time to sort out any potential issues and ask any questions.

He will also introduce you to other drivers who may have the same issues as you, so that you can freely discuss ways to help each other out in future.

This option is $1,000 and he can fit you in today and guarantee to have you back on the road by tomorrow.

The other option is to get your car fixed as cheaply as possible by a brand new mechanic who has only just recently set up in business. He offers no after repair service and basically if your car breaks down again, it’s just hard luck and you have to get it fixed again.

This option is $100 and it will be 2 weeks before he can fit you in.

Which option would you go for?

Believe it or not, most people would choose option 2 simply because it ‘looks’ 10 times cheaper than option 1.

Which is the better value?

The price of option 1 is 10 times that of option 2, however, you’ve only had to take 1 day off work, at say $200. The total cost of option 1 is therefore $1,200 and you only had to miss 1 day of work. You also have a guarantee and lots of follow up advice options at your disposal.

The price of option 2 is $100 plus 10 days off work at $200 per day, so that’s $2,100 if you’re self-employed and can’t work. If you hire a car at say $250 per week then the price is $600 but you now run the risk of having another breakdown and no one to turn to.

Let’s say your car breaks down again 1 month later. It is another $100 and 2 weeks of car rental at $250 per week so another $600.

You have now paid out $1200 and still have no after repair service or advice available from anyone.

The original price may have been less but at what cost?

What was the real cost of taking the cheaper option?

All these costs are hypothetical of course and not real, but it is an illustration of what you think looks like the best and cheapest option at first glance, can quite often turn out to be the most expensive and costly from a true ‘value’ perspective in the long run.

Online Singing Program
Take my online singing program as another example of price versus cost and true value.

Best Value

My best value offer, which is only available on my website, is £97 (or circa US $123) for 12 downloadable modules which comprehensively cover every aspect of how to improve your singing voice and performance. These modules (and the additional audio file) can be downloaded from anywhere in the world and onto any device and are yours to keep and reference forever.

In addition to this, I also offer lifetime access to my personal email and a very select VIP closed Facebook group (by invite only) where members can share their experience, advice and ideas and help each other grow and improve their singing together as part of a like-minded community.

Least Value

Kindle

My alternative (and much lower value) offer is only available on Amazon. This option offers a ‘Kindle only’ version of the program, which is available at just £6.65 (or circa $9). This version however, can only be downloaded onto a Kindle device (or the free Kindle app) by those who can access Amazon products. For example, residents of Singapore can’t access Kindle products on Amazon but they can download my program from my website.

You can’t save the modules to your device – they have to be opened in the Kindle app or on the Kindle device.

There is also no personal email and no Facebook group associated with the Amazon product.

Which option do you think is going to help you improve the most?

It’s without doubt the first option which is best value and which will help you improve and develop your voice in the quickest and most effective way possible. The value of the Facebook group alone is worth over 5 times the price of the program.

Most people however, bizarrely, seem to opt for option 2 because it is the cheapest price. They more than likely buy the product, read a couple of pages, then never come back to it. There is no ongoing advice or discussion to keep them focused or to help with their development, which really is the key to success. So the end result in the majority of cases, unless they are strictly self-motivated, is a resounding failure to improve their singing voice.

They will then probably end up spending more money by going down the route of the best value option via the website or buying some other programs at a much higher price and cost.

Conclusion

So in order to measure the true value of something, you have to make sure you select the option which is best suited to help you achieve your end goal financially, mentally and physically, not just pay the lowest price because it looks cheaper on paper, otherwise you are wasting your money, no matter how cheap the initial investment is.

I truly believe that you really do get what you pay for with most things in life, however, with this program, I really believe you get much more than that. I can honestly say, with the right mindset, if used correctly, my singing program will change your life and give you some amazing tools to really excel with your singing voice.

CLICK HERE TO START YOUR JOURNEY NOW!!!

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