14 October 2011

There are some things money can't buy.

People often interchange price and cost, but it’s important to recognize the significant difference between the two words. One of the biggest differences between Price and Cost is the Value Point. And the cool thing about Value Point is that we are the ones who get to decide what they are. Since we are all individuals and we each have different preferences, likes and dislikes, dreams and goals, etc. etc. We all value things differently. So the price tag for any given item may be the same dollar amount for two different people, but the cost varies due to differences in how we value them.

I like to break it down like this:

Price = The sticker price of what you’re buying. Whether you are paying monthly for a cell phone, one time for a movie ticket, or 30 years for a mortgage. The price is the actual dollar amount.
Cost = The amount of value that that particular item or experience provides. This can be positive or negative.

For example...if I value a new pair of boots more than then $50.00 price tag then I will probably buy them (if I didn't value them as much or greater I wouldn't make the purchase...at least most days :). If I absolutely love the boots and wear them everyday for the next 6 months and wear them every winter after that for the next 5 years then the value is high and the cost was worth it. However, on the other hand, if I only wear them 3 times because they hurt my feet and they scratch easily then the value is low and the cost may not have been worth the payoff. Unless of course I had hundreds of boots and hundred of dollars to spare...which let's be honest, isn't exactly the problem.

Point is: It is extremely important to evaluate the price and the cost of things when you are married to an Entrepreneur. Each opportunity in our life can have a financial price tag, but to truly understand the experience as a whole we have to evaluate the cost and compare it to what we truly value. Think about the entrepreneurial ventures that you and your Entrepreneur have pursued. What are the differences in price and cost. How much did you learn from them? Was your marriage strengthened? What did you learn about yourself?

I hope you will come to appreciate your experiences in a new light with that perspective. Be patient with yourself...it can take time to shift your paradigm.

Here is one example from my life that was a defining point in my life and marriage and illustrates the difference between the price and the cost.

Moving Truck stuffed with everything that we own: $1,700.00
Two one-way flights from Utah to Florida: $570.00
Hotel for 3 nights because we didn't have a place to live yet: $145.00

Cost of moving our family, plus the General manager of our company and his family, across the country in hopes of keeping a company afloat and a dream alive and not having any regrets?

You know how it goes...