What is the difference between price, cost, and value?
Although sometimes used interchangeably, these three words are not synonymous. Price is the amount of money asked for. Cost is the amount actually paid. If you go to a garage sale and see an item with a $10 sticker on it, $10 is the asking price. If you are a good negotiator, you might pay only $7.50, the buyer’s cost. Value is always justifiable, but cost and price are not. Here’s an example. You go to an auction and bid on an item that you like, but that you know little about. There is fierce competition with other bidders. The knowledgeable bidders drop out at about $100. You finally win the bid for the item at $250. The value of the item is not $250; it is the cost. The value, what is most commonly paid by informed purchasers, is $100. Let’s look at another example. At an estate sale, you notice a dirty glass vase in a dark corner. It is tagged with just a few dollars asking price. You quickly snap it up, pay the full price asked, bring it home, clean it, and discover a Lalique mar
