20 May 10

Another relatively boring day. I'm beginning to regard non-skating days as boring days. Lol. I'm mainly prepareing for my speech tomorrow. Reading Zig Ziglar's Secrets of Closing The Sale. Yeah. I'm learning too. I just learnt the difference between price and cost. Price is a one time deal. Cost could go on forever. Let me explain using the example in the book. Okay I'm gonna modify that a bit, because I wanna do this from memory. I'm confident that the basic principle is still there. Say you wanted to buy a bicycle. The bicycle costs $300, but it's a good bicycle, and you really want it. Then you find out that there's a bicycle selling at $100, which looks like the same bicycle. You're overjoyed at this bargain, and buy the $100 bicycle. Now, this is a difference of PRICE. So you proudly go home with your new bicycle. After 2 weeks, you replace the handlebars because they came loose. Another 2 weeks and the pedals fall off. Soon, you're repairing or replacing the brake system, the tires, the seat etc etc. And each time, the new component costs you money. Over time, that amount accumulates, and the total cost of that, plus the original $100 for the bicycle, grows to more than $300. If you had taken the $300 bicycle, you'd only need to service it once every year. So you see, the COST of the $100 bicycle was really $100 plus the cost of replacing and/or repairing each piece. This, is the difference between PRICE and COST.