The Difference Between Price and Cost

Working at a school with students from over 80 different countries brings forth interesting questions about language that often have nothing to do with leadership, the subject they are in my class to learn. A tennis player from Belgium was confused on the difference between the words price and cost. I pulled out a calculator. “You go to the store and buy a television for $399. Let's say you make $21 an hour and you watch 21 hours a week, which amounts to just 3 hours a day. Instead of working during the time you watch television, or creating something of value, you are missing out on $441 a week. That is $1,764 every single month. After 12 months, you have spent $21,168 watching television 3 hours a day."

The price of the television was $399. The cost of watching it instead of creating something of value cost you $21,168.

His response: “Televisions are expensive.”