Costs

When making a purchasing decision economists say we gauge how much money to spend by using two methods of thinking, relative cost and opportunity cost. Researchers say that most of us use relative cost when deciding how much money to spend on an item or service.
"Well if we're gonna spend 900 on new dryer why not 1,200 and get the super nice one?" Normally it is comparing one thing to another and convincing yourself that spending more is worth it, relative to the amount you're spending or to an alternative but similar item. Usually you find a way to rationalize an up-sell, either from a salesman or from within yourself.

More rarely they say do we gauge things from the idea of an opportunity cost. Relative is a 'this-vs-that' kind of question while opportunity asks you, "what instead of this altogether?" I'm feeling a little melancholy and broke today, which has me thinking opportunity costs of the thing(s) I spend the most money on. What did I give up by spending money on X instead of Y?

In my personal example my number one thing would have to be money spent in relation to shooting. Now with no sponsorship, no industry job, no regular teaching the idea of cost comes to mind. This inward look isn't helped by the fact that I have no big matches in sight, no plans, nothing but practice and the goal of "getting better". Which always leads me to a what's it all worth kind of navel gazing. More of a sigh than sorrow.

Real numbers, I spend about a low of $300 a month on shooting competitions to a high of $1,800 depending on the travel and matches I'm attending. A low month would be $80 in match fees, $100 in gasoline, $100 in ammo. A high month would be $300 in match fees, $200 in ammo, $700 in plane ticket, $300 in hotel, $200 in rental car and $100 in misc. if you figure a year to be 6 big months and 6 small months that is 12,600 dollars. Throw in a new gun and the required equipment and that adds another 2 grand easy. And I'm not sure my ammo component costs are accurately figured into these figures either, but that's OK. Fifteen thousand a year. Pretty cheap to chase a dream, right? Oh, there is that relative cost thinking again!

Without looking at time and emotional involvement and using the idea of opportunity cost is there something I'd rather have entirely in the place of a year of competitive shooting at a highly involved level? Fifteen smackers, hmmmm, to think to think. That's a nice motorcycle. I could have a pretty good adventure bike for that money. A two week first class vacation can be had for 15 grand as well. An extra 15 grand a year into savings? An extra thousand dollars a month on the principle of the house loan? Getting that burst blood vessel lasered off the end of my nose? I mean really, that's all I can think of; trips, motorcycles, savings or paying on the house loan. Those are the things I feel I'm giving up instead.

What else would I rather have or do with that money? Asking me right now I'm not sure how I'd answer. Ask me when I make GM or have a division trophy in my hand and I know the answer. Not sure what Super D thinks.....