Colonies are usually very large with lots of polyps or heads and usually on a rock (and often wild)...frags are when people break off pieces from the colonies and replant them on plugs or other small pieces of rock to sell, trade or replant in various places in their tanks. Usually the cost per polyp or head is less when it is on a large colony but the total cost is more. A lot of people don't want to spend say $150 on one large colony of the same coral (unless maybe you are fragging and reselling) and are willing to pay more per polyp/head to get a larger variety of corals at a lower cost.