With this understanding, explain to your students that the engineers who made the airplane's performance charts did so on a day when the pressure at sea level was 29.92 inches of mercury. (This is a slight distortion of the truth but it keeps the idea in story form, which makes the concept easier to remember.) Since all performance charts show altitudes, it's reasonable to assume that all of these altitude values were read from an altimeter with 29.92 set in its Kollsman window.
Therefore, if you're planning on using a performance chart, you need to know two things: the outside air temperature and an altitude. What altitude? Your height above sea level? No. You need to use the engineer's altitude (which is another term for pressure altitude). This is the altitude that an engineer would see on his or her altimeter with 29.92 set in the Kollsman window.
To find the engineer's altitude, set 29.92 in your Kollsman window. Now read the altimeter. Take this altitude value to the performance chart along with the air temperature to get an estimate of airplane performance. Once you've done this, set the current altimeter setting back in the Kollsman window to read your height above sea level.
Remember that good instructors must have more than one way of explaining difficult concepts. Their explanations are their tools-the more, the better.