Maybe it was the Last Economic Downturn

By: Bill Leesman

Maybe it was the Last Economic Downturn

Tags: Maybe it was the Last Economic Downturn

Perhaps it was the establishment of the McDonalds, Costcos, Walmarts, and SuperStores.

Somewhere along the line, we have built a culture of cheaper is better.

If you can find a deal then you have done better than the person next to you. And that can be the case if you are buying the exact same product.
Shopping around for a brand name product to get a cheaper price can keep more money in your pocket perhaps.

But when is cheaper not better?

1 – When there is more to the product than the product.
Let’s face it, a brand new Ford Escape is the same from every dealership, so maybe cheaper is the best choice. But even when buying the same basic product, if service, particularly after market service and warranties are not the same, then buying cheaper, may cost you more in the end. Make sure you look at the total package and not just the listed price tag and evaluate all that is being offered or not being offered.
2 – Not all services are created equal.
Service oriented purchases are not the same as product purchases. For example, two plumbers may provide the same stated service, such as replacing your old plumbing. If one, however, has more experience and can do it with less inconvenience to your home along with a better warranty and pulls permits, etc., choosing the more expensive option might be the way to go.
3 – Do you need to trust your service provider?
When it comes to buying cheaper, the lower the need to trust the supplier, the easier it is to make a cheaper option work. But, when it comes to many purchases, trust is an important factor. When hiring a lawyer, financial advisor, medical practitioner, real estate professional, or other highly impactful service or product, trust is the number one factor that our client’s state was instrumental in their decision. If that is the case, then the long-term choice of trust over price is a no-brainer.

We all want a great deal. Getting a can of soup for half the price can be good. Getting a new car at a discount because it is last year’s model can be an awesome feeling. But the bigger the purchase, the less cost should be the overriding factor in choosing the provider.
There are three things in products/service that you can get.

Price, service and speed or ease of delivery.

You can get two of the three but you generally cannot get all three at the same time. You can get great price with great service, but it will be slow. You can get great price with great service, but the quality may be suspect. You can get great service and great delivery, but it will cost you in the wallet.

You decide what is the most important to you.