How often have you heard the expression “You get what you pay for”? Consider what that means… Would paying more mean even better results? Does paying less mean lower value?
Value can encompass many things; quality, utility, service, warranty, availability, status and of course, price. It’s very subjective; to know whether something is a good deal you have to understand what balance of factors you need to feel good about the purchase.
Consider buying a new car. If you’re only interested in basic transportation, you’d likely choose an inexpensive, reliable car as the best value. But suppose a more expensive model has a better warranty and higher gas mileage – over the life of the vehicle it will be less expensive to operate and thus effectively a “better value.”
Is cheap a good value?
“Cheap” and “free” are powerful motivators. They can cause you to overlook other important factors in making a purchase decision; like the quality of the product or the reputation of the seller. Maybe it’s cheap because it’s a shoddy product. Be wary of huge bargains and deep discounts. Understand the reason for the low price.
The worst case scenario is you pay and never get the goods. That could happen because the seller you chose is dishonest and never intended to deliver. Or perhaps they sold you in good faith but then can’t deliver. Either way you get no value for your money. Or what if the seller won’t help you with a problem? It would have been worth it to pay a little more.
On the other hand, sometimes it does make sense to buy the cheaper item. If you’re looking for a tool that you will only use once for a specific task, it wouldn’t make sense to spend more on a high-quality tool only to have it sit in a drawer forever.
If it’s expensive is it a poor value?
To a sports fan, an expensive, front-row seat may be totally worth a premium price. To a non-fan, no discount would be worth it.
Customers have told me that when they invest in equipment for their shop, they only want to do it once. Instead of saving a few dollars they want something that will work well and last. That means choosing quality equipment with a solid warranty. They also want knowledgeable advice to help make a good decision, timely delivery and availability of parts and service.
Value is a moving target.
The secret is to look past price. It’s only one aspect of the buying decision. With every purchase, be sure to understand what combination of factors represents the best value for you at that time. Sometimes the lowest price may be the best choice, but other times paying more might be well worth it.
One way to gain some perspective is to stop and consider how you will feel about your purchase a year from now – will you be more likely to feel good about it or regret it?
