Many consumers make their buying decision based on price. There is a notable distinction between price and value. Price is what you pay and value is what you get. Usually you get what you pay for, and sometimes the least expensive option actually costs more.
Consider the case of the homeowner who hires a plumber because the hourly rate was the cheapest. What if that plumber uses the cheapest parts they can find? What if their technicians are not as well trained? When the repairs fail and the house floods, it’s going to end up costing a lot more.
How about the homeowner who is painting his or her home. The painter with the lowest estimate may use low-grade paint. He or she may not take the time to prepare the surfaces properly. The paint job will not last as long and the home will need to be re-painted much sooner. Because the paint was not applied according to manufacturer’s specifications, the warranty is void too.
Imagine one divorce attorney’s hourly rate is twice as much as another. Which is the better option if the expensive attorney is twice as fast and bills you for half the hours? Hiring the wrong attorney could result in the loss of property, paying more in support and losing the custody of a child. What is that worth?
Finally, think about the realtor who offers a big discount for you to list your home with them. Granted, you will save a few thousand dollars on the commission. What if the discount real estate agent is not as capable of marketing? What if his or her negotiation skills are weak? Hiring the wrong agent could cost far more than you ever saved on the commissions.
Before you make a buying decision based on price, think about the potential consequences. What’s more important, the price you pay or the value you receive?
