Those who know me well are very aware that I am “frugal” and always looking at the costs of things I have to purchase, and many times buy the least expensive item. I admit that pricing is often very important in my buying decisions. However, when it comes to some things, price should not be the only consideration. The value received is important to think about as well.
If I’m buying something basic (groceries for instance), I’ll compare the prices to see what is the best deal. Keep in mind that the cheapest price is not always the least expensive. Most of you probably know what I’m referring to here, but for those who don’t, I’ll give an example. If I need a jar of spaghetti sauce, I can buy it in different sizes (let’s say 12 oz, 20 oz or 36 oz). The 12 oz can be priced at $2.50, the 20 oz can be priced at $3.99, and the 36 oz is priced at $6.50. At first glance, the $2.50 is the best deal (spending the least amount of money), but in price per ounce, the 36-ounce jar is the best value (18+ cents per ounce versus 19+ cents for the 20 oz and 20+ cents for the 12 oz jars.) If I were buying this item, I’d buy the 36 oz jar as it is the best price overall because it is the least expensive per ounce.
However, when it is something that I need to know is going to last, paying a higher price may be less expensive in the long run. You may decide to spend more for a BMW than you would a Subaru because you know the BMW is made well and will last longer. Although it is probably much more expensive up front, the long-term value you’ll receive in reduced repair costs and longer ownership is probably worth it. Car buying decisions are based on other things too (like how the car looks, performs, etc) but I think you know what I’m trying to show in this example.
Finally, your relationship with the business you purchase the item from is important as well. If you have a question is someone there to answer it for you? If you need help, is there technical support.? Have you built trust with them and know they will be there for you? There are times that I don’t even compare the price of my purchase as I know the amount I’m paying for the service is worth the value I receive and I trust the business. I also like to support my clients’ businesses and see them succeed, so I shop from them even if their prices aren’t the cheapest. What is important to us is seen as valuable and may be more important than the price paid.
So when you need to make a purchase, decide how important the product or service is to you and ask yourself if the value you receive is worth the price you are paying. Even if the total cost is more, the answer may be a resounding yes.
Candy
