TOW#510 — Cheap vs Expensive

As one old saying goes, the poor pay twice! The point is that sometimes we focus so much on the price, trying to get the cheapest deal, that we end up paying double (when it breaks) even though we thought we’d got it ‘cheap’.

On the other hand, the idea that if something’s expensive, it must be good, doesn’t exactly always work out and we’ve all heard complaints about expensive things. Yes, they may be fewer, but if we’ve paid ‘too much’ money for a certain product/service, we’d like to have no or as few complaints as possible.

And so back to the key question, is it more worthwhile to buy something cheap or something expensive?! One thing’s for sure — too many of us focus on the issue of cheap vs expensive, when in fact the main issue when deciding on whether to buy something cheap or expensive is not the price, but the quality. So, the whole dilemma shouldn’t be about the price of something, but about whether or not it’s good quality.

Price is defined firstly by quality, and then by other factors. If you’re offering premium quality, then you have the right to set a higher price, since there’ll always be buyers for a lower price. On the other hand, if you’re purchasing a product/service, the quality is the thing that should help you decide whether a particular thing is expensive or not, i.e. whether the quality is worth the money.

Of course, we can often find services/products that are a bit overpriced, and some are so highly priced that I guess it’s because the team that decided on pricing made a wrong assessment, or the owner simply valued, not to say overvalued, himself very highly!

With these two examples, when it comes to deciding on a price, I just want to say that you’re the one who needs to set it, but you must be objective and realistic, and ask yourselves whether that thing is worth the money and if not, then how much is it worth?! Does quality prevail or do you think it’s overpriced?

Finally, one thing should be very clear, because it’s very important — if you want to succeed in business then your services/products should be worth the money that people will be paying for them. If not, then you simply won’t succeed in the long run!

Wishing you success with the changes to come,

@kalinbabusku

“Tip of the Week” Team member

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