Why Will You Pay More For Being Cheap?
All companies are worried about the bottom line. In order to make profits as big as possible, businesses will often cut corners. While staying within the budget is a good guideline, being excessively cheap will cost you more in the long run for a number of reasons.
The number one sacrifice of paying less is quality. Whether we’re talking about the type of ID badges you use for your employees, which firm handles your logo and web design, or getting a piece of hardware for your product from China instead of the U.S., quality is always the first thing to go when you try to save a few bucks. In some instances, the choice to go with the less expensive option may be fine. Most of the time, you’re going to end up paying for it in more ways than one.
Let’s say you have two choices of contractors to hire to design your new website. Contractor A can do it for $500, and Contractor B can do it for $2,500. Automatically, you are wondering what Contractor B is thinking, giving you a quote $2,000 higher. What can they possibly do that is worth the extra two grand? It’s just a website, you’re thinking. So, you go with Contractor A.
You pay Contractor A, and they give you your $500 website. As mentioned above, you immediately sacrificed quality by going the cheap route. It looks like a $500 website. It has some coding issues, looks like it was designed in 2005, isn’t mobile compatible, and you don’t have a good e-commerce setup for your customers. It’s just not good.
Now that you spent $500 for this piece of crap, you have to go back to Contractor B, beg them for their forgiveness, and pay them to start from scratch to give you what you really wanted. This will take an additional two months, on top of the two months you already spent with Contractor A, to get where you want. And we all know time is money.
Loss of Income
Building off of the last example, not only did you lose an additional $500 by going the cheap route first, you also lost four months of potential revenue because you had a terrible website.
Additionally, you gave your customers a bad impression of your company and showed everyone who visited your site that you didn’t care enough about your company’s reputation or image to give them something nice, that worked like a charm.
This will probably affect some customers’ choices as to whether or not they want to work with your company in the future. What if one of them takes a potential $1,500, or even a $10,000, sale to your competitor because of it? How do you feel about your decision to take the cheap road now?
This philosophy to invest in the better quality product, whether it is a pair of dress shoes or the services of a business consultant, is not new. Remember the saying, “you get what you pay for?” People say it because it’s true. In the long run, it will always pay off to choose the better quality product. There will always be someone out there who can do it cheaper, but that doesn’t mean they can do it better. Choose “better,” so you don’t pay more for being cheap.
Abby Yetter is the CEO and Chief Consultant of Bright Ideas Small Business Solutions, LLC. She is a driven, enthusiastic businesswoman, with a talent for organizing the chaotic, and branding the unfamed. Abby strives to use her creativity, and experience, to solve the many problems of small businesses. With a background based in customer service management, social media, technological organization, sales, marketing, and customer experience specialties, she enjoys taking everyday complications, and finding the newest, most productive ways to execute the tasks.All stories by: Abby Yetter