Value vs. Cost

An easy way to choose a new product or company is on price. But is that the best way?

In a recent Imagine Communications blog, account manager Nadia Zerka had the following to say about buying on value vs. cost:

When deciding to purchase a new product or service, don’t just take into account the sticker price. Consider the following:

What need does the product have to fulfill?
Let’s say you own a mirror showroom and those mirrors need to be cleaned daily. The product you purchase should be able to clean and dry each mirror.

How much do you want to spend?
I know, this may be little contradictory to what I’ve written thus far, but stick with me. You do need to have a budget in place. If you can’t afford to pay for the $2,500 glass cleaning machine, that’s one issue. If you don’t want to pay $2,500, that’s another.

How do you plan to make the purchase?
Sure, you can go to the store to pick up glass cleaner and paper towels. But you own a mirror showroom. You could end up doing that three times a week. Is there a local supply house that could deliver the products instead? Explore all options.

What’s the actual cost of the product?
That’s just the cost of paper towels and the cost of glass cleaner, right? WRONG. How many paper towels are you using? How many times do you have spray the cleaner? How long does it take you to go to the store? If you decide to just go to the store once and stock up, where will you put all that stuff? All these factors affect the cost of the product.

There’s always more the story when you are making a purchase decision. Take the time to do the research and evaluate the entire picture, not just the cost. You’ll find that in the long run, investing some time and money in the beginning may save you a lot more than you realize.

To read the entire blog post, visit: ‘But it only cost a dollar!’

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