All things being equal, you should always choose the product or service that costs less. Here’s the problem: all things are never equal. Things just look equal. Consumers are tricked into believing all other factors are equal. That is when they make the mistake of buying the cheaper product. They don’t realize their mistake.
When problems arise, they assume that is just how it is with all such products or services. They never know what they are missing because they have become used to the level of quality and service they receive at a lower price.
In many respects, you really do get what you pay for. As a general rule, paying less means you are getting less. That’s fine. If you understand the bargain you are getting, you might reasonably decide that the things you are not getting are worth the tradeoff.
They are things you don’t really need. You might pay less for a cheaper finish that will not last as long. But if you don’t plan to keep the product longer than the finish will last, paying less makes sense. Unfortunately, there are a lot of instances when the tradeoff isn’t so clear. Here are a few of those instances where paying less will ultimately cost you more:
Saving Money Before a Purchase
Sales and Marketing
You can save a ton of money by doing all your sales and marketing yourself. Forget about those expensive consultants. You can come up with your own cold calling script for your real estate wholesaling business and keep all the profits. If you say the wrong thing, you can also be heavily fined and possibly do jail time. Good luck with that.
There are things you absolutely can’t say and things that you absolutely must say when cold calling for your wholesale real estate business. Stay on the right side of regulations by learning how to do a wholesaling cold calling script. By doing this, you will avoid the sales language that only a licensed broker can use. You will need to learn what to disclose in the call.
It is not just about regulations. It is also about building a sales relationship. If you are not already an expert in sales, you need all the help you can get when it comes to cold calling and meaningful engagement. This will also help if you are doing virtual wholesaling in the form of house flipping. Don’t shoot from the hip. Tap into the available resources to give your business the boost it needs.
Hiring a Maid
You will definitely save a lot of money upfront by hiring the neighbor’s kid to clean your house. You will probably save even more by hiring an amateur you don’t know. You need to know that hiring a maid directly versus going through service is not just a matter of initial cost.
You need to be sure the service will be done right. If you have a lot of valuables, you need to know that the person you are allowing access to your home is trustworthy and has passed drug and background tests. By going direct, you risk a lot. The greater your risk, the greater your need for a professional.
Unless you are Bob Vila, major home improvement projects should be left to the professionals. I know that the big box home improvement retailers are constantly trying to convince you that there is something terribly wrong with your home and that they are there to help. But the truth is they are only there to help you spend a lot of money on DIY projects you probably shouldn’t be doing yourself.
In some ways, we are all victims of marketing. You wouldn’t build the home yourself. So what makes you believe you should do major improvements to the home yourself? When you need legal help, you call an attorney. When you need medical help, you call a doctor. When you need home help, you should also call a professional. In the world of home improvement, saving money upfront is a great way to spend a lot more in the end.
There are plenty of reasons to go with the cheaper option much of the time. But when it comes to sales and marketing, hiring a maid, and doing major home improvement, the cheaper option is usually the wrong option at the end of the day.