Price Is Not Everything

It can make a lot of sense to be a value shopper. In spite of that, there are times when it may not be the best idea. Here are a few thoughts on why you might not want price to be your sole deciding factor on a purchase.

Availability

No matter how enticing the price may be, if the product is not available you’re out of luck. This happened to me during the past Christmas season. I ordered something online and got an email the next day that they were out of stock. After a lot of searching online I found another site that did have the product, although at a slightly higher price. But, it was important enough that I was willing to pay a little more and even pay extra for expedited shipping. Here price took a backseat to availability in the hierarchy of importance.

Service

Imagine you need a plumber to install something for you. You get some price quotes and then decide to go with the one that appears to be the best bargain. You schedule an appointment. Unfortunately, the plumber does not show up or shows up late. Either way you may have foregone something else in order to be there when the plumber was scheduled to come. Needless to say, you are left a little frustrated.

frustrated

Now consider if you did some research and found out this particular company has a track record of no-show or lateness. You now know that you might be better off if you are willing to pay a little extra and know that you will get the service you wanted when you wanted.

Dependability and Quality

Staying with the plumber example, imagine you find a company with decent prices and a reputation for on-time service. If they arrive on time, do the work, and charge what you expected, then it seems like it was a good deal, right? But suppose within a couple of days you find there is a leak as a result of poor workmanship. You now know there is more to consider.

How Do You Buy?

Although the examples above are from a consumer’s perspective, the same issues apply to a business when making a purchase. Whether products or services, it is important to remember price is not everything. Depending on what you are buying, there can be a host of other things to consider. Availability, service, dependability, and quality may all matter.

Additionally, do you consider these issues when it comes to meeting your customers’ needs and wants? Remember the old adage it is very difficult to compete on price alone.

If you want to know more, contact AimCFO – Contact

As always, your comments are welcomed.

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