There’s a couple of old sayings like ‘you get what you paid for’, or ‘do you want cheap advice or good advice?’ This article provides food for thought on making price the sole determinant when making decisions.
Pros of making a decision based on price:
- Cost savings: The primary advantage of making a decision based on price is the cost savings that can be achieved. If you choose a less expensive option, you may be able to save money in the short term.
- Accessibility: Lower-priced options may be more accessible to a wider range of people, making products or services more inclusive.
- Comparison: Comparing prices can help you make an informed decision and ensure that you are getting the best value for your money.
Cons of making a decision based on price:
- Quality: The less expensive option may have lower quality than the more expensive option, and this can result in having to replace or repair items more frequently, leading to higher costs in the long term.
- Durability: Lower-priced options may have a shorter lifespan than more expensive options, which could end up costing you more in the long run if you need to replace them more frequently.
- Limited options: Choosing based on price alone may limit your options, as you may not be able to afford higher quality or more specialized products or services that could better meet your needs.
- Hidden costs: The initial price may not reflect the full cost of ownership, as there may be additional costs associated with maintenance, repair, or replacement that are not immediately apparent.
In summary, making a decision based on price can be advantageous in terms of cost savings and accessibility, but it can also result in lower quality, limited options, and hidden costs. It is important to consider other factors, such as quality, durability, and total cost of ownership, when making a decision. Advice is not a commodity that can be priced uniformly. Advice for you and your business is specific to your needs. Be prepared to pay for the years of education, skill, knowledge and experience that your advisor and accountant has developed. It will be well worth it.
