How to Overpay by Shopping for the Lowest Price

There's an old story which goes something like this:

A designer and a client were meeting to discuss an estimate for an upcoming project. After carefully reviewing the proposal, the client reached the final page where the financial terms of the project were disclosed. "You charge $1,500 for a logo?",  exclaimed the client. Without missing a beat, the designer replied, "Actually, the logo itself is free. The $1,500 is for the 10 years of experience that it takes to design the logo."

It's easy to assume that the price you're paying represents the tangible value of the service that you're receiving. Sometimes, this may even be the case. But often, there's more to the story. Value is more than price. Value also considers time and proficiency.

If a project costs half as much, but takes twice as long—depending on the job—it may not be a big deal. But if the same project costs half as much, takes twice as long and is riddled with errors, then you're obviously not receiving good value.

There are hidden jems in virtually every industry. People (and companies) who charge a fair price and offer a level of proficiency rarely duplicated by others in their field. They might initially appear more expensive, but these relationships actually save us money by helping to avoid the mistakes and pitfalls that trap the less experienced.

How do you choose vendors, contractors and suppliers? If it's based solely on whomever had the lowest price, then you're probably overpaying.

Do you have a value vs. proficiency story that you'd like to share? Leave us a note using the comment box below.

Thanks for reading.

—Jason @ Ideavise