3 Reasons that Cheaper is NOT Always Better

Recently, my business partner, Michelle, and I have been working to further define our position in the marketplace. We have been told time and time again by our advisers, “If you try to compete on cost alone, you will never win. Someone will always come in cheaper.”  For most of our clients, and I am sure this true for a good portion of you, the bottom line is becoming more and more important. They are looking at how they can get more with fewer resources. So, at a time when clients and customers are looking for the lowest cost service or product available, how do we communicate that cheaper is not always better? Below are 3 reasons that cheaper is not always better. 

1.   Cheaper can mean lower quality of goods or services. In my field, public opinion research, quality is very important. It is important to constantly monitor the quality of the data that is collected and to provide ongoing training to our staff so that we can ensure that the data we collect is valid and reliable. Less emphasis on quality in our industry means a higher level of error and data that could be inaccurate or unusable. 

2.      Cheaper can mean poorer customer service. We have all been there before- on the bad end of poor customer service- extremely long hold times or days before we receive a return call or email, even if all you are trying to do is make a new order. While customer service is not important to everyone, most companies are willing to pay a little extra for a higher level of customer service. It’s the difference between a simple one-time business transaction and a long-term business partnership. Poor customer service leads to fewer return customers. Excellent customer service leads to solid business partnerships. Guess which one costs more? 

3.      Cheaper may only be temporary. Beware of companies that offer a low introductory rate to get you in the door and then dramatically raise the price on future orders. So, when considering a cheaper option, ask what the service or product normally costs. 

One lesson that I have learned is that it’s all about the value that you give your products or services and how well you are able to communicate that value to potential clients or customers.

The old adage is true: you get what you pay for. 

How are you communicating your value to your clients and customers?