- Penny-Wise, Pound Foolish: When Price Doesn’t Matter
- August 27, 2010 | Author: Donna Ray Chmura
- Law Firm: Sands Anderson PC - Raleigh Office
When we bought our house, a partially renovated REO property, I worked closely with our insurance agent to create an insurance policy based on the actual features of the house. I didn’t choose the cheapest home-owners policy, but the one that would allow us to rebuild what we had in the event of a worst-case scenario.
In these tough economic times, many people are making purchasing decisions based on price alone. Sometimes, price is not the most relevant factor. Saving a few cents on the front end may be quite foolish down the road.
A web designer I know is now paying a little more for his accountant that he had in the past, but the accountant is available to answer questions and makes producing a P&L statement very easy. It was worth the extra $300/year to have access to information and to avoid aggravation.
In what situations do you think price is not the most important purchasing criteria? What other factors are important?