Why Being Cheap Could Be Costing You More

Sounds counterintuitive, doesn’t it? 

Well, not really. 

If you hear a slight rattling in your car, would you just turn your radio up to drown out the sound? Or maybe try to fix it on your own? Sounds like an easy and cheap fix, but what happens when the rattling grows louder, or your car shuts down one day? It might have been better to deal with the issue properly through a professional (mechanic) in the first place.

In the same way, you should also use this logic in business. A major issue faced by many startups is limited funds. These business owners often think it’s better to opt for cheaper options for their inventory, designs, and even marketing. Getting a friend or family member who’s “always on Instagram” to run your digital marketing might be an easier and cheaper solution than hiring a marketing agency but think about what you’re missing. An agency can offer tried and true strategies and solutions to grow your business that they have likely tested on other businesses. Especially in the fetal stages, being miserly will not aid in reaching your business’s full potential and can be more expensive in the long run. 

For example, there are several great free apps to create logos and templates for your business. The problem is, they aren’t unique, and others can use the same template. A logo should be a unique identifier for your business, and at some point down the line, you’ll have to upgrade it. Changing the logo isn’t merely creating a new design; you’ll need to get that logo reprinted on all your inventory, signage, advertisements, website etc. Sounds expensive, doesn’t it?

Hiring professionals may come at higher costs, but that’s the price of assurance. Professionals charge for their years of expertise and value, at the very least, you’ll be confident that whatever project you hire them for, it will be done correctly and be beneficial to your business. Too often, the cheaper route has led to persons paying double or triple the amount to correct mistakes made from a “cheap” business decision. 

There’s a famous quote by Red Adair that says, “If you think it's expensive to hire a professional to do the job, wait until you hire an amateur." The bottom line is, your business will not necessarily grow by cutting costs. Growth comes from increasing revenue, which will only happen when you offer your customers the best products and services.  Ask yourself, “Do I want my business to be known as the  cheapest in the industry or the best?”