Intrinsic Value v. Low Price | Making Wise Choices When Choosing Products and Service Providers

Intrinsic Value v. Low Price

Making Wise Choices When Choosing Products and Service Providers

Any discussion about making wise choices of necessity must include a discussion around how we come to conclusions about which vendor or service provider we choose.

One thing I learned… is that perception matters. – Jack Welch

Perception dominates our decision making process. Without it, we would never act. It’s the only thing we can change.

According to Dr. Nicholas Romanov, perception includes “senses, feelings, ideas, thoughts, (and) theories.” He says the final point of perception is concept – a general idea.

“The bitterness of poor quality remains long after the sweetness of low price is forgotten.” – Benjamin Franklin

Purchasers of products and services for buildings tend to assume all things being equal, lowest price is the best choice, despite facts to the contrary. This isn’t to suggest that the highest price is always the better choice; but, most often it is.

Let’s look to Sears that for many years sold tools in three categories: Good, Better, Best. As you would expect, pricing followed product quality – the better the quality, the higher the price. Sears did an excellent job of managing perceptions.

So, how does one fine the best vendor or service provider? Qualified referrals remain forever the best tools for finding the best value. Do you use Yelp or Angie’s List? How about Amazon? Following recommendations of customers who have actually used a product or service, serves to refine and validate your perceptions. As a rule of thumb, the longer a vendor’s or service provider’s history with a customer, the more reliable the recommendation.

What about “street bids”?

We don’t participate. Regardless how low my price, someone will usually bid a lower price.

Keep in mind this simple truth: we all get our materials from the same manufacturers, by and large. The outcome isn’t a function necessarily of the materials applied, but the knowledge and skills that deploy those products.

Rockwall Controls Company, Inc. is a design-build service provider that assumes full responsibility for the design, materials, installation, programming, commissioning and after-market technical support, therefore, there is no “finger pointing”.

John N. White
Rockwall Controls Company, Inc.
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