Lowest Price Doesn't Mean It's Cheaper

I was asked the other day about the price of an Ecommerce store and if I thought the price was cheap.

My response was that it depends. It shouldn't only matter what you're willing and able to afford but think carefully about what you're getting in return.

These days people find all sorts of creative ways to get your money. Some sell their products for more money because it comes with all the bells and whistles. Others simply have a different revenue model. Instead of charging you up front for their complete suite of products, they simply sell you the cheaper version of their product, knowing that once you're in then you'll want to upgrade and eventually end up paying for all the bells and whistles later. It's the old bait and reel.

Again, it all has to relate to YOU and what YOUR needs are. Even if two products are the same price, chances are one is actually a better deal. Sounds strange? Let me give you an example. You can pay $3 for a freshly baked cookie or $3 for a plastic cookie. Which one is the better deal? If you're hungry then the $3 freshly baked cookie is a better deal. But if you're looking for a toy for your pet, then a $3 plastic cookie is the cheaper alternative to one that won't be around for very long. Both cookies cost $3 but depending on what you're looking for, one is certainly a better deal than the other. One is cheaper in the sense of being a better deal and giving you the return you're expecting for your money.

Stores sometimes break product prices down to the unit price, which makes it easier for us to identify the better deal. Thus in some cases the more expensive product is the better deal because the unit price is cheaper. This type of comparison isn't so obvious when it comes to technology.

Next time you're looking to purchase an Ecommerce solution, develop a new web site, or implement some sort of technology at your business, don't be sold on the cheaper solution. Get the details of what you're getting in return and don't forget to ask about hidden costs and costs for maintenance or upgrades. The lowest price doesn't always mean it is the cheaper solution.

Comments

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