Performance vs. Cost: Why the Cheapest Option Isn’t Always Best

Almost every business owner has one thing at the forefront of their minds: profit. After all, earning a good living and being able to afford the finer things in life is the main reason that people set their own business up! However, with every executive decision that is made regarding a business’ practice and direction, one thing should always be debated: performance versus cost. At first, it may appear logical for the individual running a business to always opt for the cheapest option available. After all, the fewer outgoings any company has, the more money is reserved for profit. However, cutting back and doing everything on as low a budget as possible doesn’t always work favorably when it comes to generating profit. Why? Well, certain things are often cheap for a reason. Quality and performance come at a price. Here are just a few areas where the cheapest option isn’t always the best choice and where forking out a little more can have a profoundly positive impact on your company and its brand image.

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Shipping

Securing a sale isn’t the end of your company’s engagement with the client or buyer. You have to get their goods to them in good condition and in good time! The better the service you provide following the sale, the more likely a customer or client is to return, make recommendations, and leave good reviews. So the shipping process can make all the difference when it comes to bringing customers back time and time again as well as drawing new customers in. Now, there are plenty of budget shipping options out there. Economy shipping may well seem appealing. It will have a much lower price tag per item, and if you have a particularly large number of items needing transportation, this figure can differ dramatically from the cost of other services.

But is your customer going to be content receiving their goods weeks down the line? We live in a world where immediacy sells. People expect to have things with them as soon as possible. So the sooner your goods get there, the more positive your customer base image of your brand will be. If items take a long time, you’ll receive repeat requests as to where it is, how long it will be, and some may even request a refund or compensation for their wait. Generally speaking, transport by road is best for short distance deliveries. If your goods are going to multiple buyers, a courier will often be best. They pick up your individually packed goods directly from you and transfer them to a depot where they will be grouped into similar areas and transported to them as quickly and conveniently as possible. If you have a bulk load going to one client, hiring a van or lorry and driver could prove more effective, taking everything in one neat delivery from you to its destination. If your goods are going international, ocean freight is the cheapest option, but again, this will take a relatively long time. Instead, mail via air. This will dramatically reduce the products’ journey time. For bulk loads, you will need to send via a large plane with a large cargo capacity such as an 124 aircraft.

Outsourced Staff

Generally, when it comes to your staff, you will offer set salaries, increasing their wage over time as they are promoted or gain more qualifications. However, many business owners experience a little more confusion when it comes to outsourced staff. Outsourced staff are freelance and will generally complete one-off tasks for one-off payments. When you’re searching for freelance individuals, there will often be multiple options available to you, and the prices that they charge will vary. So how do you know who to bring in? Most will automatically opt for the individual offering the lowest price. But there’s usually a reason that less is being charged: they may be inexperienced or trying their luck at the task. What you look into shouldn’t be the cost. It should be the individual’s experience, portfolio, and references. You want to ensure that the person is competent and knows what they’re doing. It’s really not all too surprising that someone will be likely to charge more if they deserve it! Their work will likely be better and require less revision later down the line (which would end up costing you more).

Shipping and staff are just two aspects of your business that have profound effects on how happy people will be with the services that you provide. So, invest in them!

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About Dequiana Jackson

Dequiana Jackson, Founder of Inspired Marketing, Inc., helps overachieving women entrepreneurs conquer limiting beliefs and create marketing plans that win. This includes one-on-one marketing plan development, digital product creation, web design and content marketing. Dequiana is the author of Know Your Business: How to Attract Ideal Clients & Sell More and runs the award-winning blog, Entrepreneur-Resources.net.

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