Recently I received an e-mail with the following quote: “The Bitterness of Poor Quality Remains Long After the Sweetness of Low Price is Forgotten”
As consumers, over the course of our lives, there will be a plethora of times where we must endure the mental anguish of choosing between the quality of a product or service verses the price we must pay.
We live in a culture where the budget amount is the driving force when determining the price we should pay for a product or service, however, after pondering on the above quote, I began to wonder if we could possibly be working backwards. If the ultimate goal of purchasing a product or service is quality, then creating a budget prior to knowing the amount of financial obligation is like putting the cart before the horse.
We sometimes fool ourselves to believe that we received a deal when we are able to find a product or service that fits within our budget, however, nine times out of ten this is not the case. More times than not we actually increase our budget when we are forced to accept lower quality due to budget constraints. Lower quality typically means correcting what was done incorrectly the first time or replacing or optimizing a product long before the expiration of its lifespan.
In the world of HCM Technology, a successful purchase will aid in a company becoming more innovative, however, an HCM purchase based on a low price has the strong potential to lack the quality needed for the purchase to truly be a success. Countless times I have seen millions of dollars wasted, jobs lost and frustration built due to low price and low quality decisions.
The highest price does not always mean the highest quality, therefore, assessing a purchase based on a product or service’s ability to meet business requirements and successful past performance are vital to ensuring quality takes precedence over the enticement of a low price.
A mentor of mine who was heavily involved in community service once said he had to change the way he looked at things. This mentor used to create a budget, which determined what would be given back to the community. He finally came to a realization which has stuck with me throughout the years, the realization was, looking at the needs of the community first, then based upon those needs create a budget. This was profound, because it made me realize that a budget could not be created until the need and cost of providing that need is determined.
Director of Sales