No, Steve didn’t get a hair transplant. This is Shreya, his summer finance intern from Boston College! Now, back to the story.
The (First World) Problem
Three of my hair clips broke in one week. Each one cost about $5. So did I buy more $5 clips? No. I purchased one from Emi Jay for $36.
Now you might think that I’m ridiculous, obsessed with brand names, or materialistic. But I had a good reason for buying a hair clip 5x the cost. After researching, thinking, and some calculating – I realized that this expensive clip was well worth it.
My Rationale
- I wear a hair clip almost every day, let’s say 300 days a year
- If this $36 clip lasts even 36 days, that’s $1 a day
- And given the proven quality of this clip, it claims to last 2-3 years even with everyday use!
- Compare this to buying a new, cheap, breakable $5 clip every week
- Within 2 months I would have spent $40 – and still be left with nothing that works!
The moral of this story is not about hair clips. The same thought process should be applied to your business practices – at various times both the cheap and short lived and the expensive and durable will be the right choices. Determining which situation you are in is one key to building a successful business – a strong company that will withstand the test of time.
Always remember that the cheapest option is not always the prudent option over time.
For Example
- Vendors who are cheap but have unreliable quality and service
- New hires who are paid minimum wage but require more supervision
- Software that’s free but breaks constantly
I encourage you to “invest”. Invest in initiatives, relationships, products, and services that will provide you with consistent value every day. High quality items are almost always a good investment!
Final Thought
This is your sign to go ahead, and buy that $36 hair clip. Because feeling confident in your purchase and investment is often the smartest financial decision.
Want to Build a Business That Invests in What Actually Lasts?
At Dancey Growth Group, we help you realize the real, long-term value of your business decisions. With our consulting expertise, we make sure that every investment you make is backed by quality and built to last.
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