subject: We Get What We Pay For [print this page] When it comes to purchasing any item, we consider our options and make our choice. If you think about it, our purchasing decisions can be separated into two categories.Fist is the commodity purchase. We see the items as equals with no material difference in quality. Price is the main factor of our decision. When you buy a gallon of milk, is there a big difference in quality among the different brands? A gallon of milk is pretty much the same regardless of the brand. We consider many of our day-to-day purchases as commodity purchases.The second type of purchase is a specialty purchase. With this type of purchase, we are willing to pay more for a higher level of quality. Getting the cheapest price is not our main concern. Our priority is getting a high level of quality.For some people, the type of car they drive is a specialty purchase. They are willing to pay more for the quality. We also use the commodity and specialty thought process in our decision making for services. Consider a lawyer, a photographer, a financial planner, and an appraiser.Suppose you were charged with a felony which had the possibility of life in prison. Would you choose the cheapest attorney to defend you or an attorney with a reputation of being one of the best? If you picked a highly reputable attorney, you would expect to pay more for the higher level of quality. Your choice could have an impact on your freedom.Suppose your daughter was getting married and needed a photographer for the wedding pictures, would you choose the cheapest photographer or someone who is highly qualified and has the expertise of capturing that once in a lifetime moment? We hope it's a once in a lifetime moment right? Every time you see those photos in the years to come, you will be reminded of your choice.If you are planning for retirement, would you select the cheapest financial planner or one who hold the certified financial planner (CFP) designation and has a proven track record?If you needing to know the value of an item like stock in a privately held company, a rare collection of antique furniture, or any other asset would you select the lowest priced appraiser or an appraiser who is qualified to accurately appraise the item? The outcome of your choice isn't your freedom, your future memories of a special day, or your retirement, but it can be worth a substantial amount of money.We all make purchases. Each one will either be a commodity or specialty purchase. Hiring an attorney, a photographer, a financial planner, or an appraiser is a specialty purchase for some and a commodity purchase for others. Only you can decide which one is right for your situation.
We Get What We Pay For
By: Joseph Phelon
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