When is a Bargain Not a Bargain?
by Dera DeRoche-Jolet

I love getting a bargain and I’m not alone. I don’t know anyone who wants to pay more for a product or service when they could get it somewhere else for less money.
But some consumers have to find the absolute lowest price on whatever it is that they are buying.

It doesn’t matter whether it’s a TV, a car, or clothes - as long as it is the least expensive. Even if it's lower quality, they always buy the cheapest.

Buying the cheapest is often a great way of saving money but not always.

The cheapest product or the "free" product is not always the best. As an alarm company owner, you sometimes have to be willing to pay extra for a service or product if it is clearly better than the less expensive version of the same product or service. It's not always easy, especially when you’re watching the bottom line.

Sometimes in trying to save money, you wind up costing your business money down the road.

Let me give you an example. You need a computer for your business and wind up getting a "great deal" on an older model. Unfortunately, you find that it’s too slow and you’re wasting more time, energy and money than you saved with your "bargain." Not only that, but now your computer isn’t working properly and the place you got it offers no support.

As a business owner, you've got to learn where you can pinch pennies and where it's best to not cut corners. It’s a good idea to network and speak with other business owners. They may have had experience and be able to recommend something that will help you out.

In addition to computers, here are a few other areas you should not look for a bargain in:

Equipment

Just like the computer, the equipment and tools you use have an effect in the long run. Cheaper tools to do the job may not last as long. In addition, they may not do the job as quickly and as efficiently as you might have hoped.

Products

Less expensive products are one thing, cheap is another. If your customers are unhappy with a system that constantly is in need of service, it’s a sure bet that your reputation will also be in need of service.

Service and Support

It's not enough to sell your customer an alarm system. You've also got to be able to install it as well as provide instructions and support on how to use the system. Don’t take the cheapest route when it comes to employees. Great customer service and support will get you repeat business and referrals. Bad customer service and support can ruin your business.

Monitoring

Just like your employees, your monitoring station is a link to your customers. If they are not doing a great job for you, it will reflect adversely on your company. For that "bargain" of saving a couple of dollars, you might wind up losing customers or worse.

Advertising and Marketing

Your prospects will get their first impression of you and your business from what they see and hear, whether it’s a classified ad, a press release, a brochure, your web site, a radio ad or even a TV commercial. You don’t get another opportunity for a first impression. That’s why this area is very important.

Don’t hand out cheap marketing materials and don’t try to draw traffic to a poorly designed, web site. Take a look at what successful businesses are doing. Look at their web pages, sales letters, business cards, billboards, radio commercials, etc. You'll be able to see what's working for them.

You can learn these things if you don't already have the knowledge and skills but you can't learn everything all at once. For these areas, you are usually better off hiring a professional.

Yes, there are some things you can do yourself and some things you can get cheaper or for free. But if you really want to succeed in business, there are some areas where you will have to pay top dollar for quality personnel, products and services. It's your job to learn when.

A bargain is definitely not a bargain when it hurts your business.