A Word About Diamond Pricing

I saw this quotation on an internet search and, although it was focused towards diamond purchasing, it is appropriate for nearly anything:

"It is unwise to pay too much, but it is worse to pay too little. When you pay too much, you lose a little money, that's all... When you pay too little, sometimes you lose everything, because the thing you bought was incapable of doing the thing it was bought to do. The common law of business balance prohibits paying a little and getting a lot, it can't be done. If you deal with the lowest bidder, it is well to add something for the risk you run, and if you do that, you will have enough to pay for something better." - John Ruskin (1819 - 1900)

Isn't this the case for nearly everything in the business world? We all try to decrease our costs, but many times the lowest cost is not the best option for our businesses -nor our customers.

Keep this in mind the next time a customer complains about your pricing. While you are discussing your prices, ensure you have added the value that your higher prices should be delivering.

When a vendor comes to you to earn your business, keep this in mind as well. Sure they can offer lower prices than what you may be paying already for a service or product, but what may you be losing at the price of a lower dollar sign?