When To Choose Quality Over Price

Borrowing, Budgeting, Credit Rating, Insurance, Investing & Retiring, Life Insurance

The old phrase “you get what you pay for” really does ring true in some cases. There are some cases where quality is far more important than price. Would you consider discount brain surgery? Probably not… and if you would, we suspect it might be repeat business.

Medicine warrants a whole category of areas where quality is more important than price but consider these non-medical examples that are far more likely to affect you than brain surgery.

  • Auto Maintenance – Most of us are good about oil changes, and possibly tire rotations, but too many people ignore warning lights and skip the larger maintenance items like tune-ups, transmission maintenance, and tire replacement. Others choose cheap and unqualified mechanics that may not have the tools and information necessary to work on today’s vehicles that are more complex.

All it takes is one blown tire that causes a wreck or an engine problem that leaves you stranded to blow well past your savings (not to mention causing you and others potential harm). If you are interested in a personal loan, visit our curated list of top lenders.

  • Cheap Insurance – By cheap insurance, we do not mean inexpensive insurance. We mean insurance where the exclusions, coverage issues, and service are so poor that you are unlikely to ever successfully file a claim. This may be true in all varieties of insurance – health, auto, life, home… even warranty insurance for devices like cell phones and computers.

Check reviews of any insurer and plan before making a purchase. Get free life insurance quotes and apply for your top choice in minutes using this online Life Insurance Quote Comparison Tool.

  • Store Credit Cards – You may think that opening a credit account at multiple stores to get discounts on merchandise is a bargain, and it can be… within reason. If you open too many accounts, not only are you likely to overspend and miss payments by failing to keep track of cards, you will probably also damage your credit rating. You can check your credit score and read your credit report for free within minutes by joining MoneyTips.
  • Coupons and Promotions – BOGOs, coupons, and other promotions for merchandise that you would not normally buy may cost you in the long run, if you never use or do not like the product you purchased. Stick with things that you normally use or intended to buy anyway.
  • Cheap Gas – Gasoline is a commodity item. If one vendor is selling it for considerably less than the others – especially if they are not part of a larger distribution chain – be very suspicious. Contaminated gas at best will result in poor mileage, and at worst may harm your engine.
  • Bulk Perishables – Warehouse stores like Costco and Sam’s Club offer large amounts at discounted prices. That is great for non-perishable items like toilet paper and cleaning supplies, assuming that you have a place to store them. For perishable items, or purchases you try “just to see if you like them”, you are likely to end up throwing away much of your purchase and the corresponding savings. If it takes you an extra hour of driving there, shopping and waiting in line than shopping elsewhere to save a few dollars, then what is your time worth?
  • Legal Services – If something is important enough to require the services of a lawyer, it deserves the attention of a skilled one. You can certainly overpay for legal services as well, but do not simply go with the cheapest lawyer available – and remember the old axiom about people who represent themselves. Do some background work to verify their expertise in the field and get references whenever possible.

You can probably think of other examples where a quality purchase costs more upfront but saves money in the end. Remember all of these examples when you are tempted to buy something on the cheap. It may be the correct move – but put some thought into it first and do not buy on impulse.

If you want more credit to invest in quality, check out our list of credit card offers.

Photo ©iStockphoto.com/smederevac

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