The 3 Costliest Mistakes Business Owners Make
Updated: May 7, 2021
Remember the old saying? You get what you pay for.
At Quantum Creative Media, we have experienced the tendency of some business owners to let mere price drive all of their decisions when running a business. However, the actual price is only one variable of the overall cost. Cost is more than just physical money. Cost entails time, efficiency, personal effort, reputation, emotional cost, and monetary cost. The three most costly mistakes a business owner can make are:
1) Buying Cheap vs. Quality
When contemplating a new piece of equipment or substantial purchase of any kind, business owners need to do their due diligence. Price is only one variable in researching products and services. The most crucial variable that will save the most money over time is quality. Buy cheap now and pay double the cost later. The result is penny-wise and pound foolish. Research the quality of the products and services that are being invested in. Yes, this is an investment. Like an investment, these products and services should not only assist with marketing or running a business more efficiently but actually, end up bringing in more capital -- paying for themselves and more! The old adage, "You get what you pay for," is valid 99% of the time.
2) Looking Cheap
How many times have we heard clients (who are business owners) state, "Joe over at such and such will do that job for me cheaper." Meanwhile, we're thinking, and I know why he is cheaper; quality is not his guarantee. Price matching only works when it is a price for the same product. Home Depot and Lowe's prices match the same products all the time. A box fan from a particular company is the SAME box fan whether one buys it from either place. The quality does not lie in the store, but with the company that produces the fan. This system does not equate with service-based businesses. If cheap is want the customer wants, then Quantum Creative Media is the wrong place for him/her if one is looking for quality at a fair price -- BINGO! Meanwhile, the haggling business owner looks cheap. In turn, how likely are we to become a customer of this person now that we are aware his products/services may be just as cheap as he is?
3) Accepting Cheap Customers
A service-based business owner should not want to accept everyone as their customer. These people have certain types of customers in mind whom they would like to help and do business with. This is known as the Avatar Customer. Again, quality, even in a customer base, goes a long way, saving money, time, personal effort, and emotional cost in the long run. The most demanding customer is the person who doesn't have the funds to get what they want, and they expect the business to cut "deals" or throw in a ton of freebies. Even should the business owner decide to take on this type of customer to "help them out," he/s he soon regrets this decision as these folks are not only cheap but are very difficult to please and take up much valuable time.
We business owners are customers too. Sometimes it is difficult to remember to be the type of customer we want to draw to ourselves -- because, in essence, that is what we do.