The standard rule on the three factors involved in every purchase
The three factors in every purchase are:
• The Price/Cost
• The Timing/Getting the Product/Service when You Want It
• The Value/Quality
My life has gone very well because I accept general principles, common business precepts, as applicable to me. The standard rule on the three factors involved in every purchase is that you can, at best, secure only two out of the three.
Price/Cost: If you provide clear, detailed information about what you require, reputable companies will provide you an initial price quote. This will probably be accurate two-thirds to ninety per cent of the time. The variance occurs when all the facts are not known, either you do not have all the facts or the process reveals more complex requirements. For example, when I call the plumber because the drain in our basement is backing up, his scoping the line may reveal a collapsed sewer line. Price/cost is usually straightforward.
Timing: Can you get the product or service when you want it? This absolutely impacts your convenience and your price. An interesting business phenomenon is occurring in many large inspection companies. The concept is called “airline pricing.” For instance, you call for an inspection that you want next Tuesday at 1:30. The company responds that we can do that and the price will be $405; however, we have a cancellation this afternoon. If you could let us do the inspection then, the price would be $325.
Call for emergency plumbing service right now, and you will immediately see how timing affects your price. A to Z Inspections has said we can do your inspection the day you want for over 15,000 inspections. That availability is reflected in our price.
Value/Quality: Service providers are diagnosticians. If what you need is a detailed list of everything that is wrong with you, your car, or your property, the amount of time spent in your case is an important indicator IF tied to the next factor: training/knowledge/experience.
• Years in business?
• Number of this kind of surgery, repair, inspection, etc., provider has done?
• Certifications, degrees held?
• What and when was the last professional course taken?
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