Why “You DON’T Get What You Pay For”

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The phrase “You get what you pay for” is so overused, and I have found that the vast majority of lips from which this phrase emits belong to product or service providers who use it as a means of justifying their high price.

“You can find somebody cheaper, but you get what you pay for,” they warn.  Do you?

• When I go to Walmart and get the same exact product as some other store, but for 10% less, am I getting what I pay for?

• If I use a 25% Off Coupon somewhere, or buy in bulk, or take advantage of a liquidation sale, am I getting what I pay for?

• If I buy snowboarding equipment when the season is over and the prices are much lower, is the quality of the merchandise somehow worse than it was 4 months ago?

• And if I find a contractor, or a realtor, or a virtual assistant who can do the job for less, am I necessarily getting worse service?  The answer is not Yes or No–it’s Maybe–and that’s exactly why the phrase “You get what you pay for” is untrue.

A better phrasing would be “On many occasions, those who excel at a specific service are able to command higher fees, but with a little effort and searching on your part, you may be able to find someone who can do just as good of a job but for whatever reason is happy to charge significantly less than their competition.”

For example, I recently found out that many virtual assistants charge $30, $40, or even $50 per hour for their services.  And are they worth it?  I think so.

But I want a deal.  I want the same service for less money.  And if you think this is selfish, and you’ve ever shopped around before making a purchase or have taken advantage of a sale, then you’re a hypocrite.

And just because higher fees mean better service most of the time doesn’t mean that you can’t get the same quality for less if you find the right person who will.

Why do some people not charge more?  Some do it in order to retain long-term work, some do it in order to make more money in bulk, some do it because they feel it would not be ethical to charge more.  Some do it because in their geographical area or for this time in their life, what they charge is enough to make them happy and they don’t feel inclined to ask for more.  Ultimately, I don’t care why as long as they do.  It’s their business decision and as long as it doesn’t affect the quality of their services, who cares?

For this reason, I only use realtors that charge a flat $995 listing fee.  Why?  Because I’ve paid 3% (or $6,000 – $10,000) and I’ve paid $995 and my houses have sold just as quickly (or slowly) either way.  So why not save thousands of dollars?

I’ve found contractors who would do a good job, even in times when everyone who could lift a hammer had more work than they could handle, who would still paint a house for $1 per square foot of floor space, or would mow a lawn for $20.

And this is the exact reason why I spent years perfecting a system by which you can find a virtual assistant who can do a terrific job for only $10-15 per hour.  It’s still worth it to pay double, but why do it if you don’t have to?

This is why when someone tells me “You get what you pay for,” I usually know to look elsewhere, because my experience, as well as that of investors I’ve networked with nationwide, has proven that that is simply not an absolute truth.