Price Versus Cost

For a few years, I had been putting off a major decision to replace the windows in my house. Living in the hurricane belt, there are products that you can buy that can help with this tropical weather dilemma. It was not that my current windows were in bad shape, to the contrary, I had only put them in about a dozen years before. But they were not impact resistant or rated to 140 mph to protect against flying debris in a storm. Furthermore, new windows would allow me to avoid manually putting up Hurricane Shutters every time the Weather Channel began its marathon coverage of the next storm to hit my state.

With that, I did what most people do. I obtained three quotes from providers for the project. Each one came to my house and pitched me their solution and provided me with an estimate for the job. The three prices were relatively close, separated by about $1,800 from high to low. I promptly selected the highest bidder and scheduled the job. But why?

Often as sellers, we are asked by our prospects and clients about our price for the product we are selling. I don’t suppose you have ever heard this. (Sarcasm) “So, what is your price?” If I got a penny for every time I have heard that request, I would have amassed a small fortune. This very phrase should not have a paralyzing effect. We should not believe that if we don’t give the price, that we will lose the sale. Maybe asking for the price is just a habit of the buyer when the lowest price may not be the sole condition of their purchase.

So, why did I choose the highest bidder on my project? After analyzing the three bids, I discovered the higher price included everything I wanted and would need going forward, such as maintenance on the windows if something might happen. The company, a well-known brand, has also been in business for years. And in my opinion, is very likely to be there, five to ten years from now. Also, the winning bidder was clear to indicate the days they would arrive for the project and how long it would ta