Value versus Price

Mortgage and Lending with Cardinal Financial Company, Limited Partnership NMLS 365858

So I was getting ready for work this morning, and I opened up a drawer in my bathroom and grabbed a Q-Tip.  Sitting next to this half empty box of cotton swabs was a cheap version of the same product.  I remember when I bought them last summer at the Dollar Store around the corner from my house.  We were having a pool party and we were running low on something so I drove to the Dollar Store less than a block from my house.  While I was there I grabbed a box of these cool looking cotton swabs.  They were 500 swabs for a $1.50.  That's less than a penny a swab.  So low in fact that my mortgage calculator just reads $0.00 (for those pulling out their calculators it was actually $0.003 each).  They weren't real special, but the shaft was a blue, plastic and after just having a baby boy, I thought it would be a nice addition compared to the white ones Q-Tip makes.  Besides, the name brand variety was about $3.50 for 500 (I know, a staggering $0.004 more than the store brand and still less than a penny a swab).  So I buy these blue swabs and the other things and get back to the house. 

Well, fastforward to after the pool party is done and I'm in the bathroom cleaning up.  I grab one of those "cool" looking swabs and go about my business trying to get some pool water that's hanging out in my ear.  When I pull out the stick, it's missing something:  the cotton ball at the end.  After a bout with tweezers, i grabbed another one, thinking maybe I grabbed a "dud".  The next 3 swabs all did the same thing and one actually poked my ear.  They kept coming apart.  Now granted, on the boxes of ALL cotton swabs it says NOT TO BE PLACED IN EAR CANAL, but that's what I use it for.  So I get dressed, go to Wal-Mart and buy me a box of Q-Tips Name Brand Cotton Swabs.  I spent like $4.00 for a box of 300 Q-Tips.  So here I am today, staring down at a box of cotton swabs I never use.  In the grand scheme of things it wasn't really about the money. 

So I wasted over $3 to learn a lesson.  But it makes you realize no matter how much you pay for anything, the bottom line is value should outweigh price.  It's not necesserilly how much you pay for something, but what you get for your investment, the service that comes with it, and are you happy with the results.  If I'm thristy and I pay $5 for a can of soda, and it quenches my thirst, is tasty, and gets me going, I got a good value.  But even if I pay $0.35 for a bottle of soda but can't stand the taste and throw it away I got bad value.  Value should never have a direct reflection of price, but the benefits that come with something.  Think about that next time when you stick a q-tip in your ear!

Comments (2)

Don Draughn - Mortgage Professional
High Point, NC
Great analogy.  Just goes to confirm the old saying, "You get what you pay for."  It applies to everything in life.
Apr 04, 2008 03:30 AM
Kim Martinez
Advantage Homes - Santa Barbara, CA
Santa Barbara Real Estate Specialist
Hi James...That is helpful when dealing with a seller who wants you to cut your commission too!  I have heard "Well, the other guy only charges 4%."  I have usually responded "not all agents perform equally, I have heard that some agents do cut their commissions too...and sometimes I have agreed that they should."  Then don't say anything...they have always come around and commission was off the table!  That can work for broker points or any fees that are "normal."  Good selling!
Apr 04, 2008 05:08 AM