When Going Cheap Gets Expensive

I know a guy who bought a house. He got what seemed to be a deal. It was a "for sale by owner" house, so he saved money by avoiding a real estate agent's commission and he saved money on a home inspection. The house looked fine so why pay someone to go over the house with a fine-tooth comb and make a lot of expensive suggestions? Well, he soon found out why it would have been a good idea. After he moved in he discovered some foundation issues. And then some insulation issues - more specifically lack of insulation issues. Suddenly the inexpensive deal was becoming very expensive and he's probably spent far more than the agent's commission would have been.

There is something in us that seems to balk at using people who are experts in things that seem so easy for us to do ourselves. I almost fell victim to it once again. I mentioned last week that I'm planning a trip to England in May. I met someone who is a travel professional who offered to help me with flights, train tickets, and some hotel reservations. Then he told me his fee. Now, it's not an outrageous fee at all. It's very reasonable. But for a moment I had the thought, "Well, I can make phone calls and work the internet. I can save a little bit of money here." Then I remembered the guy who bought the house. Sure, I can do those things but at what cost? There are costs that aren't financial. There is the cost of time, the cost of frustration, and the cost of learning how to navigate the different reservation avenues. The professional's fee is more than reasonable if I can save myself the cost of trouble.

I'm not saying that we shouldn't overpay someone for a service or take advantage of great bargains. I'm just saying that sometimes our pride or an overestimation of our abilities winds up costing more than we would like to pay, especially in time which, unlike money, is irreplaceable once it's gone. There are certainly times when we have to learn to do things ourselves because we simply can't afford the cost of someone doing it for us. I clearly remember replacing a fuel pump on my dying car because I couldn't possibly afford a mechanic. But I've found it's far better to rely on those who have been there, done that, and can save the expensive cost of trouble.

One more thing: if you're a professional, don't be ashamed of what you charge. Don't cheat people. Don't overcharge. But remember you are offering people a great gift - the gift of your experience and knowledge. You are saving people far more in time, trouble, and frustration than they are paying in money.

Mike