Price is What You Pay—Value is What You Receive
A large church in a downtown location had a problem with their sound system. The parishioners knew that they had a problem, the preacher knew that they had a problem and the board of Deacons knew that the problem was not getting any better.
Like any good nonprofit entity, the board of Deacons wanted to be sure that they “got the best deal” for the money that they were going to spend. The Deacons formed a committee of lay leaders and members and sought out to find the “best” deal for the budget that had been allocated for the sound system repairs.
As usual, one company presented a bid which was significantly and substantially lower than the others. The Deacons and the sound renovation committee reviewed all of the bids, performed due diligence on the various offerors and elected to hire the firm that submitted the lowest bid.
The sound system was repaired—or so the Deacons thought. After the budget had been thoroughly expended, the successful offeror said that the work was complete and successful. Well, the sound system was improved, marginally from what it was originally, but nowhere near what was envisioned or expected.
The Board of Deacons accepted the work, but unhappiness set in from the time that the work was accepted. After a couple of months, the Board of Deacons realized, as did the rest of the congregation that more repairs were needed on the sound system. Unfortunately, no additional budget was available to make the needed repairs. Seeking some redress, the church called the company that had originally been contracted for the work. Sadly, the firm had gone out of business—there was no guarantee to the work that the church had paid for.
Another offeror who was originally unsuccessful with the initial offer was called to come and help remediate the work that the initial contractor had performed. Needless to say, much of the original work was not done according to standards for the sound industry. With no additional money available for rework, the church still today has an inferior sound system that is maintained by another company which has a high reputation and well recognized for outstanding value. This firm is not the cheapest in town, however, the work speaks for itself.
Remember, price is what you pay, value is what you receive. Be careful when you buy—if something is significantly cheaper than others, there is probably a reason why. Check it out before you spend your hard earned money. At the end of the day, you will be money ahead.