Price is what you pay. Value is what you get. Even the Victorians knew that!

You can learn a lot from the past. Not far from my City Centre Office is a wealth of Victorian architecture and along with the common acceptance that the age created the foundations for ‘Modern Britain’, the Victorians seemed to have it ‘licked’ when it came to the meaning of ‘Value’.

For me, one of the most prominent social thinkers of the time, John Ruskin, captured it beautifully when he stated –

“It’s unwise to pay too much, but it’s worse to pay too little. When you pay too much, you lose a little money – that’s all. When you pay too little, you sometimes lose everything, because the thing you bought was incapable of doing the thing it was bought to do. The common law of business balance prohibits paying a little and getting a lot – it can’t be done. If you deal with the lowest bidder, it is well to add something for the risk you run, and if you do that you will have enough to pay for something better.”

Don’t get me wrong, there will always be a place for ‘cheap’ in the world. Businesses like the Pound Shop or similarly named are successful because they offer what they promote – cheap goods. Buyers rarely visit to purchase something that has a long life, is of the highest quality or something that could be given as a special gift. Unfortunately in other business fields there is often a big difference in what you get, compared with what you expected to get – and it’s rarely positive.

A friend of mine recently chose a local garage to fix their car. Phoning around for quotes they went for the second cheapest. What should’ve been a simple job became a long and complicated one, where lack of expertise and knowledge ended up costing him far more money (and perhaps more importantly time). My friend is not a fool but ended up feeling like one. He’ll say it himself that he knew that it was a gamble and if the original garage had been capable of doing the work agreed, to the correct timescale and pricing, he would’ve saved some money. Unfortunately it very rarely works out this way of course.

The same could be said of selling your own property (usually your biggest asset) and making sure you get the right agent from the outset. With so many agents claiming to offer ‘everything’, often there isn’t a clear picture on perceived value for what you pay.

I’ve spoken about it in a previous post but both locally and nationally in the Estate Agency Industry it is something that perhaps needs greater clarification.

A low fee may initially be enticing but that’s usually because there are a smaller number of people (1 or 2?) to pay a wage to. Even the most capable people in the industry cannot answer the phone whilst undertaking a viewing, valuing a property, chasing solicitors, giving a vendor a marketing update, answering phone calls, replying to email and website leads, booking viewings, valuations, 7 days a week etc, etc – you get the picture.

“If you deal with the lowest bidder, it is well to add something for the risk you run, and if you do that you will have enough to pay for something better.”

You can learn a lot from the past.

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